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.

Financial Strength

8/10

Name	Current	Vs Industry
Cash-To-Debt	1.56
Equity-to-Asset	0.62
Debt-to-Equity	0.18
Debt-to-EBITDA	0.45
Interest Coverage	33.41
Piotroski F-Score	6/9	0 1 2 3 4 5 6 7 8 9
Altman Z-Score	24.23	Distress Grey Safe
Beneish M-Score	-2.91	Manipulator Not Manipulator
WACC vs ROIC		WACC ROIC

Growth Rank

10/10

	Name	Current	Vs Industry		Vs History
	3-Year Revenue Growth Rate	16.1
	3-Year EBITDA Growth Rate	23.1
	3-Year EPS without NRI Growth Rate	34.3
	3-Year FCF Growth Rate	16.4
	3-Year Book Growth Rate	11.9
	Future 3-5Y EPS without NRI Growth Rate	17.76
	Future 3-5Y Total Revenue Growth Rate	12

Momentum Rank

9/10

	Name	Current	Vs Industry		Vs History
	5-Day RSI	40.25
	9-Day RSI	35.38
	14-Day RSI	37.17
	6-1 Month Momentum %	37.13
	12-1 Month Momentum %	55.2

Liquidity Ratio

	Name	Current	Vs Industry		Vs History
	Current Ratio	1.32
	Quick Ratio	1.19
	Cash Ratio	0.69
	Days Inventory	133.74
	Days Sales Outstanding	25.45
	Days Payable	57.93

Dividend & Buy Back

	Name	Current	Vs Industry		Vs History
	3-Year Average Share Buyback Ratio	0.9
	Shareholder Yield %	0.85

Profitability Rank

10/10

	Name	Current	Vs Industry		Vs History
	Gross Margin %	89.31
	Operating Margin %	29.19
	Net Margin %	25.68
	FCF Margin %	29.67
	ROE %	32.85
	ROA %	19.28
	ROIC %	22.06
	ROC (Joel Greenblatt) %	309.51
	ROCE %	31.93
	Years of Profitability over Past 10-Year	10

GF Value Rank

3/10

	Name	Current	Vs Industry		Vs History
	PE Ratio	73.54
	Forward PE Ratio	47.62
	PE Ratio without NRI	73.14
	Shiller PE Ratio	125.99
	Price-to-Owner-Earnings	77.71
	PEG Ratio	3.05
	PS Ratio	18.9
	PB Ratio	21.54
	Price-to-Tangible-Book	46.37
	Price-to-Free-Cash-Flow	63.69
	Price-to-Operating-Cash-Flow	57.71
	EV-to-EBIT	58.56
	EV-to-Forward-EBIT	43.9
	EV-to-EBITDA	52.48
	EV-to-Forward-EBITDA	36.36
	EV-to-Revenue	18.76
	EV-to-Forward-Revenue	16.35
	EV-to-FCF	63.23
	Price-to-Projected-FCF	4.77
	Price-to-DCF (Earnings Based)	2.34
	Price-to-DCF (FCF Based)	2.22
	Price-to-Median-PS-Value	2.35
	Price-to-Peter-Lynch-Fair-Value	3.19
	Price-to-Graham-Number	12.28
	Earnings Yield (Greenblatt) %	1.71
	FCF Yield %	1.57
	Forward Rate of Return (Yacktman) %	21.24

GF Value: $235.66

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