Overvalued or Undervalued? Fundamental Analysis: Cadence Design Systems, Inc. (CDNS)

Cadence Design Systems, Inc. (NASDAQ:CDNS)’s interesting series of developments are underway around the US stock market these days. Now trading with a market value of 18.50B, the company has a mix of catalysts and obstacles that spring from the nature of its operations. As the day-to-day narrative ebbs and flows for this company, it is more important than ever to step back and get a bird’s eye view of the fundamental reality under the surface of this story.

Cadence Design Systems, Inc. (NASDAQ:CDNS) Fundamentals That Matter

It’s generally a good idea to start with the most fundamental piece of the picture: the balance sheet. The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For CDNS, the company currently has 633.42 million of cash on the books, which is offset by 363.59 million in current liabilities. The trend over time is important to note. In this case, the company’s debt has been growing. The company also has 0 in total assets, balanced by 1.98 billion in total liabilities, which should give you a sense of the viability of the company under any number of imagined business contexts.

Cadence Design Systems, Inc. saw 401212 in free cash flow last quarter, representing a quarterly net change in cash of 100117. Perhaps most importantly where cash movements are concerned, the company saw about 431774 in net operating cash flow.

Cadence Design Systems, Inc. (NASDAQ:CDNS) Revenue Growth Potential

As far as key trends that demonstrate something of the future investment potential of this stock, we need to take a closer look at the top line, first and foremost. Last quarter, the company saw 580.42 million in total revenues. That represents a quarterly year/year change in revenues of 0.11% in sequential terms, the CDNS saw sales decline by 0.01%.

But what about the bottom line? After all, that’s what really matters in the end. Cadence Design Systems, Inc. is intriguing when broken down to its core data. The cost of selling goods last quarter was 61.47 million, yielding a gross basic income of 518.95 million. For shareholders, given the total diluted outstanding shares of 282.59M, this means overall earnings per share of 390. Note, this compares with a consensus analyst forecast of 0.35 in earnings per share for its next fiscal quarterly report.

Is Cadence Design Systems, Inc. (NASDAQ:CDNS) Valuation Attractive

Looking ahead at valuations, according to the consensus, the next fiscal year is forecast to bring about 1.56 in total earnings per share. However, one should always remember: the trends are more important than the forecasts. This continues to be an interesting story, and we look forward to updating it again soon on Cadence Design Systems, Inc..