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Cadence Design Systems Piotroski F-Score

: 7 (As of Today)
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Good Sign:

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

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Cadence Design Systems has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Cadence Design Systems's Piotroski F-Score or its related term are showing as below:

NAS:CDNS' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 6   Max: 9
Current: 7

2
9

During the past 13 years, the highest Piotroski F-Score of Cadence Design Systems was 9. The lowest was 2. And the median was 6.


Cadence Design Systems Piotroski F-Score Historical Data

The historical data trend for Cadence Design Systems's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Cadence Design Systems Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 7.00 7.00 7.00 6.00

Cadence Design Systems Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 6.00 6.00 7.00 7.00

Competitive Comparison

For the Software - Application subindustry, Cadence Design Systems's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Cadence Design Systems Piotroski F-Score Distribution

For the Software industry and Technology sector, Cadence Design Systems's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Cadence Design Systems's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep21) TTM:Last Year (Sep20) TTM:
Net Income was 173.738 + 187.169 + 155.9 + 176.307 = $693 Mil.
Cash Flow from Operations was 135.522 + 208.442 + 380.376 + 296.283 = $1,021 Mil.
Revenue was 759.909 + 736.028 + 728.285 + 750.895 = $2,975 Mil.
Gross Profit was 686.358 + 652.067 + 651.568 + 674.293 = $2,664 Mil.
Average Total Assets from the begining of this year (Sep20)
to the end of this year (Sep21) was
(4140.152 + 3950.785 + 3998.959 + 4122.548 + 4213.875) / 5 = $4085.2638 Mil.
Total Assets at the begining of this year (Sep20) was $4,140 Mil.
Long-Term Debt & Capital Lease Obligation was $347 Mil.
Total Current Assets was $1,543 Mil.
Total Current Liabilities was $907 Mil.
Net Income was 659.675 + 123.988 + 131.288 + 161.63 = $1,077 Mil.

Revenue was 599.555 + 617.957 + 638.418 + 666.607 = $2,523 Mil.
Gross Profit was 526.227 + 543.54 + 563.172 + 584.323 = $2,217 Mil.
Average Total Assets from the begining of last year (Sep19)
to the end of last year (Sep20) was
(2662.198 + 3357.225 + 3767.973 + 3999.497 + 4140.152) / 5 = $3585.409 Mil.
Total Assets at the begining of last year (Sep19) was $2,662 Mil.
Long-Term Debt & Capital Lease Obligation was $347 Mil.
Total Current Assets was $1,736 Mil.
Total Current Liabilities was $1,118 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Cadence Design Systems's current Net Income (TTM) was 693. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Cadence Design Systems's current Cash Flow from Operations (TTM) was 1,021. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Sep20)
=693.114/4140.152
=0.16741269

ROA (Last Year)=Net Income/Total Assets (Sep19)
=1076.581/2662.198
=0.40439554

Cadence Design Systems's return on assets of this year was 0.16741269. Cadence Design Systems's return on assets of last year was 0.40439554. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Cadence Design Systems's current Net Income (TTM) was 693. Cadence Design Systems's current Cash Flow from Operations (TTM) was 1,021. ==> 1,021 > 693 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep20 to Sep21
=347.385/4085.2638
=0.08503368

Gearing (Last Year: Sep20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep19 to Sep20
=346.584/3585.409
=0.09666512

Cadence Design Systems's gearing of this year was 0.08503368. Cadence Design Systems's gearing of last year was 0.09666512. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Sep21)=Total Current Assets/Total Current Liabilities
=1543.013/907.196
=1.70085957

Current Ratio (Last Year: Sep20)=Total Current Assets/Total Current Liabilities
=1736.482/1117.889
=1.55335816

Cadence Design Systems's current ratio of this year was 1.70085957. Cadence Design Systems's current ratio of last year was 1.55335816. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Cadence Design Systems's number of shares in issue this year was 278.311. Cadence Design Systems's number of shares in issue last year was 280.024. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=2664.286/2975.117
=0.8955231

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2217.262/2522.537
=0.87898096

Cadence Design Systems's gross margin of this year was 0.8955231. Cadence Design Systems's gross margin of last year was 0.87898096. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Sep20)
=2975.117/4140.152
=0.71860091

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep19)
=2522.537/2662.198
=0.94753921

Cadence Design Systems's asset turnover of this year was 0.71860091. Cadence Design Systems's asset turnover of last year was 0.94753921. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+1+1+1+0
=7

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Cadence Design Systems has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

Cadence Design Systems  (NAS:CDNS) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Cadence Design Systems Piotroski F-Score Related Terms

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Cadence Design Systems Business Description

Cadence Design Systems logo
Industry
Technology » Software NAICS : 511210 SIC : 7372
Traded in Other Exchanges
Address
2655 Seely Avenue, Building 5, San Jose, CA, USA, 95134
Cadence Design Systems was founded in 1988 after the merger of ECAD and SDA Systems. Cadence is known as an electronic design automation, or EDA, firm that specializes in developing software, hardware, and intellectual property that automates the design and verification of integrated circuits or larger chip systems. Historically, semiconductor firms have relied on the firm's tools, but there has been a shift toward other nontraditional "systems" users given the development of the Internet of Things, artificial intelligence, autonomous vehicles, and cloud computing. Cadence is headquartered in Silicon Valley, has approximately 8,100 employees worldwide, and was added to the S&P 500 in late 2017.
Executives
Teng Chin-chi officer: Sr. Vice President 2655 SEELY AVENUE SAN JOSE CA 95134
Tan Lip Bu director, officer: CEO ONE CALIFORNIA STREET 28TH FLOOR SAN FRANCISCO CA 94111
Beckley Thomas P officer: Sr. Vice President 2655 SEELY AVENUE SAN JOSE CA 95134
Wall John M officer: Sr. VP & CFO 2655 SEELY AVENUE SAN JOSE CA 95134
Mandava Surendra Babu officer: Sr. Vice President 47211 LAKEVIEW BLVD FREMONT CA 94538
Devgan Anirudh officer: President 2655 SEELY AVENUE SAN JOSE CA 95134
Zaman Aneel officer: Sr. Vice President 2655 SEELY AVENUE SAN JOSE CA 95134
Bostrom Susan L director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: BOSTROM SUSAN L a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Flaminia Alinka officer: Sr. VP, Chief Legal Officer 3975 FREEDOM CIRCLE SANTA CLARA CA 95054
Siboni Roger S director 1900 SOUTH NORFOLK STREET SAN MATEO CA 94403
Cowie James J officer: Sr. VP, General Counsel 2655 SEELY AVENUE BLDG. 5 SAN JOSE CA 95134
Chew Lewis director DOLBY LABORATORIES, INC. 1275 MARKET STREET SAN FRANCISCO CA 94103
Brennan Ita M director 5453 GREAT AMERICA PARKWAY SANTA CLARA CA 95054
Adams Mark director 834 TERRACE DRIVE LOS ALTOS CA 94024
Wilderotter Mary Agnes director 115 ALPINE TERRACE OAKLAND CA 94618

Cadence Design Systems Headlines

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