Forensic Analysis · Software & SaaS · as of Nov 8, 2026
Synopsys Inc (SNPS)
A forensic read on Synopsys Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
B · Sound & dependable
Forensic grade
Safe
Financial health
2.6
Distress distance
4
Forensic signals
7.1%
ROE
15.1%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Synopsys Inc earns a B (Sound & dependable) forensic quality grade, and its balance-sheet distress test reads 2.6, placing it in the Safe zone. 4 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
3.4%
FY2025
Return on invested capital.Return on invested capital is 3.4% in the latest fiscal year and slipping across FY2023–FY2025 from 19.4%. After-tax operating profit was $1.1B in FY2023 and $823M in FY2025, with operating income at 23.9% of revenue in FY2023, 22.1% in FY2024 and 13.0% in FY2025. The capital base behind it cannot be compared across FY2023–FY2025: short-term debt is tagged in one of those two fiscal years and not the other, and an untagged line enters this calculation as zero, so any change in the base would be a change in what the filer tagged.
stopped
FY2023→FY2025
Shareholder returns — halted.Capital returns have STOPPED — $1.2B of buybacks + dividends in FY2023, but ~$0 in FY2025. A halt usually means the company is conserving cash.
+3.3%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +7% over the last 2 years to FY2025 (+3.3%/yr). The count is growing — 155.2M shares in FY2023, 165.7M in FY2025: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~3.3% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~6%.
13% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 13% of revenue and 66% of free cash flow in FY2025 — about $5.39 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 3.3% a year across FY2023–FY2025 and that rate is not falling, so total profit has to grow by that much annually before any of it reaches a share. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
Key fundamentals
Latest Revenue$7.05B
Revenue Growth YoY+15.1%
Revenue CAGR (2yr)+15.2%
Net Margin18.9%
Free Cash Flow$1.35B
Return on Equity7.1%
Debt / Equity0.48x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Synopsys Inc's actual 10-K/10-Q/8-K filings?