Cadence Design Systems, Inc.

Cadence Design Systems provides software, hardware, services, and IC design blocks globally. The company offers functional verification services including emulation and prototyping hardware. Products include JasperGold, Xcelium, Palladium, Protium, Genus synthesis, Joules RTL power solutions, and Modus DFT software. Digital IC design and sign-off products are also offered, along with physical implementation tools. Custom IC design and simulation products are available for analog, mixed-signal, digital, memory, and RF designs. Intellectual property (IP) products include pre-verified functional blocks and verification IP. The company serves various industries including consumer, hyperscale computing, 5G communications, and more.

Overview

Sector

Software Application

Target Price

95.1 USD

Current Price

356.3 USD

Potential

-73%

Strengths

The company has low debt. Net Debt to EBITDA Ratio is -0.04 and it is lower than the sector mean.
Strong EBITDA Margin of 35.14%.

Weaknesses

With a depreciation Potential of -72.75%, based on our fundamental analysis, it suggests the stock may be overvalued.
Price to book ratio (20.45) is significantly higher than the sector mean (14.02).
The Price to Free Cash Flow ratio (85.47) is significantly higher than the sector mean.

Key Financial Data

Indicator	Value
PER	92.4
EV/EBITDA	59.8
Price/Free Cash Flow'	87.3
ROIC	17.4%
Net Debt/EBITDA	-0.0