Stock Analysis
Cadence Design SystemsCDNS
P/E 63.85×· 5Y range 50.00–100.82×· bottom 21% of history
Sector: Technology · Industry: Services-Prepackaged Software
AnalystsStrong Buy32 analystsP/E 63.9× sits at the 21st percentile of its 5.089664613278576-year history.
Cash covers 58% of debt · Q2 2026.
PMP Verdict
Strong business, attractive price
Strengths
- Quality92
- Profitability90
High-quality business at an attractive price.
Bull Case
- ✓Piotroski F-Score 7/9 — high earnings quality
- ✓Altman Z 11.5 — safe-zone balance sheet
- ✓ROE 20.1% — efficient capital deployment
- ✓Revenue CAGR 15.4% — durable top-line growth
- ✓Interest coverage 13.2× — debt well covered
What's happening with CDNS
Profile
Strong moat, earnings quality, profitability, financial health and growth; valuation lags behind.
How is each axis scored?
- Valuation30/100 · Weak
- P/E vs own history (21th pct)20/25
- FCF yield (1.9%)5/25
- P/S (14.8x)5/25
- EV/EBIT (49.5x)0/25
- Growth85/100 · Strong
- Revenue CAGR (15.4%)20/25
- Net income CAGR (12.4%)20/25
- EPS CAGR 5Y (12.9%)20/25
- Fwd implied growth (89.1%)25/25
- Profitability90/100 · Strong
- ROIC (17.5%)20/25
- ROE (20.1%)20/25
- Net margin (23.6%)25/25
- Operating margin (30.3%)25/25
- Financial Health88/100 · Strong
- Altman Z (11.45)25/25
- Current ratio (1.74)18/25
- Interest coverage (13.2x)25/25
- Net cash / debt (D/A 9%)20/25
- Quality92/100 · Strong
- Piotroski F (7/9)22/25
- Beneish M (-2.61)25/25
- FCF conversion (122%)25/25
- Margin stability (σ 6.5%)20/25
- Moat100/100 · Strong
- ROIC >12% years (10/10 yrs)25/25
- Median gross margin (87.1%)25/25
- FCF-positive years (10/10 yrs)25/25
- Worst-year net margin (worst 10.5%)25/25
Risk Flags
- ⚠SBC 8.8% of revenue — real dilution cost
About Cadence Design Systems
Cadence Design Systems is a provider of electronic design automation software, intellectual property, and system design and analysis products. Show more
EDA software automates and aids in the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution. Cadence offers a portfolio of design IP, as well as system design and analysis products, which enables system-level analysis and verification solutions.
Headquarters: SAN JOSE, CA · Employees: 13,800 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
30DP/E (TTM)62.8xD
Grade D: ExpensivePrice / TTM EPS (own statements) — vs own 5Y history: 50.0x–100.8x · 21st pct
P/FCF54.3xD
Grade D: ExpensivePrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield1.9%C
Grade C: LowTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 1.1%–3.1% · 69th pct
P/S (TTM)14.81xD
Grade D: ExpensivePrice / TTM Revenue (own statements) — vs own 5Y history: 11.4x–22.5x · 26th pct
EV/EBIT49.5xD
Grade D: ExpensiveEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 37.1x–77.9x · 20th pct
EV/Sales15.7xD
Grade D: Very expensiveEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E33.2xC
Grade C: ExpensivePrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio12.61xD
Grade D: Very expensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio4.01D
Grade D: ExpensiveFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield—
TTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio—
Dividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
90A+ROIC17.5%A
Grade A: MoatNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE20.1%A
Grade A: StrongReturn on Equity. Neg. equity = heavy buybacks
ROA12.6%A
Grade A: StrongReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin23.6%A
Grade A: HighNet Income / Revenue
Operating Margin30.3%A
Grade A: HighTTM EBIT / TTM Revenue
Gross Margin85.9%A
Grade A: PremiumGross Profit / Revenue
FCF Margin28.8%A
Grade A: HighFCF / Revenue
True FCF Margin19.9%A
Grade A: HighTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
85ARevenue CAGR15.4%A
Grade A: HighCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR12.4%C
Grade C: OkCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)12.9%C
Grade C: OkCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth89.1%A
Grade A: HighAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)-1.4%B
Grade B: FlatShare count change over 5Y
SBC / Net Income37.3%D
Grade D: HighStock-based comp/Net income. >30% = dilution risk
SBC / Revenue8.8%D
Grade D: HighTTM stock-based comp / TTM Revenue
Financial Health
88AAltman Z-Score11.45A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio1.74xC
Grade C: OkCurrent Assets/Liabilities
Quick Ratio1.36xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage13.2xA
Grade A: StrongEBIT/Interest. >10 Strong
Debt Repayment0.7yA
Grade A: FastYears to repay net debt via FCF
Net Debt/EBIT0.6xA
Grade A: LowLeverage. <2x Low, >4x High
Debt/Equity0.39xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt0.58xC
Grade C: PartialCash covers how much of total debt. >1 = could repay all debt from cash
Quality
92A+Piotroski F-Score7/9A
Grade A: StrongFinancial strength 0–9. >7 Strong
Beneish M-Score-2.61A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion121.8%A
Grade A: StrongFCF / Net Income
Margin Stability6.5%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue3.0%A
Grade A: Asset-lightTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.53xC
Grade C: AverageRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
SANGIOVANNI VINCENTELLI ALBERTO Filed | SANGIOVANNI VINCENTELLI ALBERTO | SellOpen market sale | -1250 | |
Scannell Paul Filed | Scannell Paul | Tax withholding | -937 | |
Cunningham Paul Filed | Cunningham Paul | Tax withholding | -1181 | |
TENG CHIN-CHI Filed | TENG CHIN-CHI | Tax withholding | -1181 | |
WALL JOHN M Filed | WALL JOHN M | Tax withholding | -1433 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
DEVGAN ANIRUDH Filed | DEVGAN ANIRUDH | Tax withholding | -3779 | |
Cunningham Paul Filed | Cunningham Paul | Option exercise | -1000 | |
Cunningham Paul Filed | Cunningham Paul | SellOpen market sale | -2000 |
Option exercise (M) rows report a derivative leg, not an open-market sale — a paired negative entry is the option position being consumed.
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
100A+ROIC >12% Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)87.1%A
Grade A: DurableMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor10.5%A
Grade A: DurableWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$5.00
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$5.22
Cash & short-term investments per share (Finnhub)
Book Value / Share$24.86
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$2.65B
Total debt obligations (short + long term)
Cash & Equiv.$1.53B
Cash and short-term investments
Net Debt$1.12B
Total Debt minus Cash. Negative = Net Cash position
Total Equity$6.86B
Shareholders' equity (book value)
Asset / Liability2.31xA
Grade A: SolidTotal Assets / Total Liabilities
Market
Market Cap$86.47B
Current Market Capitalization
Beta1.11B
Grade B: MarketPrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 17, 2026
Key Insights: Cadence Design Systems (CDNS)
CDNS is down 1.50% at the last close. Cadence Design Systems meets 7 of 9 Piotroski F-Score criteria, placing its fundamental strength in the top tier of US-listed stocks. Altman Z-Score of 11.45 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk. Beneish M-Score of -2.61 suggests a low likelihood of earnings manipulation. Revenue has compounded at roughly 15% annually, with net income growing about 12% per year — a strong growth profile.
- Cadence Design Systems converts about 29% of revenue into free cash flow — strong cash generation.
- Takes ~0.7 years to repay net debt from free cash flow.
- At a valuation score of 30/100, CDNS trades at a premium to its historical multiples (P/E 62.8).
- Return on equity of 20.1% is well above the market average.
See how CDNS ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all CDNS moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 13 | Regular | 334.29 | -4.06% | -2.71 |
| Oct 13 | After-hours | 332.01 | -4.71% | -3.05 |
| Oct 1 | Regular | 351.19 | +6.36% | 2.53 |
Frequently Asked Questions about CDNS
What is the current Cadence Design Systems (CDNS) stock price?
CDNS is trading at $319.51 at the last market close, down 1.50% on the session. PreMarketPrice tracks CDNS pre-market, intraday and after-hours prices.
Is CDNS stock a buy right now?
PreMarketPrice's quantitative model rates Cadence Design Systems's financial health at 88/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is CDNS stock overvalued?
Cadence Design Systems trades at a trailing P/E of 62.8 and our valuation score rates it 30/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Cadence Design Systems report earnings?
No confirmed earnings date is currently scheduled for CDNS. The Earnings section lists recent reports and updates as dates are announced.
What sector does Cadence Design Systems operate in?
Cadence Design Systems operates in the Technology sector, within the Services-Prepackaged Software industry. The Related Stocks section lists sector peers for comparison.
What does Cadence Design Systems do?
Cadence Design Systems is a provider of electronic design automation software, intellectual property, and system design and analysis products.
About Cadence Design Systems (CDNS) Stock
Cadence Design Systems (CDNS) is a US-listed stock operating in the Technology sector, specifically the Services-Prepackaged Software industry. As of the latest update, Cadence Design Systems is trading at $319.51, down 1.50% on the day with a market capitalization of $86.5 billion. The financial health score for CDNS is 88/100, which indicates excellent financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for CDNS stock.
CDNS Stock Analysis & Key Metrics
On PreMarketPrice, you can track Cadence Design Systems (CDNS) across multiple dimensions:
- Pre-market price & movement: Real-time CDNS stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for CDNS with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Cadence Design Systems across multiple reporting periods.
- Financial health score: A composite score of 88/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for CDNS.
- Sector peers: Compare CDNS against 6 other technology stocks on key financial metrics.
Is CDNS a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Cadence Design Systems (CDNS) as an investment. The financial health score of 88/100 suggests excellent financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Cadence Design Systems (CDNS) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.