Cadence Design Systems Stock Fundamentals

CDS Stock  EUR 293.00  9.00  3.17%   
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.
  
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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.

Operating Margin

 = 

Operating Income

Revenue

X

100

More About Operating Margin | All Equity Analysis

Current Cadence Design Operating Margin

    
  0.30 %  
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.
Competition

Based on the recorded statements, Cadence Design Systems has an Operating Margin of 0.3043%. This is 103.44% lower than that of the Technology sector and 102.2% lower than that of the Software - Application industry. The operating margin for all Germany stocks is 105.52% 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 rated fourth in return on equity category among its peers. It is rated second in return on asset category among its peers reporting about  0.46  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Cadence Design Systems is roughly  2.17 . 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 number one stock in operating margin category among its peers.

Cadence Fundamentals

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.
Cadence Design Systems, Inc. provides software, hardware, services, and reusable integrated circuit design blocks worldwide. Cadence Design Systems, Inc. was founded in 1988 and is headquartered in San Jose, California. CADENCE DESIGN operates under Software - Application classification in Germany and is traded on Frankfurt Stock Exchange. It employs 7500 people.

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Additional Information and Resources on Investing in Cadence Stock

When determining whether Cadence Design Systems is a strong investment it is important to analyze Cadence Design's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Cadence Design's future performance. For an informed investment choice regarding Cadence Stock, refer to the following important reports:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Cadence Design Systems. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
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.