CDNS

Cadence Design Systems Inc

TMT


Presented:12/10/2015
Price:$21.14
Cap:$6.62B
Current Price:$269.47
Cap:$73.79B

Presented

Date12/10/2015
Price$21.14
Market Cap$6.62B
Ent Value$6.15B
P/E Ratio27.45x
Book Value$4.65
Div Yield0%
Shares O/S313.19M
Ave Daily Vol3,197,431
Short Int5.60%

Current

Price$269.47
Market Cap$73.79B
Cadence Design Systems, Inc. designs and develops integrated circuits and electronic devices. Its products include Electronic Design Automation, software, emulation hardware, and two categories of intellectual property, commonly referred to as verification IP, and design IP. The company provides maintenance for their software, hardware, and IP product offerings. It also provides engineering services related to methodology, education, hosted design solutions and design services for advanced ICs and development of custom IP. The company's Cadence design and verification platforms are branded as Incisive functional verification, Virtuoso custom IC design, Encounter digital IC design and Allegro system interconnect design. Cadence Design Systems was founded by Alberto Sangiovanni-Vincentelli, Gudmundur A. Hjartarson, K. Bobby Chao and K. Charles Janac in June 1988 and is headquartered in San Jose, CA.

Publicly traded companies mentioned herein: Cadence Design Systems Inc (CDNS), Mentor Graphics Corp (MENT)

Highlights

The presenter is long shares of Cadence Design Systems (CDNS), outlining a “simple waterfall” story from stronger than expected revenue growth. Concerns over semiconductor industry consolidation are “overblown,” and there are a number of tailwinds that will contribute to revenue growth. The stock is further supported by a significant share buyback. If the presenter’s thesis proves correct, CDNS’s share price could appreciate to $30.

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Idea Discussion

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