CDNS Stock Overview
Cadence Design Systems, Inc. provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide.
Cadence Design Systems Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$157.62|
|52 Week High||US$192.70|
|52 Week Low||US$132.32|
|1 Month Change||8.66%|
|3 Month Change||-0.77%|
|1 Year Change||16.96%|
|3 Year Change||122.60%|
|5 Year Change||370.65%|
|Change since IPO||3,446.45%|
Recent News & Updates
|CDNS||US Software||US Market|
Return vs Industry: CDNS exceeded the US Software industry which returned -21.3% over the past year.
Return vs Market: CDNS exceeded the US Market which returned -20.5% over the past year.
|CDNS Average Weekly Movement||6.6%|
|Software Industry Average Movement||11.1%|
|Market Average Movement||8.0%|
|10% most volatile stocks in US Market||16.6%|
|10% least volatile stocks in US Market||3.1%|
Stable Share Price: CDNS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: CDNS's weekly volatility (7%) has been stable over the past year.
About the Company
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 logic simulation platform; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification.
Cadence Design Systems Fundamentals Summary
|CDNS fundamental statistics|
Is CDNS overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|CDNS income statement (TTM)|
|Cost of Revenue||US$320.88m|
Last Reported Earnings
Apr 02, 2022
Next Earnings Date
|Earnings per share (EPS)||2.70|
|Net Profit Margin||23.59%|
How did CDNS perform over the long term?See historical performance and comparison
Is CDNS undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 0/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for CDNS?
Other financial metrics that can be useful for relative valuation.
|What is CDNS's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does CDNS's PE Ratio compare to its peers?
|CDNS PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
Price-To-Earnings vs Peers: CDNS is expensive based on its Price-To-Earnings Ratio (58.4x) compared to the peer average (56.6x).
Price to Earnings Ratio vs Industry
How does CDNS's PE Ratio compare vs other companies in the U.S. Software Industry?
Price-To-Earnings vs Industry: CDNS is expensive based on its Price-To-Earnings Ratio (58.4x) compared to the US Software industry average (38.2x)
Price to Earnings Ratio vs Fair Ratio
What is CDNS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||58.4x|
|Fair PE Ratio||38.4x|
Price-To-Earnings vs Fair Ratio: CDNS is expensive based on its Price-To-Earnings Ratio (58.4x) compared to the estimated Fair Price-To-Earnings Ratio (38.4x).
Share Price vs Fair Value
What is the Fair Price of CDNS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: CDNS ($157.62) is trading above our estimate of fair value ($140.14)
Significantly Below Fair Value: CDNS is trading above our estimate of fair value.
Price to Earnings Growth Ratio
PEG Ratio: CDNS is poor value based on its PEG Ratio (3.7x)
Discover undervalued companies
How is Cadence Design Systems forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
Future Growth Score4/6
Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CDNS's forecast earnings growth (15.7% per year) is above the savings rate (1.9%).
Earnings vs Market: CDNS's earnings (15.7% per year) are forecast to grow faster than the US market (13.9% per year).
High Growth Earnings: CDNS's earnings are forecast to grow, but not significantly.
Revenue vs Market: CDNS's revenue (9.9% per year) is forecast to grow faster than the US market (8.3% per year).
High Growth Revenue: CDNS's revenue (9.9% 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 (36.4%)
Discover growth companies
How has Cadence Design Systems performed over the past 5 years?
Past Performance Score4/6
Past Performance Score 4/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CDNS has high quality earnings.
Growing Profit Margin: CDNS's current net profit margins (23.6%) are higher than last year (23.3%).
Past Earnings Growth Analysis
Earnings Trend: CDNS's earnings have grown significantly by 26.8% per year over the past 5 years.
Accelerating Growth: CDNS's earnings growth over the past year (13.9%) is below its 5-year average (26.8% per year).
Earnings vs Industry: CDNS earnings growth over the past year (13.9%) underperformed the Software industry 27.1%.
Return on Equity
High ROE: CDNS's Return on Equity (27%) is considered high.
Discover strong past performing companies
How is Cadence Design Systems's financial position?
Financial Health Score6/6
Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: CDNS's short term assets ($1.7B) exceed its short term liabilities ($960.8M).
Long Term Liabilities: CDNS's short term assets ($1.7B) exceed its long term liabilities ($674.1M).
Debt to Equity History and Analysis
Debt Level: CDNS has more cash than its total debt.
Reducing Debt: CDNS's debt to equity ratio has reduced from 82.2% to 12.6% over the past 5 years.
Debt Coverage: CDNS's debt is well covered by operating cash flow (353.4%).
Interest Coverage: CDNS's interest payments on its debt are well covered by EBIT (62.7x coverage).
Discover healthy companies
What is Cadence Design Systems's current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Future Dividend Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate CDNS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate CDNS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if CDNS's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CDNS's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as CDNS has not reported any payouts.
Discover strong dividend paying companies
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Anirudh Devgan (51 yo)
Dr. Anirudh Devgan, Ph D., has been President of Cadence Design Systems, Inc. since November 16, 2017 and has been its Director since August 01, 2021. He has been Chief Executive Officer at Cadence Design...
CEO Compensation Analysis
Compensation vs Market: Anirudh's total compensation ($USD21.74M) is above average for companies of similar size in the US market ($USD13.59M).
Compensation vs Earnings: Anirudh's compensation has increased by more than 20% in the past year.
Experienced Management: CDNS's management team is considered experienced (4.5 years average tenure).
Experienced Board: CDNS's board of directors are considered experienced (7.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CDNS insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Cadence Design Systems, Inc.'s employee growth, exchange listings and data sources
- Name: Cadence Design Systems, Inc.
- Ticker: CDNS
- Exchange: NasdaqGS
- Founded: 1987
- Industry: Application Software
- Sector: Software
- Implied Market Cap: US$41.656b
- Shares outstanding: 275.76m
- Website: https://www.cadence.com
Number of Employees
- Cadence Design Systems, Inc.
- Building 5
- 2655 Seely Avenue
- San Jose
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/06/24 00:00|
|End of Day Share Price||2022/06/24 00:00|
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.