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Cadence Design Systems Secures High Rating from Guru Model

A recent report demonstrates that Cadence Design Systems Inc (CDNS) has achieved a notable 77% rating under the P/B Growth Investor model. This high score signifies potential investor interest based on the company's fundamentals and market positioning.

Date: 
AI Rating:   7

Cadence Design Systems Inc (CDNS) has received a 77% rating from the P/B Growth Investor model, indicating a favorable outlook based on its fundamentals. The ratings signify strong institutional interest due to the company's solid performance in key areas.

Key metrics under analysis include:

  • Book/Market Ratio: Pass - This suggests that the stock is reasonably valued compared to its book value, making it an attractive opportunity for potential investors.
  • Return on Assets: Pass - A positive sign indicating effective management and asset utilization.
  • Cash Flow from Operations to Assets: Pass - This metric reflects the company’s ability to generate cash from its assets, which is integral for ongoing operations and growth.
  • Cash Flow from Operations to Assets vs. Return on Assets: Fail - This may raise concerns regarding the consistency between cash flow generation and asset returns.
  • Return on Assets Variance: Pass - Indicates stability in asset return rates over the evaluated period.
  • Sales Variance: Pass - Suggests consistent sales performance and company growth.
  • Advertising to Assets: Fail - Indicates potentially low investment in advertising compared to assets, which might affect brand visibility and growth.
  • Capital Expenditures to Assets: Pass - Demonstrates proactive investment into fixed assets, potentially leading to future growth.
  • Research and Development to Assets: Pass - Essential for maintaining competitiveness and innovation in the technology sector.

Overall, the report highlights a generally positive outlook for CDNS, with a few areas that require attention (Failures in cash flow consistency and advertising). The strong PASS ratings in critical metrics underscore a robust financial posture.

Stocks:  CDNS