CDNS
Cadence Design·NASDAQ
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9.50 / 10
Outperform
Financial evaluation confirms exceptional fundamentals with a 9.5/10 score. Cadence Design excels in inventory turnover days (137.63), net income-to-revenue (0.6176), and return on total assets (12.02%), all contributing positively to the score. However, the asset-liability ratio (45.84%) and long-term debt-to-working capital ratio (1.04) are in less favorable groups, tempering the overall outlook. The PB-ROE factor is high at 8.99, indicating potential overvaluation risk. Despite these weaknesses, the company's robust profitability and liquidity maintain a very promising stance.
Analysis Checks(4/10)
Revenue-MV
Value-1.65
Score3/3
Weight65.70%
1M Return8.07%
Value-1.65
Score3/3
Weight65.70%
1M Return8.07%
Profit-MV
Value-0.76
Score1/3
Weight4.75%
1M Return0.58%
Value-0.76
Score1/3
Weight4.75%
1M Return0.58%
PB-ROE
Value8.99
Score1/3
Weight-7.18%
1M Return-0.95%
Value8.99
Score1/3
Weight-7.18%
1M Return-0.95%
Long-term debt to working capital ratio (%)
Value1.04
Score1/3
Weight1.62%
1M Return0.18%
Value1.04
Score1/3
Weight1.62%
1M Return0.18%
Inventory turnover days
Value137.63
Score3/3
Weight9.58%
1M Return1.10%
Value137.63
Score3/3
Weight9.58%
1M Return1.10%
Asset-liability ratio (%)
Value45.84
Score0/3
Weight-11.67%
1M Return-1.40%
Value45.84
Score0/3
Weight-11.67%
1M Return-1.40%
Net income-Revenue
Value0.62
Score3/3
Weight42.90%
1M Return4.75%
Value0.62
Score3/3
Weight42.90%
1M Return4.75%
Rate of return on total assets (%)
Value12.02
Score3/3
Weight26.60%
1M Return2.68%
Value12.02
Score3/3
Weight26.60%
1M Return2.68%
Asset-MV
Value-0.50
Score0/3
Weight-23.86%
1M Return-4.02%
Value-0.50
Score0/3
Weight-23.86%
1M Return-4.02%
Cash-MV
Value-1.59
Score1/3
Weight-8.44%
1M Return-1.10%
Value-1.59
Score1/3
Weight-8.44%
1M Return-1.10%
Revenue-MV
Value-1.65
Score3/3
Weight65.70%
1M Return8.07%
Value-1.65
Score3/3
Weight65.70%
1M Return8.07%
Asset-liability ratio (%)
Value45.84
Score0/3
Weight-11.67%
1M Return-1.40%
Value45.84
Score0/3
Weight-11.67%
1M Return-1.40%
Profit-MV
Value-0.76
Score1/3
Weight4.75%
1M Return0.58%
Value-0.76
Score1/3
Weight4.75%
1M Return0.58%
Net income-Revenue
Value0.62
Score3/3
Weight42.90%
1M Return4.75%
Value0.62
Score3/3
Weight42.90%
1M Return4.75%
PB-ROE
Value8.99
Score1/3
Weight-7.18%
1M Return-0.95%
Value8.99
Score1/3
Weight-7.18%
1M Return-0.95%
Rate of return on total assets (%)
Value12.02
Score3/3
Weight26.60%
1M Return2.68%
Value12.02
Score3/3
Weight26.60%
1M Return2.68%
Long-term debt to working capital ratio (%)
Value1.04
Score1/3
Weight1.62%
1M Return0.18%
Value1.04
Score1/3
Weight1.62%
1M Return0.18%
Asset-MV
Value-0.50
Score0/3
Weight-23.86%
1M Return-4.02%
Value-0.50
Score0/3
Weight-23.86%
1M Return-4.02%
Inventory turnover days
Value137.63
Score3/3
Weight9.58%
1M Return1.10%
Value137.63
Score3/3
Weight9.58%
1M Return1.10%
Cash-MV
Value-1.59
Score1/3
Weight-8.44%
1M Return-1.10%
Value-1.59
Score1/3
Weight-8.44%
1M Return-1.10%
Is CDNS fundamentally strong?
- CDNS scores 9.50/10 on fundamentals and holds a Discounted valuation at present. Backed by its 14.60% ROE, 20.35% net margin, 72.74 P/E ratio, 14.84 P/B ratio, and 1.56% earnings growth, these metrics solidify its Outperform investment rating.
