Cadence Design Systems Inc

Find Ratings Reports
CDNS : NASDAQ : Technology
$25.95 -0.23 | -0.88%
Today's Range: 25.94 - 26.35
Avg. Daily Volume: 1991500.0
12/09/16 - 4:14 PM ET

Financial Analysis


CADENCE DESIGN SYSTEMS INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. CADENCE DESIGN SYSTEMS INC has average liquidity. Currently, the Quick Ratio is 1.29 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 33.06% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)446.22433.76
EBITDA ($mil)95.75108.2
EBIT ($mil)68.7879.15
Net Income ($mil)64.7177.62


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)532.84711.2
Total Assets ($mil)2194.092331.14
Total Debt ($mil)693.28348.76
Equity ($mil)926.81384.56


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin92.4990.35
EBITDA Margin21.4524.94
Operating Margin15.4118.25
Sales Turnover0.820.72
Return on Assets11.1610.16
Return on Equity26.4317.12
Debt Q3 FY16 Q3 FY15
Current Ratio1.492.04
Debt/Capital0.430.2
Interest Expense6.054.18
Interest Coverage11.3618.95


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)286.72297.5
Div / share0.00.0
EPS0.230.25
Book value / share3.234.65
Institutional Own % n/a n/a
Avg Daily Volume1973839.02095263.0

Valuation


BUY. This stock's P/E ratio indicates a significant discount compared to an average of 47.56 for the Software industry and a premium compared to the S&P 500 average of 25.22. Conducting a second comparison, its price-to-book ratio of 7.83 indicates a significant premium versus the S&P 500 average of 2.79 and a premium versus the industry average of 7.51. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. The valuation analysis reveals that, CADENCE DESIGN SYSTEMS INC seems to be trading at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CDNS 30.51 Peers 47.56   CDNS 20.60 Peers 21.81

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

CDNS is trading at a significant discount to its peers.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

CDNS is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CDNS 18.76 Peers 27.06   CDNS 0.63 Peers 0.77

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

CDNS is trading at a discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

CDNS trades at a discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CDNS 7.83 Peers 7.51   CDNS 7.79 Peers 25.41

Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

CDNS is trading at a valuation on par with its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, CDNS is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CDNS 4.06 Peers 5.48   CDNS 6.17 Peers 4.74

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

CDNS is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

CDNS has a sales growth rate that significantly exceeds its peers.

 

 

Latest Stock Upgrades/Downgrades