GuruFocus Manual of Stocks™  |  Jan 23, 2022
Cadence Design Systems Inc (NAS:CDNS)
www.gurufocus.com/stock/NAS:CDNS
Cadence Design Systems Inc (NAS:CDNS)
[1]
Significantly Overvalued[5]$ 148.30
Software - Software - Application
Market Cap: $ 41,100 Mil
Cadence Design Systems Inc develops system design enablement solutions that are used to design whole electronics systems, complex integrated circuits, and electronic devices. The firm provides maintenance services for its software, hardware, and others.
Valuation Rank
Score: 1 /10CurrentIndustry MedianHistorical Median
PE Ratio59.829.0735.83
Forward P/E41.6727.09N/A
PB Ratio15.623.458.28
PS Ratio13.923.574.2
P/FCF44.0326.9120.91
Shiller P/E98.9738.5188.57
PEG Ratio3.461.863.02
Valuation Analysis
% of Price
NCAV-0.14-0
Tangible Book5.264
Graham Number17.1312
Median PS Value46.9232
Peter Lynch Value50.7234
DCF (Earnings Based)87.6959
DCF (FCF Based)97.8566
Price148.30
Dividend & Ownership
Dividend Yield(ttm) %N/A
Dividend Yield(forward) %N/A
PayoutN/A
Dividend Growth(5y) %N/A
Yield on Cost(5y) %N/A
Continuous Div. sinceN/A
Insider Ownership %4.27
Institution Ownership %76.96
Financial Strength
Score: 7 /10CurrentIndustry MedianHistorical Median
Cash-to-Debt2.923.681.91
Equity-to-Asset0.620.580.56
Interest Coverage44.2035.0111.16
Piotroski F-Score756
Profitability Rank
Score: 9 /10CurrentIndustry MedianHistorical Median
Operating Margin %26.153.9016.50
Net Margin %23.302.4113.04
ROE %27.553.9422.29
ROA %16.971.499.12
ROC (Joel Greenblatt) %236.8116.17120.34
Growth (Per Share)
10 Yr5 Yr1 Yr
Revenue Growth (%)9.511.418
EBITDA Growth (%)18.917.330.3
Oprt. Income Growth (%)N/A20.834.7
EPS w/o NRI Growth (%)17.533.7-35.6
Free Cash Flow Growth (%)14.721.912.3
Book Value Growth (%)17.221.710.5
Quarterly
Sep20Dec20Mar21Jun21Sep21
Revenue667760736728751
Net Income162174187156176
EPS0.580.620.670.560.63
Revenue (YoY) %15.0126.7519.1114.0812.64
Net Income (YoY) %59.22-73.6650.9618.759.08
EPS (YoY) %61.11-73.7352.2719.158.62
Warning Signs
SEVEREAsset Growth: faster than revenue growth
SEVEREDays Inventory: Building up
Good Signs
GOODAltman Z-Score: Strong
GOODPiotroski F-Score: High
Insider Trades
InsiderPositionDateTradesCur. Shares
Cunningham PaulSr. Vice Presid01/19/22-100091363
Tan Lip BuExecutive Chair01/18/22-500002088k
Cunningham PaulSr. Vice Presid12/22/21-100093108
Adams MarkDirector12/07/21-600018784
Cunningham PaulSr. Vice Presid12/06/21-100094108
Wall John MSr. VP & CFO12/01/21-5233123997
Devgan AnirudhPresident11/19/21-25000224596
Devgan AnirudhPresident11/16/21-25000224596
Devgan AnirudhPresident11/04/21-25000224596
Cunningham PaulSr. Vice Presid10/22/21-100095108
As of 01-23-2022
* All financial numbers are in millions except for per share data, ratios and percentage change.
Gain % SP500 %
1W-8.32-5.75
1M-18.98-5.42
3M-10.37-3.10
6M5.361.47
YTD-20.42-7.79
1Y6.9815.50
3Y47.0719.94
5Y41.7216.09
10Y30.1714.91
191.65
90.93
9.79
6M
2.9M
2012201320142015201620172018201920202021CurrentPerformance
11.5713.6515.7719.3123.1326.8645.647.2676.35136.43192.7Highest Stock Price
8.129.7912.413.7317.1318.6625.3435.8541.5354.32118.11Lowest Stock Price
2836379240405531643870141179612175194113805641100Market Cap
270.8280.7294.6306.8312.3291.3280.2281.1280.5279.6278.3Shares Outstanding-Diluted
38.528.6125.0436.4825.6936.0357.2935.3519.6564.6659.8PE Ratio
6.94.143.494.154.689.4611.929.459.2315.2715.62PB Ratio
2.452.862.833.683.824.046.035.728.3314.2213.92PS Ratio
11.5510.9312.6515.7214.6619.0325.9523.3230.8146.7743.79EV-to-EBITDA
2011201220132014201520162017201820192020TTMPer Share Data
4.254.734.965.155.456.246.937.618.339.5910.65Revenue per Share
0.271.570.560.520.810.70.731.233.532.112.48Earnings per Share
0.7711.10.91.071.341.471.932.342.93.37Free Cash Flow per Share
----------------------Dividends per Share
0.171.771.351.441.71-0.320.161.434.535.385.26Tangible Book per Share
12.3313.5914.2114.7715.6317.920.0423.5230.1639.7446.92Median PS Value
1.017.914.124.15.58--1.616.2918.9715.9817.13Graham Number
2011201220132014201520162017201820192020TTMIncome Statement
1149.81326.41460.11580.91702.11816.1194321382336.32682.92975.1Revenue
954.71135.31259.91357.21463.61559.61705.61879.320702377.42664.3Gross Profit
8385.686.385.98685.987.887.988.688.689.6Gross Margin %
833.9923.51052.91140.31173.71273.71372.314721569.51722.61886.3Total Operating Expense
120.7211.8207216.9289.9285.9333.4407.3500.4654.8778Operating Income
10.51614.213.71715.717.219.121.424.426.2Operating Margin %
72.2439.9164.2158.9252.4203.1204.1345.8989590.6693.1Net Income
6.333.211.310.114.811.210.516.242.32223.3Net Margin %
138.5223196.6215.1295.9260.8340.7399.5497.8653.5778.2EBIT
230.1312.2294.9330.8414.1380.4456.2518.3621.1803.6923.3EBITDA
2166.315.912.818.619.223.630.458.325.727.6ROE %
4.121.775.69.19.1914.23416.217ROA %
2011201220132014201520162017201820192020Sep21Balance Sheet
601.6726.4536.3932.2616.7465.2688.1533.3705.2928.41013.8Cash & Equivalents
136.897.8107.6122.5164.8157.2190.4297.1304.5338.5327.2Total Receivables
1761.322872428.63209.62345.52096.92418.72468.73357.23950.84213.9Total Assets
294.1447324.8342.5--5085100------Short-Term Debt & CLO
131.9----348.7343.3643.5644.4345.3430.8460.7347.4Long-Term Debt & CLO
1350.11371.81272.51876969.41355.11429.51180.31254.31457.81582.6Total Liabilities
411.1915.21156.11333.61376.1741.8989.21288.42102.924932631.3Total Stockholders Equity
411.1915.21156.11333.61376.1741.8989.21288.42102.924932631.3Total Equity
2011201220132014201520162017201820192020TTMCashflow Statement
240.3316367.6316.7378.2444.9470.7604.8729.6904.91020.6Cash Flow from Operations
-56.5-201.2-426.9-198-44.51.4-191.2-173.8-105.7-292.2-300.7Cash Flow from Investing
-----20.1-100.1-333.2-960.3-100-250.1-306.1-380.1-632.3Repurchase of Stock
-150---144.6348.6-35035038.9-288.9-100---350Net Issuance of Debt
-144.815.8-116.3289-626.3-592.7-70.1-567.9-443.9-415.3-1029.3Cash Flow from Financing
44.2124.8-190.1395.9-315.5-151.5222.9-154.8171.9223.2-292.7Net Change in Cash
-31.4-36-44.9-39.8-44.8-53.7-57.9-61.5-74.6-94.8-81Capital Expenditure
208.9280322.7276.9333.4391.2412.8543.2655810.1939.6Free Cash Flow
Competitor
TickerCompanyFinancial
Strength
Profitability
Rank
Market Cap
($M)
PE RatioPS RatioNet
Margin %
ROA %ROE %
NAS:ADSKAutodesk Inc5652,61540.3412.6231.3118.08138.25
NAS:CDNSCadence Design Systems Inc7941,10059.8013.9223.3016.9727.55
NAS:DDOGDatadog Inc5139,174At Loss43.85-5.01-2.22-4.79
NAS:ANSSAnsys Inc7928,42261.3415.2824.918.2011.45
NAS:DOCUDocuSign Inc5222,979At Loss11.53-5.72-4.89-38.70
GuruFocus Manual of Stocks™  |  Jan 23, 2022
Cadence Design Systems Inc (NAS:CDNS)
www.gurufocus.com/stock/NAS:CDNS

Financial Strength[2] (Quarterly data, as of Sep. 2021) : Good (7/10)

0
1
2
3
4
5
6
7
8
9

Cash-to-Debt : 2.92

Cash-to-Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. A high ratio indicates that a company is better able to pay back its debt, and is thus able to take on more debt if necessary.


Equity-to-Asset : 0.62

Equity-to-Asset ratio is calculated as total stockholders equity divided by its total assets. Equity-to-Asset ratio can vary greatly across different industries, as they have different capital structure. A company with smaller Equity-to-Asset ratio (more leveraged) may have higher ROE % because of the leverage.


Debt-to-Equity : 0.13

A high Debt-to-Equity ratio generally means that a company has been aggressive in financing its growth with debt.


Piotroski F-Score : 7

The Piotroski F-Score is used to determine the strength of a firm's financial position, with 9 being the best and 0 being the worst.

0
1
2
3
4
5
6
7
8
9


WACC : 8.03% vs ROIC : 22.46%

The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. Return on invested capital (ROIC) measures how well a company generates cash flow relative to the capital it has invested in its business.


Dividend Yield : 0.00%

Dividend yield is a way to measure how much cash flow you are getting for each dollar invested in an equity position.

GuruFocus Manual of Stocks™  |  Jan 23, 2022
Cadence Design Systems Inc (NAS:CDNS)
www.gurufocus.com/stock/NAS:CDNS

Profitability[3] (Annual data, as of Dec. 2020) : Good (9/10)

0
1
2
3
4
5
6
7
8
9

Revenue : $751 Mil vs Net Income : $176 Mil

Revenue is the amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. Net Income is a company's total profit. Net income is calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other expenses.


Cash & Equivalents : $1,014 Mil vs Long-Term Debt* : $347 Mil

Cash & equivalents are the most liquid assets on the balance sheet. Cash equivalents are assets that are readily convertible into cash. Long-Term Debt* consists of loans and obligations lasting over one year.


Operating Margin % : 25.81%

Operating margin % measures how much profit a company makes on a dollar of sales. Operating Margin % is calculated as Operating Income divided by Revenue.


EPS without NRI : $0.63

Earnings Per Share without Non-Recurring Items is the amount of earnings without non-recurring items per outstanding share of the company's stock. In calculating earnings per share without non-recurring items, the dividends of preferred stocks and Non Operating Income need to subtracted from the total net income first.


Dividends per Share : $0.00

Dividends per Share is the amount of dividends that the shareholders of a company receive on a per-share basis. It is calculated using the total dividends paid out to shareholders over one fiscal year and the number of shares outstanding.


Free Cash Flow per Share : $1.00

Free Cash flow per Share is the amount of Free cash flow per outstanding share of the company's stock.

GuruFocus Manual of Stocks™  |  Jan 23, 2022
Cadence Design Systems Inc (NAS:CDNS)
www.gurufocus.com/stock/NAS:CDNS

Valuation (Quarterly data, as of Sep. 2021)

These valuation metrics should give you a sense of reasonable prices, but be careful with them. Always seek to understand why a valuation is changing over time.


Valuation Chart (Current stock price : $148.30)


PE Ratio without NRI : 61.06

The price-to-earnings ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than regular PE Ratio.


PB Ratio : 15.95

The price-to-book ratio measures the valuation of the stock relative to the underlying asset of the company.


PS Ratio : 14.22

The price-to-sales ratio is a valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the value placed on each dollar of a company’s sales or revenues.


Price-to-Free-Cash-Flow : 44.96

Price-to-free-cash-flow is very similar to the valuation metric of price-to-operating-cash-flow but is considered a more exact measure, owing to the fact that it uses free cash flow, which subtracts capital expenditures from a company's total operating cash flow, thereby reflecting the actual cash flow available to fund non-asset-related growth.


EV-to-EBIT : 53.08

Enterprise value of a company divided by its trailing 12 months earnings before interest and taxes (EBIT).

GuruFocus Manual of Stocks™  |  Jan 23, 2022
Cadence Design Systems Inc (NAS:CDNS)
www.gurufocus.com/stock/NAS:CDNS

Valuation Bands

In these charts the 10-year valuation bands of the price-to-earnings ratio (PE Ratio), price-to-book ratio (PB Ratio), price-to-sales ratio (PS Ratio) and price-to-operating-cash-flow ratio (POCF) are drawn together with the historical stock prices. For example, the upper line of the PE band is where the stock price would have been if it were always traded at the maximum PE ratio of the past 10 years. The lower line of the PE band is where the stock price would have been if it were always traded at the lowest PE ratio of the past 10 years. It is always better if the stock price is close to the lower line, which indicates a lower valuation.


Historical Price and PE Band


Historical Price and PS Band


Historical Price and PB Band


Historical Price and Price-to-Operating-Cash-Flow (POCF) Band

GuruFocus Manual of Stocks™  |  Jan 23, 2022
Cadence Design Systems Inc (NAS:CDNS)
www.gurufocus.com/stock/NAS:CDNS

Warning Signs

GuruFocus conducted a thorough checkup using a checklist of 32 items that cover the areas of financial strength, profitability, growth, and valuation of each company. The purpose of Warning Signs is to warn you that the company may have red flags in certain areas, helping to avoid overlooking them. These warning signs do not necessarily mean you should not invest in the stock. But you should be aware of them before you invest.


Severe Warning Signs

Asset Growth : faster than revenue growth

If a company builds asset at 14.2% a year, faster than its revenue growth rate of 11.4% over the past 5 years, it means that the company may be getting less efficent.

Days Inventory : Building up

If a company builds up inventory, it may mean it is having difficulties selling its goods.

Good Signs

Altman Z-Score : Strong

Altman Z-score of 18.03 is strong.

Piotroski F-Score : High

Piotroski F-Score is 7, indicating very healthy situation.

Beneish M-Score : Unlikely manipulator

Beneish M-Score -2.77 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

Revenue per Share : Consistent growth

Cadence Design Systems Inc has shown predictable revenue and earnings growth.

Operating Margin % : Expansion

Cadence Design Systems Inc operating margin is expanding. Margin expansion is usually a good sign.

Medium Warning Signs

Insider Sell : Insider Selling

There were 8 insider selling transactions and no insider buying over the past 3 months. 138,233 shares were sold.
GuruFocus Manual of Stocks™  |  Jan 23, 2022
Cadence Design Systems Inc (NAS:CDNS)
www.gurufocus.com/stock/NAS:CDNS

Competitive Comparison


5 Year Price Change Comparison


Financial Strength

CompanyFinancial StrengthCash-to-DebtEquity-to-AssetDebt-to-EquityInterest CoveragePiotroski F-ScoreAltman Z-ScoreBeneish M-ScoreWACC %ROIC %
NAS:ANSSAnsys Inc7/101.260.730.2044.34412.23-2.408.1910.39
NAS:CDNSCadence Design Systems Inc7/102.920.620.1344.20718.03-2.778.0322.46
NYSE:PAYCPaycom Software Inc6/107.800.200.04N/A44.05-2.6710.275.87
NAS:DDOGDatadog Inc5/101.820.440.840.00319.99-1.017.84-7.09
NAS:DOCUDocuSign Inc5/100.910.103.760.0056.20-3.425.26-3.13
NAS:CTXSCitrix Systems Inc4/100.130.068.784.7332.89-2.631.516.80
NAS:SSNCSS&C Technologies Holdings Inc4/100.060.351.105.6791.81-2.669.775.66
NAS:COUPCoupa Software Inc3/100.410.301.740.0032.12-2.0310.02-8.09
NYSE:RNGRingCentral Inc3/100.240.0231.680.0035.00-3.085.47-15.38

Profitability

CompanyProfitability RankOperating
Margin %
Net Margin %ROE %ROA %Price-to-Free-Cash-FlowROC (Joel Greenblatt) %3-Year Revenue Growth %3-Year EBITDA Growth %3-Year EPS w/o NRI Growth %
NAS:ANSSAnsys Inc9/1028.4724.9111.458.2048.37253.1215.209.5018.60
NAS:CDNSCadence Design Systems Inc9/1026.1523.3027.5516.9744.03236.8111.4020.9042.40
NAS:SSNCSS&C Technologies Holdings Inc9/1024.0115.0413.084.5217.00161.3630.3030.3014.90
NAS:CTXSCitrix Systems Inc8/1012.879.97140.975.3923.29101.4412.207.10205.70
NYSE:PAYCPaycom Software Inc7/1022.3117.3123.515.38103.9673.4325.1017.705.40
NYSE:RNGRingCentral Inc3/10-15.35-17.54-135.72-12.600.00-98.8026.4043.90-150.20
NAS:COUPCoupa Software Inc2/10-40.20-49.52-39.64-11.7483.20-424.9130.90-22.50-46.90
NAS:DOCUDocuSign Inc2/10-3.15-5.72-38.70-4.8954.09-28.28-21.30-10.407.60
NAS:DDOGDatadog Inc1/10-4.15-5.01-4.79-2.22240.98-12.4516.600.00-100.00

Valuation

CompanyPE RatioPB RatioPS RatioPrice-to-Intrinsic-Value-Projected-FCFPrice-to-Intrinsic-Value-DCF (Earnings Based)Price-to-Median-PS-ValuePrice-to-Peter-Lynch-Fair-ValuePrice-to-Graham-NumberEarnings Yield (Joel Greenblatt) %Forward Rate of Return (Yacktman) %
NAS:COUPCoupa Software IncAt Loss10.1913.407.450.000.000.000.00-2.660.00
NAS:DDOGDatadog IncAt Loss40.9043.850.000.000.000.000.00-0.040.00
NAS:DOCUDocuSign IncAt Loss95.9011.530.000.000.000.000.00-0.390.00
NYSE:RNGRingCentral IncAt Loss340.7910.280.000.000.000.000.00-1.160.00
NAS:SSNCSS&C Technologies Holdings Inc28.503.454.291.360.680.881.140.004.5424.12
NAS:CTXSCitrix Systems Inc40.1331.524.010.982.470.876.690.002.6511.82
NAS:CDNSCadence Design Systems Inc59.8015.6213.923.681.693.162.928.661.9221.61
NAS:ANSSAnsys Inc61.346.5515.282.982.551.596.8411.651.9510.62
NYSE:PAYCPaycom Software Inc105.0821.7818.218.050.000.004.3610.841.2120.66
GuruFocus Manual of Stocks™  |  Jan 23, 2022
Cadence Design Systems Inc (NAS:CDNS)
www.gurufocus.com/stock/NAS:CDNS

Peter Lynch Chart[4]

GuruFocus Manual of Stocks™  |  Jan 23, 2022
Cadence Design Systems Inc (NAS:CDNS)
www.gurufocus.com/stock/NAS:CDNS

Per Share Data



Per Share Data

Dec05
Dec06
Dec07
Dec08
Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
4.23
4.75
5.46
4.08
3.31
3.52
4.25
4.73
4.96
5.15
5.45
6.24
6.93
7.61
8.33
9.59
10.65
Revenue per Share
1.11
1.19
1.72
-5.76
-0.12
0.23
0.85
1.11
1
1.08
1.33
1.31
1.63
1.84
2.21
2.87
3.31
EBITDA per Share
0.52
0.72
1.27
-6.25
-0.48
-0.1
0.51
0.8
0.67
0.7
0.95
0.9
1.22
1.42
1.78
2.34
2.79
EBIT per Share
0.16
0.46
1.01
-7.3
-0.58
0.48
0.27
1.57
0.56
0.52
0.81
0.7
0.73
1.23
3.53
2.11
2.48
Earnings per Share (Diluted)
0.16
0.46
1.01
-7.3
-0.58
0.48
0.27
1.57
0.56
0.52
0.81
0.7
0.73
1.23
3.53
2.11
2.48
EPS without NRI
0.31
0.22
0.14
-6.26
-0.56
0.33
0.51
0.72
0.84
0.58
0.79
1.07
1.07
1.37
1.75
2.28
2.67
Owner Earnings per Share (TTM)
1.13
1.11
1.08
-0.12
-0.06
0.62
0.77
1
1.1
0.9
1.07
1.34
1.47
1.93
2.34
2.9
3.37
Free Cash Flow per Share
1.36
1.35
1.36
0.28
0.1
0.75
0.89
1.13
1.25
1.03
1.21
1.53
1.68
2.15
2.6
3.24
3.66
Operating Cash Flow per Share
3.18
3.43
3.88
2.23
2.13
2.13
2.22
2.95
2.2
3.51
2.3
1.68
2.44
1.91
2.52
3.33
3.66
Cash per Share
6.57
6.07
7.48
0.73
0.4
1.04
1.51
3.26
4.01
4.57
4.45
2.67
3.51
4.6
7.51
8.94
9.49
Book Value per Share
1.63
1.14
2.31
0.54
0.28
-0.23
0.17
1.77
1.35
1.44
1.71
-0.32
0.16
1.43
4.53
5.38
5.26
Tangible Book per Share
2.25
2.71
2.63
1.63
1.62
2.06
1.56
1.59
1.13
2.37
1.11
2.49
2.59
1.59
1.54
1.65
1.25
Total Debt per Share
16.92
17.91
17.01
3.66
5.99
8.26
10.4
13.51
14.02
18.97
20.81
25.22
41.82
43.48
69.36
136
148
Month End Stock Price

Ratios

Dec05
Dec06
Dec07
Dec08
Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
2.78
8.05
15.68
-164
-102
65.73
21
66.34
15.86
12.76
18.63
19.18
23.58
30.36
58.32
25.7
27.55
ROE %
1.08
2.73
6.91
-32.63
-6.84
8.25
3.04
16.02
4.54
3.07
3.98
2.03
1.98
3.21
6.32
1.68
1.76
ROE % Adjusted to Book Value
1.54
4.17
8.1
-66.9
-9.7
8.05
4.14
21.74
6.97
5.64
9.09
9.14
9.04
14.15
33.95
16.16
16.97
ROA %
10.2
36.71
61.61
-476
-140
1759
Neg. E
162
37.14
39.41
53.32
92.72
Neg. E
155
118
42.66
49.28
Return-on-Tangible-Equity
2.59
6.99
13.18
-91.36
-9.96
9.13
5.18
26.95
9.31
8.04
13.31
14.7
14.9
22.64
48.2
21.55
23.29
Return-on-Tangible-Asset
43.77
63.16
108
-458
-37.41
-8.86
50.56
87.98
81.37
91.77
129
112
139
159
158
159
237
ROC (Joel Greenblatt) %
6.25
7.9
12.59
-75.7
-11.71
-2.58
15.55
24.57
16.73
13.89
16.32
15.71
20.73
22.6
22.4
22.38
24.49
ROCE %
2.72
5.42
9.58
-9.62
-9.42
0.53
6.14
28.37
10.48
8.16
13.01
14.31
11.99
19.54
45.79
22.38
22.46
ROIC %
16.33
14.18
11.09
9.82
10.55
10.05
6.89
10.81
10.4
8.99
7.09
7.72
8.18
8.74
9.7
7.06
8.03
WACC %
--
--
1.66
4.78
6.77
7.37
8.82
7.96
9.74
6.72
5.47
4.57
3.61
3.94
4.3
4.65
4
Effective Interest Rate on Debt %
82.79
84.7
86.72
79.83
80.15
83.29
83.03
85.59
86.29
85.85
85.99
85.88
87.78
87.9
88.6
88.61
89.55
Gross Margin %
12.31
15.14
19.25
-15.59
-10.82
-0.32
10.5
15.97
14.18
13.72
17.03
15.74
17.16
19.05
21.42
24.41
26.15
Operating Margin %
3.71
9.61
18.34
-179
-17.58
13.52
6.28
33.17
11.25
10.05
14.83
11.18
10.5
16.17
42.33
22.02
23.3
Net Margin %
26.68
23.26
19.73
-2.83
-1.93
17.56
18.17
21.11
22.1
17.52
19.59
21.54
21.25
25.41
28.04
30.2
31.58
FCF Margin %
0.34
0.45
0.35
2.23
4.02
1.99
1.04
0.49
0.28
0.52
0.25
0.94
0.74
0.35
0.21
0.19
0.13
Debt-to-Equity
0.54
0.49
0.54
0.11
0.08
0.16
0.23
0.4
0.48
0.42
0.59
0.35
0.41
0.52
0.63
0.63
0.62
Equity-to-Asset
0.19
0.22
0.19
0.25
0.31
0.32
0.24
0.2
0.13
0.22
0.15
0.33
0.3
0.18
0.13
0.12
0.08
Debt-to-Asset
0.46
0.51
0.46
0.89
0.92
0.84
0.77
0.6
0.52
0.58
0.41
0.65
0.59
0.48
0.37
0.37
0.38
Liabilities-to-Assets
34.44
36.73
38.3
29.87
44.23
49.61
54.66
56.09
53.44
48.14
52.7
70.21
75.54
76.9
71.06
65.06
65.22
Gross-Profit-to-Asset %
0.42
0.43
0.44
0.37
0.55
0.6
0.66
0.66
0.62
0.56
0.61
0.82
0.86
0.88
0.8
0.73
0.73
Asset Turnover
91.47
64.02
53.89
--
91.89
85.47
51.33
22.97
17.91
17.95
19.99
19.35
19.24
24.2
26.83
25.59
26.13
Days Sales Outstanding
462
259
33.16
43.74
43.54
15.15
8.46
9.21
28.6
30.24
28.51
21
7.07
6.81
--
--
-- Days Payable
39.39
53.1
58.01
51.81
56.75
73.73
76.94
75.82
78.75
86.98
86.6
68.47
55.88
43.29
57.53
78.71
92.2
Days Inventory
-331
-142
78.74
8.07
105
144
120
89.58
68.06
74.69
78.08
66.82
68.05
60.68
84.36
104
118
Cash Conversion Cycle
9.27
6.87
6.29
7.05
6.43
4.95
4.74
4.81
4.64
4.2
4.21
5.33
6.53
8.43
6.34
4.64
3.96
Inventory Turnover
0.17
0.15
0.13
0.2
0.2
0.17
0.17
0.14
0.14
0.14
0.14
0.14
0.12
0.12
0.11
0.11
0.1
COGS-to-Revenue
0.02
0.02
0.02
0.03
0.03
0.03
0.04
0.03
0.03
0.03
0.03
0.03
0.02
0.01
0.02
0.03
0.03
Inventory-to-Revenue
0.05
0.05
0.05
0.1
0.05
0.04
0.03
0.03
0.03
0.03
0.03
0.03
0.03
0.03
0.03
0.04
0.03
Capex-to-Revenue
0.44
0.34
0.27
--
--
--
0.26
0.17
0.22
0.18
0.16
0.19
0.17
0.15
0.15
0.15
0.1
Capex-to-Operating-Income
* All financial numbers are in millions except for per share data, ratios and percentage change. When Return-on-Tangible-Equity displays Neg. E, it means the the tangible equity is negative.
GuruFocus Manual of Stocks™  |  Jan 23, 2022
Cadence Design Systems Inc (NAS:CDNS)
www.gurufocus.com/stock/NAS:CDNS

Financial Satement



Income Statement

Dec05
Dec06
Dec07
Dec08
Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
1329
1484
1615
1039
853
936
1150
1326
1460
1581
1702
1816
1943
2138
2336
2683
2975
Revenue
229
227
215
209
169
156
195
191
200
224
238
256
237
259
266
305
311
Cost of Goods Sold
1100
1257
1401
829
683
780
955
1135
1260
1357
1464
1560
1706
1879
2070
2377
2664
Gross Profit
82.79
84.7
86.72
79.83
80.15
83.29
83.03
85.59
86.29
85.85
85.99
85.88
87.78
87.9
88.6
88.61
89.55
Gross Margin %
519
549
576
510
409
392
417
454
499
513
512
520
553
573
621
671
731
Selling, General, & Admin. Expense
370
460
494
458
355
376
401
454
534
603
638
735
804
885
936
1034
1136
Research & Development
47.76
23.14
19.42
22.73
11.42
14.16
16.54
15.08
19.42
24.02
23.72
18.09
14.72
14.09
12.13
18.01
19.44
Other Operating Expense
937
1032
1090
991
776
783
834
924
1053
1140
1174
1274
1372
1472
1570
1723
1886
Total Operating Expense
164
225
311
-162
-92.22
-3.01
121
212
207
217
290
286
333
407
500
655
778
Operating Income
12.31
15.14
19.25
-15.59
-10.82
-0.32
10.5
15.97
14.18
13.72
17.03
15.74
17.16
19.05
21.42
24.41
26.15
Operating Margin %
--
--
48.1
20.42
2.6
1.2
1.3
1.47
1.71
1.83
2.67
2.92
3.88
8.07
9.51
3.82
--   Interest Income
--
--
-12.37
-27.4
-28.87
-36.34
-43.03
-34.74
-37.58
-34.12
-28.31
-23.67
-25.66
-23.14
-18.83
-20.75
-17.6
  Interest Expense
--
--
35.73
-6.99
-26.28
-35.14
-41.72
-33.27
-35.88
-32.29
-25.64
-20.75
-21.79
-15.07
-9.32
-16.93
-13.79
Net Interest Income
-35.08
17.18
17.44
-1449
-35.01
-24.61
16.41
9.76
-12.14
-3.6
3.3
-27.95
3.47
-15.84
-12.13
-5.09
-3.63
Other Income (Expense)
128
242
364
-1618
-154
-62.77
95.43
188
159
181
268
237
315
376
479
633
761
Pre-Tax Income
-79.14
-99.7
-67.82
-239
3.63
189
-23.2
252
5.25
-22.1
-15.18
-34.07
-111
-30.61
510
-42.1
-67.46
Tax Provision
61.6
41.22
18.63
-14.79
2.37
302
24.31
-134
-3.3
12.21
5.67
14.36
35.22
8.13
-106
6.65
8.87
Tax Rate %
49.34
142
296
-1857
-150
127
72.23
440
164
159
252
203
204
346
989
591
693
Net Income (Continuing Operations)
49.34
143
296
-1857
-150
127
72.23
440
164
159
252
203
204
346
989
591
693
Net Income
3.71
9.61
18.34
-179
-17.58
13.52
6.28
33.17
11.25
10.05
14.83
11.18
10.5
16.17
42.33
22.02
23.3
Net Margin %
0.18
0.51
1.09
-7.3
-0.58
0.49
0.27
1.63
0.59
0.56
0.88
0.71
0.75
1.26
3.62
2.16
2.53
EPS (Basic)
0.16
0.46
1.01
-7.3
-0.58
0.48
0.27
1.57
0.56
0.52
0.81
0.7
0.73
1.23
3.53
2.11
2.48
EPS (Diluted)
314
312
296
254
258
266
271
281
295
307
312
291
280
281
281
280
278
Shares Outstanding (Diluted Average)
164
225
376
-1590
-125
-26.43
138
223
197
215
296
261
341
400
498
653
778
EBIT
185
147
131
126
93.14
88.34
91.65
89.22
98.31
116
118
120
116
119
123
150
145
Depreciation, Depletion and Amortization
348
372
507
-1464
-31.49
61.91
230
312
295
331
414
380
456
518
621
804
923
EBITDA

Cashflow Statement

Dec05
Dec06
Dec07
Dec08
Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
49.34
143
296
-1857
-150
127
72.23
440
164
159
252
203
204
346
989
591
693
Net Income From Continuing Operations
185
147
131
126
93.14
88.34
91.65
89.22
98.31
116
118
120
116
119
123
150
145
Depreciation, Depletion and Amortization
-101
-169
-378
48.43
176
71.38
76.79
45.63
-3.61
-17.93
-44.73
-3.61
-31.03
-87.08
-4.72
-25.93
-20.75
  Change In Receivables
-7.59
-10.87
6.2
2.58
3.9
-26.53
-6.82
5.25
-14.59
-11.71
-1.12
4.93
5.03
0.75
-33.02
-25.69
-57.67
  Change In Inventory
-8.09
6.13
-0.6
-4.62
-1.39
-22.39
20.05
-12.43
30.37
-2.5
-1.38
-6.9
-25.79
-19.62
-11.03
-31.17
-17.3
  Change In Prepaid Assets
20.33
-51.46
20.35
-42.88
-94.85
60.28
-46.95
17.52
41.73
3.86
15.32
2.66
-25.99
1.55
33.92
18.39
59.35
  Change In Payables And Accrued Expense
46.71
38.72
5.92
26.59
-111
-91.33
-21.24
-97
-36.76
-48.48
-47.59
21.02
23.9
82.44
21.17
48.98
44.07
  Change In Other Working Capital
-49.37
-186
-346
30.11
-26.59
-8.59
21.83
-41.03
17.13
-76.76
-79.5
18.1
-53.88
-21.96
6.31
-15.42
7.7
Change In Working Capital
-22.97
29.54
12.81
199
-3.44
-64.19
0.68
-240
-2.37
12.48
-13.15
-4.87
79.93
-11.68
-577
-26.12
-41.72
Deferred Tax
--
--
101
81.27
54.71
43.46
43.59
47.56
66.29
83.79
92.34
109
130
168
182
197
214
Stock Based Compensation
--
--
--
1384
11.94
0.49
--
--
--
--
--
--
--
--
--
--
-- Asset Impairment Charge
265
288
207
107
45.75
13.1
10.37
20.72
24
22.68
7.92
-0.25
-4.96
6.17
6.15
8.41
2.01
Cash Flow from Others
426
421
402
70.29
25.64
199
240
316
368
317
378
445
471
605
730
905
1021
Cash Flow from Operations
-71.66
-76.05
-81.8
-97.29
-41.31
-34.78
-31.42
-35.97
-44.93
-39.81
-44.81
-53.71
-57.9
-61.5
-74.61
-94.81
-81.05
Purchase Of Property, Plant, Equipment
33.63
0.32
46.5
--
3.86
0.9
--
--
--
--
--
0.92
--
--
--
--
-- Sale Of Property, Plant, Equipment
--
--
-80.73
-20.93
-14.13
-259
-44.05
-66.43
-393
-167
--
-41.63
-143
--
-0.34
-198
-220
Purchase Of Business
-181
-3.95
-3.21
-66.83
-2.3
-3
-0.61
-121
-112
-124
-96.53
-20.53
--
-116
-33.72
--
-- Purchase Of Investment
310
33.69
12.79
60.56
4.14
10.59
19.58
22.56
123
133
96.84
116
9.94
3.5
2.95
0.22
-- Sale Of Investment
--
--
-2
-2.39
-0.77
-2.71
--
--
--
--
--
--
--
--
--
--
-- Net Intangibles Purchase And Sale
-314
-65.78
-0
-0
-0
2.71
--
-0
-0
0
0
--
0
--
0
-0
0.34
Cash From Other Investing Activities
-223
-112
-108
-127
-50.51
-285
-56.5
-201
-427
-198
-44.5
1.36
-191
-174
-106
-292
-301
Cash Flow from Investing
146
196
255
48.19
28.01
13.64
19.71
32.69
42.66
65.91
74.94
55.44
48.97
40.91
52.84
74.8
86.98
Issuance of Stock
-101
-624
-419
-274
--
-40
--
--
-20.14
-100
-333
-960
-100
-250
-306
-380
-632
Repurchase of Stock
160
183
--
17.97
--
350
--
--
100
449
--
415
139
100
150
350
--   Issuance of Debt
--
--
-28
-231
-2.47
-192
-150
--
-245
-100
-350
-65
-100
-389
-250
-350
-350
  Payments of Debt
160
183
-28
-213
-2.47
158
-150
--
-145
349
-350
350
38.87
-289
-100
--
-350
Net Issuance of Debt
--
10.71
21.09
-4.63
-4.58
-71.34
-14.52
-16.85
5.83
-25.48
-18.06
-37.85
-57.95
-69.92
-90.58
-110
-134
Other Financing
205
-234
-170
-443
20.97
59.94
-145
15.83
-116
289
-626
-593
-70.15
-568
-444
-415
-1029
Cash Flow from Financing
3.86
-2.5
4.65
5.35
4.77
14.33
5.15
-5.83
-14.52
-11.77
-22.86
-4.99
13.47
-17.76
-8.09
25.75
16.68
Effect of Exchange Rate Changes
413
73.03
129
-495
0.86
-11.71
44.19
125
-190
396
-315
-151
223
-155
172
223
-293
Net Change in Cash
-71.66
-76.05
-83.8
-99.68
-42.08
-34.78
-31.42
-35.97
-44.93
-39.81
-44.81
-53.71
-57.9
-61.5
-74.61
-94.81
-81.05
Capital Expenditure
355
345
319
-29.39
-16.45
164
209
280
323
277
333
391
413
543
655
810
940
Free Cash Flow
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  Jan 23, 2022
Cadence Design Systems Inc (NAS:CDNS)
www.gurufocus.com/stock/NAS:CDNS

Financial Satement


Balance Sheet

Dec05
Dec06
Dec07
Dec08
Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
861
934
1063
568
569
557
602
726
536
932
617
465
688
533
705
928
1014
  Cash And Cash Equivalents
33.28
24.09
15.19
3.84
2.18
12.72
3.04
101
96.79
90.45
94.5
3.06
--
--
--
--
--   Marketable Securities
895
958
1078
572
571
570
605
827
633
1023
711
468
688
533
705
928
1014
Cash, Cash Equivalents, Marketable Securities
282
238
--
--
215
224
99.69
67.26
76.06
79.41
107
85.55
119
164
179
197
184
  Accounts Receivable
--
--
326
299
-14.02
-7.6
37.09
30.56
31.57
43.08
57.81
71.62
71.1
133
125
141
143
  Other Current Receivables
282
238
326
299
201
216
137
97.82
108
122
165
157
190
297
305
338
327
Total Receivables
--
20.77
13.85
10.14
10.06
23.11
24.25
23.65
30.55
42.43
40.5
26.59
17.49
16.39
36.64
63.65
--   Inventories, Raw Materials & Components
--
8.45
8.64
15.1
5
15.93
19
12.51
19.67
13.97
16.26
12.89
15.72
11.77
19.17
12.31
--   Inventories, Finished Goods
28.9
7.96
8.52
3.24
9.11
-0
0
--
--
--
--
0
--
--
--
--
102
  Inventories, Other
28.9
37.18
31
28.47
24.17
39.03
43.24
36.16
50.22
56.39
56.76
39.48
33.21
28.16
55.8
75.96
102
Total Inventories
70.74
77.96
94.24
54.77
54.66
54.16
279
430
430
650
31.44
37.1
68.27
92.55
104
136
100
Other Current Assets
1276
1312
1530
954
851
879
1064
1391
1221
1852
964
702
980
951
1169
1479
1543
Total Current Assets
--
--
--
--
15.3
9.27
10.46
24.24
23.87
--
--
--
2.99
119
138
132
-- Investments And Advances
74.03
74.14
60.86
61.41
61.24
61.21
61.21
55.96
55.98
55.93
55.9
55.79
55.84
55.8
55.82
55.85
--   Land And Improvements
172
186
80.61
74.24
128
129
127
127
127
126
126
126
127
127
127
127
--   Buildings And Improvements
640
688
712
695
678
664
601
563
485
468
494
527
565
601
578
644
--   Machinery, Furniture, Equipment
20.23
21.99
--
--
--
--
--
1.97
1.65
0.63
1.53
3.48
5.15
6.36
4.71
10.77
--   Construction In Progress
--
--
110
150
81.25
79.89
132
132
138
132
133
139
157
161
246
301
303
  Other Gross PPE
907
970
964
980
949
934
922
880
807
783
810
852
910
951
1011
1138
303
Gross Property, Plant and Equipment
-550
-616
-625
-625
-637
-649
-659
-635
-568
-553
-581
-613
-658
-698
-635
-694
--   Accumulated Depreciation
357
355
339
355
312
285
263
244
239
230
229
239
251
253
376
444
303
Property, Plant and Equipment
1387
1380
1437
49.08
32.55
338
365
418
769
915
848
832
945
888
834
993
1174
Intangible Assets
--
1268
1310
--
--
159
192
233
457
554
552
573
666
662
662
782
926
  Goodwill
381
396
565
322
200
220
58.95
209
176
213
304
325
240
258
839
903
1194
Other Long Term Assets
2125
2131
2342
726
560
853
697
896
1208
1358
1381
1395
1439
1518
2188
2472
2671
Total Long-Term Assets
3401
3443
3871
1680
1411
1732
1761
2287
2429
3210
2346
2097
2419
2469
3357
3951
4214
Total Assets
301
21.97
17.01
33.21
7.18
5.81
3.23
6.41
24.96
12.1
25.15
4.37
4.83
--
--
--
--   Accounts Payable
--
--
15.27
9.84
7.98
9.71
6.49
2.31
11.06
9.12
11.02
18.38
--
--
--
--
--   Total Tax Payable
--
--
--
--
-0
--
-0
--
--
--
--
-0
--
--
--
--
--   Other Current Payables
--
212
258
218
61.06
105
156
163
181
204
202
217
216
257
317
350
364
  Current Accrued Expense
301
234
290
261
76.21
120
166
171
217
225
238
239
221
257
317
350
364
Accounts Payable & Accrued Expense
32
28
230
--
--
143
294
447
325
342
--
50
85
100
--
--
--   Short-Term Debt
32
28
230
--
--
143
294
447
325
342
--
50
85
100
--
--
-- Short-Term Debt & Capital Lease Obligation
273
260
265
303
248
337
340
296
300
301
298
296
336
352
355
447
543
  Current Deferred Revenue
273
260
265
303
248
337
340
296
300
301
298
296
336
352
355
447
543
DeferredTaxAndRevenue
--
26.15
--
--
74
96.45
215
303
307
524
--
0
--
--
-0
--
0
Other Current Liabilities
606
548
785
564
398
698
1015
1217
1148
1393
536
586
642
709
672
797
907
Total Current Liabilities
600
730
500
417
436
406
132
--
--
349
343
643
644
345
346
347
347
  Long-Term Debt
--
--
--
--
--
--
--
--
--
--
--
--
--
--
84.78
114
--   Long-Term Capital Lease Obligation
600
730
500
417
436
406
132
--
--
349
343
643
644
345
431
461
347
Long-Term Debt & Capital Lease Obligation
0.34
0.45
0.35
2.23
4.02
1.99
1.04
0.49
0.28
0.52
0.25
0.94
0.74
0.35
0.21
0.19
0.13
Debt-to-Equity
--
--
137
130
92.3
85.4
98.02
50.53
52.85
54.73
30.21
66.77
61.51
48.72
73.4
107
95.99
NonCurrent Deferred Liabilities
351
465
369
382
376
266
105
104
71.44
79.49
59.6
59.31
81.23
77.26
77.74
93.19
232
Other Long-Term Liabilities
951
1195
1006
929
904
758
335
155
124
483
433
770
787
471
582
661
675
Total Long-Term Liabilities
1557
1744
1791
1493
1302
1455
1350
1372
1272
1876
969
1355
1430
1180
1254
1458
1583
Total Liabilities
1221
--
1516
1659
1674
1716
1734
1722
1757
1851
1863
1820
1830
1936
2046
2218
2412
Common Stock
690
833
1162
-815
-1178
-1139
-1083
-650
-485
-326
-73.99
137
341
773
1762
2350
2870
Retained Earnings
-66.2
12.48
20.26
37.24
43.27
53.06
50.95
43.95
24.31
12.35
-12.43
-25.16
-3.63
-24.78
-36.93
-17.43
-27.56
Accumulated other comprehensive income (loss)
--
1399
--
--
--
--
--
--
--
--
--
--
--
--
--
--
-- Additional Paid-In Capital
--
-545
-619
-695
-431
-353
-290
-201
-140
-204
-401
-1190
-1178
-1396
-1668
-2058
-2623
Treasury Stock
-0
0
-0
0
-0
0
-0
--
0
0
--
0
0
--
-0
0
0
Other Stockholders Equity
1845
1699
2080
187
108
277
411
915
1156
1334
1376
742
989
1288
2103
2493
2631
Total Stockholders Equity
1845
1699
2080
187
108
277
411
915
1156
1334
1376
742
989
1288
2103
2493
2631
Total Equity
0.54
0.49
0.54
0.11
0.08
0.16
0.23
0.4
0.48
0.42
0.59
0.35
0.41
0.52
0.63
0.63
0.62
Equity-to-Asset
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  Jan 23, 2022
Cadence Design Systems Inc (NAS:CDNS)
www.gurufocus.com/stock/NAS:CDNS

Valuation Ratios



Valuation Ratios

Dec05
Dec06
Dec07
Dec08
Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
106
38.93
16.84
At Loss
At Loss
17.21
38.52
8.61
25.04
36.48
25.69
36.03
57.29
35.35
19.65
64.66
59.8
PE Ratio
106
38.93
16.84
At Loss
At Loss
17.21
38.52
8.61
25.04
36.48
25.69
36.03
57.29
35.35
19.65
64.66
59.8
PE Ratio without NRI
55.29
81.78
122
--
--
25.18
20.43
18.66
16.71
32.54
26.24
23.64
39.01
31.67
39.7
59.76
55.52
Price-to-Owner-Earnings
2.58
2.95
2.27
5.02
14.86
7.97
6.9
4.14
3.49
4.15
4.68
9.46
11.92
9.45
9.23
15.27
15.62
PB Ratio
10.38
15.71
7.36
6.82
21.24
--
61.9
7.63
10.42
13.2
12.2
--
266
30.38
15.3
25.36
28.19
Price-to-Tangible-Book
15
16.21
15.78
--
--
13.37
13.49
13.54
12.8
21.01
19.49
18.78
28.39
22.51
29.7
47.09
44.03
Price-to-Free-Cash-Flow
12.48
13.29
12.5
13.26
60.51
11.03
11.72
12
11.23
18.38
17.18
16.52
24.89
20.21
26.67
42.16
40.53
Price-to-Operating-Cash-Flow
4
3.77
3.11
0.9
1.81
2.35
2.45
2.86
2.83
3.68
3.82
4.04
6.03
5.72
8.33
14.22
13.92
PS Ratio
--
--
--
--
--
--
--
--
--
--
1.02
4.64
6.17
2.54
1.35
3.94
3.46
PEG Ratio
3.38
3.24
2.71
0.75
1.73
2.34
2.31
2.57
2.56
3.29
3.57
3.99
6.09
5.65
8.19
14.01
13.59
EV-to-Revenue
12.89
12.94
8.65
-0.53
-46.8
35.31
11.55
10.93
12.65
15.72
14.66
19.03
25.95
23.32
30.81
46.77
43.79
EV-to-EBITDA
27.46
21.41
11.65
-0.49
-11.83
-82.72
19.19
15.3
18.98
24.17
20.52
27.75
34.74
30.25
38.44
57.52
51.96
EV-to-EBIT
3.64
4.67
8.58
-204
-8.45
-1.21
5.21
6.54
5.27
4.14
4.87
3.6
2.88
3.31
2.6
1.74
1.92
Earnings Yield (Joel Greenblatt) %
-3.37
-9.5
4.05
23.39
10.48
6.37
4.4
3.26
4.86
56.72
24.6
11.98
12.11
17.03
16.91
17.88
21.61
Forward Rate of Return (Yacktman) %
63.69
76.01
80.55
--
--
--
--
--
--
--
--
--
--
65.78
63.1
108
98.97
Shiller PE Ratio

Valuation and Quality

Dec05
Dec06
Dec07
Dec08
Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
4754
5012
4732
938
1609
2206
2836
3792
4040
5531
6438
7014
11796
12175
19411
38056
41100
Market Cap
4491
4812
4385
782
1474
2186
2657
3411
3731
5200
6071
7239
11837
12087
19136
37588
40434
Enterprise Value
16.92
17.91
17.01
3.66
5.99
8.26
10.4
13.51
14.02
18.97
20.81
25.22
41.82
43.48
69.36
136
148
Month End Stock Price
-2.36
-2.81
-2.56
-3.59
-2.72
-3.31
-2.73
-1.94
-2.22
-2.93
-0.83
-3.19
-2.63
-2.31
-1.96
-1.9
-2.05
Net Cash per Share
-1
-1.54
-0.94
-2.1
-1.68
-2.16
-1.05
0.07
-0.18
-0.08
-0.02
-2.35
-1.59
-0.82
-0.3
0.07
-0.14
Net Current Asset Value
-1.55
-2.1
-2.51
-3.54
-2.08
-2.61
-2.38
-1.7
-1.93
-2.63
-0.48
-2.89
-2.25
-1.82
-1.38
-1.23
-1.37
Net-Net Working Capital
10.49
12.03
14.32
10.61
8.02
8.01
7.6
8.46
8.81
10.58
15.62
18.05
17.07
22.03
29.17
34.84
40.34
Intrinsic Value: Projected FCF
14.93
18.19
21.51
14.81
11.53
11.41
12.33
13.59
14.21
14.77
15.63
17.9
20.04
23.52
30.16
39.74
46.92
Median PS Value
--
--
--
--
--
--
--
--
--
--
20.5
5.51
6.87
17.12
51.4
34.67
50.72
Peter Lynch Fair Value
2.42
3.43
7.25
--
--
--
1.01
7.91
4.12
4.1
5.58
--
1.61
6.29
18.97
15.98
17.13
Graham Number
5.79
6.15
7.39
6.96
4.49
0.41
1.11
2.45
3.02
3.96
13.12
14.29
11.76
13.38
20.61
24.34
28.75
Earnings Power Value (EPV)
2.87
2.99
2.96
-2.53
0.27
0.61
1.34
2.25
2.53
2.51
5.3
4.54
6.58
8.15
11.38
17.93
18.03
Altman Z-Score
6
7
8
4
6
7
5
7
5
5
6
6
7
7
7
6
7
Piotroski F-Score
-3.22
-3
-3.43
-4.62
-3.17
-2.25
-3.45
-2.38
-2.55
-2.76
-2.17
-3.25
-2.68
-2.53
-1.89
-2.76
-2.77
Beneish M-Score
0.53
0.44
0.5
0.01
-0.02
0.18
0.13
0.3
0.37
0.41
0.31
0.41
0.49
0.5
0.74
0.6
0.48
Scaled Net Operating Assets
-4.53
-4.85
0.06
-107
-8.86
12.27
-6.34
14.22
9.2
1.25
-3.47
-11.6
-3.12
-3.45
10.87
-0.56
-0.64
Sloan Ratio %
2.11
2.39
1.95
1.69
2.14
1.26
1.05
1.14
1.06
1.33
1.8
1.2
1.53
1.34
1.74
1.86
1.7
Current Ratio
2.06
2.33
1.91
1.64
2.08
1.2
1.01
1.11
1.02
1.29
1.69
1.13
1.47
1.3
1.66
1.76
1.59
Quick Ratio
1.48
1.75
1.37
1.01
1.44
0.82
0.6
0.68
0.55
0.73
1.33
0.8
1.07
0.75
1.05
1.17
1.12
Cash Ratio
N/A
N/A
25.13
--
--
--
2.81
6.1
5.51
6.36
10.24
12.08
12.99
17.6
26.58
31.56
44.2
Interest Coverage
18.3
19.47
24.22
16.8
8.15
8.61
11.57
13.65
15.77
19.31
23.13
26.86
45.6
47.26
76.35
136
193
Highest Stock Price
12.96
15
16.01
2.61
3.53
5.45
8.12
9.79
12.4
13.73
17.13
18.66
25.34
35.85
41.53
54.32
118
Lowest Stock Price
-3.46
0.4
0.58
7.88
-4.83
0.57
-2.08
-2.92
-2.67
-1.2
-6.11
10.11
-1.43
0.73
0.06
0.33
0.64
Shares Buyback Ratio %
-0.96
8.54
3.45
24.07
-1.74
1.19
-0.7
-0.86
-0.56
0.62
4.01
12.9
0.43
1.72
1.3
0.8
1.33
Buyback Yield %
7.97
12.32
15.06
-25.26
-19
6.41
20.63
11.3
4.89
3.95
5.76
14.4
11.21
9.68
9.52
15.19
18
YoY Rev. per Sh. Growth
-36
188
120
-823
92.05
183
-43.75
481
-64.33
-7.14
55.77
-13.58
4.29
68.49
187
-40.23
-35.58
YoY EPS Growth
1.37
7.4
44.2
-435
97.88
291
265
30.82
-9.98
7.69
23.01
-1.51
24.66
13.21
20.13
29.81
30.32
YoY EBITDA Growth
-7.94
-14.06
-2.16
--
--
--
--
--
--
--
25.11
7.76
9.29
13.92
14.56
16.43
17.3
5-Year EBITDA Growth Rate
279
279
271
254
258
261
264
270
278
283
288
285
272
274
273
274
273
Shares Outstanding (Basic Average)
281
280
278
256
269
267
273
281
288
292
309
278
282
280
280
279
277
Shares Outstanding (EOP)
2.25
1.83
1.43
1.93
1.38
1.49
1.05
1.58
1.27
1.16
0.82
0.93
1.02
1.06
1.32
1.03
1.04
Beta
03/10/06
02/23/07
02/26/08
03/02/09
02/26/10
02/24/11
02/24/12
02/21/13
02/20/14
02/20/15
02/18/16
02/10/17
02/20/18
02/27/19
02/24/20
02/22/21
  Filing Date
03/10/06
02/26/08
03/02/09
02/24/11
02/24/11
02/21/13
02/20/14
02/20/15
02/18/16
02/10/17
02/20/18
02/27/19
02/24/20
05/14/21
05/14/21
05/14/21
  Restated Filing Date
02/02/11
02/01/12
01/30/13
01/29/14
02/04/15
02/03/16
02/01/17
01/31/18
02/19/19
02/12/20
02/22/21
  Earnings Release Date
--
--
1054
1001
976
934
882
795
752
691
632
599
550
523
443
410
410
Number of Shareholders
5000
5200
5300
4900
--
--
4700
5200
5700
--
--
7100
7200
7500
8100
--
-- Number of Employees
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  Jan 23, 2022
Cadence Design Systems Inc (NAS:CDNS)
www.gurufocus.com/stock/NAS:CDNS

Explanation

1. Predictability Rank

GuruFocus Predictability Rank is a proprietary ranking of the consistency of a business. We rank the predictability of companies based on the consistency of their revenue per share and EBITDA (earnings before interest, tax, depreciation and amortization) per share over the past 10 fiscal years. Our study found that there is a strong correlation between the stock performance and the predictability of a business. Over the long term, companies with higher predictability also have better stock performance.

The rank is from 1-star to 5-star, with 5-star as the best.

2. Financial Strength

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

  1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
  2. Debt to revenue ratio. The lower, the better.
  3. Altman Z-Score.

The rank is from 1 to 10, with 10 as the highest.

A Financial Strength rank of 8 or above indicates good financial strength; between 4-7 indicates fair financial strength; 3 or below means poor financial strength.

3. Profitability Rank

GuruFocus Profitability Rank indicates how profitable a company is and how likely it is that the company's business will stay that way. It is based on these factors:

  1. Operating Margin %.
  2. Piotroski F-Score.
  3. Trend of the Operating Margin percentage (five-year average). A company with an uptrend in profit margin will have a higher rank.
  4. Consistency of the profitability.
  5. Predictability Rank.

The rank is from 1 to 10, with 10 as the highest.

A Profitability Rank of 8 or above indicates good profitability; between 4-7 indicates fair profitability; 3 or below means poor profitability.

4. Peter Lynch Chart

In Peter Lynch's excellent book, "One Up on Wall Street," he used many charts to illustrate the valuation of stocks. “A quick way to tell if a stock is overpriced is to compare the price line to the earnings line. If you bought familiar growth companies – such as Shoney’s, The Limited, or Marriott – when the stock price fell well below the earnings line, and sold them when the stock price rose dramatically above it, the chances are you’d do pretty well.”

The original Peter Lynch Chart does have limitations due to the right side price scale is pre-set at 15 times the earnings scale on the left side. When the stock price and earnings line coincide, the price-to-earnings ratio is always 15 times. Instead of using the fixed PE Ratio of 15, our approach is using 15-year historical median PE without NRI Ratio for each stock.

The Peter Lynch Chart with earnings line at median PE without NRI ratio works well for the companies with steady growth and earnings trends, or the stalwarts, as coined by Lynch. These companies tend to be found in sectors such as consumer staples, healthcare, and utilities, where the consumption of the product or service is relatively independent of economic conditions. It does not work well with the sectors that are cyclical: industrials, chemicals, durable goods, and so forth.

5. GF Value

Based on the relationship between the current stock price and the GF Value, GuruFocus provides the following 6 evaluations:

  1. Possible Value Trap, Think Twice
  2. Significantly Overvalued
  3. Modestly Overvalued
  4. Fairly Valued
  5. Modestly Undervalued
  6. Significantly Undervalued
There is only a sufficient margin of safety when the stock is undervalued.

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