Cadence Design Systems is a provider of electronic design automation software, intellectual property, and system design and analysis products. EDA software automates the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution. Cadence offers a portfolio of design IP, as well as system design and analysis products, which enable system-level analysis and verification solutions. Cadence's comprehensive portfolio is benefiting from a mutual convergence of semiconductor companies moving up-stack toward systems-like companies, and systems companies moving down-stack toward in-house semiconductor design. The resulting expansion in EDA customers, alongside secular digitalization of various end markets, benefits EDA vendors like Cadence.

Financial Strength

Name	Current	Vs Industry
Cash-To-Debt	1.56
Equity-to-Asset	0.62
Debt-to-Equity	0.18
Debt-to-EBITDA	0.45
Interest Coverage	33.41
Piotroski F-Score	6/9	0 1 2 3 4 5 6 7 8 9
Altman Z-Score	23.83	Distress Grey Safe
Beneish M-Score	-2.91	Manipulator Not Manipulator
WACC vs ROIC		WACC ROIC

Growth Rank

	Name	Current	Vs Industry		Vs History
	3-Year Revenue Growth Rate	16.1
	3-Year EBITDA Growth Rate	23.1
	3-Year EPS without NRI Growth Rate	34.3
	3-Year FCF Growth Rate	16.4
	3-Year Book Growth Rate	11.9
	Future 3-5Y EPS without NRI Growth Rate	17.76
	Future 3-5Y Total Revenue Growth Rate	12

Momentum Rank

	Name	Current	Vs Industry		Vs History
	5-Day RSI	16.6
	9-Day RSI	23.66
	14-Day RSI	31.01
	6-1 Month Momentum %	34.19
	12-1 Month Momentum %	66.06

Liquidity Ratio

	Name	Current	Vs Industry		Vs History
	Current Ratio	1.32
	Quick Ratio	1.19
	Cash Ratio	0.69
	Days Inventory	133.74
	Days Sales Outstanding	25.45
	Days Payable	57.93

Dividend & Buy Back

	Name	Current	Vs Industry		Vs History
	3-Year Average Share Buyback Ratio	0.9
	Shareholder Yield %	0.86

Profitability Rank

	Name	Current	Vs Industry		Vs History
	Gross Margin %	89.31
	Operating Margin %	29.19
	Net Margin %	25.68
	FCF Margin %	29.71
	ROE %	32.85
	ROA %	19.28
	ROIC %	22.06
	ROC (Joel Greenblatt) %	309.51
	ROCE %	31.93
	Years of Profitability over Past 10-Year	10

GF Value Rank

	Name	Current	Vs Industry		Vs History
	PE Ratio	72.16
	Forward PE Ratio	46.51
	PE Ratio without NRI	71.76
	Shiller PE Ratio	123.61
	Price-to-Owner-Earnings	76.25
	PEG Ratio	2.99
	PS Ratio	18.54
	PB Ratio	21.14
	Price-to-Tangible-Book	45.48
	Price-to-Free-Cash-Flow	62.49
	Price-to-Operating-Cash-Flow	56.62
	EV-to-EBIT	57.45
	EV-to-Forward-EBIT	43.9
	EV-to-EBITDA	51.49
	EV-to-Forward-EBITDA	36.36
	EV-to-Revenue	18.4
	EV-to-Forward-Revenue	16.35
	EV-to-FCF	62.04
	Price-to-Projected-FCF	4.68
	Price-to-DCF (Earnings Based)	2.31
	Price-to-DCF (FCF Based)	2.19
	Price-to-Median-PS-Value	2.3
	Price-to-Peter-Lynch-Fair-Value	3.13
	Price-to-Graham-Number	12.05
	Earnings Yield (Greenblatt) %	1.74
	FCF Yield %	1.6
	Forward Rate of Return (Yacktman) %	21.26

GF Value: €218.8

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