Cadence Design Systems
Market Cap
US$18.8b
Last Updated
2019/12/13 23:34 UTC
Data Sources
Company Financials +
Executive Summary
Cadence Design Systems, Inc. provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide.
Rewards
PE ratio (43.4x) is below the Software industry average (44.9x)
Risk Analysis
No risks detected for CDNS from our risk checks.
Snowflake Analysis
Outstanding track record with flawless balance sheet.
Similar Companies
Share Price & News
How has Cadence Design Systems's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CDNS has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.1%
CDNS
0.8%
US Software
0.6%
US Market
1 Year Return
57.1%
CDNS
33.7%
US Software
20.8%
US Market
Return vs Industry: CDNS exceeded the US Software industry which returned 33.7% over the past year.
Return vs Market: CDNS exceeded the US Market which returned 20.8% over the past year.
Shareholder returns
| CDNS | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.1% | 0.8% | 0.6% |
| 30 Day | 1.1% | 1.6% | 2.5% |
| 90 Day | 3.6% | 5.8% | 4.9% |
| 1 Year | 57.1%57.1% | 35.7%33.7% | 23.5%20.8% |
| 3 Year | 165.9%165.9% | 130.8%121.5% | 46.5%37.0% |
| 5 Year | 257.8%257.8% | 171.6%152.3% | 64.6%46.5% |
Price Volatility Vs. Market
How volatile is Cadence Design Systems's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
If You Had Bought Cadence Design Systems (NASDAQ:CDNS) Shares Five Years Ago You'd Have Made 263%2 weeks ago | Simply Wall St
Who Has Been Selling Cadence Design Systems, Inc. (NASDAQ:CDNS) Shares?4 weeks ago | Simply Wall St
How Should Investors Feel About Cadence Design Systems, Inc.'s (NASDAQ:CDNS) CEO Pay?Valuation
Is Cadence Design Systems undervalued compared to its fair value and its price relative to the market?
43.41x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CDNS ($67.92) is trading above our estimate of fair value ($41.46)
Significantly Below Fair Value: CDNS is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CDNS is good value based on its PE Ratio (43.4x) compared to the Software industry average (44.9x).
PE vs Market: CDNS is poor value based on its PE Ratio (43.4x) compared to the US market (18.6x).
Price to Earnings Growth Ratio
PEG Ratio: CDNS is poor value based on its PEG Ratio (5.5x)
Price to Book Ratio
PB vs Industry: CDNS is overvalued based on its PB Ratio (12.9x) compared to the US Software industry average (5.6x).
Next Steps
Future Growth
How is Cadence Design Systems forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
7.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CDNS's forecast earnings growth (7.9% per year) is above the savings rate (1.7%).
Earnings vs Market: CDNS's earnings (7.9% per year) are forecast to grow slower than the US market (14.4% per year).
High Growth Earnings: CDNS's earnings are forecast to grow, but not significantly.
Revenue vs Market: CDNS's revenue (6.4% per year) is forecast to grow slower than the US market (7.4% per year).
High Growth Revenue: CDNS's revenue (6.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CDNS's Return on Equity is forecast to be high in 3 years time (28.7%)
Next Steps
Past Performance
How has Cadence Design Systems performed over the past 5 years?
16.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CDNS has high quality earnings.
Growing Profit Margin: CDNS's current net profit margins (18.5%) are higher than last year (11.2%).
Past Earnings Growth Analysis
Earnings Trend: CDNS's earnings have grown by 16% per year over the past 5 years.
Accelerating Growth: CDNS's earnings growth over the past year (83.8%) exceeds its 5-year average (16% per year).
Earnings vs Industry: CDNS earnings growth over the past year (83.8%) exceeded the Software industry 15.8%.
Return on Equity
High ROE: CDNS's Return on Equity (28.9%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Cadence Design Systems's financial position?
Financial Position Analysis
Short Term Liabilities: CDNS's short term assets ($1.0B) exceed its short term liabilities ($619.0M).
Long Term Liabilities: CDNS's short term assets ($1.0B) exceed its long term liabilities ($563.0M).
Debt to Equity History and Analysis
Debt Level: CDNS's debt to equity ratio (23.4%) is considered satisfactory.
Reducing Debt: CDNS's debt to equity ratio has reduced from 26.8% to 23.4% over the past 5 years.
Debt Coverage: CDNS's debt is well covered by operating cash flow (203%).
Interest Coverage: CDNS's interest payments on its debt are well covered by EBIT (46.9x coverage).
Balance Sheet
Inventory Level: CDNS has a low level of unsold assets or inventory.
Debt Coverage by Assets: CDNS's debt is covered by short term assets (assets are 3x debt).
Next Steps
Dividend
What is Cadence Design Systems's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate CDNS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate CDNS's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if CDNS's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CDNS's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of CDNS's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
What is the CEO of Cadence Design Systems's salary, the management and board of directors tenure and is there insider trading?
7.6yrs
Average management tenure
CEO
Lip-Bu Tan (59yo)
10.9yrs
Tenure
US$7,556,368
Compensation
Mr. Lip-Bu Tan is a Co-Founder, Partner, Managing Director, and Chairman of Walden Riverwood Ventures. Mr. Tan serves as Director of Green Hills Software, Inc. and Managing Partner of WRVI Capital. He serv ...
CEO Compensation Analysis
Compensation vs Market: Lip-Bu's total compensation ($USD7.56M) is below average for companies of similar size in the US market ($USD10.94M).
Compensation vs Earnings: Lip-Bu's compensation has been consistent with company performance over the past year.
Management Age and Tenure
7.6yrs
Average Tenure
52yo
Average Age
Experienced Management: CDNS's management team is seasoned and experienced (7.6 years average tenure).
Board Age and Tenure
8.8yrs
Average Tenure
64yo
Average Age
Experienced Board: CDNS's board of directors are considered experienced (8.8 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Legal Officer Senior VP |
| Shares | 1,251 |
| Max Price | US$70.83 |
| Entity | Individual |
| Role | Chief Operating Officer Senior Vice President of Worldwide Field Operations |
| Shares | 36,824 |
| Max Price | US$61.77 |
| Entity | Individual |
| Shares | 5,084 |
| Max Price | US$57.92 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 35,000 |
| Max Price | US$57.66 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Lip-Bu Tan (59yo)
CEO & Director
- Tenure: 10.9yrs
- Compensation: US$7.56m
Surendra Mandava (60yo)
Senior VP of Research & Development and GM of IP Group
- Tenure: 2.9yrs
- Compensation: US$2.46m
Ariel Sella
Co-Founder
- Tenure: 0yrs
Jim Cowie (54yo)
Senior VP
- Tenure: 11.7yrs
- Compensation: US$964.06k
James Haddad
Corporate VP of Corporate Finance & Treasurer
- Tenure: 13.7yrs
Alan Lindstrom
Senior Group Director of Investor Relations
- Tenure: 0yrs
Anirudh Devgan (49yo)
President
- Tenure: 2.1yrs
- Compensation: US$4.36m
Neil Zaman (50yo)
Senior Vice President of Worldwide Field Operations
- Tenure: 4.3yrs
- Compensation: US$2.69m
Neil Kole
Senior VP & Chief Information Officer
- Tenure: 3.6yrs
John Wall (48yo)
Senior VP & CFO
- Tenure: 12.2yrs
- Compensation: US$2.05m
Board Members
Lip-Bu Tan (59yo)
CEO & Director
- Tenure: 10.9yrs
- Compensation: US$7.56m
Young Sohn (63yo)
Director
- Tenure: 6.8yrs
- Compensation: US$319.00k
Maggie Wilderotter (64yo)
Independent Director
- Tenure: 2.5yrs
- Compensation: US$292.00k
Roger Siboni (65yo)
Independent Director
- Tenure: 20.9yrs
- Compensation: US$355.90k
Mark Adams (55yo)
Independent Director
- Tenure: 4.8yrs
- Compensation: US$299.00k
James Plummer (74yo)
Independent Director
- Tenure: 8.2yrs
- Compensation: US$320.00k
Alberto Sangiovanni-Vincentelli (71yo)
Independent Director
- Tenure: 27.9yrs
- Compensation: US$303.18k
John Shoven (72yo)
Independent Chairman of the Board
- Tenure: 14.9yrs
- Compensation: US$463.43k
Sue Bostrom (59yo)
Independent Director
- Tenure: 8.8yrs
- Compensation: US$338.00k
Company Information
Cadence Design Systems, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Cadence Design Systems, Inc.
- Ticker: CDNS
- Exchange: NasdaqGS
- Founded: 1988
- Industry: Application Software
- Sector: Software
- Market Cap: US$18.766b
- Shares outstanding: 280.59m
- Website: https://www.cadence.com
Number of Employees
Location
- Cadence Design Systems, Inc.
- 2655 Seely Avenue
- Building 5
- San Jose
- California
- 95134
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CDNS | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Sep 1990 |
| CDS | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Sep 1990 |
| 0HS2 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Sep 1990 |
| CDNS * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Sep 1990 |
Biography
Cadence Design Systems, Inc. provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. The company offers functional verification services, including emulation an ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/12/13 23:34 |
| End of Day Share Price | 2019/12/13 00:00 |
| Earnings | 2019/09/28 |
| Annual Earnings | 2018/12/29 |
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.