Cadence Design (CDNS) Fundamental Analysis: Revenue, Earnings & Valuation

0.40 / 10

Underperform

Fundamentally, CDNS is rated Underperform with a 0.4/10 strength score. Positive points include net‑income‑to‑revenue and days‑sales‑outstanding, while inventory turnover days and long‑term debt‑to‑working‑capital are concerning, leading to a guarded investment verdict.

Analysis Checks(5/10)

Revenue-MV

Value-1.46

Score2/3

Weight-38.78%

1M Return3.12%

Days sales outstanding

Value55.24

Score2/3

Weight-5.04%

1M Return0.34%

Net income-Revenue

Value0.88

Score2/3

Weight40.75%

1M Return-3.06%

PB-ROE

Value7.38

Score1/3

Weight54.12%

1M Return-4.14%

Rate of return on total assets (%)

Value17.13

Score3/3

Weight-42.41%

1M Return2.47%

Long-term debt to working capital ratio (%)

Value1.00

Score1/3

Weight4.50%

1M Return-0.30%

Annualized return on total assets (%)

Value17.13

Score3/3

Weight-42.41%

1M Return2.47%

Asset-MV

Value-0.55

Score0/3

Weight72.80%

1M Return-8.68%

Inventory turnover days

Value139.88

Score1/3

Weight3.03%

1M Return-0.21%

Cash-MV

Value-0.94

Score1/3

Weight53.44%

1M Return-4.12%

Is CDNS fundamentally strong?

CDNS scores 0.40/10 on fundamentals and holds a Premium valuation at present. Backed by its 21.85% ROE, 20.94% net margin, 70.79 P/E ratio, 14.34 P/B ratio, and 5.14% earnings growth, these metrics solidify its Underperform investment rating.