Fundamental analysis · SEC EDGAR · TTM through 30/04/2026
SNPS · Nasdaq · Technology
Fundamental quality
62
out of 100
Synopsys Inc grows profitably: it increases revenue at double digits (16.9% a year) without giving up profitability (net margin 8.9%). On fundamental quality it scores 62 out of 100, profiling it as a company of reasonable quality. Its weakest area is its growth (revenue +16.9%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.
Synopsys sells the software chips are designed with (EDA): the tools NVIDIA, Apple or Intel use to create their processors before manufacturing them. Together with Cadence it forms a de facto duopoly in an industry that can't be bypassed.
EPS growth: 0.4% · Revenue growth: 16.9%
Net margin: 8.9% · ROE: 2.5% · ROIC: 1.5%
Net debt/EBITDA: 3.66x · FCF: 30.3%
Source: SEC EDGAR · TTM through 30/04/2026
The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its growth drags it down the most.
Percentile against the other 101 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).
Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.
Key concepts
What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow
| Year | Revenue | Net income | Free cash flow | Net debt |
|---|---|---|---|---|
| 2020 | 3,685 | 664 | 837 | -1,108 |
| 2021 | 4,204 | 758 | 1,399 | -1,333 |
| 2022 | 5,082 | 985 | 1,602 | -1,397 |
| 2023 | 5,318 | 1,230 | 1,514 | -1,416 |
| 2024 | 6,127 | 2,263 | 1,268 | -3,881 |
| 2025 | 7,054 | 1,332 | 1,349 | 10,596 |
Between 2020 and 2025, revenue went from $3,685M to $7,054M (+91%) and net income went from $664M to $1,332M (+101%).
Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.
Latest results
Figures for the half-year ended April 30, 2026, versus the half-year ended April 30, 2025 (SEC filings):
Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.
This company doesn't pay a dividend: it reinvests all its earnings back into the business.
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Is Synopsys Inc cheap or expensive?
That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).
Compute the valuation →Is Synopsys Inc a good company to invest in?
In terms of business quality, Synopsys Inc scores 62 out of 100 in our analysis, placing it as a company of reasonable quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.
Is Synopsys Inc a profitable company?
Synopsys Inc is profitable, with a net margin of 8.9%, though a thin one.
Does Synopsys Inc have a lot of debt?
Yes, its leverage is high: net debt is 3.66 times its EBITDA, and it has been rising.
Is Synopsys Inc growing?
Its revenue has grown 16.9% annualized in recent years and its earnings per share 0.4%, and without interruption since 2020.
Does Synopsys Inc generate cash?
Yes. It converts about 30.3% of its revenue into free cash flow, and has done so positively year after year.
The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.
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Who's behind the methodology and model · how the score is computed
Data: see Synopsys Inc's filings on EDGAR
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