News Image

Why Quality Investors May Find CADENCE DESIGN SYS INC (NASDAQ:CDNS) Attractive.

By Mill Chart

Last update: Nov 1, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if CADENCE DESIGN SYS INC (NASDAQ:CDNS) is suited for quality investing. Investors should of course do their own research, but we spotted CADENCE DESIGN SYS INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Key Considerations for Quality Investors.

  • Over the past 5 years, CADENCE DESIGN SYS INC has experienced impressive revenue growth, with 12.89% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • With a robust ROIC excluding cash and goodwill at 71.98%, CADENCE DESIGN SYS INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • CADENCE DESIGN SYS INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.53, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • CADENCE DESIGN SYS INC demonstrates consistent Profit Quality over the past 5 years, with a strong 128.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • With a robust 5-year EBIT growth of 26.35%, CADENCE DESIGN SYS INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • With EBIT 5-year growth outpacing its Revenue 5-year growth, CADENCE DESIGN SYS INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

A complete fundamental analysis of NASDAQ:CDNS

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

Taking everything into account, CDNS scores 7 out of 10 in our fundamental rating. CDNS was compared to 278 industry peers in the Software industry. CDNS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CDNS is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make CDNS suitable for growth and quality investing!

Our latest full fundamental report of CDNS contains the most current fundamental analsysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.


This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.



NASDAQ:CDNS (2/22/2024, 11:23:06 AM)


+15.54 (+5.34%)


News Image4 minutes ago - ChartmillThursday's session: top gainers and losers in the S&P500 index

Stay informed about the performance of the S&P500 index in the middle of the day on Thursday. Uncover the top gainers and losers in today's session for valuable insights.

News Image2 hours ago - ChartmillCurious about the S&P500 stocks that are gapping on Thursday? Explore the gap up and gap down stocks in the S&P500 index during today's session.

Curious about the S&P500 stocks that are gapping on Thursday? Explore the gap up and gap down stocks in the S&P500 index during today's session.

News Imagea day ago - Investor's Business DailyIntel Creating Systems Foundry For AI Era, Adds Microsoft As Customer

Intel detailed plans to create the first systems foundry for the AI era and added Microsoft as a customer. But Intel stock fell.

News Image2 days ago - Cadence Design Systems, Inc.Intel and Cadence Expand Partnership to Enable Best-in-Class SoC Design on Intel’s Advanced Processes
News Image2 days ago - Seeking AlphaIntel foundry event may boost near-term sentiment, but scale still needed: BofA

Intel's (INTC) event on Wednesday focusing on its foundry business could boost sentiment in the near-term, even if the nascent initiative is well behind the competition. Read for more.

News Image6 days ago - Investor's Business DailyStock Market Rally Handles Hot Inflation: Weekly Review

The key indexes are still near 52-week or all-time highs.

News Image8 days ago - InvestorPlaceExit Now! 7 Nasdaq Stocks to Sell in February 2024.

Investors should stay away from these NASDAQ stocks to sell. All are facing significant challenges with a share price in decline.

News Image8 days ago - BusinessInsiderExit Now! 7 Nasdaq Stocks to Sell in February 2024.

InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Nasdaq continues to lead the three major stock indices and is currently nea...

News Image8 days ago - Seeking AlphaCadence's long-term strategy outweighs Q1 slump: Morgan Stanley

Cadence Design Systems was upgraded to Overweight from Equal-weight by Morgan Stanley despite the company offering a short-term outlook that was lower than expected. Read for more.

News Image9 days ago - The Motley FoolCadence Design Stock Drops 4% on Lower-Than-Expected Q1 Guidance

The provider of software and other design solutions for the electronics industry has solid growth potential stemming from artificial intelligence (AI) and other generational trends.

News Image9 days ago - ChartmillIn today's session, there are S&P500 stocks with remarkable trading volume. Explore the stocks exhibiting unusual volume in Tuesday's session.

Let's have a look at what is happening on the US markets on Tuesday. Below you can find the S&P500 stocks with an unusual volume in today's session.

News Image9 days ago - Seeking AlphaCadence stock falls after Rosenblatt cuts rating following lower Q1 outlook

Cadence Design Systems' stock fell about 8% after Rosenblatt downgraded the shares over lower Q1 outlook, and expected weaker China contribution in 2024. Read more here

CDNS Links
Follow us for more