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.
CountryUS
ExchangeNASDAQ
IndustrySoftware - Application
SectorTechnology
Market Cap$84.51B
CEODr. 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
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SpectreCircuit simulation
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XceliumLogic simulation
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VirtuosoCustom IC design
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PalladiumVerification platform
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JasperGoldFormal verification
Business Type
Business to Business
Competitive Advantages
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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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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Income Statement Flow
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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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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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