Is Cadence Design Systems, Inc.'s (NASDAQ:CDNS) Stock's Recent Performance Being Led By Its Attractive Financial Prospects?

Simply Wall St.12-21 21:00

Cadence Design Systems (NASDAQ:CDNS) has had a great run on the share market with its stock up by a significant 10% over the last three months. Since the market usually pay for a company’s long-term ...

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Since the market usually pay for a company’s long-term ...</p>\n\n<a href=\"https://finance.yahoo.com/news/cadence-design-systems-inc-nasdaq-130023019.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU2095319765.USD","symbol_name":"Natixis Thematics Subscription Economy R/A USD","start_time":0,"source_url":"https://finance.yahoo.com/news/cadence-design-systems-inc-nasdaq-130023019.html","article_id":"2493423052","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/gnGTQ_q9KCdl7Xvx_ppB0g--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/0fe4d5d105492213ce106a92b49639d4"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2493423052","pubTimestamp":1734786023,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Cadence Design Systems  has had a great run on the share market with its stock up by a significant 10% over the last three months. Since the market usually pay for a company’s long-term fundamentals, we decided to study the company’s key performance indicators to see if they could be influencing the market. Specifically, we decided to study Cadence Design Systems'  ROE in this article.Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.View our latest analysis for Cadence Design Systems. Return on Equity = Net Profit  ÷ Shareholders' Equity. So, based on the above formula, the ROE for Cadence Design Systems is:. Cadence Design Systems' Earnings Growth And 23% ROE. Is Cadence Design Systems Using Its Retained Earnings Effectively?Given that Cadence Design Systems doesn't pay any regular divi","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU2095319765.USD":"Natixis Thematics Subscription Economy R/A USD","LU0353189680.USD":"富国美国全盘成长基金Cl A Acc","CDNS":"铿腾电子","LU0107464264.USD":"abrdn SICAV I - GLOBAL INNOVATION EQUITY \"A\" (USD) ACC","TQQQ":"纳指三倍做多ETF","LU2506952337.HKD":"BNP PARIBAS CLIMATE IMPACT \"CRH\" (HKDHDG) ACC","LU2210150020.SGD":"Natixis Thematics Subscription Economy R/A SGD","BK4567":"ESG概念","TSYW.SI":"TESLA 3xLongSG261006",".IXIC":"NASDAQ Composite","LU2210149790.SGD":"Natixis Thematics Subscription Economy R/A SGD-H","LU0124384867.USD":"贝莱德新能源基金A2","LU2063271972.USD":"富兰克林创新领域基金","USAW.SI":"AMZN 3xLongSG261006","PSQ":"纳指反向ETF","QLD":"纳指两倍做多ETF","BK4023":"应用软件","LU2764262908.HKD":"BGF GLOBAL UNCONSTRAINED EQUITY \"A2\" (HKD) ACC","IE00B64PRP62.GBP":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (GBP) ACC","LU2477742899.HKD":"BNP PARIBAS CLIMATE IMPACT \"C\" (HKD) ACC","LU0323239441.USD":"HSBC GIF GLOBAL EQUITY CLIMATE CHANGE \"AC\" ACC","LU1861219969.SGD":"Blackrock Future of Transport A2 SGD-H","IE00BGHQF748.EUR":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (EUR) ACC","BK4585":"ETF&股票定投概念","LU0056508442.USD":"贝莱德世界科技基金A2","LU0354030511.USD":"ALLSPRING  U.S. LARGE CAP GROWTH \"I\" (USD) ACC","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC","LU2125909593.SGD":"Natixis Thematics Meta R/A SGD","USJW.SI":"ALPHAB 3xLongSG261006","SQQQ":"纳指三倍做空ETF","LU1951200564.SGD":"Natixis Thematics AI & Robotics Fund R/A SGD","LU1978683503.SGD":"Blackrock Sustainable Energy A2 SGD-H","LU1721428347.USD":"BNP PARIBAS CLIMATE IMPACT \"C\" (USD) ACC","LU0323240290.USD":"HSBC GIF GLOBAL EQUITY CLIMATE CHANGE \"AD\" INC","LU2125909247.SGD":"Natixis Thematics Meta H-R/A SGD","LU2433249047.HKD":"THEMATICS META \"R/A\" (HKD) ACC","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","LU1923622614.USD":"Natixis Thematics Meta R/A USD","NVIW.SI":"NVDA 3xLongSG261006","LU1323610961.USD":"UBS (LUX) EQUITY SICAV - LONG TERM THEMES (USD) \"P\" (USD) ACC","NDAQ":"纳斯达克OMX交易所","LU2720916845.USD":"BGF GLOBAL UNCONSTRAINED EQUITY \"A2\" (USD) ACC","LU2298322129.HKD":"BGF SUSTAINABLE ENERGY \"A2\" (HKDHDG) ACC","QID":"纳指两倍做空ETF","LU2360106780.USD":"BGF WORLD TECHNOLOGY \"A4\" (USD) INC","LU2764263203.CNY":"BGF GLOBAL UNCONSTRAINED EQUITY \"A2\" (CNYHDG) ACC","LU0724618433.USD":"BGF NEW ENERGY \"A4\" (USD) INC"},"translate_title":"Cadence Design Systems，Inc.（纳斯达克：CDNS）股票最近的表现是由其有吸引力的财务前景引领的吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{".IXIC":1,"CDNS":1,"NDAQ":1,"NVIW.SI":0.6,"PSQ":0.6,"QID":0.6,"QLD":0.6,"SQQQ":0.6,"TQQQ":0.6,"TSYW.SI":0.6,"USAW.SI":0.6,"USJW.SI":0.6,"MNQmain":0.6,"NQmain":0.6},"content_text":"Cadence Design Systems (NASDAQ:CDNS) has had a great run on the share market with its stock up by a significant 10% over the last three months. Since the market usually pay for a company’s long-term fundamentals, we decided to study the company’s key performance indicators to see if they could be influencing the market. Specifically, we decided to study Cadence Design Systems'  ROE in this article. \n Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. \n View our latest analysis for Cadence Design Systems \n How Is ROE Calculated? \n ROE can be calculated by using the formula: \n Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity \nSo, based on the above formula, the ROE for Cadence Design Systems is:\n23% = US$1.0b ÷ US$4.6b (Based on the trailing twelve months to September 2024).\n The 'return' refers to a company's earnings over the last year. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.23 in profit. \n What Is The Relationship Between ROE And Earnings Growth? \n So far, we've learned that ROE is a measure of a company's profitability. Based on how much of its profits the company chooses to reinvest or \"retain\", we are then able to evaluate a company's future ability to generate profits. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. \n Cadence Design Systems' Earnings Growth And 23% ROE \n Firstly, we acknowledge that Cadence Design Systems has a significantly high ROE. Secondly, even when compared to the industry average of 12% the company's ROE is quite impressive. Probably as a result of this, Cadence Design Systems was able to see a decent net income growth of 5.9% over the last five years. \n Next, on comparing with the industry net income growth, we found that Cadence Design Systems' reported growth was lower than the industry growth of 20% over the last few years, which is not something we like to see. \n\n\n\n  NasdaqGS:CDNS Past Earnings Growth December 21st 2024\n \n\n Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. Is Cadence Design Systems fairly valued compared to other companies? These 3 valuation measures might help you decide. \n Is Cadence Design Systems Using Its Retained Earnings Effectively? \n Given that Cadence Design Systems doesn't pay any regular dividends to its shareholders, we infer that the company has been reinvesting all of its profits to grow its business. \n Summary \n Overall, we are quite pleased with Cadence Design Systems' performance. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see a good amount of growth in its earnings. That being so, the latest analyst forecasts show that the company will continue to see an expansion in its earnings. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. \nHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2493423052"}