CDNS - Cadence Design: Still A Sell

• Cadence Design Systems has provided excellent returns to investors over the last six years at least. Those returns are now melting away.
• Despite an ~21% fall in share price since I last wrote about this stock, the P/E multiple still exceeds 40.0, which appears likely to be unsustainable.
• In addition, Cadence Design has what I refer to as a "leaky equity bucket," which results in distributions out of equity that do not flow to shareholders.
• Earnings adjusted for "leaky equity bucket" effect are far lower than reported non-GAAP earnings, and the already high multiples increase accordingly.

For further details see: