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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 1.76
CDNS's Cash to Debt is ranked higher than
57% of the 1738 Companies
in the Global Software - Application industry.

( Industry Median: 4.49 vs. CDNS: 1.76 )
CDNS' s 10-Year Cash to Debt Range
Min: 0.88   Max: 140.42
Current: 1.76

0.88
140.42
Equity to Asset 0.48
CDNS's Equity to Asset is ranked higher than
52% of the 1710 Companies
in the Global Software - Application industry.

( Industry Median: 0.59 vs. CDNS: 0.48 )
CDNS' s 10-Year Equity to Asset Range
Min: 0.06   Max: 0.73
Current: 0.48

0.06
0.73
Interest Coverage 5.03
CDNS's Interest Coverage is ranked lower than
59% of the 1136 Companies
in the Global Software - Application industry.

( Industry Median: 704.34 vs. CDNS: 5.03 )
CDNS' s 10-Year Interest Coverage Range
Min: 2.8   Max: 91.36
Current: 5.03

2.8
91.36
F-Score: 5
Z-Score: 2.62
M-Score: -2.96
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 : 7/10

vs
industry
vs
history
Operating margin (%) 11.06
CDNS's Operating margin (%) is ranked higher than
82% of the 1732 Companies
in the Global Software - Application industry.

( Industry Median: 5.56 vs. CDNS: 11.06 )
CDNS' s 10-Year Operating margin (%) Range
Min: -151.48   Max: 26.75
Current: 11.06

-151.48
26.75
Net-margin (%) 8.57
CDNS's Net-margin (%) is ranked higher than
82% of the 1732 Companies
in the Global Software - Application industry.

( Industry Median: 3.80 vs. CDNS: 8.57 )
CDNS' s 10-Year Net-margin (%) Range
Min: -178.77   Max: 33.17
Current: 8.57

-178.77
33.17
ROE (%) 10.94
CDNS's ROE (%) is ranked higher than
79% of the 1695 Companies
in the Global Software - Application industry.

( Industry Median: 6.72 vs. CDNS: 10.94 )
CDNS' s 10-Year ROE (%) Range
Min: -163.82   Max: 66.34
Current: 10.94

-163.82
66.34
ROA (%) 5.06
CDNS's ROA (%) is ranked higher than
74% of the 1746 Companies
in the Global Software - Application industry.

( Industry Median: 3.73 vs. CDNS: 5.06 )
CDNS' s 10-Year ROA (%) Range
Min: -66.9   Max: 26.47
Current: 5.06

-66.9
26.47
ROC (Joel Greenblatt) (%) 71.24
CDNS's ROC (Joel Greenblatt) (%) is ranked higher than
81% of the 1740 Companies
in the Global Software - Application industry.

( Industry Median: 29.64 vs. CDNS: 71.24 )
CDNS' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -453.19   Max: 189.94
Current: 71.24

-453.19
189.94
Revenue Growth (%) 12.10
CDNS's Revenue Growth (%) is ranked higher than
80% of the 1461 Companies
in the Global Software - Application industry.

( Industry Median: 6.40 vs. CDNS: 12.10 )
CDNS' s 10-Year Revenue Growth (%) Range
Min: -16.7   Max: 27.1
Current: 12.1

-16.7
27.1
EBITDA Growth (%) 63.20
CDNS's EBITDA Growth (%) is ranked higher than
97% of the 1181 Companies
in the Global Software - Application industry.

( Industry Median: 8.50 vs. CDNS: 63.20 )
CDNS' s 10-Year EBITDA Growth (%) Range
Min: -48.9   Max: 63.2
Current: 63.2

-48.9
63.2
EPS Growth (%) 5.30
CDNS's EPS Growth (%) is ranked higher than
68% of the 1129 Companies
in the Global Software - Application industry.

( Industry Median: 8.40 vs. CDNS: 5.30 )
CDNS' s 10-Year EPS Growth (%) Range
Min: -60.1   Max: 76.5
Current: 5.3

-60.1
76.5
» CDNS's 10-Y Financials

Financials


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

» Details

Guru Trades

Q3 2013

CDNS Guru Trades in Q3 2013

Steven Cohen 126,946 sh (+150.86%)
Paul Tudor Jones 91,800 sh (+95.32%)
Joel Greenblatt 446,448 sh (+73.93%)
Dodge & Cox 19,594,742 sh (-0.88%)
Mariko Gordon 4,455,599 sh (-5.37%)
Jim Simons 1,816,999 sh (-31.6%)
» More
Q4 2013

CDNS Guru Trades in Q4 2013

Pioneer Investments 565,000 sh (New)
George Soros 2,166,666 sh (New)
Mariko Gordon 4,601,388 sh (+3.27%)
Jim Simons Sold Out
Dodge & Cox 19,359,742 sh (-1.2%)
Joel Greenblatt 330,423 sh (-25.99%)
Paul Tudor Jones 65,800 sh (-28.32%)
Steven Cohen 51,691 sh (-59.28%)
» More
Q1 2014

CDNS Guru Trades in Q1 2014

Ray Dalio 32,779 sh (New)
Jim Simons 34,381 sh (New)
Chase Coleman 1,115,000 sh (New)
George Soros 2,690,866 sh (+24.19%)
Paul Tudor Jones Sold Out
Dodge & Cox 19,260,875 sh (-0.51%)
Mariko Gordon 4,485,325 sh (-2.52%)
Pioneer Investments 549,875 sh (-2.68%)
Joel Greenblatt 249,287 sh (-24.56%)
Steven Cohen 11,058 sh (-78.61%)
» More
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 (-60.1%)
Joel Greenblatt 31,139 sh (-87.51%)
» 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%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Mariko Gordon 2014-06-30 Reduce -8.69%0.24%$14.52 - $17.41 $ 16.332%4095465
George Soros 2014-06-30 Reduce -38.06%0.16%$14.52 - $17.41 $ 16.332%1666666
Joel Greenblatt 2014-06-30 Reduce -87.51%0.05%$14.52 - $17.41 $ 16.332%31139
Ray Dalio 2014-06-30 Reduce -60.1%$14.52 - $17.41 $ 16.332%13079
George Soros 2014-03-31 Add 24.19%0.08%$13.73 - $16.12 $ 16.3310%2690866
Joel Greenblatt 2014-03-31 Reduce -24.56%0.03%$13.73 - $16.12 $ 16.3310%249287
Ray Dalio 2014-03-31 New Buy$13.73 - $16.12 $ 16.3310%32779
George Soros 2013-12-31 New Buy0.26%$12.59 - $14.565 $ 16.3322%2166666
Joel Greenblatt 2013-12-31 Reduce -25.99%0.05%$12.59 - $14.565 $ 16.3322%330423
Mariko Gordon 2013-09-30 Reduce -5.37%0.18%$13.27 - $15.77 $ 16.3314%4455599
Joel Greenblatt 2013-09-30 Add 73.93%0.09%$13.27 - $15.77 $ 16.3314%446448
Premium More recent guru trades are included for Premium Members only!!
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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) 37.30
CDNS's P/E(ttm) is ranked higher than
71% of the 1860 Companies
in the Global Software - Application industry.

( Industry Median: 45.10 vs. CDNS: 37.30 )
CDNS' s 10-Year P/E(ttm) Range
Min: 7.27   Max: 149.22
Current: 37.3

7.27
149.22
P/B 3.72
CDNS's P/B is ranked higher than
60% of the 1860 Companies
in the Global Software - Application industry.

( Industry Median: 2.60 vs. CDNS: 3.72 )
CDNS' s 10-Year P/B Range
Min: 0.44   Max: 22.33
Current: 3.72

0.44
22.33
P/S 3.22
CDNS's P/S is ranked higher than
59% of the 1860 Companies
in the Global Software - Application industry.

( Industry Median: 2.17 vs. CDNS: 3.22 )
CDNS' s 10-Year P/S Range
Min: 0.61   Max: 4.66
Current: 3.22

0.61
4.66
PFCF 18.56
CDNS's PFCF is ranked higher than
87% of the 1860 Companies
in the Global Software - Application industry.

( Industry Median: 9999.00 vs. CDNS: 18.56 )
CDNS' s 10-Year PFCF Range
Min: 7.07   Max: 268
Current: 18.56

7.07
268
EV-to-EBIT 26.66
CDNS's EV-to-EBIT is ranked higher than
70% of the 1860 Companies
in the Global Software - Application industry.

( Industry Median: 30.16 vs. CDNS: 26.66 )
CDNS' s 10-Year EV-to-EBIT Range
Min: 8.6   Max: 576.9
Current: 26.66

8.6
576.9
Current Ratio 1.04
CDNS's Current Ratio is ranked lower than
56% of the 1735 Companies
in the Global Software - Application industry.

( Industry Median: 1.90 vs. CDNS: 1.04 )
CDNS' s 10-Year Current Ratio Range
Min: 0.87   Max: 3.24
Current: 1.04

0.87
3.24
Quick Ratio 1.00
CDNS's Quick Ratio is ranked lower than
54% of the 1735 Companies
in the Global Software - Application industry.

( Industry Median: 1.78 vs. CDNS: 1.00 )
CDNS' s 10-Year Quick Ratio Range
Min: 0.84   Max: 3.16
Current: 1

0.84
3.16

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 13.73
CDNS's Price/Tangible Book is ranked higher than
55% of the 1860 Companies
in the Global Software - Application industry.

( Industry Median: 6.81 vs. CDNS: 13.73 )
CDNS' s 10-Year Price/Tangible Book Range
Min: 3.58   Max: 462
Current: 13.73

3.58
462
Price/DCF (Projected) 1.62
CDNS's Price/DCF (Projected) is ranked higher than
80% of the 1860 Companies
in the Global Software - Application industry.

( Industry Median: 5.24 vs. CDNS: 1.62 )
CDNS' s 10-Year Price/DCF (Projected) Range
Min: 0.39   Max: 9.29
Current: 1.62

0.39
9.29
Price/Median PS Value 1.11
CDNS's Price/Median PS Value is ranked higher than
67% of the 1860 Companies
in the Global Software - Application industry.

( Industry Median: 1.09 vs. CDNS: 1.11 )
CDNS' s 10-Year Price/Median PS Value Range
Min: 0.1   Max: 1.92
Current: 1.11

0.1
1.92
Price/Graham Number 4.71
CDNS's Price/Graham Number is ranked higher than
70% of the 1860 Companies
in the Global Software - Application industry.

( Industry Median: 7.84 vs. CDNS: 4.71 )
CDNS' s 10-Year Price/Graham Number Range
Min: 1.53   Max: 51.33
Current: 4.71

1.53
51.33
Earnings Yield (Greenblatt) 3.80
CDNS's Earnings Yield (Greenblatt) is ranked higher than
58% of the 1496 Companies
in the Global Software - Application industry.

( Industry Median: 6.10 vs. CDNS: 3.80 )
CDNS' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.2   Max: 11.7
Current: 3.8

0.2
11.7
Forward Rate of Return (Yacktman) 2.79
CDNS's Forward Rate of Return (Yacktman) is ranked higher than
67% of the 1331 Companies
in the Global Software - Application industry.

( Industry Median: 5.70 vs. CDNS: 2.79 )
CDNS' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -8.1   Max: 27.3
Current: 2.79

-8.1
27.3

Business Description

Industry: Application Software » Software - Application
Compare:CRM, SQI, RHT, INTU, ADBE » details
Traded in other countries:CDS.Germany
Cadence Design Systems, Inc., a Delaware corporation was incorporated in June 1988. It licenses software, sells or leases hardware technology and provides engineering and education services throughout the world to help manage and accelerate electronics product development processes. Its customers use its products and services to design and develop complex integrated circuits, or ICs, and electronics systems. The Company combines its products and technologies into five branded platforms for design activities: Functional Verification, Hardware and IP; Digital IC Design; Custom IC Design; System Interconnect Design and Design for Manufacturing. Functional Verification offerings are comprised of three categories of offerings: Logic Verification, System Design and Verification and Design IP. Digital IC Design offerings include two major categories: Logic Design and Physical Implementation. Logic Design offering is comprised of logic synthesis, test and equivalence checking capabilities within the Encounter digital IC design platform, and is typically used by customers to create and verify designs in conjunction with its Functional Verification capabilities. Physical Implementation offering is included in the Encounter Digital IC Design platform. This offering is comprised of tools used near the end of the design process, including place and route, timing analysis, signal integrity, power analysis, extraction and physical verification capabilities. The Custom IC Design and Verification offering is comprised of Virtuoso(r) custom design platform capabilities and certain DFM product capabilities. Its offering includes the environment, IC layout and simulation capabilities within the Virtuoso(r) custom design platform. System Interconnect Design offerings include the following capabilities within the Allegro system interconnect design platform: PCB authoring and implementation, IC package/SiP signal and power integrity analysis. In addition, the company augments these platform product offerings with a set of designs for manufacturing, or DFM, products that service both the digital and custom IC design flows. The products and technologies that comprise its platforms are combined with services, elements from kits and other associated components that provide solutions for low power, mixed signal, enterprise verification and advanced node designs. The Company offers fee-based services, including engineering and education services. These services might be sold separately or sold and performed in conjunction with the sale, lease or license of its products. The Company competes in the EDA industry for products and maintenance primarily with three companies: Synopsys, Inc., Mentor Graphics Corporation and Magma Design Automation, Inc.
» More Articles for CDNS

Headlines

Articles On GuruFocus.com
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 
Mick note on CDNS Jan 17 2009 


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