(CDNS) Cadence Design Systems - Overview

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US1273871087

Stock:

Total Rating 53

Risk 90

Buy Signal -0.76

Software - Application +0.7
Application Software -3.8

Market Cap: 80,818m
Avg Trading Vol: 837M USD

ATR: 4.42%
Peers RS (IBD): 74.85

Risk 5d forecast
Volatility	46.9%
Relative Tail Risk	-7.89%

Reward TTM
Sharpe Ratio	0.29
Alpha	-12.92

Character TTM
Beta	1.372
Beta Downside	0.904

Drawdowns 3y
Max DD	29.05%
CAGR/Max DD	0.46

EPS (Earnings per Share)

EPS CAGR: 15.22%
EPS Trend: 89.0%

Last SUE: 1.45
Qual. Beats: 11

Revenue

Rev. CAGR: 13.30%
Rev. Trend: 95.5%

Last SUE: 1.37
Qual. Beats: 3

Primary Risks

P/E ratio: 78.6711

Description: CDNS Cadence Design Systems

Cadence Design Systems, Inc. provides software, hardware, and other services worldwide. The company offers functional verification services, such as Jasper, a formal verification platform; Xcelium, a parallel logic simulation platform; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification. It also provides digital IC design and sign off products, including Genus synthesis and Joules RTL power solutions, as well as Modus DFT software solution to reduce systems-on-chip design-for-test time; physical implementation tools, such as place and route, optimization, and performing sign-off checks for manufacturing; and Innovus implementation system, a digital IC design and signoff solution. In addition, the company offers custom IC design and simulation, such as Virtuoso Studio, a solution platform for custom, analog, mixed-signal, photonics, and RF semiconductors; and system design and analysis products, a Multiphysics platform that helps in design and simulate electronics and entire systems in electromagnetic, thermal, structure, computational fluid dynamics, molecular, PCB and packaging, mechanical, and structural analysis. Further, it provides semiconductor IP product for design architectures; Functional Verification; digital ic design and signoff; EDA product that addresses the design and verification for semiconductor chips and manufacturing process technologies; and verification IP with memory models to emulate and model the expected behavior and interaction of standard industry system interface protocols. Additionally, it offers services related to methodology, education, and hosted design solutions, as well as technical support and maintenance services. It serves consumer, hyperscale computing, 5G communications, mobile, automotive, aerospace and defense, industrial, and life science industries. Cadence Design Systems, Inc. was incorporated in 1987 and is headquartered in San Jose, California.

Piotroski VR‑10 (Strict, 0-10) 7.5

Net Income: 1.11b TTM > 0 and > 6% of Revenue
FCF/TA: 0.15 > 0.02 and ΔFCF/TA 3.95 > 1.0
NWC/Revenue: 57.29% < 20% (prev 57.01%; Δ 0.28% < -1%)
CFO/TA 0.16 > 3% & CFO 1.62b > Net Income 1.11b
Net Debt (-521.2m) to EBITDA (1.74b): -0.30 < 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: 9.58 > 6 (EBITDA TTM 1.74b / Interest Expense TTM 116.5m)

Altman Z'' 6.13

A: 0.30 (Total Current Assets 4.67b - Total Current Liabilities 1.64b) / Total Assets 10.15b
B: 0.66 (Retained Earnings 6.71b / Total Assets 10.15b)
C: 0.12 (EBIT TTM 1.12b / Avg Total Assets 9.56b)
D: 1.17 (Book Value of Equity 5.47b / Total Liabilities 4.68b)
Altman-Z'' Score: 6.13 = AAA

Beneish M -2.89

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: -0.05 (NI 1.11b - CFO 1.62b) / TA 10.15b)
Beneish M-Score: -2.89 (Cap -4..+1) = A

What is the price of CDNS shares?

As of February 24, 2026, the stock is trading at USD 279.80 with a total of 3,343,841 shares traded.
Over the past week, the price has changed by -1.29%, over one month by -12.10%, over three months by -8.10% and over the past year by +10.61%.

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	372.8	33.2%
Analysts Target Price	372.8	33.2%

CDNS Fundamental Data Overview February 20, 2026

P/E Trailing = 78.6711
P/E Forward = 44.0529
P/S = 15.5042
P/B = 15.5284
P/EG = 3.0796
Revenue TTM = 5.30b USD
EBIT TTM = 1.12b USD
EBITDA TTM = 1.74b USD
Long Term Debt = 2.48b USD (from longTermDebt, two quarters ago)
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 = 80.30b USD (80.82b + Debt 2.48b - CCE 3.00b)
Interest Coverage Ratio = 9.58 (Ebit TTM 1.12b / Interest Expense TTM 116.5m)
EV/FCF = 54.31x (Enterprise Value 80.30b / FCF TTM 1.48b)
FCF Yield = 1.84% (FCF TTM 1.48b / Enterprise Value 80.30b)
FCF Margin = 27.92% (FCF TTM 1.48b / 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 = 7.91 (Enterprise Value 80.30b / Total Assets 10.15b)
Interest Expense / Debt = 1.19% (Interest Expense 29.4m / Debt 2.48b)
Taxrate = 21.26% (104.8m / 493.0m)
NOPAT = 878.8m (EBIT 1.12b * (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 = -0.30 (Net Debt -521.2m / EBITDA 1.74b)
Debt / FCF = -0.35 (Net Debt -521.2m / FCF TTM 1.48b)
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 = 14.70% (EBIT 1.12b / Capital Employed (Equity 5.11b + L.T.Debt 2.48b))
RoIC = 11.76% (NOPAT 878.8m / Invested Capital 7.47b)
WACC = 10.67% (E(80.82b)/V(83.30b) * Re(10.97%) + D(2.48b)/V(83.30b) * Rd(1.19%) * (1-Tc(0.21)))
Discount Rate = 10.97% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 0.09%
[DCF Debug] Terminal Value 70.46% ; FCFF base≈1.27b ; Y1≈1.38b ; Y5≈1.72b
Fair Price DCF = 73.48 (EV 19.48b - Net Debt -521.2m = Equity 20.00b / Shares 272.2m; r=10.67% [WACC]; 5y FCF grow 9.81% → 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 (2026-03-31): EPS=1.93 | Chg30d=+0.119 | Revisions Net=+8 | Analysts=18
EPS current Year (2026-12-31): EPS=5.07 | Chg30d=-0.283 | Revisions Net=+0 | Growth EPS=+24.8% | Growth Revenue=+12.7%
EPS next Year (2027-12-31): EPS=9.26 | Chg30d=+0.036 | Revisions Net=+1 | Growth EPS=+13.6% | Growth Revenue=+12.0%

Additional Sources for CDNS Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
Fund Manager Positions: Dataroma | Stockcircle