CDNS Stock Analysis: Cadence Design Systems | NASDAQ
Software - Application | NASDAQ, USA | Market Cap: 92.827m USD | 12M Return: -4.3% | US1273871087 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 748M
EPS Trend: 98.0%
Qual. Beats: 0
Rev. Trend: 99.0%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Cadence Design Systems (CDNS) is a U.S.-based provider of computational software, AI-driven design tools, hardware, and silicon intellectual property used to design and verify semiconductors and electronic systems. Its offerings span functional verification (Jasper, Xcelium, Palladium), digital and custom IC design and sign-off (Innovus, Virtuoso), a broad design IP portfolio (PCIe, USB, memory interfaces, security IP), and system-level design and analysis tools for chips, packages, and PCBs. The company maintains a strategic collaboration with NVIDIA and was founded in 1987, with its headquarters in San Jose, California.
The company operates in the electronic design automation (EDA) industry, a specialized software segment that supplies the tools used by semiconductor and systems companies to design, simulate, and verify increasingly complex chips. EDA vendors typically generate recurring revenue through multi-year licensing arrangements and serve a concentrated customer base of chip designers, foundries, and OEMs, making the segment closely tied to semiconductor R&D spending cycles.
- AI chip demand lifts Cadence EDA software bookings
- Palladium and Protium hardware revenue scales double digits
- China export curbs weigh on semiconductor IP licensing growth
| Net Income: 1.38b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.14 > 0.02 and ΔFCF/TA -2.77 > 1.0 |
| NWC/Revenue: 23.52% < 20% (prev 53.56%; Δ -30.04% < -1%) |
| CFO/TA 0.15 > 3% & CFO 1.85b > Net Income 1.38b |
| Net Debt (1.21b) to EBITDA (1.94b): 0.62 < 3 |
| Current Ratio: 1.74 > 1.5 & < 3 |
| Outstanding Shares: last quarter (274.9m) vs 12m ago 0.75% < -2% |
| Gross Margin: 88.50% > 18% (prev 85.57%; Δ 2.93% > 0.5%) |
| Asset Turnover: 54.08% > 50% (prev 53.52%; Δ 0.56% > 0%) |
| Interest Coverage Ratio: 14.50 > 6 (EBIT TTM 1.82b / Interest Expense TTM 125.2m) |
| A: 0.11 (Total Current Assets 3.22b - Total Current Liabilities 1.85b) / Total Assets 12.1b |
| B: 0.65 (Retained Earnings 7.80b / Total Assets 12.1b) |
| C: 0.17 (EBIT TTM 1.82b / Avg Total Assets 10.8b) |
| D: 1.31 (Book Value of Equity 6.86b / Total Liabilities 5.22b) |
| Altman-Z'' = 5.36 = AAA |
| DSRI: 1.39 (Receivables 1.07b/670.2m, Revenue 5.84b/5.09b) |
| GMI: 0.97 (GM 85.57% / 88.50%) |
| AQI: 1.36 (AQ_t 0.69 / AQ_t-1 0.51) |
| SGI: 1.15 (Revenue 5.84b / 5.09b) |
| TATA: -0.04 (NI 1.38b - CFO 1.85b) / TA 12.1b) |
| Beneish M = -2.42 (Cap -4..+1) = BBB |
As of August 08, 2026, the stock is trading at USD 339.24 with a total of 1,783,517 shares traded. Over the past week, the price has changed by -0.23%, over one month by -8.58%, over three months by -4.95% and over the past year by -4.26%.
Current recommended Stop Loss: 315.10 (which is 7.1% or 1.7 ATR below the current price).
Cadence Design Systems has received a consensus analysts rating of 4.56. Therefore, it is recommended to buy CDNS.
- StrongBuy: 17
- Buy: 5
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 403.7 | 19% |
P/E Trailing = 67.5491
P/E Forward = 42.5532
P/S = 15.9015
P/B = 13.6782
P/EG = 3.1153
Revenue TTM = 5.84b USD
EBIT TTM = 1.82b USD
EBITDA TTM = 1.94b USD
Long Term Debt = 2.48b USD (from longTermDebt, last quarter)
Short Term Debt = 425.0m USD (from shortTermDebt, two quarters ago)
Debt = 2.65b USD (from shortLongTermDebtTotal, last quarter) + Leases 169.2m
Net Debt = 1.21b USD (calculated: Debt 2.65b - CCE 1.44b)
Enterprise Value = 94.0b USD (92.8b + Debt 2.65b - CCE 1.44b)
Interest Coverage Ratio = 14.50 (Ebit TTM 1.82b / Interest Expense TTM 125.2m)
EV/FCF = 56.02x (Enterprise Value 94.0b / FCF TTM 1.68b)
FCF Yield = 1.79% (FCF TTM 1.68b / Enterprise Value 94.0b)
FCF Margin = 28.76% (FCF TTM 1.68b / Revenue TTM 5.84b)
Net Margin = 23.61% (Net Income TTM 1.38b / Revenue TTM 5.84b)
Gross Margin = 88.50% ((Revenue TTM 5.84b - Cost of Revenue TTM 671.5m) / Revenue TTM)
Gross Margin QoQ = 84.90% (prev none%)
Tobins Q-Ratio = 7.78 (Enterprise Value 94.0b / Total Assets 12.1b)
Interest Expense / Debt = 4.72% (Interest Expense 125.2m / Debt 2.65b)
Taxrate = 24.46% (446.1m / 1.82b)
NOPAT = 1.37b (EBIT 1.82b * (1 - 24.46%))
Current Ratio = 1.74 (Total Current Assets 3.22b / Total Current Liabilities 1.85b)
Debt / Equity = 0.39 (Debt 2.65b / totalStockholderEquity, last quarter 6.86b)
Debt / EBITDA = 0.62 (Net Debt 1.21b / EBITDA 1.94b)
Debt / FCF = 0.72 (Net Debt 1.21b / FCF TTM 1.68b)
Total Stockholder Equity = 6.02b (last 4 quarters mean from totalStockholderEquity)
RoA = 12.77% (Net Income 1.38b / Total Assets 12.1b)
RoE = 22.88% (Net Income TTM 1.38b / Total Stockholder Equity 6.02b)
RoCE = 21.35% (EBIT 1.82b / Capital Employed (Equity 6.02b + L.T.Debt 2.48b))
RoIC = 13.80% (NOPAT 1.37b / Invested Capital 9.94b)
WACC = 10.50% (E(92.8b)/V(95.5b) * Re(10.70%) + D(2.65b)/V(95.5b) * Rd(4.72%) * (1-Tc(0.24)))
Discount Rate = 10.70% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 20.47 | Cagr: 0.23%
[DCF] Terminal Value 69.18% ; FCFF base≈1.64b ; Y1≈1.73b ; Y5≈2.02b
[DCF] Fair Price = 77.84 (EV 22.6b - Net Debt 1.21b = Equity 21.4b / Shares 275.4m; r=10.50% [WACC]; 5y FCF grow 5.91% → 2.50% )
EPS Correlation: 97.97 | EPS CAGR: 20.26% | SUE: -0.79 | # QB: 0
Revenue Correlation: 99.02 | Revenue CAGR: 15.92% | SUE: 0.84 | # QB: 0
EPS current Quarter (2026-09-30): EPS=2.05 | Chg30d=+5.92% | Revisions=-36% | Analysts=18
EPS current Year (2026-12-31): EPS=4.79 | Chg30d=+6.47% | Revisions=+0% | GrowthEPS=+18.0% | GrowthRev=+19.3%
EPS next Year (2027-12-31): EPS=9.54 | Chg30d=+1.46% | Revisions=+0% | GrowthEPS=+17.1% | GrowthRev=+13.3%
[Analyst] Revisions Ratio: -27% (up=4, down=8)