(CDNS) Cadence Design Systems - Overview
Sector: Technology | Industry: Software - Application | Exchange: NASDAQ (USA) | Market Cap: 95.774m USD | Total Return: 12.9% in 12m
Design Software, Verification Hardware, Silicon IP, System Analysis
Total Rating 62
Safety 67
Buy Signal 0.27
Software - Application
Industry Rotation: +1.7
Industry Rotation: +1.7
Market Cap:
95.8B
Avg Turnover: 713M
Avg Turnover: 713M
Risk 3d forecast
Volatility35.6%
VaR 5th Pctl5.93%
VaR vs Median1.28%
Reward TTM
Sharpe Ratio0.40
Rel. Str. IBD67.1
Rel. Str. Peer Group80.2
Character TTM
Beta1.476
Beta Downside1.452
Hurst Exponent0.457
Drawdowns 3y
Max DD29.05%
CAGR/Max DD0.59
CAGR/Mean DD1.78
EPS (Earnings per Share)
EPS CAGR: 21.12%
EPS Trend: 98.5%
EPS Trend: 98.5%
Last SUE: 3.00
Qual. Beats: 8
Qual. Beats: 8
Revenue
Rev. CAGR: 15.29%
Rev. Trend: 98.9%
Rev. Trend: 98.9%
Last SUE: 1.71
Qual. Beats: 4
Qual. Beats: 4
Warnings
P/E ratio 80.6
Choppy
Tailwinds
Confidence
Description: CDNS Cadence Design Systems
Cadence Design Systems, Inc. (CDNS) provides computational software, hardware, and intellectual property (IP) for the semiconductor and electronics industries. The company’s portfolio centers on Electronic Design Automation (EDA), offering tools for functional verification, digital integrated circuit (IC) design, and custom IC simulation. Key platforms include Palladium for enterprise emulation and Virtuoso for analog design, alongside generative AI solutions like Verisium.
The business model relies heavily on a subscription-based software-as-a-service (SaaS) framework, which provides high recurring revenue and deep integration into the research and development cycles of chipmakers. As semiconductor designs move toward smaller process nodes and 3D-IC architectures, the complexity of verification increases, driving demand for Cadences System Design and Analysis (SD&A) tools. The company also maintains a strategic collaboration with NVIDIA to integrate AI-driven efficiencies into the chip design process.
For more detailed insights into the companys fundamentals, you may wish to explore the data available on ValueRay. Cadence operates within a highly consolidated industry where high barriers to entry are maintained through significant R&D investment and specialized technical IP.
- AI-driven EDA software demand accelerates revenue growth from advanced semiconductor design
- Palladium and Protium hardware sales drive high-margin verification systems revenue
- Strategic NVIDIA collaboration strengthens dominant position in generative AI chip development
- Expansion into system analysis and digital twins diversifies beyond core electronic design
- Rising R&D intensity among hyperscalers increases long-term software licensing contract value
Piotroski VR‑10 (Strict)
6.5
| Net Income: 1.17b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA -3.47 > 1.0 |
| NWC/Revenue: 18.41% < 20% (prev 55.34%; Δ -36.92% < -1%) |
| CFO/TA 0.13 > 3% & CFO 1.60b > Net Income 1.17b |
| Net Debt (1.68b) to EBITDA (1.87b): 0.90 < 3 |
| Current Ratio: 1.47 > 1.5 & < 3 |
| Outstanding Shares: last quarter (273.7m) vs 12m ago 0.03% < -2% |
| Gross Margin: 88.85% > 18% (prev 0.86%; Δ 8.80k% > 0.5%) |
| Asset Turnover: 52.37% > 50% (prev 54.08%; Δ -1.71% > 0%) |
| Interest Coverage Ratio: 10.53 > 6 (EBITDA TTM 1.87b / Interest Expense TTM 119.0m) |
Altman Z''
5.84
| A: 0.08 (Total Current Assets 3.18b - Total Current Liabilities 2.16b) / Total Assets 12.10b |
| B: 0.61 (Retained Earnings 7.44b / Total Assets 12.10b) |
| C: 0.12 (EBIT TTM 1.25b / Avg Total Assets 10.56b) |
| D: 2.37 (Book Value of Equity 13.10b / Total Liabilities 5.54b) |
| Altman-Z'' Score: 5.84 = AAA |
Beneish M
-2.26
| DSRI: 1.63 (Receivables 1.07b/580.9m, Revenue 5.53b/4.87b) |
| GMI: 0.97 (GM 88.85% / 85.86%) |
| AQI: 1.37 (AQ_t 0.69 / AQ_t-1 0.50) |
| SGI: 1.13 (Revenue 5.53b / 4.87b) |
| TATA: -0.04 (NI 1.17b - CFO 1.60b) / TA 12.10b) |
| Beneish M-Score: -2.26 (Cap -4..+1) = BBB |
What is the price of CDNS shares?
As of May 22, 2026, the stock is trading at USD 358.46 with a total of 1,743,021 shares traded.
Over the past week, the price has changed by +1.59%, over one month by +10.01%, over three months by +28.11% and over the past year by +12.88%.
Over the past week, the price has changed by +1.59%, over one month by +10.01%, over three months by +28.11% and over the past year by +12.88%.
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.
- StrongBuy: 14
- Buy: 5
- Hold: 3
- Sell: 0
- StrongSell: 1
What are the forecasts/targets for the CDNS price?
| Analysts Target Price | 379.6 | 5.9% |
Cadence Design Systems (CDNS) - Fundamental Data Overview
as of 18 May 2026
P/E Trailing = 80.5661 P/E Forward = 45.8716
P/S = 17.3234
P/B = 15.2464
P/EG = 3.4433
Revenue TTM = 5.53b USD
EBIT TTM = 1.25b USD
EBITDA TTM = 1.87b USD
Long Term Debt = 2.48b USD (from longTermDebt, last quarter)
Short Term Debt = 425.0m USD (from shortTermDebt, last quarter)
Debt = 3.08b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.68b USD (from netDebt column, last quarter)
Enterprise Value = 97.31b USD (95.77b + Debt 3.08b - CCE 1.55b)
Interest Coverage Ratio = 10.53 (Ebit TTM 1.25b / Interest Expense TTM 119.0m)
EV/FCF = 68.05x (Enterprise Value 97.31b / FCF TTM 1.43b)
FCF Yield = 1.47% (FCF TTM 1.43b / Enterprise Value 97.31b)
FCF Margin = 25.86% (FCF TTM 1.43b / Revenue TTM 5.53b)
Net Margin = 21.18% (Net Income TTM 1.17b / Revenue TTM 5.53b)
Gross Margin = 88.85% ((Revenue TTM 5.53b - Cost of Revenue TTM 616.3m) / Revenue TTM)
Gross Margin QoQ = none% (prev 86.90%)
Tobins Q-Ratio = 8.04 (Enterprise Value 97.31b / Total Assets 12.10b)
Interest Expense / Debt = 1.03% (Interest Expense 31.6m / Debt 3.08b)
Taxrate = 21.59% (92.4m / 428.1m)
NOPAT = 983.0m (EBIT 1.25b * (1 - 21.59%))
Current Ratio = 1.47 (Total Current Assets 3.18b / Total Current Liabilities 2.16b)
Debt / Equity = 0.47 (Debt 3.08b / totalStockholderEquity, last quarter 6.56b)
Debt / EBITDA = 0.90 (Net Debt 1.68b / EBITDA 1.87b)
Debt / FCF = 1.17 (Net Debt 1.68b / FCF TTM 1.43b)
Total Stockholder Equity = 5.56b (last 4 quarters mean from totalStockholderEquity)
RoA = 11.09% (Net Income 1.17b / Total Assets 12.10b)
RoE = 21.06% (Net Income TTM 1.17b / Total Stockholder Equity 5.56b)
RoCE = 15.59% (EBIT 1.25b / Capital Employed (Equity 5.56b + L.T.Debt 2.48b))
RoIC = 12.07% (NOPAT 983.0m / Invested Capital 8.15b)
WACC = 10.86% (E(95.77b)/V(98.86b) * Re(11.18%) + D(3.08b)/V(98.86b) * Rd(1.03%) * (1-Tc(0.22)))
Discount Rate = 11.18% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 15.56 | Cagr: 0.21%
[DCF] Terminal Value 70.56% ; FCFF base≈1.41b ; Y1≈1.56b ; Y5≈2.03b
[DCF] Fair Price = 75.77 (EV 22.57b - Net Debt 1.68b = Equity 20.90b / Shares 275.8m; r=10.86% [WACC]; 5y FCF grow 12.43% → 3.0% )
EPS Correlation: 98.52 | EPS CAGR: 21.12% | SUE: 3.00 | # QB: 8
Revenue Correlation: 98.89 | Revenue CAGR: 15.29% | SUE: 1.71 | # QB: 4
EPS current Quarter (2026-06-30): EPS=2.05 | Chg30d=+11.94% | Revisions=+67% | Analysts=19
EPS next Quarter (2026-09-30): EPS=1.94 | Chg30d=-2.98% | Revisions=-33% | Analysts=18
EPS current Year (2026-12-31): EPS=4.49 | Chg30d=-6.26% | Revisions=-33% | GrowthEPS=+10.7% | GrowthRev=+17.1%
EPS next Year (2027-12-31): EPS=9.38 | Chg30d=-0.70% | Revisions=+33% | GrowthEPS=+17.9% | GrowthRev=+13.1%
[Analyst] Revisions Ratio: +67%