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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).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 1.53
CDNS's Cash to Debt is ranked lower than
70% of the 1726 Companies
in the Global Software - Application industry.

( Industry Median: 15.55 vs. CDNS: 1.53 )
Ranked among companies with meaningful Cash to Debt only.
CDNS' s 10-Year Cash to Debt Range
Min: 0.88   Max: 140.42
Current: 1.53

0.88
140.42
Equity to Asset 0.45
CDNS's Equity to Asset is ranked lower than
73% of the 1529 Companies
in the Global Software - Application industry.

( Industry Median: 0.61 vs. CDNS: 0.45 )
Ranked among companies with meaningful Equity to Asset only.
CDNS' s 10-Year Equity to Asset Range
Min: 0.06   Max: 0.73
Current: 0.45

0.06
0.73
Interest Coverage 6.06
CDNS's Interest Coverage is ranked lower than
89% of the 1104 Companies
in the Global Software - Application industry.

( Industry Median: 10000.00 vs. CDNS: 6.06 )
Ranked among companies with meaningful Interest Coverage only.
CDNS' s 10-Year Interest Coverage Range
Min: 2.8   Max: 91.36
Current: 6.06

2.8
91.36
F-Score: 7
Z-Score: 2.89
M-Score: -2.99
WACC vs ROIC
9.98%
18.66%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 13.24
CDNS's Operating margin (%) is ranked higher than
76% of the 1699 Companies
in the Global Software - Application industry.

( Industry Median: 5.00 vs. CDNS: 13.24 )
Ranked among companies with meaningful Operating margin (%) only.
CDNS' s 10-Year Operating margin (%) Range
Min: -151.48   Max: 26.75
Current: 13.24

-151.48
26.75
Net-margin (%) 10.04
CDNS's Net-margin (%) is ranked higher than
74% of the 1699 Companies
in the Global Software - Application industry.

( Industry Median: 3.33 vs. CDNS: 10.04 )
Ranked among companies with meaningful Net-margin (%) only.
CDNS' s 10-Year Net-margin (%) Range
Min: -178.77   Max: 33.17
Current: 10.04

-178.77
33.17
ROE (%) 12.55
CDNS's ROE (%) is ranked higher than
71% of the 1655 Companies
in the Global Software - Application industry.

( Industry Median: 6.10 vs. CDNS: 12.55 )
Ranked among companies with meaningful ROE (%) only.
CDNS' s 10-Year ROE (%) Range
Min: -163.82   Max: 66.34
Current: 12.55

-163.82
66.34
ROA (%) 5.67
CDNS's ROA (%) is ranked higher than
63% of the 1736 Companies
in the Global Software - Application industry.

( Industry Median: 3.19 vs. CDNS: 5.67 )
Ranked among companies with meaningful ROA (%) only.
CDNS' s 10-Year ROA (%) Range
Min: -66.9   Max: 21.74
Current: 5.67

-66.9
21.74
ROC (Joel Greenblatt) (%) 91.62
CDNS's ROC (Joel Greenblatt) (%) is ranked higher than
75% of the 1711 Companies
in the Global Software - Application industry.

( Industry Median: 23.24 vs. CDNS: 91.62 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
CDNS' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -453.19   Max: 163.98
Current: 91.62

-453.19
163.98
Revenue Growth (3Y)(%) 6.60
CDNS's Revenue Growth (3Y)(%) is ranked higher than
56% of the 1288 Companies
in the Global Software - Application industry.

( Industry Median: 4.90 vs. CDNS: 6.60 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
CDNS' s 10-Year Revenue Growth (3Y)(%) Range
Min: -13.6   Max: 12.6
Current: 6.6

-13.6
12.6
EBITDA Growth (3Y)(%) 8.30
CDNS's EBITDA Growth (3Y)(%) is ranked higher than
55% of the 1024 Companies
in the Global Software - Application industry.

( Industry Median: 6.40 vs. CDNS: 8.30 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
CDNS' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -48.9   Max: 63.2
Current: 8.3

-48.9
63.2
EPS Growth (3Y)(%) 24.40
CDNS's EPS Growth (3Y)(%) is ranked higher than
75% of the 939 Companies
in the Global Software - Application industry.

( Industry Median: 5.80 vs. CDNS: 24.40 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
CDNS' s 10-Year EPS Growth (3Y)(%) Range
Min: -37   Max: 76.5
Current: 24.4

-37
76.5
» CDNS's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2014

CDNS Guru Trades in Q2 2014

Larry Robbins 11,921,572 sh (New)
Jim Simons 374,900 sh (+990.43%)
Chase Coleman Sold Out
Dodge & Cox 19,187,175 sh (-0.38%)
Pioneer Investments 524,714 sh (-4.58%)
Mariko Gordon 4,095,465 sh (-8.69%)
George Soros 1,666,666 sh (-38.06%)
Ray Dalio 13,079 sh (-60.10%)
Joel Greenblatt 31,139 sh (-87.51%)
» More
Q3 2014

CDNS Guru Trades in Q3 2014

Larry Robbins 14,402,108 sh (+20.81%)
Joel Greenblatt 31,556 sh (+1.34%)
Pioneer Investments 509,580 sh (unchged)
Jim Simons Sold Out
Ray Dalio Sold Out
Mariko Gordon 4,061,431 sh (-0.83%)
Dodge & Cox 18,119,975 sh (-5.56%)
George Soros 1,506,666 sh (-9.60%)
» More
Q4 2014

CDNS Guru Trades in Q4 2014

Jim Simons 593,900 sh (New)
Columbia Wanger 2,104,100 sh (New)
Paul Tudor Jones 10,600 sh (New)
Larry Robbins 17,652,108 sh (+22.57%)
Larry Robbins 17,652,108 sh (unchged)
George Soros Sold Out
Joel Greenblatt Sold Out
Mariko Gordon 4,044,346 sh (-0.42%)
Pioneer Investments 504,702 sh (-0.96%)
Dodge & Cox 17,248,976 sh (-4.81%)
» More
Q1 2015

CDNS Guru Trades in Q1 2015

George Soros 666,666 sh (New)
RS Investment Management 1,035,170 sh (New)
Joel Greenblatt 54,626 sh (New)
Columbia Wanger 4,470,100 sh (+112.45%)
Paul Tudor Jones 21,474 sh (+102.58%)
Larry Robbins 23,013,908 sh (+30.37%)
Mariko Gordon 3,920,418 sh (-3.06%)
Dodge & Cox 16,534,200 sh (-4.14%)
Jim Simons 541,037 sh (-8.90%)
Pioneer Investments 347,211 sh (-31.20%)
» More
» Details

Insider Trades

Latest Guru Trades with CDNS

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

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Guru Investment Theses on Cadence Design Systems Inc

Meridian Funds Comments on Cadence Design Systems - Sep 08, 2014

Cadence Design Systems (CDNS) provides software technology, design and consulting services and technology. Its primary product is electronic design automation software for the semiconductor industry. The stock rose as the company and industry transition began to show in its operating results. Specifically, industry consolidation has resulted in an improvement in pricing power. Cadence has successfully transitioned to a recurring revenue model, and we expect it to begin deploying its capital via stock repurchases. We trimmed the position modestly during the quarter.

From Meridian Funds (Trades, Portfolio)’ Meridian Growth Fund Annual Review.

Check out Meridian Funds latest stock trades

Top Ranked Articles about Cadence Design Systems Inc

Meridian Funds Comments on Cadence Design Systems
Cadence Design Systems (CDNS) provides software technology, design and consulting services and technology. Its primary product is electronic design automation software for the semiconductor industry. The stock rose as the company and industry transition began to show in its operating results. Specifically, industry consolidation has resulted in an improvement in pricing power. Cadence has successfully transitioned to a recurring revenue model, and we expect it to begin deploying its capital via stock repurchases. We trimmed the position modestly during the quarter. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 36.90
CDNS's P/E(ttm) is ranked lower than
63% of the 1271 Companies
in the Global Software - Application industry.

( Industry Median: 26.70 vs. CDNS: 36.90 )
Ranked among companies with meaningful P/E(ttm) only.
CDNS' s 10-Year P/E(ttm) Range
Min: 7.27   Max: 149.22
Current: 36.9

7.27
149.22
Forward P/E 17.06
CDNS's Forward P/E is ranked higher than
56% of the 932 Companies
in the Global Software - Application industry.

( Industry Median: 18.38 vs. CDNS: 17.06 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 37.50
CDNS's PE(NRI) is ranked lower than
65% of the 1091 Companies
in the Global Software - Application industry.

( Industry Median: 25.00 vs. CDNS: 37.50 )
Ranked among companies with meaningful PE(NRI) only.
CDNS' s 10-Year PE(NRI) Range
Min: 7.25   Max: 143.63
Current: 37.5

7.25
143.63
P/B 4.50
CDNS's P/B is ranked lower than
66% of the 2000 Companies
in the Global Software - Application industry.

( Industry Median: 2.90 vs. CDNS: 4.50 )
Ranked among companies with meaningful P/B only.
CDNS' s 10-Year P/B Range
Min: 0.44   Max: 22.33
Current: 4.5

0.44
22.33
P/S 3.80
CDNS's P/S is ranked lower than
76% of the 2103 Companies
in the Global Software - Application industry.

( Industry Median: 1.81 vs. CDNS: 3.80 )
Ranked among companies with meaningful P/S only.
CDNS' s 10-Year P/S Range
Min: 0.61   Max: 4.66
Current: 3.8

0.61
4.66
PFCF 21.00
CDNS's PFCF is ranked higher than
55% of the 1175 Companies
in the Global Software - Application industry.

( Industry Median: 22.96 vs. CDNS: 21.00 )
Ranked among companies with meaningful PFCF only.
CDNS' s 10-Year PFCF Range
Min: 7.07   Max: 268
Current: 21

7.07
268
POCF 18.26
CDNS's POCF is ranked lower than
56% of the 1127 Companies
in the Global Software - Application industry.

( Industry Median: 16.00 vs. CDNS: 18.26 )
Ranked among companies with meaningful POCF only.
CDNS' s 10-Year POCF Range
Min: 3.54   Max: 70.44
Current: 18.26

3.54
70.44
EV-to-EBIT 25.68
CDNS's EV-to-EBIT is ranked lower than
64% of the 1146 Companies
in the Global Software - Application industry.

( Industry Median: 17.22 vs. CDNS: 25.68 )
Ranked among companies with meaningful EV-to-EBIT only.
CDNS' s 10-Year EV-to-EBIT Range
Min: -469.7   Max: 576.9
Current: 25.68

-469.7
576.9
Shiller P/E 36.40
CDNS's Shiller P/E is ranked lower than
55% of the 917 Companies
in the Global Software - Application industry.

( Industry Median: 32.43 vs. CDNS: 36.40 )
Ranked among companies with meaningful Shiller P/E only.
CDNS' s 10-Year Shiller P/E Range
Min: 12.61   Max: 134.08
Current: 36.4

12.61
134.08
Current Ratio 1.41
CDNS's Current Ratio is ranked lower than
70% of the 1566 Companies
in the Global Software - Application industry.

( Industry Median: 2.07 vs. CDNS: 1.41 )
Ranked among companies with meaningful Current Ratio only.
CDNS' s 10-Year Current Ratio Range
Min: 0.87   Max: 3.24
Current: 1.41

0.87
3.24
Quick Ratio 1.37
CDNS's Quick Ratio is ranked lower than
67% of the 1566 Companies
in the Global Software - Application industry.

( Industry Median: 1.93 vs. CDNS: 1.37 )
Ranked among companies with meaningful Quick Ratio only.
CDNS' s 10-Year Quick Ratio Range
Min: 0.84   Max: 3.16
Current: 1.37

0.84
3.16
Days Inventory 91.85
CDNS's Days Inventory is ranked lower than
84% of the 1012 Companies
in the Global Software - Application industry.

( Industry Median: 19.36 vs. CDNS: 91.85 )
Ranked among companies with meaningful Days Inventory only.
CDNS' s 10-Year Days Inventory Range
Min: 7.92   Max: 86.98
Current: 91.85

7.92
86.98
Days Sales Outstanding 19.08
CDNS's Days Sales Outstanding is ranked higher than
93% of the 1467 Companies
in the Global Software - Application industry.

( Industry Median: 69.06 vs. CDNS: 19.08 )
Ranked among companies with meaningful Days Sales Outstanding only.
CDNS' s 10-Year Days Sales Outstanding Range
Min: 26.9   Max: 117.08
Current: 19.08

26.9
117.08

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 13.30
CDNS's Price/Tangible Book is ranked lower than
79% of the 1901 Companies
in the Global Software - Application industry.

( Industry Median: 5.40 vs. CDNS: 13.30 )
Ranked among companies with meaningful Price/Tangible Book only.
CDNS' s 10-Year Price/Tangible Book Range
Min: 4.17   Max: 61.18
Current: 13.3

4.17
61.18
Price/DCF (Projected) 1.80
CDNS's Price/DCF (Projected) is ranked higher than
53% of the 1115 Companies
in the Global Software - Application industry.

( Industry Median: 1.80 vs. CDNS: 1.80 )
Ranked among companies with meaningful Price/DCF (Projected) only.
CDNS' s 10-Year Price/DCF (Projected) Range
Min: 0.39   Max: 9.29
Current: 1.8

0.39
9.29
Price/Median PS Value 1.30
CDNS's Price/Median PS Value is ranked lower than
51% of the 1971 Companies
in the Global Software - Application industry.

( Industry Median: 1.30 vs. CDNS: 1.30 )
Ranked among companies with meaningful Price/Median PS Value only.
CDNS' s 10-Year Price/Median PS Value Range
Min: 0.1   Max: 1.92
Current: 1.3

0.1
1.92
Price/Peter Lynch Fair Value 1.50
CDNS's Price/Peter Lynch Fair Value is ranked higher than
64% of the 510 Companies
in the Global Software - Application industry.

( Industry Median: 9999.00 vs. CDNS: 1.50 )
Ranked among companies with meaningful Price/Peter Lynch Fair Value only.
CDNS' s 10-Year Price/Peter Lynch Fair Value Range
Min: 1.25   Max: 28.25
Current: 1.5

1.25
28.25
Price/Graham Number 4.70
CDNS's Price/Graham Number is ranked lower than
71% of the 1243 Companies
in the Global Software - Application industry.

( Industry Median: 2.60 vs. CDNS: 4.70 )
Ranked among companies with meaningful Price/Graham Number only.
CDNS' s 10-Year Price/Graham Number Range
Min: 1.53   Max: 51.33
Current: 4.7

1.53
51.33
Earnings Yield (Greenblatt) 3.90
CDNS's Earnings Yield (Greenblatt) is ranked higher than
56% of the 1857 Companies
in the Global Software - Application industry.

( Industry Median: 2.80 vs. CDNS: 3.90 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) only.
CDNS' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.2   Max: 11.7
Current: 3.9

0.2
11.7
Forward Rate of Return (Yacktman) 39.43
CDNS's Forward Rate of Return (Yacktman) is ranked higher than
93% of the 664 Companies
in the Global Software - Application industry.

( Industry Median: 11.13 vs. CDNS: 39.43 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) only.
CDNS' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -7   Max: 57
Current: 39.43

-7
57

Business Description

Industry: Application Software » Software - Application
Compare:CRM, SQI, RHT, INTU, ADBE » details
Traded in other countries:CDS.Germany,
Cadence Design Systems Inc were organized as a Delaware corporation in June 1988. The Company develops system design enablement, or SDE, solutions that its customers use to design whole electronics systems and increasingly small and complex integrated circuits, or ICs, and electronic devices. Its solutions are designed to help the customers reduce the time to bring an electronics system, IC or electronic device to market and to reduce their design, development and manufacturing costs. The Company's SDE product offerings include electronic design automation, or EDA, software, emulation and prototyping hardware, and two categories of intellectual property, or IP, commonly referred to as verification IP, or VIP, and design IP. It provides maintenance for the software, emulation hardware, and IP product offerings. It also provides engineering services related to methodology, education, hosted design solutions and design services for advanced ICs and development of custom IP. The Company's customers include electronics systems and semiconductor companies, internet service providers and other technology companies that deliver a range of electronics products in a number of market segments, such as mobile and consumer devices, communications, cloud and data center infrastructure, personal computers, automotive systems, medical systems, and other devices. Its business serves EDA and IP customers, including electronics systems and semiconductor companies, internet service providers and other technology companies, that are driven by end-user demand for electronics systems, ICs and devices that are smaller, use less power and provide more functionality. The Company provides its customers with technical support and maintenance to facilitate their use of its software, hardware and IP solutions. The Company markets its products and provides services to existing and prospective customers through a direct sales force consisting of sales people and applications engineers. Applications engineers provide technical pre-sales and post-sales support for its products. The Competitors include Synopsys, Inc. and Mentor Graphics Corporation, Ansys, Inc., Atrenta, Inc., ATopTech, Inc., Zuken Ltd., CEVA, Inc.
» More Articles for CDNS

Headlines

Articles On GuruFocus.com
A Look at Columbia Wanger's Recent Stock Picks Feb 06 2015 
Meridian Funds Comments on Cadence Design Systems Sep 08 2014 
Meridian Growth Fund Annual Annual Review Sep 05 2014 
Weekly CEO Buys Highlight: MS, KMI, TUP, CDNS, HCC Aug 07 2011 
Cadence Design Systems Inc. (CDNS) CEO Lip Bu Tan buys 10,000 Shares Mar 09 2011 
Weekly CEO Buys Highlight: NWS, CDNS, NL, GNW, FBN Feb 12 2011 
Cadence Design Systems Inc. (CDNS) CEO Lip Bu Tan buys 25,000 Shares Feb 09 2011 
Cadence Design Systems Inc. (CDNS) CFO Geoffrey G Ribar buys 10,000 Shares Feb 07 2011 
Carl Icahn Buys MAT, MAS, DYN, CMC, CDNS, Sells APC, YHOO, MCRS, ESV Nov 17 2010 
MIKE JACKSON note on CDNS May 12 2010 

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