CADENCE DESIGN SYS INC (CDNS) Stock Fundamental Analysis

NASDAQ:CDNS • US1273871087

296.68 USD
-2.97 (-0.99%)
Last: Feb 12, 2026, 10:28 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

CDNS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 277 industry peers in the Software industry. CDNS has an excellent profitability rating, but there are some minor concerns on its financial health. CDNS is valued quite expensive, but it does show an excellent growth. This makes CDNS very considerable for growth investing!


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

  • In the past year CDNS was profitable.
  • CDNS had a positive operating cash flow in the past year.
  • In the past 5 years CDNS has always been profitable.
  • In the past 5 years CDNS always reported a positive cash flow from operatings.
CDNS Yearly Net Income VS EBIT VS OCF VS FCFCDNS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

1.2 Ratios

  • The Return On Assets of CDNS (11.05%) is better than 86.64% of its industry peers.
  • CDNS has a Return On Equity of 20.41%. This is amongst the best in the industry. CDNS outperforms 87.73% of its industry peers.
  • CDNS's Return On Invested Capital of 15.75% is amongst the best of the industry. CDNS outperforms 92.06% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for CDNS is significantly above the industry average of 10.83%.
  • The 3 year average ROIC (20.16%) for CDNS is well above the current ROIC(15.75%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 11.05%
ROE 20.41%
ROIC 15.75%
ROA(3y)15.55%
ROA(5y)15.49%
ROE(3y)28.03%
ROE(5y)26.64%
ROIC(3y)20.16%
ROIC(5y)18.92%
CDNS Yearly ROA, ROE, ROICCDNS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

1.3 Margins

  • CDNS has a better Profit Margin (20.35%) than 85.20% of its industry peers.
  • CDNS's Profit Margin has declined in the last couple of years.
  • CDNS has a Operating Margin of 31.57%. This is amongst the best in the industry. CDNS outperforms 92.78% of its industry peers.
  • In the last couple of years the Operating Margin of CDNS has grown nicely.
  • CDNS has a better Gross Margin (85.55%) than 92.42% of its industry peers.
  • In the last couple of years the Gross Margin of CDNS has remained more or less at the same level.
Industry RankSector Rank
OM 31.57%
PM (TTM) 20.35%
GM 85.55%
OM growth 3Y4.75%
OM growth 5Y6.92%
PM growth 3Y-0.79%
PM growth 5Y-11.69%
GM growth 3Y-1.39%
GM growth 5Y-0.58%
CDNS Yearly Profit, Operating, Gross MarginsCDNS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. Health

2.1 Basic Checks

  • CDNS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • CDNS has more shares outstanding than it did 1 year ago.
  • The number of shares outstanding for CDNS has been reduced compared to 5 years ago.
  • The debt/assets ratio for CDNS is higher compared to a year ago.
CDNS Yearly Shares OutstandingCDNS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
CDNS Yearly Total Debt VS Total AssetsCDNS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

2.2 Solvency

  • The Debt to FCF ratio of CDNS is 1.68, which is an excellent value as it means it would take CDNS, only 1.68 years of fcf income to pay off all of its debts.
  • CDNS's Debt to FCF ratio of 1.68 is fine compared to the rest of the industry. CDNS outperforms 69.68% of its industry peers.
  • CDNS has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
  • Looking at the Debt to Equity ratio, with a value of 0.48, CDNS is doing worse than 66.06% of the companies in the same industry.
  • Even though the debt/equity ratio score it not favorable for CDNS, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 0.48
Debt/FCF 1.68
Altman-Z N/A
ROIC/WACC1.43
WACC11.03%
CDNS Yearly LT Debt VS Equity VS FCFCDNS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

2.3 Liquidity

  • A Current Ratio of 3.05 indicates that CDNS has no problem at all paying its short term obligations.
  • CDNS has a Current ratio of 3.05. This is in the better half of the industry: CDNS outperforms 75.09% of its industry peers.
  • A Quick Ratio of 2.84 indicates that CDNS has no problem at all paying its short term obligations.
  • CDNS has a Quick ratio of 2.84. This is in the better half of the industry: CDNS outperforms 74.37% of its industry peers.
Industry RankSector Rank
Current Ratio 3.05
Quick Ratio 2.84
CDNS Yearly Current Assets VS Current LiabilitesCDNS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. Growth

3.1 Past

  • CDNS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.52%, which is quite impressive.
  • Measured over the past years, CDNS shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.21% on average per year.
  • CDNS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.72%.
  • The Revenue has been growing by 14.72% on average over the past years. This is quite good.
EPS 1Y (TTM)28.52%
EPS 3Y21.73%
EPS 5Y22.21%
EPS Q2Q%17.68%
Revenue 1Y (TTM)19.72%
Revenue growth 3Y15.81%
Revenue growth 5Y14.72%
Sales Q2Q%10.15%

3.2 Future

  • The Earnings Per Share is expected to grow by 13.14% on average over the next years. This is quite good.
  • Based on estimates for the next years, CDNS will show a quite strong growth in Revenue. The Revenue will grow by 11.93% on average per year.
EPS Next Y20.58%
EPS Next 2Y17.3%
EPS Next 3Y16.39%
EPS Next 5Y13.14%
Revenue Next Year13.96%
Revenue Next 2Y13.23%
Revenue Next 3Y12.93%
Revenue Next 5Y11.93%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
CDNS Yearly Revenue VS EstimatesCDNS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2B 4B 6B 8B 10B
CDNS Yearly EPS VS EstimatesCDNS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15 20

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Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • CDNS is valuated quite expensively with a Price/Earnings ratio of 42.20.
  • The rest of the industry has a similar Price/Earnings ratio as CDNS.
  • CDNS is valuated rather expensively when we compare the Price/Earnings ratio to 28.18, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 36.12, the valuation of CDNS can be described as expensive.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of CDNS is on the same level as its industry peers.
  • When comparing the Price/Forward Earnings ratio of CDNS to the average of the S&P500 Index (28.01), we can say CDNS is valued slightly more expensively.
Industry RankSector Rank
PE 42.2
Fwd PE 36.12
CDNS Price Earnings VS Forward Price EarningsCDNS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • CDNS's Enterprise Value to EBITDA is on the same level as the industry average.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as CDNS.
Industry RankSector Rank
P/FCF 54.62
EV/EBITDA 43.62
CDNS Per share dataCDNS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CDNS does not grow enough to justify the current Price/Earnings ratio.
  • The excellent profitability rating of CDNS may justify a higher PE ratio.
  • CDNS's earnings are expected to grow with 16.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.05
PEG (5Y)1.9
EPS Next 2Y17.3%
EPS Next 3Y16.39%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • CDNS does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

CADENCE DESIGN SYS INC

NASDAQ:CDNS (2/12/2026, 10:28:03 AM)

296.68

-2.97 (-0.99%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)10-27
Earnings (Next)02-17
Inst Owners91.74%
Inst Owner Change-2.22%
Ins Owners0.25%
Ins Owner Change-1.68%
Market Cap80.76B
Revenue(TTM)5.21B
Net Income(TTM)1.06B
Analysts81.88
Price Target388.73 (31.03%)
Short Float %1.62%
Short Ratio2.56
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.96%
Min EPS beat(2)4.06%
Max EPS beat(2)5.86%
EPS beat(4)4
Avg EPS beat(4)3.6%
Min EPS beat(4)1.28%
Max EPS beat(4)5.86%
EPS beat(8)8
Avg EPS beat(8)3.98%
EPS beat(12)12
Avg EPS beat(12)3.22%
EPS beat(16)16
Avg EPS beat(16)4.67%
Revenue beat(2)1
Avg Revenue beat(2)-0.36%
Min Revenue beat(2)-0.75%
Max Revenue beat(2)0.03%
Revenue beat(4)1
Avg Revenue beat(4)-0.92%
Min Revenue beat(4)-1.71%
Max Revenue beat(4)0.03%
Revenue beat(8)2
Avg Revenue beat(8)-0.69%
Revenue beat(12)3
Avg Revenue beat(12)-0.68%
Revenue beat(16)7
Avg Revenue beat(16)-0.18%
PT rev (1m)-0.45%
PT rev (3m)1.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.13%
EPS NY rev (1m)0.12%
EPS NY rev (3m)0.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.04%
Valuation
Industry RankSector Rank
PE 42.2
Fwd PE 36.12
P/S 15.49
P/FCF 54.62
P/OCF 49.95
P/B 15.53
P/tB 42.92
EV/EBITDA 43.62
EPS(TTM)7.03
EY2.37%
EPS(NY)8.21
Fwd EY2.77%
FCF(TTM)5.43
FCFY1.83%
OCF(TTM)5.94
OCFY2%
SpS19.15
BVpS19.1
TBVpS6.91
PEG (NY)2.05
PEG (5Y)1.9
Graham Number54.96
Profitability
Industry RankSector Rank
ROA 11.05%
ROE 20.41%
ROCE 20.09%
ROIC 15.75%
ROICexc 23.73%
ROICexgc 60.82%
OM 31.57%
PM (TTM) 20.35%
GM 85.55%
FCFM 28.37%
ROA(3y)15.55%
ROA(5y)15.49%
ROE(3y)28.03%
ROE(5y)26.64%
ROIC(3y)20.16%
ROIC(5y)18.92%
ROICexc(3y)28.2%
ROICexc(5y)26.78%
ROICexgc(3y)72.83%
ROICexgc(5y)62.51%
ROCE(3y)25.95%
ROCE(5y)24.28%
ROICexgc growth 3Y4.04%
ROICexgc growth 5Y11.48%
ROICexc growth 3Y-4.84%
ROICexc growth 5Y2.66%
OM growth 3Y4.75%
OM growth 5Y6.92%
PM growth 3Y-0.79%
PM growth 5Y-11.69%
GM growth 3Y-1.39%
GM growth 5Y-0.58%
F-Score7
Asset Turnover0.54
Health
Industry RankSector Rank
Debt/Equity 0.48
Debt/FCF 1.68
Debt/EBITDA 1.33
Cap/Depr 63.33%
Cap/Sales 2.65%
Interest Coverage 250
Cash Conversion 86.74%
Profit Quality 139.37%
Current Ratio 3.05
Quick Ratio 2.84
Altman-Z N/A
F-Score7
WACC11.03%
ROIC/WACC1.43
Cap/Depr(3y)78.99%
Cap/Depr(5y)69.81%
Cap/Sales(3y)3.02%
Cap/Sales(5y)2.97%
Profit Quality(3y)119.11%
Profit Quality(5y)128.61%
High Growth Momentum
Growth
EPS 1Y (TTM)28.52%
EPS 3Y21.73%
EPS 5Y22.21%
EPS Q2Q%17.68%
EPS Next Y20.58%
EPS Next 2Y17.3%
EPS Next 3Y16.39%
EPS Next 5Y13.14%
Revenue 1Y (TTM)19.72%
Revenue growth 3Y15.81%
Revenue growth 5Y14.72%
Sales Q2Q%10.15%
Revenue Next Year13.96%
Revenue Next 2Y13.23%
Revenue Next 3Y12.93%
Revenue Next 5Y11.93%
EBIT growth 1Y29.6%
EBIT growth 3Y21.31%
EBIT growth 5Y22.65%
EBIT Next Year23.27%
EBIT Next 3Y17.85%
EBIT Next 5Y16.55%
FCF growth 1Y19.71%
FCF growth 3Y2.64%
FCF growth 5Y11.29%
OCF growth 1Y20.58%
OCF growth 3Y4.62%
OCF growth 5Y11.56%

CADENCE DESIGN SYS INC / CDNS FAQ

What is the ChartMill fundamental rating of CADENCE DESIGN SYS INC (CDNS) stock?

ChartMill assigns a fundamental rating of 6 / 10 to CDNS.


What is the valuation status for CDNS stock?

ChartMill assigns a valuation rating of 2 / 10 to CADENCE DESIGN SYS INC (CDNS). This can be considered as Overvalued.


Can you provide the profitability details for CADENCE DESIGN SYS INC?

CADENCE DESIGN SYS INC (CDNS) has a profitability rating of 9 / 10.


How financially healthy is CADENCE DESIGN SYS INC?

The financial health rating of CADENCE DESIGN SYS INC (CDNS) is 6 / 10.