Long term Growth Analysis of Cadence Design Systems, Inc. (NASDAQ:CDNS)


Quarterly Sales and EPS Roundup:

Cadence Design Systems, Inc. (CDNS) reported sales (ttm) of 1.82 Billion, whereas, 9 number of analysts estimated the mean sale of 480.36 million. The analysts estimated sales for the higher end at 486.7 million and lower end at 476.3 million while the year ago reported sale was 476.64 million.

9 number of analysts have estimated the sales of the company for the quarter ending Apr 24, 2017, analysts estimated mean sale target of 480.68 million while high and low sale targets are estimated at 485.5 million and 470.46 million respectively.

Cadence Design Systems, Inc. (CDNS) reported earning per shares for the quarter ending Apr 24 AMC at 0.34, whereas, 9 number of analysts estimated the mean EPS at 0.34. The analysts estimated EPS for the higher end at 0.36 and lower end at 0.32 while the year ago reported earnings per share was 0.32.

The company has mean EPS estimate of 0.35 reported by 9 number of analyst for the quarter ending Apr 24, 2017. The analysts estimated mean EPS at 0.35 while the high and low EPS estimate stand at 0.36 and 0.32 respectively. In contrast to the year ago quarter EPS was at 0.35. EPS long term mean growth rate estimated by 3 analysts is at 11.11%, whereas, the high and low Long term growth rate estimated at 12.23 and 10.

Valuation Ratios of Cadence Design Systems, Inc. (CDNS) versus the Industry and Sector:

Let’s have a look at some of the important valuation ratios of the Cadence Design Systems, Inc. (CDNS). These ratios are important while doing valuation of the company or the shares of the company.

Cadence Design Systems, Inc. (CDNS) currently has P/E (Price to Earnings) ratio of 46.57 while the company’s industry has 28.61 P/E and the sector P/E is 19.52. Similarly, the company’s last 5 years high P/E ratio is 36.35 and low P/E is 8.57, whereas, the industry’s and sector’s  high P/E for the past year is 69.69 and 22.24 respectively and low P/E ratio for the last 5 years is 19.45 for the industry and 9.47 for the Sector.

Beta is also an important valuation ratio for analyzing the stock of the company, CDNS has Beta of 1.03 while its industry and Sector’s beta remains at 0.79 and 1.43 respectively.

Price to Sale ratio of CDNS stands at 4.99 while Price to Book Ratio stands at 12.17. Its Price to Cash Flow ratio shows the value of 28.1, whereas, the industry and sector ratio of Price to Cash Flow ticked at 22.5 and 14.41 respectively.

5 Year Growth Rate Analysis:

Growth rates are very important while analyzing the long term growth and valuation of a certain company.

5 year sales growth rate is an important factor for valuation analysis, the 5 year sales growth of Cadence Design Systems, Inc. (CDNS) stands at 9.57 while the industry’s and the sector’s growth for next 5 years ticked at 10.25 and 4.7 respectively. The company’s 5 year Earnings per share growth and Capital Spending growth remains at 21.19 and 11.32.

Cadence Design Systems, Inc. (CDNS) Trading Statistics:

The company surged 0.99% and closed its last trading session at $32.45. The market capitalization of the company is at $9.16 Billion. The stock touched 52-week High of $32.55 on 04/20/17 and 52-week Low of $22.95 on 05/06/16. The stock currently has Weekly Volatility of 1.59% and Monthly Volatility of 1.57%. The Beta for the company stands at 1.04 and its Average True Range (ATR) shows a value of 0.48.