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Is this Large Market Cap Stock target price reasonable for Cadence Design Systems Inc. (NASDAQ:CDNS)?

The company in question is, Cadence Design Systems Inc. (NASDAQ:CDNS) currently with a stock price of 26.03 (0.42% today). The market cap for Cadence Design Systems Inc. is 7565.53, and is in the sector Technology, and Application Software industry. The target price for Cadence Design Systems Inc. is 26.96. Currently Cadence Design Systems Inc. is trading with a P/E of 30.78, and a forward P/E of 19.12. Average volume for Cadence Design Systems Inc. is 1858.82 and so far today it is 721096.

Performance in the last year for Cadence Design Systems Inc. has been 21.46%. For EPS growth, Cadence Design Systems Inc. has seen a growth of 56.00%, and is looking to grow in the next year to 12.62%. More long term stats show that EPS growth has been 11.20% over the last five years and could be 10.00% for the next five years. Cadence Design Systems Inc. has seen sales growth quarter over quarter at 8.90%, with EPS growth quarter over quarter at -9.90%. The 20-day simple moving average is 3.59%, with the 200-day simple moving average coming to 11.14%.

Since the IPO date for Cadence Design Systems Inc. on the 3/26/1990, Cadence Design Systems Inc. has seen performance year to date to be 24.56%. With Cadence Design Systems Inc. trading at 26.03, the dividend yield is *TBA, and the EPS is 0.84.

So could Cadence Design Systems Inc., be undervalued? Well as said before P/E is 30.78. The PEG is 3.08, P/S is 4.26 and the P/B is at 6.95. The P/cash is 10.74, with P/free cash flow at 23.33.

Cadence Design Systems Inc. ability to deal with debt shows that the current ratio is 1.7, and the quick ratio is 1.6. This is with long term debt/equity at 0.6, and total debt/equity at 0.64.

In terms of margins, Cadence Design Systems Inc. has a gross margin of 85.90%, an operating margin of 16.00% and a profit margin of 14.50%.Payout ratio for Cadence Design Systems Inc. is 0.00%. Return on assets come to 10.80% with return on investment coming to 15.70%.

Insider ownership for Cadence Design Systems Inc., is at 0.80% and institutional ownership comes to 89.60%. Outstanding shares are at 291.88. While shares float is 288.82. The float short is currently 4.42%, and short ratio is 6.86.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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