(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
EPS (Earnings per Share)
Revenue
Dividends
Currently no dividends paid| Risk via 5d forecast | |
|---|---|
| Volatility | 34.0% |
| Value at Risk 5%th | 51.5% |
| Relative Tail Risk | -7.97% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.10 |
| Alpha | -19.27 |
| CAGR/Max DD | 0.74 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.438 |
| Beta | 1.327 |
| Beta Downside | 1.186 |
| Drawdowns 3y | |
|---|---|
| Max DD | 29.05% |
| Mean DD | 7.90% |
| Median DD | 6.01% |
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) 8.0
| Net Income: 1.06b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.15 > 0.02 and ΔFCF/TA 5.02 > 1.0 |
| NWC/Revenue: 55.26% < 20% (prev 55.70%; Δ -0.44% < -1%) |
| CFO/TA 0.17 > 3% & CFO 1.62b > Net Income 1.06b |
| Net Debt (-274.1m) to EBITDA (1.80b): -0.15 < 3 |
| Current Ratio: 3.05 > 1.5 & < 3 |
| Outstanding Shares: last quarter (273.8m) vs 12m ago -0.06% < -2% |
| Gross Margin: 87.82% > 18% (prev 0.88%; Δ 8694 % > 0.5%) |
| Asset Turnover: 55.55% > 50% (prev 47.50%; Δ 8.06% > 0%) |
| Interest Coverage Ratio: 13.53 > 6 (EBITDA TTM 1.80b / Interest Expense TTM 117.0m) |
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 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) |
| Altman-Z'' Score: 8.08 = AAA |
Beneish M -2.84
| DSRI: 1.12 (Receivables 755.3m/561.0m, Revenue 5.21b/4.35b) |
| GMI: 1.00 (GM 87.82% / 87.79%) |
| AQI: 1.00 (AQ_t 0.50 / AQ_t-1 0.50) |
| SGI: 1.20 (Revenue 5.21b / 4.35b) |
| TATA: -0.06 (NI 1.06b - CFO 1.62b) / TA 9.60b) |
| Beneish M-Score: -2.84 (Cap -4..+1) = A |
ValueRay F-Score (Strict, 0-100) 81.43
| 1. Piotroski: 8.0pt |
| 2. FCF Yield: 1.77% |
| 3. FCF Margin: 28.37% |
| 4. Debt/Equity: 0.48 |
| 5. Debt/Ebitda: -0.15 |
| 6. ROIC - WACC: 5.13% |
| 7. RoE: 21.59% |
| 8. Revenue Trend: 95.41% |
| 9. EPS Trend: 4.01% |
What is the price of CDNS shares?
As of January 27, 2026, the stock is trading at USD 322.02 with a total of 1,321,831 shares traded.
Over the past week, the price has changed by +4.89%, over one month by +0.98%, over three months by -8.36% and over the past year by +11.09%.
Over the past week, the price has changed by +4.89%, over one month by +0.98%, over three months by -8.36% and over the past year by +11.09%.
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 | 381.3 | 18.4% |
| Analysts Target Price | 381.3 | 18.4% |
| ValueRay Target Price | 377.7 | 17.3% |
CDNS Fundamental Data Overview January 22, 2026
P/E Trailing = 79.3282
P/E Forward = 40.0
P/S = 16.0484
P/B = 16.6205
P/EG = 3.1789
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 = 83.38b USD (83.65b + Debt 2.48b - CCE 2.75b)
Interest Coverage Ratio = 13.53 (Ebit TTM 1.58b / Interest Expense TTM 117.0m)
EV/FCF = 56.39x (Enterprise Value 83.38b / FCF TTM 1.48b)
FCF Yield = 1.77% (FCF TTM 1.48b / Enterprise Value 83.38b)
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 = 8.69 (Enterprise Value 83.38b / 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 = 11.31% (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 = 10.52% (E(83.65b)/V(86.13b) * Re(10.81%) + D(2.48b)/V(86.13b) * Rd(1.17%) * (1-Tc(0.27)))
Discount Rate = 10.81% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 0.25%
[DCF Debug] Terminal Value 70.92% ; FCFF base≈1.27b ; Y1≈1.38b ; Y5≈1.72b
Fair Price DCF = 73.97 (EV 19.86b - Net Debt -274.1m = Equity 20.14b / Shares 272.2m; r=10.52% [WACC]; 5y FCF grow 9.81% → 2.90% )
EPS Correlation: 4.01 | EPS CAGR: -46.19% | SUE: -4.0 | # QB: 0
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=5.31 | Chg30d=+0.000 | Revisions Net=+0 | Growth EPS=+35.7% | Growth Revenue=+12.5%
P/E Forward = 40.0
P/S = 16.0484
P/B = 16.6205
P/EG = 3.1789
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 = 83.38b USD (83.65b + Debt 2.48b - CCE 2.75b)
Interest Coverage Ratio = 13.53 (Ebit TTM 1.58b / Interest Expense TTM 117.0m)
EV/FCF = 56.39x (Enterprise Value 83.38b / FCF TTM 1.48b)
FCF Yield = 1.77% (FCF TTM 1.48b / Enterprise Value 83.38b)
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 = 8.69 (Enterprise Value 83.38b / 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 = 11.31% (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 = 10.52% (E(83.65b)/V(86.13b) * Re(10.81%) + D(2.48b)/V(86.13b) * Rd(1.17%) * (1-Tc(0.27)))
Discount Rate = 10.81% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 0.25%
[DCF Debug] Terminal Value 70.92% ; FCFF base≈1.27b ; Y1≈1.38b ; Y5≈1.72b
Fair Price DCF = 73.97 (EV 19.86b - Net Debt -274.1m = Equity 20.14b / Shares 272.2m; r=10.52% [WACC]; 5y FCF grow 9.81% → 2.90% )
EPS Correlation: 4.01 | EPS CAGR: -46.19% | SUE: -4.0 | # QB: 0
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=5.31 | Chg30d=+0.000 | Revisions Net=+0 | Growth EPS=+35.7% | Growth Revenue=+12.5%
Additional Sources for CDNS Stock
News:
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Benzinga |
Yahoo Finance
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle