Cadence Design Systems
Cadence Design Systems, Inc. provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. The last earnings update was 20 days ago. More info.
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- Cadence Design Systems has significant price volatility in the past 3 months.
CDNS Share Price and Events
7 Day Returns
1 Year Returns
CDNS Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Cadence Design Systems (CDNS) | 1% | 16.5% | 45.5% | 61.3% | 167.1% | 293.1% |
| US Software | 2.5% | 5.1% | 18.3% | 24.3% | 108.3% | 136.1% |
| US Market | 1.6% | 2.1% | 12.8% | 3.2% | 38.6% | 43.6% |
1 Year Return vs Industry and Market
- CDNS outperformed the Software industry which returned 24.3% over the past year.
- CDNS outperformed the Market in United States of America which returned 3.2% over the past year.
CDNS Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Cadence Design Systems
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Cadence Design Systems.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 8 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 9.3% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Software Unlevered Beta | Simply Wall St/ S&P Global | 1.14 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.139 (1 + (1- 21%) (2.59%)) |
1.109 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.11 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.109 * 5.96%) |
9.34% |
Discounted Cash Flow Calculation for NasdaqGS:CDNS using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Cadence Design Systems is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 9.34%) |
|
|---|---|---|---|
| 2019 | 528.67 | Analyst x3 | 483.51 |
| 2020 | 609.00 | Analyst x3 | 509.41 |
| 2021 | 568.00 | Analyst x1 | 434.53 |
| 2022 | 544.93 | Est @ -4.06% | 381.28 |
| 2023 | 533.91 | Est @ -2.02% | 341.66 |
| 2024 | 530.71 | Est @ -0.6% | 310.61 |
| 2025 | 532.84 | Est @ 0.4% | 285.22 |
| 2026 | 538.70 | Est @ 1.1% | 263.72 |
| 2027 | 547.26 | Est @ 1.59% | 245.03 |
| 2028 | 557.83 | Est @ 1.93% | 228.43 |
| Present value of next 10 years cash flows | $3,483.39 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $557.83 × (1 + 2.73%) ÷ (9.34% – 2.73%) |
$8,670.87 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $8,670.87 ÷ (1 + 9.34%)10 |
$3,550.70 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $3,483.39 + $3,550.70 |
$7,034.09 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $7,034.09 / 281.19 |
$25.02 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $25.02 |
| Current discount | Discount to share price of
$61.24
= -1 x ($61.24 - $25.02) / $25.02 |
-144.8% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Cadence Design Systems is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Cadence Design Systems's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Cadence Design Systems's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-29) in USD | $1.26 |
| NasdaqGS:CDNS Share Price ** | NasdaqGS (2019-03-19) in USD | $61.24 |
| United States of America Software Industry PE Ratio | Median Figure of 84 Publicly-Listed Software Companies | 52.56x |
| United States of America Market PE Ratio | Median Figure of 3,056 Publicly-Listed Companies | 17.77x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Cadence Design Systems.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NasdaqGS:CDNS Share Price ÷ EPS (both in USD) = 61.24 ÷ 1.26 |
48.48x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Cadence Design Systems is good value based on earnings compared to the US Software industry average.
- Cadence Design Systems is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Cadence Design Systems's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 48.48x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts |
9.7%per year |
| United States of America Software Industry PEG Ratio | Median Figure of 66 Publicly-Listed Software Companies | 3.58x |
| United States of America Market PEG Ratio | Median Figure of 2,107 Publicly-Listed Companies | 1.49x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 48.48x ÷ 9.7% |
4.98x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Cadence Design Systems is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Cadence Design Systems's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-29) in USD | $4.60 |
| NasdaqGS:CDNS Share Price * | NasdaqGS (2019-03-19) in USD | $61.24 |
| United States of America Software Industry PB Ratio | Median Figure of 220 Publicly-Listed Software Companies | 5.72x |
| United States of America Market PB Ratio | Median Figure of 5,154 Publicly-Listed Companies | 1.89x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NasdaqGS:CDNS Share Price ÷ Book Value per Share (both in USD) = 61.24 ÷ 4.60 |
13.31x |
* Primary Listing of Cadence Design Systems.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Cadence Design Systems is overvalued based on assets compared to the US Software industry average.
Value checks
We assess Cadence Design Systems's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Software industry average (and greater than 0)? (1 check) Cadence Design Systems has a total score of 1/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
CDNS Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Cadence Design Systems's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Cadence Design Systems's earnings growth is positive but not above the United States of America market average.
- Cadence Design Systems's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NasdaqGS:CDNS Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts | 9.7% |
| NasdaqGS:CDNS Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts | 6.4% |
| United States of America Software Industry Earnings Growth Rate | Market Cap Weighted Average | 16.1% |
| United States of America Software Industry Revenue Growth Rate | Market Cap Weighted Average | 10.8% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14.3% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 8 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 2,597 | 823 | 468 | 2 |
| 2020-12-31 | 2,438 | 740 | 424 | 8 |
| 2019-12-31 | 2,291 | 654 | 392 | 8 |
| 2018-12-31 | 2,118 | 573 | 327 | 9 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-29 | 2,138 | 605 | 346 |
| 2018-09-29 | 2,070 | 600 | 233 |
| 2018-06-30 | 2,023 | 579 | 215 |
| 2018-03-31 | 1,983 | 536 | 209 |
| 2017-12-30 | 1,943 | 471 | 204 |
| 2017-09-30 | 1,910 | 541 | 257 |
| 2017-07-01 | 1,871 | 536 | 241 |
| 2017-04-01 | 1,845 | 454 | 221 |
| 2016-12-31 | 1,816 | 445 | 203 |
| 2016-10-01 | 1,788 | 371 | 245 |
| 2016-07-02 | 1,776 | 373 | 258 |
| 2016-04-02 | 1,739 | 415 | 267 |
| 2016-01-02 | 1,702 | 378 | 252 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 8 Analyst Estimates (S&P Global) | See Below |
All data from Cadence Design Systems Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 1.66 | 1.66 | 1.66 | 1.00 |
| 2020-12-31 | 1.50 | 1.51 | 1.50 | 4.00 |
| 2019-12-31 | 1.39 | 1.43 | 1.37 | 4.00 |
| 2018-12-31 | 1.16 | 1.17 | 1.16 | 5.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-29 | 1.26 |
| 2018-09-29 | 0.85 |
| 2018-06-30 | 0.79 |
| 2018-03-31 | 0.76 |
| 2017-12-30 | 0.75 |
| 2017-09-30 | 0.95 |
| 2017-07-01 | 0.88 |
| 2017-04-01 | 0.79 |
| 2016-12-31 | 0.71 |
| 2016-10-01 | 0.84 |
| 2016-07-02 | 0.88 |
| 2016-04-02 | 0.92 |
| 2016-01-02 | 0.88 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Cadence Design Systems is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
Future performance checks
We assess Cadence Design Systems's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Cadence Design Systems has a total score of 2/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
CDNS Past Performance
How has Cadence Design Systems performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Cadence Design Systems's year on year earnings growth rate has been positive over the past 5 years.
- Cadence Design Systems's 1-year earnings growth exceeds its 5-year average (68.9% vs 11.8%)
- Cadence Design Systems's earnings growth has exceeded the US Software industry average in the past year (68.9% vs 32.7%).
Earnings and Revenue History
All data from Cadence Design Systems Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-29 | 2,138.02 | 345.78 | 573.08 | 884.82 |
| 2018-09-29 | 2,069.89 | 232.91 | 568.82 | 870.01 |
| 2018-06-30 | 2,022.82 | 214.75 | 567.53 | 853.35 |
| 2018-03-31 | 1,983.43 | 208.73 | 560.03 | 830.12 |
| 2017-12-30 | 1,943.03 | 204.10 | 552.74 | 804.22 |
| 2017-09-30 | 1,910.29 | 257.02 | 539.37 | 782.27 |
| 2017-07-01 | 1,871.11 | 240.58 | 526.04 | 767.25 |
| 2017-04-01 | 1,845.13 | 220.78 | 526.86 | 753.72 |
| 2016-12-31 | 1,816.08 | 203.09 | 519.20 | 735.34 |
| 2016-10-01 | 1,788.18 | 244.98 | 522.57 | 715.79 |
| 2016-07-02 | 1,775.73 | 257.90 | 525.37 | 678.87 |
| 2016-04-02 | 1,738.59 | 266.72 | 512.00 | 654.48 |
| 2016-01-02 | 1,702.09 | 252.42 | 511.71 | 637.57 |
| 2015-10-03 | 1,684.11 | 237.07 | 511.38 | 630.72 |
| 2015-07-04 | 1,650.84 | 196.98 | 507.63 | 624.84 |
| 2015-04-04 | 1,613.75 | 162.09 | 514.15 | 619.54 |
| 2015-01-03 | 1,580.93 | 158.90 | 513.31 | 603.01 |
| 2014-09-27 | 1,534.56 | 131.57 | 507.16 | 583.35 |
| 2014-06-28 | 1,500.71 | 132.54 | 506.55 | 572.68 |
| 2014-03-29 | 1,484.40 | 118.70 | 505.62 | 556.40 |
| 2013-12-28 | 1,460.12 | 164.24 | 499.47 | 534.02 |
| 2013-09-28 | 1,428.98 | 440.41 | 498.92 | 516.94 |
| 2013-06-29 | 1,400.87 | 460.50 | 482.06 | 493.94 |
| 2013-03-30 | 1,364.86 | 487.45 | 463.00 | 469.58 |
| 2012-12-29 | 1,326.42 | 439.95 | 454.35 | 454.09 |
| 2012-09-29 | 1,288.85 | 136.97 | 443.69 | 432.73 |
| 2012-06-30 | 1,242.77 | 106.49 | 438.83 | 420.80 |
| 2012-03-31 | 1,199.56 | 97.01 | 430.55 | 408.04 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Cadence Design Systems has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
- Cadence Design Systems used its assets more efficiently than the US Software industry average last year based on Return on Assets.
- Cadence Design Systems has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Cadence Design Systems's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Cadence Design Systems has a total score of 6/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
CDNS Health
How is Cadence Design Systems's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Cadence Design Systems's finances.
The net worth of a company is the difference between its assets and liabilities.
- Cadence Design Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Cadence Design Systems's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 2.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Cadence Design Systems Company Filings, last reported 2 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-29 | 1,288.40 | 445.29 | 537.19 |
| 2018-09-29 | 1,257.42 | 345.11 | 550.03 |
| 2018-06-30 | 1,187.99 | 644.82 | 825.38 |
| 2018-03-31 | 1,142.30 | 689.59 | 752.43 |
| 2017-12-30 | 989.20 | 729.37 | 692.54 |
| 2017-09-30 | 1,010.74 | 644.15 | 682.42 |
| 2017-07-01 | 951.79 | 643.93 | 659.23 |
| 2017-04-01 | 840.59 | 693.71 | 547.61 |
| 2016-12-31 | 741.77 | 693.49 | 468.29 |
| 2016-10-01 | 926.80 | 693.28 | 532.84 |
| 2016-07-02 | 1,075.39 | 693.07 | 704.32 |
| 2016-04-02 | 1,234.05 | 692.86 | 906.72 |
| 2016-01-02 | 1,376.12 | 343.29 | 711.18 |
| 2015-10-03 | 1,384.56 | 348.76 | 711.20 |
| 2015-07-04 | 1,397.22 | 348.73 | 744.41 |
| 2015-04-04 | 1,363.19 | 642.37 | 980.38 |
| 2015-01-03 | 1,333.57 | 691.18 | 1,022.61 |
| 2014-09-27 | 1,284.73 | 337.71 | 595.45 |
| 2014-06-28 | 1,260.48 | 433.33 | 655.33 |
| 2014-03-29 | 1,214.20 | 329.06 | 629.77 |
| 2013-12-28 | 1,156.11 | 324.83 | 633.05 |
| 2013-09-28 | 1,096.21 | 513.84 | 716.42 |
| 2013-06-29 | 1,040.26 | 558.18 | 678.48 |
| 2013-03-30 | 1,019.67 | 452.57 | 911.14 |
| 2012-12-29 | 915.17 | 447.01 | 827.06 |
| 2012-09-29 | 588.39 | 441.62 | 744.92 |
| 2012-06-30 | 502.01 | 436.30 | 712.96 |
| 2012-03-31 | 460.75 | 431.11 | 662.97 |
- Cadence Design Systems's level of debt (34.6%) compared to net worth is satisfactory (less than 40%).
- The level of debt compared to net worth has increased over the past 5 years (28.1% vs 34.6% today).
- Debt is well covered by operating cash flow (135.8%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 27x coverage).
Financial health checks
We assess Cadence Design Systems's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Cadence Design Systems has a total score of 5/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
CDNS Dividends
What is Cadence Design Systems's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Cadence Design Systems
shares you are expected to receive
$0
in your first year as a dividend.
Dividend Amount
- Unable to evaluate Cadence Design Systems's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
- Unable to evaluate Cadence Design Systems's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 8 Analyst Estimates (S&P Global) | See Below |
| United States of America Software Industry Average Dividend Yield | Market Cap Weighted Average of 24 Stocks | 1.5% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2004 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-12-31 | 0.00 | 1.00 |
| 2020-12-31 | 0.00 | 1.00 |
| 2019-12-31 | 0.00 | 1.00 |
| 2018-12-31 | 0.00 | 2.00 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to perform a dividend volatility check as Cadence Design Systems has not reported any payouts.
- Unable to verify if Cadence Design Systems's dividend has been increasing as the company has not reported any payouts.
Income/ dividend checks
We assess Cadence Design Systems's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Cadence Design Systems afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Cadence Design Systems has a total score of 0/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
CDNS Management
CEO
| COMPENSATION | $7,556,368 |
| AGE | 58 |
| TENURE AS CEO | 10.2 years |
CEO Bio
Mr. Lip-Bu Tan is a Co-Founder, Partner, Managing Director, and Chairman of Walden Riverwood Ventures. Mr. Tan serves as the Chairman on the board of SambaNova Systems, Inc. Mr. Tan has been the Chief Executive Officer at Cadence Design Systems Inc. since January 2009 and served as its President from January 2009 to November 2017. He focuses on semiconductors, clean technology, software and information technology services and communications and is part of the United States of America team. He serves as the Chief Executive Officer of Cosmic Circuits. He has been a General Partner of Walden Group since 1984. He serves as an Advisor of Iqlect Software Solutions Pvt. Ltd. He serves as a Member of Management Board at AGENDA Corporation. He serves as a Vice President Ashfield Capital Partners, LLC. He founded Walden International Group in 1987. He served as an Advisor of Cortina Systems, Inc., SKTA Innopartners LLC. Mr. Tan served as a Vice President of Chappell & Co. and held management positions at EDS Nuclear and ECHO Energy. He was the founder of Amwin Management Pty Ltd. He serves as a Strategic Advisor of IndusAge Partners. He serves as an Advisor of INC3 Ventures, LLC. He has been the Chairman of Netspeed Systems, Inc. since November 4, 2014. He serves as the Chairman of WIIG Communications Partners, Walden International Group. He served as Co-Chair of Electronic Design Automation Consortium since May 29, 2014 until February 2017. He serves as the Chairman of the Board at UP Technologies (China) Ltd. He serves as the Vice Chairman of Ashfield Capital Partners, LLC. He serves as a Co-Lead Independent Director of Telegent Systems, Inc. He was Lead Independent Director at Quantenna Communications, Inc. until June 05, 2018 and was its Independent Director from June 2015 until June 05, 2018. He serves as a Director of Paravirtual Corporation. He serves as a Member of Advisory Board at Eucalyptus Growth Capital. He serves as a Director of Snick and has been a Member of the Board of Directors of Fungible Inc. since February 7, 2017. He has been Director of Aquantia Corp. since October 5, 2015 and of Innovium, Inc. since May 31, 2016. He serves as a Director of ISSI. Mr. Tan has been a Non-Executive Director of Cadence Design Systems, Inc., since February 10, 2004. He serves as a Director at Berkeley Lights, Inc. He has been a Director of Cosmic Circuits Pvt. Ltd. since 2011 and Ittiam Systems (P) Ltd. since May 7, 2013. He has been a Director of Advanced Micro-Fabrication Equipment Inc. (Micro-Fabrication Equipment Inc.) since December 2006. Mr. Tan has been a Director of JTS Corporation since 1995. He serves as a Member of the Venture Capital Advisory Council at IBM. Mr. Tan serves as a Director at United Platform Technologies Inc, CommVerge Solutions (HK) Limited, Fledge Technologies Inc., DoubleWide Software, Centillium Technology Ltd. and Probix. He serves as a Director of Pervasive, Inc. He has been an Independent Director of Hewlett Packard Enterprise Company since November 01, 2015. He serves as a Director of Aquest Systems Corporation and RF Pixels, Inc. He serves as a Member of Advisory Board at Pelion Venture Partners. He serves as a Director of EnVerv Inc., Apexone Microelectronics (Shanghai) Co., Ltd. and Teak Technologies, Inc. Mr. Tan serves as a Director of Schools Online. He serves as an Independent Director of MindTree Consulting and Aura Semiconductor Private Limited. Mr. Tan served as a Non-Executive Director of Semiconductor Manufacturing International Corporation from November 3, 2011 to June 22, 2018. He served as a Director of Ambarella, Inc. since January 2004 until May 24, 2017 and its Lead Independent Director until May 24, 2017. He serves as a Member of the Advisory Board at UV Partners. He has been the Vice Chairman of The Electronic Design Automation (EDA) Consortium since April 2010 and has been its Director since February 2009. He serves as a Member of the Venture Capital Advisory Board of Fabless Semiconductor Association and a Trustee of Nanyang Technological University in Singapore. Mr. Tan is on the United States Council (West) of INSEAD. He serves as a Member of the Dean's Advisory Council for School of Engineering of Massachusetts Institute of Technology. Mr. Tan serves as a Trustee of Nanyang Technological University. He serves as a Trustee of New College of Berkeley. He serves as an Emeritus Trustee of University of San Francisco. He is a Member of Board of Trustee of Berkeley Institute for Synthetic Biology (BSIB). He serves as a Director of Bay Area Rescue Mission. Mr. Tan serves as a Member of both the Dean's Advisory Council for the School of Engineering and serves on the School of Engineering Dean's Council at Carnegie Mellon University. He also serves on the Board of San Francisco Opera. Mr. Tan serves as Trustee and the Chairman of Science, Math and Technology Advisory Board of Head Royce School. Mr. Tan serves as a Member of the Venture Capital Advisory Board of Global Semiconductor Association (GSA) and serves on the College of Engineering Advisory Board at University of California Berkeley. Mr. Tan is also an Elder, a Co-Chairman of Facility Task Force of First Presbyterian Church of Berekley. He serves as a Trustee of Asia America MultiTechnology Association, a Member of the Advisory Board of Asia Society of Northern California, a Trustee of Majulah Connection, Singapore, a Member of Inaugural Advisory Council of Pacific Pension Institute and a Patron of Singapore American Business Association. Mr. Tan served as Interim Vice Chairman and Member of the IOCE at Cadence Design Systems Inc. from October 2008 to January 2009. He served as the Chairman of the Board at Multiplex, Inc. He served as Chairman of Amwin Management Pty Ltd. He served as Lead Director of Leadis Technology Inc. since August 2002 and served as its Director from August 2002 to December 2006. Mr. Tan served as an Independent Director of SINA Corporation since March 1999 until January 19, 2016. Mr. Tan served as a Director of Skire, Inc. and on the Regent College Board of Governors and as a Trustee of the San Francisco Opera. He served as a Director of Beceem Communications Inc. since December 2003. He served as a Director of Tilera Corporation. He served as Non-Executive Independent Director at United Overseas Bank Limited since November 15, 2010 until April 24, 2014. Mr. Tan served as a Director at Calypto Design Systems. He served as a Director of Vivato Networks, Inc. (Vivato Inc.), Planetweb Inc., Silterra Malaysia Sdn. Bhd., Terawave Communications, Inc., Xponent Photonics, Inc. and Informative Inc. He served as a Non-Executive Director of MindTree Limited until February 2009. He served as a Director of Creative Technology Ltd. from May 1990 to January 2009. He served as a Director of Accelerated Network. He served as a Director of Actelis Networks, Inc. since 1999. Mr. Tan served as a Director of Flextronics International Ltd. from 2003 to 2012. He serv
CEO Compensation
- Lip-Bu's compensation has been consistent with company performance over the past year.
- Lip-Bu's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Cadence Design Systems management team in years:
- The average tenure for the Cadence Design Systems management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
Lip-Bu Tan
CEO & Director
$8M
58
10.2 yrs
Anirudh Devgan
President
$4M
48
1.3 yrs
John Wall
Senior VP & CFO
$2M
47
11.4 yrs
Neil Zaman
Senior Vice President of Worldwide Field Operations
$3M
49
3.5 yrs
Surendra Mandava
Senior VP of Research & Development and GM of IP Group
$2M
59
2.2 yrs
Ariel Sella
Co-Founder
James Haddad
Corporate VP of Corporate Finance & Treasurer
12.9 yrs
Neil Kole
Senior VP & Chief Information Officer
2.8 yrs
Alan Lindstrom
Senior Group Director of Investor Relations
Jim Cowie
Senior VP
$964K
53
10.9 yrs
Board of Directors Tenure
Average tenure and age of the Cadence Design Systems board of directors in years:
- The tenure for the Cadence Design Systems board of directors is about average.
Board of Directors
John Shoven
Chairman of the Board
$463K
71
14.2 yrs
Lip-Bu Tan
CEO & Director
$8M
58
15.1 yrs
Roger Siboni
Independent Director
$356K
64
20.2 yrs
Sue Bostrom
Independent Director
$338K
58
8.1 yrs
James Plummer
Independent Director
$320K
73
7.4 yrs
Young Sohn
Independent Director
$319K
62
6.1 yrs
Alberto Sangiovanni-Vincentelli
Independent Director
$303K
70
27.2 yrs
Mark Adams
Independent Director
$299K
54
4.1 yrs
Maggie Wilderotter
Director
$292K
63
1.8 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 06. Mar 19 | Sell | Chin-Chi Teng | Individual | 04. Mar 19 | 04. Mar 19 | -5,084 | $57.92 | $-294,465 | ||
| 05. Mar 19 | Sell | Susan Bostrom | Individual | 01. Mar 19 | 01. Mar 19 | -35,000 | $57.66 | $-2,018,100 | ||
| 30. Jul 18 | Sell | James Plummer | Individual | 26. Jul 18 | 26. Jul 18 | -7,500 | $46.49 | $-348,639 | ||
Management checks
We assess Cadence Design Systems's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Cadence Design Systems has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
CDNS News
Simply Wall St News
Is Cadence Design Systems's (NASDAQ:CDNS) Share Price Gain Of 288% Well Earned?
One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … During five years of share price growth, Cadence Design Systems achieved compound earnings per share (EPS) growth of 16% per year. … This EPS growth is slower than the share price growth of 31% per year, over the same period.
Simply Wall St - – Full articleAre Cadence Design Systems, Inc.’s (NASDAQ:CDNS) High Returns Really That Great?
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.
Simply Wall St - – Full articleAn Examination Of Cadence Design Systems, Inc. (NASDAQ:CDNS)
Help shape the future of investing tools and receive a $20 prize! … (NASDAQ:CDNS) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective.
Simply Wall St - – Full articleIs Cadence Design Systems, Inc.'s (NASDAQ:CDNS) ROE Of 19% Impressive?
Our data shows Cadence Design Systems has a return on equity of 19% for the last year. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.19 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleIs It Too Late To Consider Buying Cadence Design Systems, Inc. (NASDAQ:CDNS)?
The company's stock. … saw a decent share price growth in the teens level on the NASDAQGS over the last few months. … As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock
Simply Wall St - – Full articleHow Much is Cadence Design Systems, Inc.'s (NASDAQ:CDNS) CEO Getting Paid?
Lip-Bu Tan has been the CEO of Cadence Design Systems, Inc. … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … How Does Lip-Bu Tan's Compensation Compare With Similar Sized Companies?
Simply Wall St - – Full articleWhy You Should Care About Cadence Design Systems, Inc.’s (NASDAQ:CDNS) Cash Levels
Today we will examine Cadence Design Systems’s ability to generate cash flows, as well as the level of capital expenditure it is expected to incur over the next couple of years, which will result in how much money goes to you. … Free cash flow (FCF) is the amount of cash Cadence Design Systems has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations. … I will be analysing Cadence Design Systems’s FCF by looking at its FCF yield and its operating cash flow growth.
Simply Wall St - – Full articleCadence Design Systems, Inc. (NASDAQ:CDNS): Can Growth Justify Its December Share Price?
Looking at Cadence Design Systems, Inc.’s (NASDAQ:CDNS) fundamentals some investors are wondering if its last closing price of $42.31 represents a good value for money for this high growth stock. … See our latest analysis for Cadence Design Systems? … Cadence Design Systems's growth potential is very attractive
Simply Wall St - – Full articleDon't Sell Cadence Design Systems Inc (NASDAQ:CDNS) Before You Read This
We'll look at Cadence Design Systems Inc's (NASDAQ:CDNS) P/E ratio and reflect on what it tells us about the company's share price. … Based on the last twelve months, Cadence Design Systems's P/E ratio is 52.54. … How Do You Calculate Cadence Design Systems's P/E Ratio
Simply Wall St - – Full articleCadence Design Systems Inc (NASDAQ:CDNS): Does The -9.3% Earnings Drop Reflect A Longer Term Trend?
Measuring Cadence Design Systems Inc's (NASDAQ:CDNS) track record of past performance is a valuable exercise for investors. … Did CDNS perform worse than its track record and industry. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 2.5%, indicating the rate at which CDNS is growing has slowed down
Simply Wall St - – Full articleCDNS Company Info
Description
Cadence Design Systems, Inc. provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. The company offers functional verification services, including emulation and prototyping hardware. Its functional verification offering consists of JasperGold, a formal verification platform; Xcelium, a parallel simulation platform; Palladium Z1, an enterprise emulation platform; and Protium S1 field-programmable gate array prototyping platform. The company also provides digital IC design products, such as logic design products for chip planning, design, verification, and test technologies and services; physical implementation tools, including place and route, signal integrity, optimization, and multiple patterning preparation; and signoff products to signoff the design as ready for manufacture by a silicon foundry, as well as design for manufacturing products for use in the product development process. In addition, it offers custom IC design and simulation products to create schematic and physical representations of circuits down to the transistor level for analog, mixed-signal, custom digital, memory, and radio frequency designs; and system interconnect design products to develop printed circuit boards and IC packages. Further, the company provides design intellectual property (IP) products consisting of pre-verified and customizable functional blocks to integrate into customer’s ICs; and verification IP and memory models for use in system-level verification to model correct behavior of full systems interacting with their environments. Additionally, it offers services related to methodology, education, and hosted design solutions, as well as technical support and maintenance services. Cadence Design Systems, Inc. was founded in 1988 and is headquartered in San Jose, California.
Details
| Name: | Cadence Design Systems, Inc. |
| CDNS | |
| Exchange: | NasdaqGS |
| Founded: | 1988 |
| $17,219,843,622 | |
| 281,186,212 | |
| Website: | http://www.cadence.com |
| Address: |
Cadence Design Systems, Inc. 2655 Seely Avenue, Building 5, San Jose, California, 95134, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NasdaqGS | CDNS | Common Stock | Nasdaq Global Select | US | USD | 17. Sep 1990 | |
| DB | CDS | Common Stock | Deutsche Boerse AG | DE | EUR | 17. Sep 1990 | |
| LSE | 0HS2 | Common Stock | London Stock Exchange | GB | USD | 17. Sep 1990 | |
| BMV | CDNS * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 17. Sep 1990 |
Number of employees
Current staff
Industry
| Application Software | |
| Software |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/03/19 23:34 |
| End of day share price update: | 2019/03/19 00:00 |
| Last estimates confirmation: | 2019/03/14 |
| Last earnings filing: | 2019/02/27 |
| Last earnings reported: | 2018/12/29 |
| Last annual earnings reported: | 2018/12/29 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.
