Cadence Design Systems, Inc.'s (NASDAQ:CDNS) Stock Been Rising: Are Strong Financials Guiding The Market?
Cadence Design Systems, Inc.'s (NASDAQ:CDNS) Stock Been Rising: Are Strong Financials Guiding The Market?
Cadence Design Systems' (NASDAQ:CDNS) stock is up by 4.4% over the past month. Given its impressive performance, we decided to study the company's key financial indicators as a company's long-term fundamentals usually dictate market outcomes. Specifically, we decided to study Cadence Design Systems' ROE in this article.
Cadence Design Systems（納斯達克股票代碼：CDNS）的股票在過去一個月中上漲了4.4％。鑑於其令人印象深刻的業績，我們決定研究該公司的關鍵財務指標，因爲公司的長期基本面通常決定市場業績。具體而言，我們決定在本文中研究Cadence設計系統的投資回報率。
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
股本回報率或投資回報率是用於評估公司管理層利用公司資本效率的關鍵指標。簡而言之，它衡量公司相對於股東權益的盈利能力。
How To Calculate Return On Equity?
如何計算股本回報率？
The formula for ROE is:
ROE 的公式是：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回報率 = 淨利潤（來自持續經營業務）÷ 股東權益
So, based on the above formula, the ROE for Cadence Design Systems is:
因此，根據上述公式，Cadence設計系統的投資回報率爲：
29% = US$1.0b ÷ US$3.6b (Based on the trailing twelve months to March 2024).
29% = 10億美元 ÷ 36億美元（基於截至2024年3月的過去十二個月）。
The 'return' is the amount earned after tax over the last twelve months. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.29.
“回報” 是過去十二個月的稅後收入。因此，這意味着公司每投資1美元，就會產生0.29美元的利潤。
Why Is ROE Important For Earnings Growth?
爲什麼投資回報率對收益增長很重要？
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. 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.
我們已經確定，投資回報率是衡量公司未來收益的有效盈利指標。根據公司選擇將多少利潤進行再投資或 “保留”，我們便能夠評估公司未來創造利潤的能力。假設其他條件都一樣，與功能不相同的公司相比，具有更高股本回報率和更高利潤保留率的公司通常具有更高的增長率。
A Side By Side comparison of Cadence Design Systems' Earnings Growth And 29% ROE
Cadence Design Systems的收益增長和29％的投資回報率的並排比較
First thing first, we like that Cadence Design Systems has an impressive 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 8.9% over the last five years.
首先，我們喜歡Cadence設計系統的投資回報率令人印象深刻。其次，即使與12％的行業平均水平相比，該公司的投資回報率也相當可觀。可能是由於這個原因，Cadence Design Systems在過去五年中得以實現8.9％的不錯的淨收入增長。
We then compared Cadence Design Systems' net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 14% in the same 5-year period, which is a bit concerning.
然後，我們將Cadence Design Systems的淨收入增長與該行業進行了比較，發現該公司的增長數字低於同期14％的行業平均增長率，這有點令人擔憂。
Earnings growth is an important metric to consider when valuing a stock. 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 CDNS fairly valued? This infographic on the company's intrinsic value has everything you need to know.
收益增長是對股票進行估值時要考慮的重要指標。無論如何，投資者應設法確定預期的收益增長或下降是否已計入其中。然後，這可以幫助他們確定股票是面向光明還是暗淡的未來。CDNS 的價值是否合理？這張關於公司內在價值的信息圖包含了你需要知道的一切。
Is Cadence Design Systems Making Efficient Use Of Its Profits?
Cadence 設計系統能否有效利用其利潤？
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.
鑑於Cadence Design Systems不向其股東支付任何定期股息，我們推斷該公司一直在將其所有利潤再投資以發展業務。
Conclusion
結論
On the whole, we feel that Cadence Design Systems' performance has been quite good. 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. With that said, the latest industry analyst forecasts reveal that the company's earnings are expected to accelerate. 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.
總的來說，我們認爲Cadence設計系統的表現相當不錯。具體而言，我們喜歡該公司以高回報率再投資其利潤的很大一部分。當然，這使該公司的收益實現了可觀的增長。話雖如此，最新的行業分析師預測顯示，該公司的收益有望加速。要了解有關公司未來收益增長預測的更多信息，請查看這份關於分析師預測的免費報告，以了解更多信息。
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