Cadence Design Systems, Inc.

CDNS: NasdaqGS
53Total

Lowest reading is at 3 out of 100. All scores are out of 100.

About The Company

CEO

Dr. Anirudh Devgan Ph.D.

Market Cap

89.81 Billion USD

Sector

Technology

Website

https://www.cadence.com

Last Update

26/09/2026, 10:13:26

Description

Cadence Design Systems, Inc.

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Strongest readings

  • ✔Altman-Z score of 13.86 sits above the distress range
  • ✔Debt is low at 0.00 times equity
  • ✔Financial health is strong (health score 85 out of 100)
  • ✔Return on capital employed of 17.52% is above the market average of 10.00%
  • ✔Cashflow and earnings growth is strong (growth score 68 out of 100)

Weakest readings

  • ✘Price-to-earnings of 75.7 is above the market average of 19.6
  • ✘Priced well above the cashflow it produces (value score 3 out of 100)
  • ✘Returns on capital have declined over five years (6.76% lower)
  • ✘The current price sits above estimated fair value (margin of safety -83.00%)

Key Figures

StatusMetricValueReadingMarket avg
✘
Price / earnings (TTM)
75.66x
19.60x
✘
Margin of safety (DCF)
-83.00%
17.95%
✔
Revenue growth (5y average)
14.48%
10.97%
✘
Dividend yield (TTM)
0.00%
1.85%
✔
Share count, per year
-0.22%
0.00%
✔Return on capital employed17.52%
10.00%

The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

Valuation

3 / 100

Priced above the market on most measures.

StatusMetricValueReadingMarket avg
✘
Price / earnings
75.66x
19.60x
✘Free cashflow yield1.59%
4.70%
✘Price / earnings growth14.72x
1.50x
Price / book13.69x
—
✘
Margin of safety
-83.00%
17.95%

The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

  • ✘Estimated intrinsic value of 55.43 USD is below the current price of 326.13 USD

Desired Margin Of Safety

0%

▼

Tip: Set your desired Margin Of Safety

Free Cash Flow Type

Annual Cashflow Growth

0%

Discount Rate

0%

Estimated Fair Value: 67.7 USD ✘

Current Price: 326.1 USD

How Does This Work?

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This calculator helps investors estimate the Intrinsic Value of a company based on the current value of future cash flows. To use the tool, simply input a desired Margin Of Safety, which is an additional discount applied to the present value of the expected future cash flows. The tool calculates the present value using a discount rate that reflects the risk and time value of money, and provides an estimated fair value for the company based on the selected margin of safety. The calculator defaults to using 5 Year Free Cash Flow Growth % and a discount rate based on the US 10-year treasury bond coupon rate. Use our performance analyser to get a feel for the impact this has on longterm investment returns and find a margin of safety you are comfortable with.

Growth

68 / 100

Growing faster than the market on most measures.

StatusMetricValueReadingMarket avg
✔
Revenue growth
14.48%
10.97%
✘Earnings growth14.23%
14.48%
✔Cashflow growth24.77%
12.35%

The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

  • ✘Revenue growth has slowed this year (13.42% against a five year average of 14.48%)
  • ✘Earnings growth has slowed this year (8.18% against a five year average of 14.23%)
  • ✘Free cashflow growth has slowed this year

Health

85 / 100

Balance sheet covers its obligations.

Measured on Leverage and capital, Funding and liquidity, Earnings quality.

StatusMetricValueReadingThreshold
✔Altman-Z score13.86
3.00
✔Piotroski score5.00
5.00
✔Debt / equity0.00x
0.80x
✔Current ratio2.86x
1.00x
✔Interest coverage12.80x
2.50x
Free cashflow / debtN/A0.15x
✔Debt / capital0.00x
1.00x

The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

    Management

    55 / 100

    Returns on capital are at or above the market.

    StatusMetricValueReadingMarket avg
    ✔Return on equity20.26%
    15.00%
    ✔Return on capital employed17.52%
    10.00%
    Return on assets10.92%
    —
    Free cashflow return on capital18.63%
    —
    ✘Return on capital, 5y change-6.76%
    0.00%
    ✔
    Share count, per year
    -0.22%
    0.00%
    ✘Share count, recent1.50%
    0.00%
    ✘Realized buyback return-78.34%
    0.00%
    ✔Goodwill erosion / equity0.00%
    2.00%
    Price volatility, 5 year35.10%
    —

    The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

    • ✘Shares were repurchased while the value score was only 3 out of 100

    Analysts

    not enough data
    StatusMetricValueReadingNeutral
    Analyst opinion scoreN/A50

    The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

    Financial History

    Annual figures across the full reporting history we hold.

    Market Peers

    CDNS

    SEC Filings

    Find yearly (10-K), quaterly (10-Q) and disclosure (8-K) report here, on the Securities and Exchange Commission's EDGAR database. If reading through reports isn't your cup of tea, don't worry. We've made it easy for you by summarizing all the important bits.

    See 35+ Years Annual Reports

    Other Information

    Company Name

    Cadence Design Systems, Inc.

    Currency

    USD

    Beta

    1.137

    Vol Avg

    2366440

    Ceo

    Dr. Anirudh Devgan Ph.D.

    Cik

    0000813672

    Cusip

    Exchange

    NasdaqGS

    Full Time Employees

    15445

    Industry

    Software - Application

    Sector

    Technology

    Ipo Date

    Address

    Building 5

    City

    San Jose

    State

    CA

    Country

    United States

    Zip

    95134

    Phone

    408 943 1234

    Analysis Last Updated

    26/09/2026, 10:13:26

    Financial data compiled from SEC EDGAR filings and Yahoo Finance.

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