CDNS:NSD-Cadence Design Systems, Inc (USD)

COMMON STOCK | Software—Application | NSD

Last Closing Price

USD 71.39

Change

-3.34 (-4.47)%

Market Cap

USD 20.03B

Volume

2.36M

Average Target Price

USD 81.67 (+14.40%)
Average Analyst Rating

Verdict

STA Verdict

Verdict

About

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.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2020-02-24 )

Largest Industry Peers for Software—Application

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
INTU Intuit Inc

-11.14 (-3.74%)

USD74.56B 47.90 36.56
ADSK Autodesk, Inc

-7.54 (-3.73%)

USD42.77B 291.41 118.69
WDAY Workday, Inc

-6.75 (-3.67%)

USD40.73B N/A -218.92
TEAM Atlassian Corporation Plc

+1.18 (+0.81%)

USD35.82B N/A 3,267.58
ANSS ANSYS, Inc

-10.37 (-3.61%)

USD23.66B 53.91 41.30
CHKP Check Point Software Technolog..

-4.69 (-4.03%)

USD17.35B 20.56 17.20
DOCU DocuSign, Inc

-2.36 (-2.66%)

USD15.92B N/A -94.81
SSNC SS&C Technologies Holdings, In..

-1.86 (-2.91%)

USD15.70B 37.43 13.95
CTXS Citrix Systems, Inc

-4.14 (-3.57%)

USD13.70B 22.25 20.95
TTD The Trade Desk, Inc

-18.69 (-6.19%)

USD13.63B 148.50 109.09

ETFs Containing CDNS

Symbol Name Weight Mer Price(Change) Market Cap
WTAI:LSE WisdomTree Artificial Int.. 3.27 % 0.00 %

N/A

USD0.05B
FTLS First Trust Long/Short Eq.. 2.56 % 1.59 %

-0.87 (-1.98%)

USD0.28B
MIDF iShares Edge MSCI Multifa.. 1.56 % 0.25 %

-0.82 (-2.86%)

USD2.79M
ROBT First Trust Nasdaq Artifi.. 0.00 % 0.65 %

-1.35 (-3.78%)

USD0.08B

Market Performance

  Market Performance vs.
Industry/Classification (Software—Application)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain 2.93% 48% F 69% D+
Dividend Return N/A N/A N/A N/A N/A
Total Return 2.93% 48% F 68% D+
Trailing 12 Months  
Capital Gain 26.20% 71% C- 81% B-
Dividend Return N/A N/A N/A N/A N/A
Total Return 26.20% 71% C- 81% B-
Trailing 5 Years  
Capital Gain 282.38% 91% A- 94% A
Dividend Return N/A N/A N/A N/A N/A
Total Return 282.38% 91% A- 94% A
Average Annual (5 Year Horizon)  
Capital Gain 37.15% 83% B 90% A-
Dividend Return N/A N/A N/A N/A N/A
Total Return 37.15% 83% B 90% A-
Risk Return Profile  
Volatility (Standard Deviation) 20.66% 77% C+ 63% D
Risk Adjusted Return 179.80% 97% A+ 99% A+
Market Capitalization 20.03B 96% A 97% A+
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Software—Application)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 20.22 76% C 49% F
Price/Book Ratio 9.28 26% F 14% F
Price / Cash Flow Ratio 27.46 33% F 13% F
EV/EBITDA 32.19 21% F 8% F
Management Effectiveness  
Return on Equity 58.33% 97% A+ 98% A+
Return on Invested Capital 49.50% 91% A- 95% A
Return on Assets 10.74% 93% A 95% A
Debt to Equity Ratio 16.45% 60% D- 70% C-
Technical Ratios  
Short Ratio 3.67 57% F 47% F
Short Percent 2.07% 69% D+ 65% D
Beta 1.16 47% F 40% F
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

STA Verdict Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters then its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

What to not like:
Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.