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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 1.48
CDNS's Cash to Debt is ranked higher than
59% of the 2122 Companies
in the Global Software - Application industry.

( Industry Median: 4.47 vs. CDNS: 1.48 )
CDNS' s 10-Year Cash to Debt Range
Min: 1   Max: 95.65
Current: 1.48

1
95.65
Equity to Asset 0.42
CDNS's Equity to Asset is ranked higher than
52% of the 2058 Companies
in the Global Software - Application industry.

( Industry Median: 0.60 vs. CDNS: 0.42 )
CDNS' s 10-Year Equity to Asset Range
Min: 0.08   Max: 0.71
Current: 0.42

0.08
0.71
Interest Coverage 6.06
CDNS's Interest Coverage is ranked lower than
55% of the 1336 Companies
in the Global Software - Application industry.

( Industry Median: 1106.00 vs. CDNS: 6.06 )
CDNS' s 10-Year Interest Coverage Range
Min: 2.8   Max: 91.36
Current: 6.06

2.8
91.36
F-Score: 5
Z-Score: 2.47
M-Score: -2.70
WACC vs ROIC
9.86%
18.75%
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 : 7/10

vs
industry
vs
history
Operating margin (%) 13.07
CDNS's Operating margin (%) is ranked higher than
86% of the 2107 Companies
in the Global Software - Application industry.

( Industry Median: 5.51 vs. CDNS: 13.07 )
CDNS' s 10-Year Operating margin (%) Range
Min: -151.48   Max: 26.75
Current: 13.07

-151.48
26.75
Net-margin (%) 10.05
CDNS's Net-margin (%) is ranked higher than
85% of the 2107 Companies
in the Global Software - Application industry.

( Industry Median: 3.65 vs. CDNS: 10.05 )
CDNS' s 10-Year Net-margin (%) Range
Min: -178.77   Max: 33.17
Current: 10.05

-178.77
33.17
ROE (%) 12.71
CDNS's ROE (%) is ranked higher than
84% of the 2039 Companies
in the Global Software - Application industry.

( Industry Median: 6.71 vs. CDNS: 12.71 )
CDNS' s 10-Year ROE (%) Range
Min: -163.82   Max: 66.34
Current: 12.71

-163.82
66.34
ROA (%) 5.82
CDNS's ROA (%) is ranked higher than
78% of the 2130 Companies
in the Global Software - Application industry.

( Industry Median: 3.51 vs. CDNS: 5.82 )
CDNS' s 10-Year ROA (%) Range
Min: -66.9   Max: 21.74
Current: 5.82

-66.9
21.74
ROC (Joel Greenblatt) (%) 87.64
CDNS's ROC (Joel Greenblatt) (%) is ranked higher than
85% of the 2106 Companies
in the Global Software - Application industry.

( Industry Median: 33.24 vs. CDNS: 87.64 )
CDNS' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -453.19   Max: 247.11
Current: 87.64

-453.19
247.11
Revenue Growth (3Y)(%) 6.60
CDNS's Revenue Growth (3Y)(%) is ranked higher than
74% of the 1683 Companies
in the Global Software - Application industry.

( Industry Median: 5.40 vs. CDNS: 6.60 )
CDNS' s 10-Year Revenue Growth (3Y)(%) Range
Min: -16.7   Max: 12.6
Current: 6.6

-16.7
12.6
EBITDA Growth (3Y)(%) 8.30
CDNS's EBITDA Growth (3Y)(%) is ranked higher than
74% of the 1393 Companies
in the Global Software - Application industry.

( Industry Median: 6.20 vs. CDNS: 8.30 )
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
87% of the 1276 Companies
in the Global Software - Application industry.

( Industry Median: 6.50 vs. CDNS: 24.40 )
CDNS' s 10-Year EPS Growth (3Y)(%) Range
Min: -60.1   Max: 76.5
Current: 24.4

-60.1
76.5
» CDNS's 10-Y Financials

Financials


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

» Details

Guru Trades

Q1 2014

CDNS Guru Trades in Q1 2014

Ray Dalio 32,779 sh (New)
Chase Coleman 1,115,000 sh (New)
Jim Simons 34,381 sh (New)
George Soros 2,690,866 sh (+24.19%)
Dodge & Cox 19,359,742 sh (unchged)
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 (-60.10%)
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

Columbia Wanger 2,104,100 sh (New)
Paul Tudor Jones 10,600 sh (New)
Jim Simons 593,900 sh (New)
Larry Robbins 17,652,108 sh (+22.57%)
Larry Robbins 17,652,108 sh (unchged)
Joel Greenblatt Sold Out
George Soros 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
» 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%)



No Guru Trades Found!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

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) 35.50
CDNS's P/E(ttm) is ranked higher than
76% of the 2302 Companies
in the Global Software - Application industry.

( Industry Median: 60.50 vs. CDNS: 35.50 )
CDNS' s 10-Year P/E(ttm) Range
Min: 7.27   Max: 149.22
Current: 35.5

7.27
149.22
Forward P/E 16.03
CDNS's Forward P/E is ranked higher than
88% of the 2302 Companies
in the Global Software - Application industry.

( Industry Median: 0.00 vs. CDNS: 16.03 )
N/A
PE(NRI) 35.50
CDNS's PE(NRI) is ranked higher than
77% of the 2302 Companies
in the Global Software - Application industry.

( Industry Median: 63.20 vs. CDNS: 35.50 )
CDNS' s 10-Year PE(NRI) Range
Min: 7.25   Max: 143.63
Current: 35.5

7.25
143.63
P/B 4.00
CDNS's P/B is ranked higher than
62% of the 2302 Companies
in the Global Software - Application industry.

( Industry Median: 3.39 vs. CDNS: 4.00 )
CDNS' s 10-Year P/B Range
Min: 0.44   Max: 22.33
Current: 4

0.44
22.33
P/S 3.60
CDNS's P/S is ranked higher than
53% of the 2302 Companies
in the Global Software - Application industry.

( Industry Median: 2.68 vs. CDNS: 3.60 )
CDNS' s 10-Year P/S Range
Min: 0.61   Max: 4.66
Current: 3.6

0.61
4.66
PFCF 20.40
CDNS's PFCF is ranked higher than
84% of the 2302 Companies
in the Global Software - Application industry.

( Industry Median: 99.61 vs. CDNS: 20.40 )
CDNS' s 10-Year PFCF Range
Min: 7.07   Max: 268
Current: 20.4

7.07
268
POCF 17.90
CDNS's POCF is ranked higher than
79% of the 2302 Companies
in the Global Software - Application industry.

( Industry Median: 29.38 vs. CDNS: 17.90 )
CDNS' s 10-Year POCF Range
Min: 3.54   Max: 70.44
Current: 17.9

3.54
70.44
EV-to-EBIT 24.48
CDNS's EV-to-EBIT is ranked higher than
76% of the 2302 Companies
in the Global Software - Application industry.

( Industry Median: 35.54 vs. CDNS: 24.48 )
CDNS' s 10-Year EV-to-EBIT Range
Min: -469.7   Max: 576.9
Current: 24.48

-469.7
576.9
Shiller P/E 39.60
CDNS's Shiller P/E is ranked higher than
83% of the 2302 Companies
in the Global Software - Application industry.

( Industry Median: 0.00 vs. CDNS: 39.60 )
CDNS' s 10-Year Shiller P/E Range
Min: 12.61   Max: 134.08
Current: 39.6

12.61
134.08
Current Ratio 1.33
CDNS's Current Ratio is ranked higher than
56% of the 2088 Companies
in the Global Software - Application industry.

( Industry Median: 1.87 vs. CDNS: 1.33 )
CDNS' s 10-Year Current Ratio Range
Min: 1.03   Max: 2.39
Current: 1.33

1.03
2.39
Quick Ratio 1.29
CDNS's Quick Ratio is ranked higher than
58% of the 2088 Companies
in the Global Software - Application industry.

( Industry Median: 1.77 vs. CDNS: 1.29 )
CDNS' s 10-Year Quick Ratio Range
Min: 0.99   Max: 2.33
Current: 1.29

0.99
2.33
Days Inventory 91.90
CDNS's Days Inventory is ranked higher than
70% of the 2302 Companies
in the Global Software - Application industry.

( Industry Median: 153.43 vs. CDNS: 91.90 )
CDNS' s 10-Year Days Inventory Range
Min: 7.92   Max: 86.98
Current: 91.9

7.92
86.98
Days Sales Outstanding 28.28
CDNS's Days Sales Outstanding is ranked higher than
95% of the 2302 Companies
in the Global Software - Application industry.

( Industry Median: 82.25 vs. CDNS: 28.28 )
CDNS' s 10-Year Days Sales Outstanding Range
Min: 26.9   Max: 117.08
Current: 28.28

26.9
117.08

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 12.90
CDNS's Price/Tangible Book is ranked higher than
55% of the 2302 Companies
in the Global Software - Application industry.

( Industry Median: 8.75 vs. CDNS: 12.90 )
CDNS' s 10-Year Price/Tangible Book Range
Min: 4.17   Max: 61.18
Current: 12.9

4.17
61.18
Price/DCF (Projected) 1.70
CDNS's Price/DCF (Projected) is ranked higher than
83% of the 2302 Companies
in the Global Software - Application industry.

( Industry Median: 8.50 vs. CDNS: 1.70 )
CDNS' s 10-Year Price/DCF (Projected) Range
Min: 0.39   Max: 9.29
Current: 1.7

0.39
9.29
Price/Median PS Value 1.20
CDNS's Price/Median PS Value is ranked higher than
70% of the 2302 Companies
in the Global Software - Application industry.

( Industry Median: 1.30 vs. CDNS: 1.20 )
CDNS' s 10-Year Price/Median PS Value Range
Min: 0.12   Max: 1.93
Current: 1.2

0.12
1.93
Price/Peter Lynch Fair Value 1.40
CDNS's Price/Peter Lynch Fair Value is ranked higher than
94% of the 2302 Companies
in the Global Software - Application industry.

( Industry Median: 0.00 vs. CDNS: 1.40 )
CDNS' s 10-Year Price/Peter Lynch Fair Value Range
Min: 1.46   Max: 7.05
Current: 1.4

1.46
7.05
Price/Graham Number 4.40
CDNS's Price/Graham Number is ranked higher than
75% of the 2302 Companies
in the Global Software - Application industry.

( Industry Median: 57.00 vs. CDNS: 4.40 )
CDNS' s 10-Year Price/Graham Number Range
Min: 1.71   Max: 10.44
Current: 4.4

1.71
10.44
Earnings Yield (Greenblatt) 4.10
CDNS's Earnings Yield (Greenblatt) is ranked higher than
73% of the 2105 Companies
in the Global Software - Application industry.

( Industry Median: 3.40 vs. CDNS: 4.10 )
CDNS' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.2   Max: 11.7
Current: 4.1

0.2
11.7
Forward Rate of Return (Yacktman) 56.62
CDNS's Forward Rate of Return (Yacktman) is ranked higher than
98% of the 1116 Companies
in the Global Software - Application industry.

( Industry Median: 12.97 vs. CDNS: 56.62 )
CDNS' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -7   Max: 57
Current: 56.62

-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 a Delaware corporation was incorporated in June 1988. The Company develops solutions that its customers use to design small and complex integrated circuits, or ICs, and electronic devices. Its product offerings include Electronic Design Automation, or EDA, software, emulation hardware, and two categories of intellectual property, or IP, commonly referred to as verification IP, or VIP, and design IP. It provides maintenance for its software, hardware, and IP product offerings. The Company also provides engineering services related to methodology, education, hosted design solutions and design services for advanced ICs and development of custom IP. 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 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. Its signoff offering includes tools used to signoff the design as ready for manufacture by a silicon foundry, which provides certification for this step. This offering includes TempusTM timing analysis and VoltusTM power analysis, and solutions for extraction, physical verification and design for manufacturing. The Custom IC Design and Verification offering is comprised of Virtuoso(r) custom design platform capabilities and 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
» 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 10 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 10 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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