Cadence Design Systems
Market Cap
US$40.6b
Last Updated
2021/04/10 22:27 UTC
Data Sources
Company Financials +
Executive Summary
Cadence Design Systems, Inc. provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with acceptable track record.
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: CDNS's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
2.7%
CDNS
3.4%
US Software
1.6%
US Market
1 Year Return
102.9%
CDNS
62.8%
US Software
55.3%
US Market
Return vs Industry: CDNS exceeded the US Software industry which returned 62.8% over the past year.
Return vs Market: CDNS exceeded the US Market which returned 55.3% over the past year.
Shareholder returns
| CDNS | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.7% | 3.4% | 1.6% |
| 30 Day | 11.7% | 6.0% | 4.1% |
| 90 Day | 6.7% | 5.8% | 5.5% |
| 1 Year | 102.9%102.9% | 63.9%62.8% | 58.1%55.3% |
| 3 Year | 289.7%289.7% | 140.9%133.7% | 63.8%53.3% |
| 5 Year | 519.6%519.6% | 300.6%278.3% | 120.2%95.7% |
Long-Term 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
3 days ago | Simply Wall St
Cadence Design Systems, Inc. (NASDAQ:CDNS) Insiders Have Been Selling2 weeks ago | Simply Wall St
How Many Cadence Design Systems, Inc. (NASDAQ:CDNS) Shares Do Institutions Own?4 weeks ago | Simply Wall St
Is There Now An Opportunity In Cadence Design Systems, Inc. (NASDAQ:CDNS)?Valuation
Is Cadence Design Systems undervalued compared to its fair value and its price relative to the market?
67.36x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CDNS ($145.35) is trading above our estimate of fair value ($90.15)
Significantly Below Fair Value: CDNS is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CDNS is poor value based on its PE Ratio (67.4x) compared to the US Software industry average (54x).
PE vs Market: CDNS is poor value based on its PE Ratio (67.4x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: CDNS is poor value based on its PEG Ratio (7.2x)
Price to Book Ratio
PB vs Industry: CDNS is overvalued based on its PB Ratio (16.3x) compared to the US Software industry average (8.7x).
Future Growth
How is Cadence Design Systems forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
9.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CDNS's forecast earnings growth (9.3% per year) is above the savings rate (2%).
Earnings vs Market: CDNS's earnings (9.3% per year) are forecast to grow slower than the US market (18.7% per year).
High Growth Earnings: CDNS's earnings are forecast to grow, but not significantly.
Revenue vs Market: CDNS's revenue (7.2% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: CDNS's revenue (7.2% 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 (26.3%)
Past Performance
How has Cadence Design Systems performed over the past 5 years?
35.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CDNS has high quality earnings.
Growing Profit Margin: CDNS's current net profit margins (22%) are lower than last year (42.3%).
Past Earnings Growth Analysis
Earnings Trend: CDNS's earnings have grown significantly by 35.2% per year over the past 5 years.
Accelerating Growth: CDNS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CDNS had negative earnings growth (-40.3%) over the past year, making it difficult to compare to the Software industry average (16.3%).
Return on Equity
High ROE: CDNS's Return on Equity (23.7%) is considered high.
Financial Health
How is Cadence Design Systems's financial position?
Financial Position Analysis
Short Term Liabilities: CDNS's short term assets ($1.5B) exceed its short term liabilities ($796.8M).
Long Term Liabilities: CDNS's short term assets ($1.5B) exceed its long term liabilities ($661.0M).
Debt to Equity History and Analysis
Debt Level: CDNS's debt to equity ratio (13.9%) is considered satisfactory.
Reducing Debt: CDNS's debt to equity ratio has reduced from 25.6% to 13.9% over the past 5 years.
Debt Coverage: CDNS's debt is well covered by operating cash flow (260.9%).
Interest Coverage: CDNS's interest payments on its debt are well covered by EBIT (38.7x coverage).
Balance Sheet
Dividend
What is Cadence Design Systems's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate CDNS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate CDNS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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
How experienced are the management team and are they aligned to shareholders interests?
10.4yrs
Average management tenure
CEO
Lip-Bu Tan (61 yo)
12.25yrs
Tenure
US$9,604,640
Compensation
Mr. Lip-Bu Tan serves as Board Member at VDOO Connected Trust Ltd. He has served as Chief Executive Officer of Cadence Design Systems, Inc. since January 2009. From January 2009 to November 2017, Mr. Tan a...
CEO Compensation Analysis
Compensation vs Market: Lip-Bu's total compensation ($USD9.60M) is about 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.
Leadership Team
Experienced Management: CDNS's management team is seasoned and experienced (10.4 years average tenure).
Board Members
Experienced Board: CDNS's board of directors are considered experienced (8.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$40.563b
- Shares outstanding: 279.07m
- Website: https://www.cadence.com
Number of Employees
Location
- Cadence Design Systems, Inc.
- Building 5
- 2655 Seely Avenue
- San Jose
- California
- 95134
- United States
Listings
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 | 2021/04/10 22:27 |
| End of Day Share Price | 2021/04/09 00:00 |
| Earnings | 2021/01/02 |
| Annual Earnings | 2021/01/02 |
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.