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Cadence Design Systems, Inc.
CDNS: NasdaqGSLowest reading is at 16 out of 100. All scores are out of 100.
In Short
About The Company
CEO
Dr. Anirudh Devgan Ph.D.
Market Cap
88.13 Billion USD
Sector
Technology
Website
https://www.cadence.comLast Update
14/10/2026, 13:13:47
Description
Cadence Design Systems, Inc.
Read More
Strongest readings
- ✔Altman-Z score of 14.21 sits above the distress range
- ✔Return on capital employed of 19.24% is above the market average of 10.00%
- ✔Financial health is strong (health score 82 out of 100)
- ✔Debt is low at 0.48 times equity
- ✔Cashflow and earnings growth is strong (growth score 64 out of 100)
Weakest readings
- ✘Price-to-earnings of 66.0 is above the market average of 19.6
- ✘Priced well above the cashflow it produces (value score 16 out of 100)
- ✘The current price sits above estimated fair value (margin of safety -83.69%)
- ✘Returns on capital have declined over five years (5.03% lower)
Key Figures
| Status | Metric | Value | Reading | Market avg |
|---|---|---|---|---|
| ✘ | Price / earnings (TTM) | 66.05x | 19.60x | |
| ✘ | Margin of safety (DCF) | -83.69% | 17.95% | |
| ✔ | Revenue growth (5y average) | 13.80% | 10.97% | |
| ✘ | Dividend yield (TTM) | 0.00% | 1.85% | |
| ✔ | Share count, per year | -0.22% | 0.00% | |
| ✔ | Return on capital employed | 19.24% | 10.00% |
The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.
Valuation
16 / 100Priced above the market on most measures.
| Status | Metric | Value | Reading | Market avg |
|---|---|---|---|---|
| ✘ | Price / earnings | 66.05x | 19.60x | |
| ✘ | Free cashflow yield | 1.81% | 4.70% | |
| ✘ | Price / earnings growth | 12.85x | 1.50x | |
| Price / book | 13.44x | — | ||
| ✘ | Margin of safety | -83.69% | 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 54.52 USD is below the current price of 319.51 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: 68.1 USD ✘
Current Price: 334.2 USD
How Does This Work?
Show Advanced Options
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
64 / 100Growing faster than the market on most measures.
| Status | Metric | Value | Reading | Market avg |
|---|---|---|---|---|
| ✔ | Revenue growth | 13.80% | 10.97% | |
| ✘ | Earnings growth | 11.37% | 14.48% | |
| ✔ | Cashflow growth | 24.12% | 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 improved this year (14.70% against a five year average of 13.80%)
- ✔Earnings growth has improved this year (35.86% against a five year average of 11.37%)
- ✘Free cashflow growth has slowed this year
Health
82 / 100Balance sheet covers its obligations.
Measured on Leverage and capital, Funding and liquidity, Earnings quality.
| Status | Metric | Value | Reading | Threshold |
|---|---|---|---|---|
| ✔ | Altman-Z score | 14.21 | 3.00 | |
| ✔ | Piotroski score | 6.00 | 5.00 | |
| ✔ | Debt / equity | 0.48x | 0.80x | |
| ✔ | Current ratio | 2.86x | 1.00x | |
| ✔ | Interest coverage | 14.06x | 2.50x | |
| ✔ | Free cashflow / debt | 0.61x | 0.15x | |
| ✔ | Debt / capital | 0.32x | 1.00x |
The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.
Management
56 / 100Returns on capital are at or above the market.
| Status | Metric | Value | Reading | Market avg |
|---|---|---|---|---|
| ✔ | Return on equity | 20.26% | 15.00% | |
| ✔ | Return on capital employed | 19.24% | 10.00% | |
| Return on assets | 10.92% | — | ||
| Free cashflow return on capital | 18.63% | — | ||
| ✘ | Return on capital, 5y change | -5.03% | 0.00% | |
| ✔ | Share count, per year | -0.22% | 0.00% | |
| ✘ | Share count, recent | 1.65% | 0.00% | |
| ✘ | Realized buyback return | -74.73% | 0.00% | |
| ✔ | Goodwill erosion / equity | 0.00% | 2.00% | |
| Price volatility, 5 year | 37.02% | — |
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 16 out of 100
Analysts
not enough data| Status | Metric | Value | Reading | Neutral |
|---|---|---|---|---|
| Analyst opinion score | N/A | 50 |
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 ReportsOther Information
Company Name
Cadence Design Systems, Inc.
Currency
USD
Beta
1.137
Vol Avg
2360696
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
14/10/2026, 13:13:47
Financial data compiled from SEC EDGAR filings and Yahoo Finance.