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Attractive stocks have exceptional fundamentals. In the case of Cadence Design Systems, Inc. (NASDAQ:CDNS), there's is a company with great financial health as well as a a great history of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Cadence Design Systems here.
Outstanding track record with excellent balance sheet
CDNS delivered a bottom-line expansion of 69% in the prior year, with its most recent earnings level surpassing its average level over the last five years. This illustrates a strong track record, leading to a satisfying return on equity of 27%. which is what investors like to see! CDNS's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. CDNS's has produced operating cash levels of 1.36x total debt over the past year, which implies that CDNS's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For Cadence Design Systems, there are three pertinent aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for CDNS’s future growth? Take a look at our free research report of analyst consensus for CDNS’s outlook.
- Valuation: What is CDNS worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether CDNS is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CDNS? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.