Overview Dividends

(CDNS) Cadence Design Systems - Ratings and Ratios

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US1273871087

Verification Software, Synthesis Tools, Custom Design, IP Cores, PCB Analysis

Application Software
Market Cap in USD: 84,368m
IPO / Inception: 1987-06-10
Return 12m vs S&P 500: -5.06%

Dividends

Currently no dividends paid
Risk via 10d forecast
Volatility 34.7%
Value at Risk 5%th 52.7%
Relative Tail Risk -7.61%
Reward TTM
Sharpe Ratio 0.19
Alpha -10.61
CAGR/Max DD 0.95
Character TTM
Hurst Exponent 0.473
Beta 1.320
Beta Downside 1.121
Drawdowns 3y
Max DD 29.05%
Mean DD 7.37%
Median DD 5.55%

Description: CDNS Cadence Design Systems December 02, 2025

Cadence Design Systems (NASDAQ: CDNS) delivers a comprehensive EDA suite that spans functional verification (Jasper, Xcelium, Palladium, Protium), digital IC design and sign-off (Genus, Joules, Innovus), custom analog/mixed-signal design (Virtuoso Studio), and system-level multiphysics analysis, plus semiconductor IP and related services. Its tools support a broad customer base across consumer electronics, hyperscale computing, 5G, automotive, aerospace & defense, industrial, and life-science markets.

Key recent metrics: FY 2024 revenue reached $4.6 billion, up ~12 % YoY, driven by strong demand for AI-accelerator verification and advanced-node design; gross margin held near 84 %; and R&D spending remained at ~30 % of revenue, underscoring the company’s commitment to technology leadership. Cadence’s market share in the EDA space is estimated at ~45 % (per Gartner), making it the dominant player alongside Synopsys.

Sector drivers that amplify Cadence’s growth outlook include the accelerating complexity of semiconductor designs (e.g., >10 billion-gate chips), the surge in AI and high-performance computing workloads, and the rollout of 5G infrastructure, all of which increase spend on verification and sign-off tools.

For a deeper quantitative view, see ValueRay’s CDNS analysis.

Piotroski VR‑10 (Strict, 0-10) 7.5

Net Income (1.06b TTM) > 0 and > 6% of Revenue (6% = 312.8m TTM)
FCFTA 0.15 (>2.0%) and ΔFCFTA 5.02pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)
NWC/Revenue 55.26% (prev 55.70%; Δ -0.44pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)
CFO/TA 0.17 (>3.0%) and CFO 1.62b > Net Income 1.06b (YES >=105%, WARN >=100%)
Net Debt (-274.1m) to EBITDA (1.80b) ratio: -0.15 <= 3.0 (WARN <= 3.5)
Current Ratio 3.05 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)
Outstanding Shares last Quarter (273.8m) change vs 12m ago -0.06% (target <= -2.0% for YES)
Gross Margin 87.82% (prev 87.79%; Δ 0.03pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)
Asset Turnover 55.55% (prev 47.50%; Δ 8.06pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)
Interest Coverage Ratio 13.53 (EBITDA TTM 1.80b / Interest Expense TTM 117.0m) >= 6 (WARN >= 3)

Altman Z'' 8.08

(A) 0.30 = (Total Current Assets 4.29b - Total Current Liabilities 1.41b) / Total Assets 9.60b
(B) 0.70 = Retained Earnings (Balance) 6.71b / Total Assets 9.60b
(C) 0.17 = EBIT TTM 1.58b / Avg Total Assets 9.38b
(D) 2.57 = Book Value of Equity 11.33b / Total Liabilities 4.40b
Total Rating: 8.08 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 85.09

1. Piotroski 7.50pt
2. FCF Yield 1.76%
3. FCF Margin 28.37%
4. Debt/Equity 0.48
5. Debt/Ebitda -0.15
6. ROIC - WACC (= 5.06)%
7. RoE 21.59%
8. Rev. Trend 95.41%
9. EPS Trend 88.99%

What is the price of CDNS shares?

As of December 08, 2025, the stock is trading at USD 337.53 with a total of 1,325,092 shares traded.
Over the past week, the price has changed by +9.01%, over one month by +3.84%, over three months by -6.41% and over the past year by +8.97%.

Is CDNS a buy, sell or hold?

Cadence Design Systems has received a consensus analysts rating of 4.35. Therefore, it is recommended to buy CDNS.
  • 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 384.2 13.8%
Analysts Target Price 384.2 13.8%
ValueRay Target Price 398.6 18.1%

CDNS Fundamental Data Overview December 03, 2025

Market Cap USD = 84.37b (84.37b USD * 1.0 USD.USD)
P/E Trailing = 80.0052
P/E Forward = 39.3701
P/S = 16.1854
P/B = 16.3268
P/EG = 3.1227
Beta = 1.043
Revenue TTM = 5.21b USD
EBIT TTM = 1.58b USD
EBITDA TTM = 1.80b 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 = -274.1m USD (from netDebt column, last quarter)
Enterprise Value = 84.09b USD (84.37b + Debt 2.48b - CCE 2.75b)
Interest Coverage Ratio = 13.53 (Ebit TTM 1.58b / Interest Expense TTM 117.0m)
FCF Yield = 1.76% (FCF TTM 1.48b / Enterprise Value 84.09b)
FCF Margin = 28.37% (FCF TTM 1.48b / Revenue TTM 5.21b)
Net Margin = 20.35% (Net Income TTM 1.06b / Revenue TTM 5.21b)
Gross Margin = 87.82% ((Revenue TTM 5.21b - Cost of Revenue TTM 634.8m) / Revenue TTM)
Gross Margin QoQ = 95.26% (prev 85.56%)
Tobins Q-Ratio = 8.76 (Enterprise Value 84.09b / Total Assets 9.60b)
Interest Expense / Debt = 1.17% (Interest Expense 29.0m / Debt 2.48b)
Taxrate = 26.90% (105.7m / 392.8m)
NOPAT = 1.16b (EBIT 1.58b * (1 - 26.90%))
Current Ratio = 3.05 (Total Current Assets 4.29b / Total Current Liabilities 1.41b)
Debt / Equity = 0.48 (Debt 2.48b / totalStockholderEquity, last quarter 5.20b)
Debt / EBITDA = -0.15 (Net Debt -274.1m / EBITDA 1.80b)
Debt / FCF = -0.19 (Net Debt -274.1m / FCF TTM 1.48b)
Total Stockholder Equity = 4.91b (last 4 quarters mean from totalStockholderEquity)
RoA = 11.05% (Net Income 1.06b / Total Assets 9.60b)
RoE = 21.59% (Net Income TTM 1.06b / Total Stockholder Equity 4.91b)
RoCE = 21.41% (EBIT 1.58b / Capital Employed (Equity 4.91b + L.T.Debt 2.48b))
RoIC = 15.65% (NOPAT 1.16b / Invested Capital 7.39b)
WACC = 10.59% (E(84.37b)/V(86.85b) * Re(10.88%) + D(2.48b)/V(86.85b) * Rd(1.17%) * (1-Tc(0.27)))
Discount Rate = 10.88% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 0.25%
[DCF Debug] Terminal Value 70.14% ; FCFE base≈1.27b ; Y1≈1.38b ; Y5≈1.73b
Fair Price DCF = 70.47 (DCF Value 19.18b / Shares Outstanding 272.2m; 5y FCF grow 9.81% → 3.0% )
EPS Correlation: 88.99 | EPS CAGR: 25.64% | SUE: 2.74 | # QB: 10
Revenue Correlation: 95.41 | Revenue CAGR: 15.77% | SUE: 1.34 | # QB: 2
EPS next Quarter (2026-03-31): EPS=1.81 | Chg30d=-0.000 | Revisions Net=+8 | Analysts=17
EPS next Year (2026-12-31): EPS=5.36 | Chg30d=-0.023 | Revisions Net=+0 | Growth EPS=+37.0% | Growth Revenue=+12.4%

Additional Sources for CDNS Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle