(CDNS) Cadence Design Systems - Overview
Exchange: NASDAQ •
Country: United States •
Currency: USD •
Type: Common Stock •
ISIN: US1273871087
Stock: Software, Hardware, Silicon, IP
Total Rating 60
Risk 98
Buy Signal 0.14
| Risk 5d forecast | |
|---|---|
| Volatility | 35.7% |
| Relative Tail Risk | -9.07% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.61 |
| Alpha | -3.67 |
| Character TTM | |
|---|---|
| Beta | 1.408 |
| Beta Downside | 0.306 |
| Drawdowns 3y | |
|---|---|
| Max DD | 29.05% |
| CAGR/Max DD | 0.52 |
EPS (Earnings per Share)
Revenue
Description: CDNS Cadence Design Systems March 04, 2026
Cadence Design Systems, Inc. (CDNS) develops and sells computational software, hardware, and silicon intellectual property (IP). Its offerings include functional verification tools like Jasper and Xcelium, digital and custom IC design platforms such as Innovus and Virtuoso, and generative AI solutions like Verisium.
The companys product portfolio extends to system design and analysis (SD&A) platforms, covering chip, package, and PCB design. It also provides specialized tools for electromagnetic, thermal, and fluid dynamics analysis, alongside solutions for advanced 3D-IC designs and embedded security IP.
Cadence operates in the electronic design automation (EDA) sector, which is crucial for the semiconductor industrys ability to design and verify complex integrated circuits. The business model relies on licensing its proprietary software and IP to technology companies. To deepen your understanding of CDNSs market position and financial health, consider exploring its detailed analytics on ValueRay.
Headlines to watch out for
- Semiconductor industry growth fuels demand for design software
- AI-driven design tools accelerate product development cycles
- Expanding IP portfolio captures new market segments
- Cloud-based solutions drive recurring revenue growth
Piotroski VR‑10 (Strict, 0-10) 7.5
| Net Income: 1.11b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.16 > 0.02 and ΔFCF/TA 3.17 > 1.0 |
| NWC/Revenue: 57.29% < 20% (prev 57.01%; Δ 0.28% < -1%) |
| CFO/TA 0.17 > 3% & CFO 1.73b > Net Income 1.11b |
| Net Debt (-521.2m) to EBITDA (1.87b): -0.28 < 3 |
| Current Ratio: 2.86 > 1.5 & < 3 |
| Outstanding Shares: last quarter (272.9m) vs 12m ago -0.50% < -2% |
| Gross Margin: error (current vs previous; cannot be calculated due to missing/invalid data or negative margin) |
| Asset Turnover: 55.38% > 50% (prev 51.72%; Δ 3.67% > 0%) |
| Interest Coverage Ratio: 14.06 > 6 (EBITDA TTM 1.87b / Interest Expense TTM 116.5m) |
Altman Z'' 6.99
| A: 0.30 (Total Current Assets 4.67b - Total Current Liabilities 1.64b) / Total Assets 10.15b |
| B: 0.70 (Retained Earnings 7.10b / Total Assets 10.15b) |
| C: 0.17 (EBIT TTM 1.64b / Avg Total Assets 9.56b) |
| D: 1.52 (Book Value of Equity 7.10b / Total Liabilities 4.68b) |
| Altman-Z'' Score: 6.99 = AAA |
Beneish M -2.90
| DSRI: 1.22 (Receivables 944.9m/680.5m, Revenue 5.30b/4.64b) |
| GMI: 0.89 (GM 96.16% / 86.05%) |
| AQI: 1.01 (AQ_t 0.49 / AQ_t-1 0.49) |
| SGI: 1.14 (Revenue 5.30b / 4.64b) |
| TATA: -0.06 (NI 1.11b - CFO 1.73b) / TA 10.15b) |
| Beneish M-Score: -2.90 (Cap -4..+1) = A |
What is the price of CDNS shares?
As of March 10, 2026, the stock is trading at USD 298.05 with a total of 2,493,909 shares traded.
Over the past week, the price has changed by -1.75%, over one month by +2.42%, over three months by -11.05% and over the past year by +27.39%.
Over the past week, the price has changed by -1.75%, over one month by +2.42%, over three months by -11.05% and over the past year by +27.39%.
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?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 371.8 | 24.8% |
| Analysts Target Price | 371.8 | 24.8% |
CDNS Fundamental Data Overview March 10, 2026
P/E Trailing = 72.9582
P/E Forward = 36.63
P/S = 15.4658
P/B = 14.9645
P/EG = 2.6516
Revenue TTM = 5.30b USD
EBIT TTM = 1.64b USD
EBITDA TTM = 1.87b 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 = -521.2m USD (from netDebt column, last quarter)
Enterprise Value = 81.40b USD (81.92b + Debt 2.48b - CCE 3.00b)
Interest Coverage Ratio = 14.06 (Ebit TTM 1.64b / Interest Expense TTM 116.5m)
EV/FCF = 51.29x (Enterprise Value 81.40b / FCF TTM 1.59b)
FCF Yield = 1.95% (FCF TTM 1.59b / Enterprise Value 81.40b)
FCF Margin = 29.96% (FCF TTM 1.59b / Revenue TTM 5.30b)
Net Margin = 20.94% (Net Income TTM 1.11b / Revenue TTM 5.30b)
Gross Margin = unknown ((Revenue TTM 5.30b - Cost of Revenue TTM 203.6m) / Revenue TTM)
Tobins Q-Ratio = 8.02 (Enterprise Value 81.40b / Total Assets 10.15b)
Interest Expense / Debt = 1.19% (Interest Expense 29.4m / Debt 2.48b)
Taxrate = 21.26% (104.8m / 493.0m)
NOPAT = 1.29b (EBIT 1.64b * (1 - 21.26%))
Current Ratio = 2.86 (Total Current Assets 4.67b / Total Current Liabilities 1.64b)
Debt / Equity = 0.45 (Debt 2.48b / totalStockholderEquity, last quarter 5.47b)
Debt / EBITDA = -0.28 (Net Debt -521.2m / EBITDA 1.87b)
Debt / FCF = -0.33 (Net Debt -521.2m / FCF TTM 1.59b)
Total Stockholder Equity = 5.11b (last 4 quarters mean from totalStockholderEquity)
RoA = 11.59% (Net Income 1.11b / Total Assets 10.15b)
RoE = 21.68% (Net Income TTM 1.11b / Total Stockholder Equity 5.11b)
RoCE = 21.58% (EBIT 1.64b / Capital Employed (Equity 5.11b + L.T.Debt 2.48b))
RoIC = 16.99% (NOPAT 1.29b / Invested Capital 7.59b)
WACC = 10.80% (E(81.92b)/V(84.40b) * Re(11.10%) + D(2.48b)/V(84.40b) * Rd(1.19%) * (1-Tc(0.21)))
Discount Rate = 11.10% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 0.09%
[DCF] Terminal Value 70.41% ; FCFF base≈1.40b ; Y1≈1.55b ; Y5≈2.01b
[DCF] Fair Price = 82.77 (EV 22.31b - Net Debt -521.2m = Equity 22.83b / Shares 275.9m; r=10.80% [WACC]; 5y FCF grow 12.43% → 2.90% )
EPS Correlation: 89.03 | EPS CAGR: 15.22% | SUE: 1.45 | # QB: 11
Revenue Correlation: 95.52 | Revenue CAGR: 13.30% | SUE: 1.37 | # QB: 3
EPS next Quarter (2026-06-30): EPS=1.82 | Chg7d=+0.000 | Chg30d=-0.096 | Revisions Net=-7 | Analysts=7
EPS current Year (2026-12-31): EPS=4.85 | Chg7d=+0.000 | Chg30d=-0.500 | Revisions Net=+0 | Growth EPS=+19.5% | Growth Revenue=+15.8%
EPS next Year (2027-12-31): EPS=9.40 | Chg7d=+0.000 | Chg30d=+0.171 | Revisions Net=+2 | Growth EPS=+19.4% | Growth Revenue=+12.8%
[Analyst] Revisions Ratio: -1.00 (0 Up / 7 Down within 30d for Next Quarter)
[Growth] Implied Growth Rate = 9.7% (Discount Rate 11.1% - Earnings Yield 1.4%)
[Growth] Growth Spread = +7.0% (Analyst 16.8% - Implied 9.7%)
P/E Forward = 36.63
P/S = 15.4658
P/B = 14.9645
P/EG = 2.6516
Revenue TTM = 5.30b USD
EBIT TTM = 1.64b USD
EBITDA TTM = 1.87b 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 = -521.2m USD (from netDebt column, last quarter)
Enterprise Value = 81.40b USD (81.92b + Debt 2.48b - CCE 3.00b)
Interest Coverage Ratio = 14.06 (Ebit TTM 1.64b / Interest Expense TTM 116.5m)
EV/FCF = 51.29x (Enterprise Value 81.40b / FCF TTM 1.59b)
FCF Yield = 1.95% (FCF TTM 1.59b / Enterprise Value 81.40b)
FCF Margin = 29.96% (FCF TTM 1.59b / Revenue TTM 5.30b)
Net Margin = 20.94% (Net Income TTM 1.11b / Revenue TTM 5.30b)
Gross Margin = unknown ((Revenue TTM 5.30b - Cost of Revenue TTM 203.6m) / Revenue TTM)
Tobins Q-Ratio = 8.02 (Enterprise Value 81.40b / Total Assets 10.15b)
Interest Expense / Debt = 1.19% (Interest Expense 29.4m / Debt 2.48b)
Taxrate = 21.26% (104.8m / 493.0m)
NOPAT = 1.29b (EBIT 1.64b * (1 - 21.26%))
Current Ratio = 2.86 (Total Current Assets 4.67b / Total Current Liabilities 1.64b)
Debt / Equity = 0.45 (Debt 2.48b / totalStockholderEquity, last quarter 5.47b)
Debt / EBITDA = -0.28 (Net Debt -521.2m / EBITDA 1.87b)
Debt / FCF = -0.33 (Net Debt -521.2m / FCF TTM 1.59b)
Total Stockholder Equity = 5.11b (last 4 quarters mean from totalStockholderEquity)
RoA = 11.59% (Net Income 1.11b / Total Assets 10.15b)
RoE = 21.68% (Net Income TTM 1.11b / Total Stockholder Equity 5.11b)
RoCE = 21.58% (EBIT 1.64b / Capital Employed (Equity 5.11b + L.T.Debt 2.48b))
RoIC = 16.99% (NOPAT 1.29b / Invested Capital 7.59b)
WACC = 10.80% (E(81.92b)/V(84.40b) * Re(11.10%) + D(2.48b)/V(84.40b) * Rd(1.19%) * (1-Tc(0.21)))
Discount Rate = 11.10% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 0.09%
[DCF] Terminal Value 70.41% ; FCFF base≈1.40b ; Y1≈1.55b ; Y5≈2.01b
[DCF] Fair Price = 82.77 (EV 22.31b - Net Debt -521.2m = Equity 22.83b / Shares 275.9m; r=10.80% [WACC]; 5y FCF grow 12.43% → 2.90% )
EPS Correlation: 89.03 | EPS CAGR: 15.22% | SUE: 1.45 | # QB: 11
Revenue Correlation: 95.52 | Revenue CAGR: 13.30% | SUE: 1.37 | # QB: 3
EPS next Quarter (2026-06-30): EPS=1.82 | Chg7d=+0.000 | Chg30d=-0.096 | Revisions Net=-7 | Analysts=7
EPS current Year (2026-12-31): EPS=4.85 | Chg7d=+0.000 | Chg30d=-0.500 | Revisions Net=+0 | Growth EPS=+19.5% | Growth Revenue=+15.8%
EPS next Year (2027-12-31): EPS=9.40 | Chg7d=+0.000 | Chg30d=+0.171 | Revisions Net=+2 | Growth EPS=+19.4% | Growth Revenue=+12.8%
[Analyst] Revisions Ratio: -1.00 (0 Up / 7 Down within 30d for Next Quarter)
[Growth] Implied Growth Rate = 9.7% (Discount Rate 11.1% - Earnings Yield 1.4%)
[Growth] Growth Spread = +7.0% (Analyst 16.8% - Implied 9.7%)