CDNS:NSD-Cadence Design Systems, Inc

COMMON STOCK | Software - Application | NSD

Last Closing Price

USD 65.73

Change

+0.19 (+0.29)%

Market Cap

USD 18.36B

Volume

1.67M

Average Target Price

USD 72.29 (+9.97%)
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.

Market Stats

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2019-09-16 )

Largest Industry Peers for Software - Application

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
ADBE Adobe Inc

+4.58 (+1.65%)

USD 135.12B 52.02 40.32
INTU Intuit Inc

+0.60 (+0.23%)

USD 68.98B 45.03 32.38
WDAY Workday, Inc

+5.41 (+3.23%)

USD 38.21B N/A -136.17
ADSK Autodesk, Inc

+0.39 (+0.25%)

USD 33.70B 592.59 121.66
TEAM Atlassian Corporation Plc

+3.20 (+2.52%)

USD 30.78B N/A -1,423.29
SNPS Synopsys, Inc

-1.40 (-1.04%)

USD 20.16B 33.04 30.85
ANSS ANSYS, Inc

N/A

USD 17.84B 41.50 31.22
CHKP Check Point Software Technolog..

-0.87 (-0.78%)

USD 17.38B 21.86 16.88
SPLK Splunk Inc

+1.17 (+1.03%)

USD 17.20B N/A -81.71
SYMC Symantec Corporation

-0.20 (-0.82%)

USD 15.12B 146.47 16.69

ETFs Containing CDNS

Symbol Name Weight Mer Price(Change) Market Cap
PSJ Invesco Dynamic Software .. 5.09 % 0.58 %

+0.81 (+0.87%)

USD 0.48B
PTF Invesco DWA Technology Mo.. 3.16 % 0.60 %

+0.92 (+1.31%)

USD 0.21B
ROBT First Trust Nasdaq Artifi.. 2.01 % 0.65 %

-0.17 (-0.51%)

USD 0.05B
FVL First Trust Value Line 10.. 1.35 % 0.70 %

-0.03 (-0.13%)

USD 0.04B
SCHM Schwab U.S. Mid-Cap ETF 0.62 % 0.05 %

+0.10 (+0.17%)

USD 6.22B

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 51.17% 79% C+ 87% B+
Dividend Return N/A N/A N/A N/A N/A
Total Return 51.17% 79% C+ 87% B+
Trailing 12 Months  
Capital Gain 42.09% 91% A- 93% A
Dividend Return N/A N/A N/A N/A N/A
Total Return 42.09% 91% A- 93% A
Trailing 5 Years  
Capital Gain 271.36% 92% A- 95% A
Dividend Return N/A N/A N/A N/A N/A
Total Return 271.36% 92% A- 95% A
Average Annual (5 Year Horizon)  
Capital Gain 33.02% 83% B 89% B+
Dividend Return N/A N/A N/A N/A N/A
Total Return 33.02% 83% B 89% B+
Risk Return Profile  
Volatility (Standard Deviation) 20.50% 76% C 64% D
Risk Adjusted Return 161.02% 96% A 99% A+
Market Capitalization 18.36B 95% 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 43.40 61% D- 24% F
Price/Book Ratio 12.84 18% F 9% F
Price / Cash Flow Ratio 30.36 37% F 10% F
EV/EBITDA 29.70 26% F 7% F
Management Effectiveness  
Return on Equity 32.50% 95% A 95% A
Return on Invested Capital 18.85% 82% B- 88% B+
Return on Assets 11.96% 94% A 96% A
Debt to Equity Ratio 26.80% 54% F 57% F
Technical Ratios  
Short Ratio 3.56 50% F 54% F
Short Percent 3.04% 57% F 58% F
Beta 1.33 37% F 35% 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

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.

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.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector