(CDNS) Cadence Design Systems - Ratings and Ratios
Verification, Implementation, Custom, Ip, Services
CDNS EPS (Earnings per Share)
CDNS Revenue
Description: CDNS Cadence Design Systems
Cadence Design Systems (NASDAQ: CDNS) is a global provider of electronic design automation (EDA) software, hardware, and services that enable semiconductor companies to design, verify, and bring chips to market. Its portfolio spans functional verification platforms (Jasper, Xcelium, Palladium, Protium), digital IC synthesis and sign-off tools (Genus, Joules, Innovus), custom IC design suites (Virtuoso Studio), and a Multiphysics system-analysis platform covering electromagnetic, thermal, fluid-dynamics, and packaging simulations. The company also offers semiconductor IP, verification IP libraries, and a range of methodology, education, and support services.
Cadence’s solutions address a broad set of end-markets, including consumer electronics, hyperscale computing, 5G communications, mobile, automotive, aerospace & defense, industrial, and life-science applications. This diversification helps mitigate cyclical exposure to any single segment, though demand is increasingly tied to the rollout of advanced-node chips and AI-accelerated hardware.
According to Cadence’s FY 2024 earnings release, revenue reached $4.2 billion, up 13 % year-over-year, driven primarily by a 19 % increase in verification-software sales and a 9 % rise in custom-IC design tools. Gross margin held steady at 86 %, while R&D spending remained at roughly 23 % of revenue, reflecting the company’s continued investment in AI-enabled design automation. The balance sheet shows $2.6 billion of cash and equivalents, providing ample liquidity for strategic acquisitions.
Key industry drivers that underpin Cadence’s growth outlook include the accelerating adoption of AI and machine-learning workloads, which push silicon vendors toward more complex, heterogeneous chip architectures; the global rollout of 5G and edge-computing infrastructure, raising the volume of high-performance ASIC and SoC projects; and the shift toward advanced process nodes (3 nm and below), which increase the need for sophisticated verification and sign-off tools to manage design-time risk.
For a deeper, data-driven assessment of Cadence’s valuation and risk profile, you may find ValueRay’s analyst framework a useful next step.
CDNS Stock Overview
| Market Cap in USD | 88,355m |
| Sub-Industry | Application Software |
| IPO / Inception | 1987-06-10 |
CDNS Stock Ratings
| Growth Rating | 85.0% |
| Fundamental | 76.8% |
| Dividend Rating | - |
| Return 12m vs S&P 500 | 11.8% |
| Analyst Rating | 4.35 of 5 |
CDNS Dividends
Currently no dividends paidCDNS Growth Ratios
| Growth Correlation 3m | -16.5% |
| Growth Correlation 12m | 63.5% |
| Growth Correlation 5y | 93.6% |
| CAGR 5y | 27.52% |
| CAGR/Max DD 3y (Calmar Ratio) | 0.95 |
| CAGR/Mean DD 3y (Pain Ratio) | 3.87 |
| Sharpe Ratio 12m | 1.19 |
| Alpha | 5.18 |
| Beta | 0.988 |
| Volatility | 37.77% |
| Current Volume | 1481.7k |
| Average Volume 20d | 1527.9k |
| Stop Loss | 315.2 (-3.3%) |
| Signal | -0.29 |
Piotroski VR‑10 (Strict, 0-10) 7.5
| Net Income (1.01b TTM) > 0 and > 6% of Revenue (6% = 305.4m TTM) |
| FCFTA 0.17 (>2.0%) and ΔFCFTA 3.63pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 53.56% (prev 15.92%; Δ 37.64pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.18 (>3.0%) and CFO 1.72b > Net Income 1.01b (YES >=105%, WARN >=100%) |
| Net Debt (-344.6m) to EBITDA (1.69b) ratio: -0.20 <= 3.0 (WARN <= 3.5) |
| Current Ratio 2.82 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (273.3m) change vs 12m ago -0.09% (target <= -2.0% for YES) |
| Gross Margin 85.39% (prev 88.51%; Δ -3.12pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 60.82% (prev 57.59%; Δ 3.23pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 13.50 (EBITDA TTM 1.69b / Interest Expense TTM 112.5m) >= 6 (WARN >= 3) |
Altman Z'' 7.84
| (A) 0.29 = (Total Current Assets 4.22b - Total Current Liabilities 1.50b) / Total Assets 9.51b |
| (B) 0.68 = Retained Earnings (Balance) 6.43b / Total Assets 9.51b |
| (C) 0.18 = EBIT TTM 1.52b / Avg Total Assets 8.37b |
| (D) 2.42 = Book Value of Equity 10.90b / Total Liabilities 4.50b |
| Total Rating: 7.84 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 76.78
| 1. Piotroski 7.50pt = 2.50 |
| 2. FCF Yield 1.80% = 0.90 |
| 3. FCF Margin 31.15% = 7.50 |
| 4. Debt/Equity 0.49 = 2.38 |
| 5. Debt/Ebitda -0.20 = 2.50 |
| 6. ROIC - WACC (= 2.42)% = 3.03 |
| 7. RoE 21.28% = 1.77 |
| 8. Rev. Trend 92.00% = 6.90 |
| 9. EPS Trend -13.99% = -0.70 |
What is the price of CDNS shares?
Over the past week, the price has changed by -1.84%, over one month by -12.65%, over three months by +3.10% and over the past year by +28.82%.
Is Cadence Design Systems a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of CDNS is around 360.33 USD . This means that CDNS is currently undervalued and has a potential upside of +10.49% (Margin of Safety).
Is CDNS a buy, sell or hold?
- Strong Buy: 14
- Buy: 5
- Hold: 3
- Sell: 0
- Strong Sell: 1
What are the forecasts/targets for the CDNS price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 370.8 | 13.7% |
| Analysts Target Price | 370.8 | 13.7% |
| ValueRay Target Price | 405.1 | 24.2% |
Last update: 2025-10-18 03:46
CDNS Fundamental Data Overview
P/E Trailing = 87.8726
P/E Forward = 44.0529
P/S = 17.361
P/B = 18.8992
P/EG = 3.0796
Beta = 0.988
Revenue TTM = 5.09b USD
EBIT TTM = 1.52b USD
EBITDA TTM = 1.69b USD
Long Term Debt = 2.48b USD (from longTermDebt, last quarter)
Short Term Debt = unknown (none)
Debt = 2.48b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -344.6m USD (from netDebt column, last quarter)
Enterprise Value = 88.01b USD (88.35b + Debt 2.48b - CCE 2.82b)
Interest Coverage Ratio = 13.50 (Ebit TTM 1.52b / Interest Expense TTM 112.5m)
FCF Yield = 1.80% (FCF TTM 1.59b / Enterprise Value 88.01b)
FCF Margin = 31.15% (FCF TTM 1.59b / Revenue TTM 5.09b)
Net Margin = 19.88% (Net Income TTM 1.01b / Revenue TTM 5.09b)
Gross Margin = 85.39% ((Revenue TTM 5.09b - Cost of Revenue TTM 743.5m) / Revenue TTM)
Gross Margin QoQ = 84.84% (prev 86.55%)
Tobins Q-Ratio = 9.26 (Enterprise Value 88.01b / Total Assets 9.51b)
Interest Expense / Debt = 1.17% (Interest Expense 28.9m / Debt 2.48b)
Taxrate = 42.96% (120.6m / 280.6m)
NOPAT = 866.3m (EBIT 1.52b * (1 - 42.96%))
Current Ratio = 2.82 (Total Current Assets 4.22b / Total Current Liabilities 1.50b)
Debt / Equity = 0.49 (Debt 2.48b / totalStockholderEquity, last quarter 5.01b)
Debt / EBITDA = -0.20 (Net Debt -344.6m / EBITDA 1.69b)
Debt / FCF = -0.22 (Net Debt -344.6m / FCF TTM 1.59b)
Total Stockholder Equity = 4.75b (last 4 quarters mean from totalStockholderEquity)
RoA = 10.64% (Net Income 1.01b / Total Assets 9.51b)
RoE = 21.28% (Net Income TTM 1.01b / Total Stockholder Equity 4.75b)
RoCE = 21.00% (EBIT 1.52b / Capital Employed (Equity 4.75b + L.T.Debt 2.48b))
RoIC = 11.84% (NOPAT 866.3m / Invested Capital 7.32b)
WACC = 9.41% (E(88.35b)/V(90.83b) * Re(9.66%) + D(2.48b)/V(90.83b) * Rd(1.17%) * (1-Tc(0.43)))
Discount Rate = 9.66% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 0.15%
[DCF Debug] Terminal Value 73.99% ; FCFE base≈1.33b ; Y1≈1.44b ; Y5≈1.81b
Fair Price DCF = 87.41 (DCF Value 23.82b / Shares Outstanding 272.5m; 5y FCF grow 9.81% → 3.0% )
EPS Correlation: -13.99 | EPS CAGR: -54.02% | SUE: -4.0 | # QB: 0
Revenue Correlation: 92.00 | Revenue CAGR: 13.40% | SUE: 2.09 | # QB: 1
Additional Sources for CDNS Stock
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