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Should you consider NASDAQ:CDNS for quality investing?

By Mill Chart

Last update: Apr 16, 2024

In this article we will dive into CADENCE DESIGN SYS INC (NASDAQ:CDNS) as a possible candidate for quality investing. Investors should always do their own research, but we noticed CADENCE DESIGN SYS INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

What matters for quality investors.

  • Over the past 5 years, CADENCE DESIGN SYS INC has experienced impressive revenue growth, with 13.85% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • CADENCE DESIGN SYS INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 96.04% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • CADENCE DESIGN SYS INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.52, 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.
  • The Profit Quality (5-year) of CADENCE DESIGN SYS INC stands at 121.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • CADENCE DESIGN SYS INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 25.38%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • CADENCE DESIGN SYS INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

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.

Overall CDNS gets a fundamental rating of 7 out of 10. We evaluated CDNS against 275 industry peers in the Software industry. CDNS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CDNS is valued quite expensive, but it does show an excellent growth. These ratings could make CDNS a good candidate for growth and quality investing.

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

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

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 (5/24/2024, 7:19:03 PM)

After market: 294.06 -0.22 (-0.07%)


-0.41 (-0.14%)


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