Cadence Design (Germany) Buy Hold or Sell Recommendation
| CDS Stock | EUR 292.25 2.30 0.79% |
Assuming the 90 days horizon and your complete indifference towards market risk, our recommendation regarding Cadence Design Systems is 'Strong Buy'. Macroaxis provides Cadence Design buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding CDS positions.
Check out Cadence Design Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note, we conduct extensive research on individual companies such as Cadence and provide practical buy, sell, or hold advice based on investors' constraints. 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.
Cadence |
Execute Cadence Design Buy or Sell Advice
The Cadence recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Cadence Design Systems. Macroaxis does not own or have any residual interests in Cadence Design Systems or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Cadence Design's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Buy
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Cadence Design Trading Alerts and Improvement Suggestions
| Over 90.0% of the company shares are held by institutions such as insurance companies |
Cadence Design Returns Distribution Density
The distribution of Cadence Design's historical returns is an attempt to chart the uncertainty of Cadence Design's future price movements. The chart of the probability distribution of Cadence Design daily returns describes the distribution of returns around its average expected value. We use Cadence Design Systems price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Cadence Design returns is essential to provide solid investment advice for Cadence Design.
| Mean Return | 0.40 | Value At Risk | -3.06 | Potential Upside | 3.55 | Standard Deviation | 2.14 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Cadence Design historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Cadence Design Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Cadence Design or Technology sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Cadence Design's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Cadence stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.34 | |
β | Beta against Dow Jones | 0.43 | |
σ | Overall volatility | 2.16 | |
Ir | Information ratio | 0.13 |
Cadence Design Volatility Alert
Cadence Design Systems currently demonstrates below-average downside deviation. It has Information Ratio of 0.13 and Jensen Alpha of 0.34. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Cadence Design's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Cadence Design's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Cadence Design Fundamentals Vs Peers
Comparing Cadence Design's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Cadence Design's direct or indirect competition across all of the common fundamentals between Cadence Design and the related equities. This way, we can detect undervalued stocks with similar characteristics as Cadence Design or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Cadence Design's fundamental indicators could also be used in its relative valuation, which is a method of valuing Cadence Design by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Cadence Design to competition |
| Fundamentals | Cadence Design | Peer Average |
| Return On Equity | 0.31 | -0.31 |
| Return On Asset | 0.14 | -0.14 |
| Profit Margin | 0.24 % | (1.27) % |
| Operating Margin | 0.30 % | (5.51) % |
| Current Valuation | 42.31 B | 16.62 B |
| Shares Outstanding | 272.94 M | 571.82 M |
| Shares Owned By Insiders | 0.52 % | 10.09 % |
| Shares Owned By Institutions | 90.40 % | 39.21 % |
| Price To Earning | 40.01 X | 28.72 X |
| Price To Book | 16.54 X | 9.51 X |
| Price To Sales | 12.66 X | 11.42 X |
| Revenue | 3.56 B | 9.43 B |
| Gross Profit | 3.19 B | 27.38 B |
| EBITDA | 1.2 B | 3.9 B |
| Net Income | 848.95 M | 570.98 M |
| Cash And Equivalents | 633.41 M | 2.7 B |
| Cash Per Share | 2.26 X | 5.01 X |
| Total Debt | 648.08 M | 5.32 B |
| Debt To Equity | 32.60 % | 48.70 % |
| Current Ratio | 1.61 X | 2.16 X |
| Book Value Per Share | 10.07 X | 1.93 K |
| Cash Flow From Operations | 1.24 B | 971.22 M |
| Earnings Per Share | 2.90 X | 3.12 X |
| Price To Earnings To Growth | 2.04 X | 4.89 X |
| Target Price | 159.51 | |
| Number Of Employees | 10.2 K | 18.84 K |
| Beta | 1.12 | -0.15 |
| Market Capitalization | 49.55 B | 19.03 B |
| Total Asset | 5.14 B | 29.47 B |
| Z Score | 45.6 | 8.72 |
| Net Asset | 5.14 B |
Cadence Design Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Cadence . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Daily Balance Of Power | 9.2 T | |||
| Rate Of Daily Change | 1.01 | |||
| Day Median Price | 292.25 | |||
| Day Typical Price | 292.25 | |||
| Price Action Indicator | 1.15 | |||
| Period Momentum Indicator | 2.3 |
About Cadence Design Buy or Sell Advice
When is the right time to buy or sell Cadence Design Systems? Buying financial instruments such as Cadence Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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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 Cadence Design Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.