October 12, 2025 a 07:43 am
CDNS: Fundamental Ratio Analysis - Cadence Design Systems, Inc.
Cadence Design Systems, Inc. operates in the technology sector providing vital software, hardware, and services in the IC design industry. With a diverse portfolio and presence in key markets like 5G and healthcare, the company maintains a stable position. Recent fundamentals reflect its potential despite market volatilities.
Fundamental Rating
The company exhibits a steady fundamental performance with a notable Return on Assets and Equity despite some leverage concerns in Debt to Equity ratio.
| Category | Score | Visual |
|---|---|---|
| Discounted Cash Flow | 3 | |
| Return on Equity | 4 | |
| Return on Assets | 5 | |
| Debt to Equity | 1 | |
| Price to Earnings | 1 | |
| Price to Book | 1 |
Historical Rating
The historical scores illustrate the company's consistency in its overall performance and strategic management.
| Date | Overall | DCF | ROE | ROA | Debt/Equity | P/E | P/B |
|---|---|---|---|---|---|---|---|
| 2025-10-10 | 3 | 3 | 4 | 5 | 1 | 1 | 1 |
| -- | 0 | 3 | 4 | 5 | 1 | 1 | 1 |
Analyst Price Targets
The stock shows an optimistic upward trend with high analyst targets endorsing a strong performance outlook.
| High | Low | Median | Consensus |
|---|---|---|---|
| $400 | $300 | $377.5 | $363.75 |
Analyst Sentiment
The prevailing analyst sentiment strongly favors a "Buy" recommendation, with very few dissenting opinions.
| Recommendation | Count | Visual |
|---|---|---|
| Strong Buy | 0 | |
| Buy | 24 | |
| Hold | 5 | |
| Sell | 1 | |
| Strong Sell | 0 |
Conclusion
Cadence Design Systems, Inc. displays a robust operational framework supported by strong ROA and ROE metrics. Although there are concerns about the debt levels, the growth across various markets provides a strategic advantage. With positive analyst ratings, CDNS might offer considerable upside potential but keeping an eye on market fluctuations is crucial. Overall, its future seems promising amid evolving tech demands.