CDNS Stock Analysis: Cadence Design Systems | NASDAQ
Software - Application | NASDAQ, USA | Market Cap: 102.918m USD | 12M Return: 19.1% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 823M
EPS Trend: 98.5%
Qual. Beats: 8
Rev. Trend: 98.9%
Qual. Beats: 4
Warnings
Tailwinds
Seasonality 10.5 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: 1.17b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA -3.47 > 1.0 |
| NWC/Revenue: 18.41% < 20% (prev 55.34%; Δ -36.92% < -1%) |
| CFO/TA 0.13 > 3% & CFO 1.60b > Net Income 1.17b |
| Net Debt (1.71b) to EBITDA (1.98b): 0.87 < 3 |
| Current Ratio: 1.47 > 1.5 & < 3 |
| Outstanding Shares: last quarter (273.7m) vs 12m ago 0.03% < -2% |
| Gross Margin: 88.85% > 18% (prev 85.86%; Δ 3.00% > 0.5%) |
| Asset Turnover: 52.37% > 50% (prev 54.08%; Δ -1.71% > 0%) |
| Interest Coverage Ratio: 14.39 > 6 (EBIT TTM 1.71b / Interest Expense TTM 119.0m) |
| A: 0.08 (Total Current Assets 3.18b - Total Current Liabilities 2.16b) / Total Assets 12.1b |
| B: 0.61 (Retained Earnings 7.44b / Total Assets 12.1b) |
| C: 0.16 (EBIT TTM 1.71b / Avg Total Assets 10.6b) |
| D: 1.19 (Book Value of Equity 6.56b / Total Liabilities 5.54b) |
| Altman-Z'' = 4.89 = AA |
| DSRI: 1.63 (Receivables 1.07b/580.9m, Revenue 5.53b/4.87b) |
| GMI: 0.97 (GM 85.86% / 88.85%) |
| AQI: 1.37 (AQ_t 0.69 / AQ_t-1 0.50) |
| SGI: 1.13 (Revenue 5.53b / 4.87b) |
| TATA: -0.04 (NI 1.17b - CFO 1.60b) / TA 12.1b) |
| Beneish M = -2.23 (Cap -4..+1) = BBB |
As of July 11, 2026, the stock is trading at USD 384.17 with a total of 940,438 shares traded. Over the past week, the price has changed by +2.96%, over one month by -0.25%, over three months by +44.61% and over the past year by +19.06%.
Current recommended Stop Loss: 366.20 (which is 4.7% or 1.3 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 | 388.8 | 1.2% |
P/E Trailing = 86.979
P/E Forward = 46.9484
P/S = 18.6155
P/B = 15.6852
P/EG = 3.5379
Revenue TTM = 5.53b USD
EBIT TTM = 1.71b USD
EBITDA TTM = 1.98b USD
Long Term Debt = 2.48b USD (from longTermDebt, last quarter)
Short Term Debt = 425.0m USD (from shortTermDebt, last quarter)
Debt = 3.26b USD (from shortLongTermDebtTotal, last quarter) + Leases 177.2m
Net Debt = 1.71b USD (calculated: Debt 3.26b - CCE 1.55b)
Enterprise Value = 105b USD (103b + Debt 3.26b - CCE 1.55b)
Interest Coverage Ratio = 14.39 (Ebit TTM 1.71b / Interest Expense TTM 119.0m)
EV/FCF = 73.17x (Enterprise Value 105b / FCF TTM 1.43b)
FCF Yield = 1.37% (FCF TTM 1.43b / Enterprise Value 105b)
FCF Margin = 25.86% (FCF TTM 1.43b / Revenue TTM 5.53b)
Net Margin = 21.18% (Net Income TTM 1.17b / Revenue TTM 5.53b)
Gross Margin = 88.85% ((Revenue TTM 5.53b - Cost of Revenue TTM 616.3m) / Revenue TTM)
Gross Margin QoQ = none% (prev 86.90%)
Tobins Q-Ratio = 8.65 (Enterprise Value 105b / Total Assets 12.1b)
Interest Expense / Debt = 3.65% (Interest Expense 119.0m / Debt 3.26b)
Taxrate = 26.56% (423.5m / 1.59b)
NOPAT = 1.26b (EBIT 1.71b * (1 - 26.56%))
Current Ratio = 1.47 (Total Current Assets 3.18b / Total Current Liabilities 2.16b)
Debt / Equity = 0.50 (Debt 3.26b / totalStockholderEquity, last quarter 6.56b)
Debt / EBITDA = 0.87 (Net Debt 1.71b / EBITDA 1.98b)
Debt / FCF = 1.20 (Net Debt 1.71b / FCF TTM 1.43b)
Total Stockholder Equity = 5.56b (last 4 quarters mean from totalStockholderEquity)
RoA = 11.09% (Net Income 1.17b / Total Assets 12.1b)
RoE = 21.06% (Net Income TTM 1.17b / Total Stockholder Equity 5.56b)
RoCE = 21.31% (EBIT 1.71b / Capital Employed (Equity 5.56b + L.T.Debt 2.48b))
RoIC = 12.48% (NOPAT 1.26b / Invested Capital 10.1b)
WACC = 10.81% (E(103b)/V(106b) * Re(11.07%) + D(3.26b)/V(106b) * Rd(3.65%) * (1-Tc(0.27)))
Discount Rate = 11.07% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 15.56 | Cagr: 0.21%
[DCF] Terminal Value 67.91% ; FCFF base≈1.41b ; Y1≈1.46b ; Y5≈1.64b
[DCF] Fair Price = 58.53 (EV 17.9b - Net Debt 1.71b = Equity 16.1b / Shares 275.8m; r=10.81% [WACC]; 5y FCF grow 3.74% → 2.50% )
EPS Correlation: 98.52 | EPS CAGR: 21.12% | SUE: 1.30 | # QB: 8
Revenue Correlation: 98.89 | Revenue CAGR: 15.29% | SUE: 1.71 | # QB: 4
EPS current Quarter (2026-06-30): EPS=2.06 | Chg30d=+0.01% | Revisions=+73% | Analysts=18
EPS next Quarter (2026-09-30): EPS=1.93 | Chg30d=-0.48% | Revisions=-36% | Analysts=17
EPS current Year (2026-12-31): EPS=4.50 | Chg30d=+0.14% | Revisions=+0% | GrowthEPS=+10.8% | GrowthRev=+17.2%
EPS next Year (2027-12-31): EPS=9.40 | Chg30d=+0.18% | Revisions=+56% | GrowthEPS=+18.1% | GrowthRev=+13.2%
[Analyst] Revisions Ratio: +38% (up=22, down=9)