ScoreWhy is Cadence Design Systems, Inc. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 26.93%
- Healthy long term growth as Operating profit has grown by an annual rate 20.71%
- The company is Net-Debt Free
2
Flat results in Mar 26
- ROCE(HY) Lowest at 20.66%
- DEBT-EQUITY RATIO (HY) Highest at 23.43 %
- DEBTORS TURNOVER RATIO(HY) Lowest at 6.41 times
3
With ROE of 22.20%, it has a expensive valuation with a 16.03 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 30.50%, its profits have risen by 13.2% ; the PEG ratio of the company is 5.1
4
High Institutional Holdings at 91.37%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Cadence Design Systems, Inc. should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Cadence Design Systems, Inc. for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Cadence Design Systems, Inc.
30.5%
0.78
39.24%
S&P 500
25.41%
1.92
13.25%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
14.57%
EBIT Growth (5y)
20.71%
EBIT to Interest (avg)
35.13
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.06
Sales to Capital Employed (avg)
0.77
Tax Ratio
24.98%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
91.37%
ROCE (avg)
37.84%
ROE (avg)
26.93%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
72
Industry P/E
Price to Book Value
16.03
EV to EBIT
51.91
EV to EBITDA
45.71
EV to Capital Employed
17.97
EV to Sales
16.45
PEG Ratio
5.12
Dividend Yield
NA
ROCE (Latest)
34.61%
ROE (Latest)
22.20%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Sideways
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 1,597.54 MM
NET SALES(Q)
Highest at USD 1,474.22 MM
-5What is not working for the Company
ROCE(HY)
Lowest at 20.66%
DEBT-EQUITY RATIO
(HY)
Highest at 23.43 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 6.41 times
INTEREST(Q)
Highest at USD 31.61 MM
Here's what is working for Cadence Design Systems, Inc.
Operating Cash Flow
Highest at USD 1,597.54 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 1,474.22 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Depreciation
Highest at USD 84.62 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Depreciation
At USD 84.62 MM has Grown at 31.08%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (USD MM)
Here's what is not working for Cadence Design Systems, Inc.
Interest
Highest at USD 31.61 MM
in the last five periods and Increased by 7.38% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Debt-Equity Ratio
Highest at 23.43 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio
Lowest at 6.41 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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