(CDNS) Cadence Design Systems - Ratings and Ratios
Software, Hardware, Verification, Design, Simulation, IP
CDNS EPS (Earnings per Share)
CDNS Revenue
Description: CDNS Cadence Design Systems
Cadence Design Systems Inc (NASDAQ:CDNS) is a leading provider of software, hardware, and services for the semiconductor and electronics industries. The companys comprehensive portfolio includes functional verification, digital IC design, custom IC design, and system design and analysis products, serving various sectors such as consumer, hyperscale computing, 5G communications, and automotive.
From a business perspective, CDNS has a strong presence in the Electronic Design Automation (EDA) market, providing critical tools for chip design, verification, and manufacturing. The companys products, such as Jasper and Xcelium, are used by top semiconductor companies to develop complex chips and systems. With a diverse customer base across multiple industries, CDNS has a stable revenue stream and opportunities for growth in emerging areas like 5G, AI, and IoT.
Analyzing key performance indicators (KPIs), CDNS has a market capitalization of $88.27 billion, indicating a significant market presence. The companys return on equity (RoE) of 22.02% suggests a strong ability to generate profits from shareholder equity. Additionally, the forward P/E ratio of 47.62 implies that the market expects continued growth in earnings. To further evaluate CDNSs performance, other relevant KPIs could include revenue growth rate, operating margin, and research and development (R&D) expenses as a percentage of revenue.
From a growth perspective, CDNS is well-positioned to benefit from the increasing complexity of chip design and the growing demand for EDA tools. The companys investments in R&D, with a focus on emerging technologies like AI and 5G, are likely to drive future growth. Furthermore, CDNSs diversified product portfolio and strong customer relationships provide a solid foundation for long-term success.
CDNS Stock Overview
| Market Cap in USD | 93,412m |
| Sub-Industry | Application Software |
| IPO / Inception | 1987-06-10 |
CDNS Stock Ratings
| Growth Rating | 82.9% |
| Fundamental | 83.9% |
| Dividend Rating | - |
| Return 12m vs S&P 500 | 7.63% |
| Analyst Rating | 4.35 of 5 |
CDNS Dividends
Currently no dividends paidCDNS Growth Ratios
| Growth Correlation 3m | 72.8% |
| Growth Correlation 12m | 55.9% |
| Growth Correlation 5y | 93.6% |
| CAGR 5y | 28.15% |
| CAGR/Max DD 3y | 0.97 |
| CAGR/Mean DD 3y | 5.17 |
| Sharpe Ratio 12m | 1.29 |
| Alpha | 0.03 |
| Beta | 0.848 |
| Volatility | 41.97% |
| Current Volume | 1458.8k |
| Average Volume 20d | 1304.3k |
| Stop Loss | 337.1 (-3.4%) |
| Signal | -0.54 |
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) 83.91
| 1. Piotroski 7.50pt = 2.50 |
| 2. FCF Yield 1.68% = 0.84 |
| 3. FCF Margin 31.15% = 7.50 |
| 4. Debt/Equity 0.79 = 2.20 |
| 5. Debt/Ebitda 2.35 = -0.69 |
| 6. ROIC - WACC (= 6.90)% = 8.63 |
| 7. RoE 21.28% = 1.77 |
| 8. Rev. Trend 92.00% = 6.90 |
| 9. EPS Trend 85.21% = 4.26 |
What is the price of CDNS shares?
Over the past week, the price has changed by -3.53%, over one month by -2.03%, over three months by +16.02% and over the past year by +27.78%.
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 387.18 USD . This means that CDNS is currently undervalued and has a potential upside of +10.94% (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 | 369.6 | 5.9% |
| Analysts Target Price | 369.6 | 5.9% |
| ValueRay Target Price | 433.1 | 24.1% |
Last update: 2025-09-03 04:33
CDNS Fundamental Data Overview
CCE Cash And Equivalents = 2.82b USD (Cash And Short Term Investments, last quarter)
P/E Trailing = 92.4016
P/E Forward = 43.4783
P/S = 18.3547
P/B = 18.6581
P/EG = 3.0403
Beta = 0.975
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 = 1.50b USD (from totalCurrentLiabilities, last quarter)
Debt = 3.97b USD (Calculated: Short Term 1.50b + Long Term 2.48b)
Net Debt = -344.6m USD (from netDebt column, last quarter)
Enterprise Value = 94.56b USD (93.41b + Debt 3.97b - CCE 2.82b)
Interest Coverage Ratio = 13.50 (Ebit TTM 1.52b / Interest Expense TTM 112.5m)
FCF Yield = 1.68% (FCF TTM 1.59b / Enterprise Value 94.56b)
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)
Tobins Q-Ratio = 8.68 (Enterprise Value 94.56b / Book Value Of Equity 10.90b)
Interest Expense / Debt = 0.73% (Interest Expense 28.9m / Debt 3.97b)
Taxrate = 24.38% (340.3m / 1.40b)
NOPAT = 1.15b (EBIT 1.52b * (1 - 24.38%))
Current Ratio = 2.82 (Total Current Assets 4.22b / Total Current Liabilities 1.50b)
Debt / Equity = 0.79 (Debt 3.97b / last Quarter total Stockholder Equity 5.01b)
Debt / EBITDA = 2.35 (Net Debt -344.6m / EBITDA 1.69b)
Debt / FCF = 2.51 (Debt 3.97b / FCF TTM 1.59b)
Total Stockholder Equity = 4.75b (last 4 quarters mean)
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 / (Equity 4.75b + L.T.Debt 2.48b))
RoIC = 15.69% (NOPAT 1.15b / Invested Capital 7.32b)
WACC = 8.79% (E(93.41b)/V(97.39b) * Re(9.14%)) + (D(3.97b)/V(97.39b) * Rd(0.73%) * (1-Tc(0.24)))
Shares Correlation 3-Years: 15.15 | Cagr: -0.06%
Discount Rate = 9.14% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 75.70% ; FCFE base≈1.33b ; Y1≈1.44b ; Y5≈1.81b
Fair Price DCF = 94.90 (DCF Value 25.86b / Shares Outstanding 272.5m; 5y FCF grow 9.81% → 3.0% )
EPS Correlation: 85.21 | EPS CAGR: 17.46% | SUE: 1.33 | # QB: 9
Revenue Correlation: 92.00 | Revenue CAGR: 13.40%
Additional Sources for CDNS Stock
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Fund Manager Positions: Dataroma | Stockcircle