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CDNS
Cadence Design Systems, Inc.
Summary
Business
Earnings Call
Valuation
Profitability
Financial Health
Intel
Yearly Return 10Y annualized return is excellent at 31.0% per year
Earnings Expectations CDNS has met or exceeded earnings expectations in all recent quarters (10/10)
Positive High Gross Profit Margin
Positive Strong Return on Equity
Negative High P/E Ratio
Negative High Price to Sales Ratio

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Overall, Cadence demonstrates a robust business model supported by strong financial results and innovative product offerings, particularly in AI. However, concerns about dependency on the Chinese market and slowing recurring revenue growth warrant caution in future forecasts.

Analysis Date: February 18, 2025
Last Updated: May 29, 2025

+1386%
+31.0% per year

Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.

Country US
Exchange NASDAQ
Industry Software - Application
Sector Technology
Market Cap $84.51B
CEO Dr. Anirudh Devgan Ph.D.

Cadence Design Systems, Inc. is a company that creates software and tools to help other businesses design and test computer chips. They provide services that make sure these chips work correctly before they are made. Their products help companies in various industries, like telecommunications and automotive, to build better technology, from smartphones to cars. Founded in 1987 and based in San Jose, California, Cadence makes it easier for engineers to design complex electronic systems.

Streams of revenue

Product and maintenance: 91%
Technology Service: 10%

Geographic Distribution

Americas: 28%
UNITED STATES: 27%
Asia: 17%
Other Asia: 10%
EMEA: 8%
CHINA: 7%
JAPAN: 3%
Other America: 1%

Core Products

Spectre Circuit simulation
🚀
Xcelium Logic simulation
🎨
Virtuoso Custom IC design
🔍
Palladium Verification platform
🔒
JasperGold Formal verification

Business Type

B2B Business to Business

Competitive Advantages

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Key Business Risks

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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.

Graham Value Metrics

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ROE: 22.020171888147985

ROA: None

Gross Profit Margin: 85.85630975066914

Net Profit Margin: 22.185126885131623

Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.

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Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.

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About Financial Health Metrics

Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.

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Meeting Expectations

10 /10

Higher values indicate better execution and credibility

Recent Results

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EPS

1.49
Estimated
1.57
Actual
+5.37%
Difference

Revenue

$1239849406
Estimated
$1242366000
Actual
+0.20%
Difference
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Insider trading data shows purchase and sale activities by company executives and board members.

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CDNS Stock Analysis: Cadence Design Systems, Inc. Investment Guide

CDNS (Cadence Design Systems, Inc.) is a Technology company listed on NASDAQ Global Select. The stock has generated 31.0% annual returns with an overall investment score of None/100.

Overall, Cadence demonstrates a robust business model supported by strong financial results and innovative product offerings, particularly in AI. However, concerns about dependency on the Chinese market and slowing recurring revenue growth warrant caution in future forecasts.

CDNS Key Financial Metrics

CDNS financial analysis includes comprehensive valuation ratios, profitability metrics, and financial health indicators. and profitability score of 5.0/100 with financial health rated 8.8/100.

About Cadence Design Systems, Inc.

Cadence Design Systems, Inc. is a company that creates software and tools to help other businesses design and test computer chips. They provide services that make sure these chips work correctly before they are made. Their products help companies in various industries, like telecommunications and automotive, to build better technology, from smartphones to cars. Founded in 1987 and based in San Jose, California, Cadence makes it easier for engineers to design complex electronic systems.

CDNS Investment Recommendation

Based on our comprehensive analysis of CDNS, investors should consider the company's strong performance track record, earnings consistency (10/10 quarters beat expectations), and current valuation metrics when making investment decisions.

Technology Sector Analysis

CDNS operates in the Software - Application industry within the Technology sector. This analysis compares Cadence Design Systems, Inc. performance against industry and sector benchmarks to provide context for investment decisions.

Frequently Asked Questions about CDNS Stock

Is CDNS a good investment?

CDNS (Cadence Design Systems, Inc.) has generated 31.0% annual returns with an overall score of None/100. Overall, Cadence demonstrates a robust business model supported by strong financial results and innovative product offerings, particularly in AI. However, concerns about dependency on the Chinese market and slowing recurring … Investors should consider their risk tolerance and investment goals when evaluating CDNS.

What is CDNS P/E ratio and valuation?

CDNS valuation metrics including P/E ratio, price-to-book ratio, and price-to-sales ratio are analyzed on this page with comparisons to Software - Application industry and Technology sector benchmarks.

Should I buy CDNS stock now?

The decision to buy CDNS stock should be based on comprehensive analysis of financial metrics, market conditions, and individual investment goals. Our analysis provides profitability score of 5.0/100, financial health score of 8.8/100, and detailed performance metrics to help inform your investment decision.

What are CDNS financial health indicators?

CDNS financial health analysis includes liquidity ratios, debt levels, cash flow metrics, and profitability indicators. The company has a financial health score of 8.8/100 based on comprehensive analysis of balance sheet strength and operational efficiency.

How does CDNS compare to competitors?

CDNS performance is benchmarked against Software - Application industry peers and Technology sector averages. Our analysis includes comparative valuation ratios, profitability metrics, and growth indicators to provide context for Cadence Design Systems, Inc.'s market position.

What are CDNS historical returns?

CDNS has generated 31.0% annual returns over the 10Y. Historical performance analysis includes price appreciation, dividend yields, and total shareholder returns compared to market benchmarks.

CDNS Key Investment Metrics Summary

  • Annual Return: 31.0%
  • Profitability Score: 5.0/100
  • Financial Health Score: 8.8/100
  • Growth Score: 7.825451452722744/100
  • Earnings Beat Rate: 10/10 quarters
  • Sector: Technology
  • Industry: Software - Application
  • Exchange: NASDAQ Global Select
  • Market Cap: 84511400820

CDNS Investment Thesis

Cadence Design Systems, Inc. (CDNS) represents an excellent investment opportunity in the Technology sector. With an overall score of None/100, the company demonstrates areas for financial improvement.

Investment Strengths

  • High Gross Profit Margin
  • Strong Return on Equity
  • Solid Operating Profit Margin
  • Strong Liquidity Position
  • Low Debt Levels
  • Strong Financial Performance
  • Record Backlog
  • AI Integration and Product Innovation
  • Growth in AI and Semiconductor Innovation
  • Strategic Partnerships

Investment Risks

  • High P/E Ratio
  • High Price to Sales Ratio
  • Absence of Dividend Payments
  • High EV/EBITDA Ratio
  • Dependency on China Market
  • Potential for Recurring Revenue Slowdown
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