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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 Framework: Software & SaaS Large Cap
Cadence Design Systems, Inc. (CDNS), is a Large Cap company, in the Software - Application industry, last closed at $384.96, about 77.4% overvalued vs fair value, +28.3% 1Y return, placing in the top 25% of its sector.
Metrics Rev Growth 14.1% ROE 21.9% Gross Margin 85.6%
USD 384.96
0.32%
(Delayed)
• Vol 90d: 49.0%
52-Week Range
Market Cap
$106.22B
Enterprise Value
$105.84B
Overall Score
View breakdown
Overall
Growth
Good
Profitability
Excellent
Health
Fair
Efficiency
Fair
Valuation
Fair
Growth
Good
Profitability
Excellent
Health
Fair
Efficiency
Fair
Valuation
Fair
Completeness: 82%
Confidence: 89%
Updated: Mar 8
Top Beats

Quick Facts

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

Next Events

Earnings Jul 27 Estimated

Fair Value Snapshot

Bear Base Bull
$80
$87
$95
Current: $384.96 -77% vs base

Engine Room Money Flow™

Large Cap

Software & SaaS - Where revenue goes and how value is created

Flow Steps
Total Revenue
$5.3B
14.1%%
Gross Profit
$4.5B
13.5%%
Operating Income (GAAP)
$1.6B
20%%
Operating Cash Flow
$1.7B
37.1%%
Money Flow Bridge
Flow Direction: Money moves from left to right
Components: Breakdown shows composition of each stage
Industry-Specific: Software & SaaS

Quality & Reliability Indicators

Gross Margin
85.6%
Excellent

Gross Profit / Revenue — pricing power and product moat (SaaS benchmark: >70%)

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Owner's Pocket - Capital Allocation

Total Returned to Shareholders

Combined dividends, buybacks, and debt reduction

$787.8M
70.5% 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 Software & SaaS Specialized

Competitive Advantage Assessment

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

Overall Moat Strength
74
/100
Moderate
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 87% Coverage
Trade-Off Triangle Visualization A ternary plot showing CDNS's balance between Growth (27.6%), Profitability (42.3%), and Safety (30.1%). Growth 28% Safety 30% Profitability 42%

Click axes to expand details. Marker shows current allocation.

3-Year Trend Analysis Locked
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Growth

57th percentile vs peers
57
Key Signals
Rev Growth YoY 14.1% 64p Revenue CAGR 3Y 14.1% 58p EPS Growth YoY 1.0% 34p
Strengths
  • Gross Profit Margin in top 20% of peers (85.6%, 92th percentile)
  • Rule of 40 in top 20% of peers (44.1%, 83th percentile)
  • FCF Margin in top 20% of peers (30.0%, 90th percentile)
  • Interest Coverage Ratio in top 20% of peers (14.06, 81th percentile)
Risks

No significant risks identified for this axis.

Profitability

88th percentile vs peers
88
Key Signals
Strengths
Risks
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Safety

62th percentile vs peers
63
Key Signals
Strengths
Safety drilldowns are available to premium members.

Two Futures

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

Loading valuation model...
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:

  • Recently listed companies (IPOs, SPACs)
  • Shell companies or holding companies
  • Companies that haven't filed recent financials
  • Foreign companies with limited data coverage
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Bear
-
- - -
- upside
-
Base
$87.15
- - -
-77.4% vs current
Snapshot base estimate
Bull
-
- - -
- upside
-
Fair Value Range Current: $-
$- $- $-
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