Qualtix Stock Brief
Synopsys, Inc. (SNPS) stock analysis: business quality, valuation, and entry timing
Synopsys provides electronic design automation software and chip design IP used by nearly every semiconductor company. Recurring, high-margin revenue supports its quality, often with a high valuation. Public Qualtix model snapshot from 2026-10-26 for SNPS: business quality 49/100, a mixed model reading and valuation Fair. Today's verdict and Entry Timing are shown after a free sign-in.
Qualtix evaluates SNPS with a rules-based model that separates business quality, valuation, entry timing, red flags, and data confidence. The model scores first; AI explanations and the full Clean Brief help explain the result afterward.
Coverage note: Qualtix can analyze supported US stocks when SEC/FMP filing data is available. The 1,000+ stock universe refers to the daily screener used for discovery, not the full analysis limit.
SNPS public evidence metrics from the latest validated Qualtix snapshot
| Metric | Value | Why it matters | Source |
|---|---|---|---|
| Revenue growth | 21.4% | 3-year revenue CAGR | FMP, computed |
| FCF margin | 29.6% | Free cash flow divided by revenue | FMP, computed |
| Operating margin | 9.8% | Profitability margin | FMP, computed |
| Gross margin | 72.4% | Revenue retained after direct costs | FMP, computed |
| Return on capital (pre-tax) | 2.2% | Operating profit before tax, divided by equity plus debt | FMP, computed |
| ROE | 3.5% | Return on equity | FMP, computed |
| Cash and debt | Cash and investments $3.6B / Debt $10.8B | Balance-sheet context | FMP, reported |
| TTM P/E | 81.2x | Price to trailing earnings | FMP, computed |
Qualtix view
- Business quality: 49/100, a mixed model reading.
- Valuation is currently labeled Fair, which the model weighs separately from business quality.
Today's verdict
- Today's model verdict and Entry Timing for SNPS update every market day and are shown after a free sign-in.
Data and snapshot dates
- Model snapshot date: 2026-10-26.
- Financial data through: 2026-07-31.
- Scored by the current Qualtix model.
- Data-confidence status: high.
What supports the current view
- Business Quality and Valuation are shown above; the full brief adds the complete model view.
What weakens the current view
- Business quality remains below the model's stronger-company threshold (49/100).
- Valuation is currently labeled Fair, so price still matters.
What changed
- Business Quality was unchanged from the previous snapshot.
What to research next
- Start with the weaker Business Quality signal (49/100): review revenue durability, margins, cash generation, and balance-sheet pressure.
- Compare SNPS's Fair valuation label with similar companies before treating price as a clear advantage.
- Compare SNPS with CDNS and NVDA to see whether the model edge is company-specific or sector-wide.
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Qualtix is for research and education only. It is not financial advice.