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Cadence Design Systems Inc CDNS

Morningstar Rating
$312.10 +4.56 (1.48%)
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Company Report

Cadence Design Systems Is Recognized as a Leader in the Critical EDA Space

Cadence provides electronic design automation, or EDA, software, intellectual property, and system design and analysis products that are critical to the semiconductor chip design process. As secular trends toward artificial intelligence, 5G communications, autonomous vehicles, and cloud computing, among others, accelerate, we expect that Cadence will benefit from both the rising complexity of chip designs and the advancing digitalization of various end markets. We believe narrow-moat Cadence has a long growth runway as it uses strategic organic and inorganic investments to expand its platform amid a growing semiconductor landscape.

Price vs Fair Value

CDNS is trading at a 269% premium.
Price
$312.10
Fair Value
$796.00
Uncertainty
High
1-Star Price
$617.00
5-Star Price
$991.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Secular tailwinds in chip design such as 5G, Inernet of Things, AI/ML, and others should increase demand for EDA tools and support growth for Cadence.

Bears

Interoperability of EDA tools poses a risk that influential customers could switch to a different vendor with relative ease, which could have an impact on long-term growth.

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News

Trading Information

Previous Close Price
$307.54
Day Range
$307.05312.58
52-Week Range
$217.77327.36
Bid/Ask
$311.77 / $315.95
Market Cap
$85.02 Bil
Volume/Avg
1.4 Mil / 1.5 Mil

Key Statistics

Price/Earnings (Normalized)
62.02
Price/Sales
20.88
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
0.69%

Company Profile

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.
Sector
Technology
Industry
Software - Application
Stock Style Box
Large Growth
Total Number of Employees
11,200

Competitors

Valuation

Metric
CDNS
SIE
ANSS
Price/Earnings (Normalized)
62.0217.4240.65
Price/Book Value
23.812.835.22
Price/Sales
20.881.7112.69
Price/Cash Flow
59.6311.5337.97
Price/Earnings
CDNS
SIE
ANSS

Financial Strength

Metric
CDNS
SIE
ANSS
Quick Ratio
0.961.072.70
Current Ratio
1.321.412.80
Interest Coverage
35.755.7510.96
Quick Ratio
CDNS
SIE
ANSS

Profitability

Metric
CDNS
SIE
ANSS
Return on Assets (Normalized)
25.27%4.09%10.66%
Return on Equity (Normalized)
43.05%12.81%14.30%
Return on Invested Capital (Normalized)
35.56%5.07%12.56%
Return on Assets
CDNS
SIE
ANSS
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