Cadence Design Systems Stock Fundamentals
CDNS Stock | USD 300.81 0.75 0.25% |
Cadence Design Systems fundamentals help investors to digest information that contributes to Cadence Design's financial success or failures. It also enables traders to predict the movement of Cadence Stock. The fundamental analysis module provides a way to measure Cadence Design's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Cadence Design stock.
At this time, Cadence Design's Total Operating Expenses is comparatively stable compared to the past year. Income Before Tax is likely to gain to about 1.3 B in 2024, whereas Selling General Administrative is likely to drop slightly above 152.6 M in 2024. Cadence | Select Account or Indicator |
Cadence Design Systems Company Operating Margin Analysis
Cadence Design's Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Current Cadence Design Operating Margin | 0.32 % |
Most of Cadence Design's fundamental indicators, such as Operating Margin, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Cadence Design Systems is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
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Cadence Pretax Profit Margin
Pretax Profit Margin |
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Based on the recorded statements, Cadence Design Systems has an Operating Margin of 0.3161%. This is 103.58% lower than that of the Software sector and significantly higher than that of the Information Technology industry. The operating margin for all United States stocks is 105.74% lower than that of the firm.
Cadence Design Systems Fundamental Drivers Relationships
Comparative valuation techniques use various fundamental indicators to help in determining Cadence Design's current stock value. Our valuation model uses many indicators to compare Cadence Design value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Cadence Design competition to find correlations between indicators driving Cadence Design's intrinsic value. More Info.Cadence Design Systems is number one stock in return on equity category among related companies. It is number one stock in return on asset category among related companies reporting about 0.44 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Cadence Design Systems is roughly 2.30 . At this time, Cadence Design's Return On Equity is comparatively stable compared to the past year.Comparative valuation analysis is a catch-all model that can be used if you cannot value Cadence Design by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Cadence Design's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Cadence Design's earnings, one of the primary drivers of an investment's value.Cadence Operating Margin Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Cadence Design's direct or indirect competition against its Operating Margin to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Cadence Design could also be used in its relative valuation, which is a method of valuing Cadence Design by comparing valuation metrics of similar companies.Cadence Design is currently under evaluation in operating margin category among related companies.
Cadence Design ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Cadence Design's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Cadence Design's managers, analysts, and investors.Environment Score | Governance Score | Social Score |
Cadence Fundamentals
Return On Equity | 0.34 | ||||
Return On Asset | 0.15 | ||||
Profit Margin | 0.25 % | ||||
Operating Margin | 0.32 % | ||||
Current Valuation | 81.76 B | ||||
Shares Outstanding | 272.6 M | ||||
Shares Owned By Insiders | 0.80 % | ||||
Shares Owned By Institutions | 91.49 % | ||||
Number Of Shares Shorted | 2.75 M | ||||
Price To Earning | 58.71 X | ||||
Price To Book | 24.49 X | ||||
Price To Sales | 20.39 X | ||||
Revenue | 4.09 B | ||||
Gross Profit | 3.19 B | ||||
EBITDA | 1.41 B | ||||
Net Income | 1.04 B | ||||
Cash And Equivalents | 1.03 B | ||||
Cash Per Share | 3.74 X | ||||
Total Debt | 806.03 M | ||||
Debt To Equity | 0.29 % | ||||
Current Ratio | 1.33 X | ||||
Book Value Per Share | 12.53 X | ||||
Cash Flow From Operations | 1.35 B | ||||
Short Ratio | 1.89 X | ||||
Earnings Per Share | 3.82 X | ||||
Price To Earnings To Growth | 2.84 X | ||||
Target Price | 328.53 | ||||
Number Of Employees | 11.2 K | ||||
Beta | 1.03 | ||||
Market Capitalization | 82.23 B | ||||
Total Asset | 5.67 B | ||||
Retained Earnings | 4.94 B | ||||
Working Capital | 385.35 M | ||||
Current Asset | 964.24 M | ||||
Current Liabilities | 536.31 M | ||||
Net Asset | 5.67 B |
About Cadence Design Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Cadence Design Systems's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Cadence Design using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Cadence Design Systems based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.Last Reported | Projected for Next Year | ||
Current Deferred Revenue | 665 M | 698.3 M | |
Total Revenue | 4.1 B | 4.3 B | |
Cost Of Revenue | 453.2 M | 475.9 M | |
Stock Based Compensation To Revenue | 0.08 | 0.05 | |
Sales General And Administrative To Revenue | 0.06 | 0.09 | |
Research And Ddevelopement To Revenue | 0.35 | 0.25 | |
Capex To Revenue | (0.03) | (0.03) | |
Revenue Per Share | 15.18 | 15.94 | |
Ebit Per Revenue | 0.31 | 0.33 |
Pair Trading with Cadence Design
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Cadence Design position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cadence Design will appreciate offsetting losses from the drop in the long position's value.Moving together with Cadence Stock
0.67 | DJCO | Daily Journal Corp | PairCorr |
Moving against Cadence Stock
0.69 | DT | Dynatrace Holdings LLC Financial Report 15th of May 2024 | PairCorr |
0.68 | DMAN | Innovativ Media Group | PairCorr |
0.67 | U | Unity Software Financial Report 8th of May 2024 | PairCorr |
0.62 | WK | Workiva Financial Report 7th of May 2024 | PairCorr |
0.59 | EB | Eventbrite Class A Financial Report 14th of May 2024 | PairCorr |
The ability to find closely correlated positions to Cadence Design could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cadence Design when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Cadence Design - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Cadence Design Systems to buy it.
The correlation of Cadence Design is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Cadence Design moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cadence Design Systems moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Cadence Design can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Cadence Design Piotroski F Score and Cadence Design Altman Z Score analysis. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Complementary Tools for Cadence Stock analysis
When running Cadence Design's price analysis, check to measure Cadence Design's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cadence Design is operating at the current time. Most of Cadence Design's value examination focuses on studying past and present price action to predict the probability of Cadence Design's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cadence Design's price. Additionally, you may evaluate how the addition of Cadence Design to your portfolios can decrease your overall portfolio volatility.
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Is Cadence Design's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cadence Design. If investors know Cadence will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cadence Design listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.351 | Earnings Share 3.82 | Revenue Per Share 15.183 | Quarterly Revenue Growth 0.188 | Return On Assets 0.1474 |
The market value of Cadence Design Systems is measured differently than its book value, which is the value of Cadence that is recorded on the company's balance sheet. Investors also form their own opinion of Cadence Design's value that differs from its market value or its book value, called intrinsic value, which is Cadence Design's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cadence Design's market value can be influenced by many factors that don't directly affect Cadence Design's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cadence Design's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cadence Design is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cadence Design's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.