CDNS Intrinsic Value Calculation – The guidance was lower than the consensus estimate from Wall Street analysts.
May 2, 2023
Trending News 🌧️
Cadence Design Systems ($NASDAQ:CDNS) released their second quarter 2023 earnings guidance, and the results were not what Wall Street analysts had expected. Cadence Design Systems is a multinational electronic design automation (EDA) software and engineering services company, specializing in software and hardware solutions for the development of integrated circuits, system-on-chips (SoCs), and printed circuit boards. Cadence Design Systems provides solutions for a variety of industries, including IoT, automotive, defense, and aerospace among others. While this may have been simply due to a difference in expectations, it is likely that the market will be monitoring Cadence Design Systems’ performance over the coming quarters to ensure that their guidance is accurate.
Market Price
In reaction to the news, CADENCE DESIGN SYSTEMS stock opened at $209.3 and closed at $210.6, up by 0.6% from the last closing price of 209.4. This slight increase could indicate investors are optimistic about the company’s future prospects despite the lower-than-expected guidance. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for CDNS. More…
| Total Revenues | Net Income | Net Margin |
| 3.68k | 855.42 | 23.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CDNS. More…
| Operations | Investing | Financing |
| 1.17k | -754.43 | -593.72 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for CDNS. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.17k | 2.23k | 10.76 |
Key Ratios Snapshot
Some of the financial key ratios for CDNS are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.7% | 28.2% | 29.5% |
| FCF Margin | ROE | ROA |
| 28.3% | 23.9% | 13.1% |
Analysis – CDNS Intrinsic Value Calculation
At GoodWhale, we have conducted an analysis on the wellbeing of CADENCE DESIGN SYSTEMS. By using our proprietary Valuation Line, we have calculated the fair value of CADENCE DESIGN SYSTEMS share to be around $178.3. However, the stock is currently trading at $210.6, which is a fair price that is 18.1% overvalued. More…
Peers
Cadence Design Systems Inc is one of the leading electronic design automation software providers. The company offers a comprehensive suite of tools, IP and services that enable global electronic system and semiconductor companies to create innovative products that improve the quality of life.
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Summary
Cadence Design Systems has released their second quarter 2023 earnings guidance, which falls below Wall Street consensus. Investors should be aware that this miss may have adverse effects on the company’s stock price. Despite this, investors should consider the company’s long-term prospects, as it is a leading software developer that has seen consistent revenue growth in recent years.
Analysts suggest looking at the company’s product pipeline, cash flow, and customer relationships when evaluating potential investments. Overall, the company remains a solid investment choice given its strong fundamentals.
