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Company Analysis

Cadence Design Systems, Inc. CDNS

A comprehensive view of key metrics, scores, and financial health for Cadence Design Systems, Inc.

Overview of Cadence Design Systems, Inc.

CDNS NMS
Technology Software - Application Large Cap
Cadence Design Systems, Inc. (CDNS), is a Large Cap company, in the Software - Application industry, last closed at $287.03, about 69.6% overvalued vs fair value, +12.5% 1Y return, placing in the top 25% of its sector.
$287.03
-1.13%
As of March 13, 2026
Previous close • Vol 90d: 38.0%
52-Week Range
Market Cap
$79.18B
Enterprise Value
$78.66B
Overall Score
Scores locked

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Top Beats

Quick Facts

Website https://www.cadence.com
HQ San Jose, CA
Employees 13,800
Fiscal year Dec 31

Next Events

Earnings Apr 27 Estimated

Fair Value Snapshot

Bear Base Bull
$80
$87
$95
Current: $287.03 -70% vs base

Engine Room Money Flow™

Large Cap

Corporate Free Cash Flow - Where revenue goes and how value is created

Flow Steps
Revenue
$5.3B
14.1%%
Gross Profit
$4.5B
13.5%%
Operating Income
$1.6B
20%%
Net Income
$1.1B
5.1%%
Money Flow Bridge
Flow Direction: Money moves from left to right
Components: Breakdown shows composition of each stage
Industry-Specific: Corporate Free Cash Flow

Quality & Reliability Indicators

Cash Conversion Ratio
100.8%
Excellent

FCF / Net Income - measures how well earnings convert to cash

Locked Metric
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Owner's Pocket - Capital Allocation

Total Returned to Shareholders

Combined dividends, buybacks, and debt reduction

$925.0M
82.7% of FCF

Where It Leaks

Cash Flow Health some concerns
Moderate efficiency issues detected. Review active leaks below for improvement areas.
3
Active Leaks
0/3
Improving
0
High Impact
0
Critical
Locked Leak
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Locked Leak
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Moat Analysis Corporate Default

Competitive Advantage Assessment

Evaluating Cadence Design Systems, Inc.'s durable competitive advantages across 6 defense dimensions

Overall Moat Strength
85
/100
Strong
Scores based on quantitative metrics and qualitative factors

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Pricing Power

Strong
92
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For informational purposes only. Not investment advice.

Trade-Off Ledger™

Where management spends the performance budget - Growth, Profitability, or Safety

Software SaaS vs Industry Peers 97% Coverage
Trade-Off Triangle Visualization A ternary plot showing CDNS's balance between Growth (25.9%), Profitability (43.0%), and Safety (31.1%). Growth 26% Safety 31% Profitability 43%

Click axes to expand details. Marker shows current allocation.

3-Year Trend Analysis Locked
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Growth

51th percentile vs peers
52
Key Signals
Rev Growth YoY 14.1% 62p Revenue CAGR 3Y 14.1% 53p EPS Growth YoY 1.0% 36p EPS CAGR 3Y 15.6% 33p
Strengths
  • Gross Profit Margin in top 20% of peers (85.6%, 89th percentile)
  • Operating Margin in top 20% of peers (31.1%, 94th percentile)
  • Net Profit Margin in top 20% of peers (20.9%, 86th percentile)
  • Roic in top 20% of peers (14.6%, 82th percentile)
Risks

No significant risks identified for this axis.

Profitability

86th percentile vs peers
86
Key Signals
Strengths
Risks
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Safety

62th percentile vs peers
62
Key Signals
Strengths
Safety drilldowns are available to premium members.

Two Futures

Scenario-based fair value ranges for Cadence Design Systems, Inc..

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Unable to Compute Fair Value

This company cannot be valued using standard models.

What this means: The Scenario Theatre requires financial data (revenue, cash flow, shares outstanding) to calculate fair value estimates. This data may be unavailable for:

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  • Shell companies or holding companies
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Bear
-
- - -
- upside
-
Base
$87.13
- - -
-69.6% vs current
Snapshot base estimate
Bull
-
- - -
- upside
-
Fair Value Range Current: $-
$- $- $-
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