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%
- Company has a low Debt to Equity ratio (avg) at times
2
High Institutional Holdings at 91.94%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 2.01% over the previous quarter.
Real-Time Research ReportHow much should you buy?
- 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, Low Return
Absolute
Risk Adjusted
Volatility
Cadence Design Systems, Inc.
11.82%
-0.10
39.54%
S&P 500
14.9%
0.77
19.29%
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
91.94%
ROCE (avg)
37.84%
ROE (avg)
26.93%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
78
Industry P/E
Price to Book Value
17.26
EV to EBIT
55.94
EV to EBITDA
49.25
EV to Capital Employed
19.36
EV to Sales
17.73
PEG Ratio
5.52
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
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend11What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 1,728.78 MM
INTEREST COVERAGE RATIO(Q)
Highest at 1,824.92
RAW MATERIAL COST(Y)
Fallen by -3.64% (YoY
CASH AND EQV(HY)
Highest at USD 5,908.78 MM
NET SALES(Q)
Highest at USD 1,440.11 MM
OPERATING PROFIT(Q)
Highest at USD 537.26 MM
PRE-TAX PROFIT(Q)
Highest at USD 500.26 MM
NET PROFIT(Q)
Highest at USD 393.88 MM
EPS(Q)
Highest at USD 1.42
-6What is not working for the Company
INTEREST(9M)
At USD 87.42 MM has Grown at 29.89%
DEBTORS TURNOVER RATIO(HY)
Lowest at 6.15 times
INVENTORY TURNOVER RATIO(HY)
Lowest at 2.72 times
Here's what is working for Cadence Design Systems, Inc.
Interest Coverage Ratio
Highest at 1,824.92
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Cash Flow
Highest at USD 1,728.78 MM
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 1,440.11 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 537.26 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Pre-Tax Profit
Highest at USD 500.26 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 393.88 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 1.42
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Cash and Eqv
Highest at USD 5,908.78 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -3.64% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 64.56 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Cadence Design Systems, Inc.
Debtors Turnover Ratio
Lowest at 6.15 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Interest
At USD 87.42 MM has Grown at 29.89%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Inventory Turnover Ratio
Lowest at 2.72 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
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