Quality score · SNPS · Technology

Is Synopsys Inc. a quality business?

Synopsys Inc. (SNPS) scored on five pillars from its reported financial statements, and ranked against 260 Technology companies.

5.0/ 10
Mixed quality
as of October 17, 2026
Profitability
3.6 Weak
Solvency
5.3 Average
Growth
5.7 Average
Efficiency
4.7 Average
Predictability
5.9 Average
Strongest pillar: Predictability · Weakest: Profitability

Synopsys Inc. (SNPS) scores 5.0 out of 10 as of , computed from its reported financial statements. That reads as mixed quality. The reading rests on predictability, and profitability is what holds it back.

Data provided by Twelve Data. Scores are computed by Lemma Analysis from reported financials.

Does Synopsys Inc. have an economic moat?

Not enough data

We cannot judge Synopsys Inc. yet, because fewer than five years had both a return on capital and a cost of capital we could measure. This is not a “no”.

Quantitative signs of a moat, read from the filed statements. This is not a judgement of where it comes from (brand, network effects, switching costs). How Lemma measures a moat →

How Synopsys Inc. scores

On the filings behind it, Synopsys Inc. earns 5.0 out of 10 for business quality as of October 17, 2026. That is mixed quality on our scale. A mixed reading means the strengths and weaknesses roughly cancel out, and the case for the business depends on which pillars you care about most. The figure is a weighted average of five pillars, each scored from 0 to 10 against sector-aware benchmarks from reported statements.

Ranked with the 260 Technology companies Lemma publishes, the score sits at the 34th percentile, in the lower half of the group, above the bottom quarter. For reference, the middle of the group scores 5.9 and a company needs 6.7 to reach its top quarter, which leaves Synopsys Inc. below the median.

Pillar by pillar

Profitability

On profitability, Synopsys Inc. scores 3.6, a weak reading. Its peers have a median of 4.6 across 256 Technology companies, which places it below them, at the 39th percentile. Low margins and returns leave little cushion, so a downturn or a cost increase reaches the bottom line quickly.

Solvency

Solvency scores 5.3 out of 10, which reads as average. The median across 194 Technology companies is 8.0, so Synopsys Inc. is well below its peers on this pillar and ranks at the 17th percentile. Middling solvency says the balance sheet is neither a strength nor a constraint today.

Growth

Synopsys Inc.’s growth score is 5.7 out of 10 (average). Against a median of 6.4 among 207 Technology companies, that is below the group and the 39th percentile. Average growth reflects a business expanding at roughly the pace of its sector, without a clear acceleration or decline.

Efficiency

Efficiency scores 4.7 out of 10, which reads as average. The median across 240 Technology companies is 7.1, so Synopsys Inc. is well below its peers on this pillar and ranks at the 15th percentile. An average efficiency reading suggests the business turns its assets and earnings into cash at roughly the rate its sector does.

Predictability

On predictability, Synopsys Inc. scores 5.9, an average reading. Its peers have a median of 4.7 across 258 Technology companies, which places it above them, at the 74th percentile. An average predictability reading means results have wobbled about as much as is normal for the sector.

Strongest and weakest pillar

The profile is uneven. Predictability leads at 5.9 while profitability trails at 3.6, a gap of 2.3 points, so the overall averages a clear strength against a clear soft spot. A predictability lead means consistency is the business’s strongest trait, which makes its other readings easier to trust. A profitability shortfall is the one most worth understanding, since it bears directly on whether the business creates value.

What would move the score

Closing the gap on solvency would do the most for the overall. At the median of Technology companies, 8.0, Synopsys Inc. would score about 5.5 instead of 5.0. All five pillars could be scored, so the overall uses the full set of weights out of 100: profitability 25, solvency 20, growth 20, efficiency 15, predictability 20.

Synopsys Inc. and similar companies

These are the Technology companies closest to Synopsys Inc. in market value. Each has its own page scored on the same five pillars, so the comparison is like for like.

What each pillar measures

Profitability

3.6 / 10

How much profit the company generates from its capital and sales.

Solvency

5.3 / 10

The company’s ability to service debt and meet its obligations.

Growth

5.7 / 10

How fast revenue, earnings and cash flow are compounding.

Efficiency

4.7 / 10

How well assets and earnings convert into cash and output.

Predictability

5.9 / 10

How stable and consistent results have been over time.

How this score is calculated

Each metric is scored from 0 to 10 against sector-aware benchmarks, where higher is better. Metrics roll up into five pillars, and the pillars combine into the overall score using the weights shown. Sector-sensitive metrics are judged relative to peers in the same sector.

Limitations

This score is a systematic, backward-looking read of reported fundamentals. It does not judge valuation, management quality, competitive moat, or future prospects, and can be distorted by one-off items or unusual accounting. Treat it as a starting point, not a recommendation.

Educational only. Not investment advice.

FAQ

Is Synopsys Inc. a quality business?

On this reading Synopsys Inc. scores 5.0 out of 10, which reads as mixed quality. Its strongest pillar is predictability, its weakest is profitability. Quality is not the same as a good investment: the score says nothing about the price you would pay.

How does Synopsys Inc. compare with other Technology companies?

Synopsys Inc. ranks at the 34th percentile of the 260 Technology companies Lemma publishes a score for. The median there is 5.9 and the top quarter starts at 6.7, against Synopsys Inc.’s 5.0.

What does the SNPS quality score measure?

Five pillars, each scored from 0 to 10 against sector-aware benchmarks and then weighted into one overall reading: profitability, solvency, growth, efficiency and predictability. Everything comes from reported financials, and nothing comes from price, sentiment or forecasts.

How current is this score?

This page last changed on October 17, 2026. The score moves with the financial statements, so the page changes when a new filing moves the reading rather than on a schedule. Live figures for SNPS are in the app.

Does a high score mean the stock is cheap?

No. Quality and valuation are separate questions, and a good business at the wrong price is still a bad purchase. Score the business here, then price it with a DCF you control.

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Inside Lemma Analysis the same five pillars run on every company we cover, with the metrics behind each one, current fundamentals, a DCF you control and a watchlist that tells you when the price catches up.

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