Cadence Design Systems, Inc.

CDNS Technology Software - Application NASDAQ

$321.80

+$3.48 (+1.09%)

Open: $317.86 | High: $323.63 | Low: $314.06 | Prev Close: $318.32

Market Cap: $87.59B

Volume: 443K | Avg: 1.8M

Last updated: January 26, 2026 at 06:01 PM
Investment Rating
B

Neutral

Overall Score: 60/100


Rating Breakdown:
DCF Score 3/5
60%
Neutral
ROE Score 4/5
80%
Buy
ROA Score 5/5
100%
Strong Buy
D/E Score 2/5
40%
Sell
P/E Score 1/5
20%
Strong Sell
P/B Score 1/5
20%
Strong Sell

Stock Score Analysis
D

Stock Score: 580

Comprehensive Quality Assessment


Component Breakdown:
Efficiency 45
Financial Health 105
Growth 70
Market Sentiment 10
Risk 50
Lower is better
Valuation 0
Momentum 0

Valuation Metrics
Valuation Ratios
P/E Ratio 82.94
P/B Ratio 16.79
P/S Ratio 16.81
EPS $3.88
Beta 1.02
Shares Outstanding 272.20M

Price Range & Moving Averages
52-Week High $376.45
52-Week Low $221.56
SMA 50 $317.40
SMA 200 $322.19

Earnings
Next Earnings February 17, 2026 09:00 PM ET
Financial Ratios
Margins
Gross Margin 87.8%
Operating Margin 28.5%
Net Margin 20.4%

Returns
ROE 21.6%
ROA 11.1%

Liquidity & Leverage
Debt/Equity 0.48
Current Ratio 3.05
Quick Ratio 2.84
Balance Sheet
Total Assets $8.97B
Total Liabilities $4.30B
Total Equity $4.67B

Cash $2.64B
Total Debt $2.59B
Net Debt $-58,954,000
Income Statement
Revenue $4.64B
Gross Profit $3.99B
Operating Income $1.35B
Net Income $1.06B

EBITDA $1.67B
Revenue/Share $19.22
Cash Flow
Operating CF $1.26B
CapEx $142.54M
Free Cash Flow $1.12B

Book Value/Share $19.17
Tangible Book/Share $6.94
Equity/Share $19.17
Technical Indicators
RSI (14) 50.00 Neutral
MACD
0.00 Signal: 0.00
Volatility 0.00%
Trading Signal Neutral
Performance & Returns

Insufficient historical data

Insufficient historical data (need 200+ days, have 0)
Sector Comparison (Technology)
Compared to 67 peers in Technology
Metric CDNS Sector Avg Percentile
P/E Ratio 82.94 26.2 91%
P/B Ratio 16.79 -5.42 78%
ROE (%) 21.59% 20.22% 55%
Net Margin (%) 20.35% 16.26% 67%
Stock Score 580 468.0 85%
Percentile: 0% = worst in sector, 100% = best in sector
Technical Analysis
Ticker Close SMA 5 SMA 8 SMA 13 SMA 50 SMA 200 RSI (14) MACD Volatility (%) Volume Signal SMA Decision
CDNS $321.80 $0.00 $0.00 $0.00 $0.00 $0.00 50.00 0.00 0.00% 0 Neutral Mixed
Candlestick Patterns

There wasn't any recognizable pattern for the CDNS stock

News Sentiment
📊 Ticker 📰 Headline 💭 Sentiment 📡 Source 🔗 URL
CDNS Cadence Design Systems: A Deep Dive Into Its Market Potential Neutral fool.com Read More
CDNS Cadence Design Systems (CDNS) Exceeds Market Returns: Some Facts to Consider Neutral zacks.com Read More
CDNS Cabot Wealth Management Inc. Takes $1.22 Million Position in Cadence Design Systems, Inc. $CDNS Neutral defenseworld.net Read More
CDNS GDS Wealth Management Has $10.14 Million Stock Holdings in Cadence Design Systems, Inc. $CDNS Neutral defenseworld.net Read More
CDNS Cadence Unveils HiFi iQ DSP to Power Next-Gen Voice AI and Audio Neutral zacks.com Read More
Recent Insider Trading
Date Insider Position Transaction Shares Price Value
2026-01-08 TENG CHIN-CHI officer: Sr. Vice President BUY 3000 $78.76 $236280
2026-01-08 TENG CHIN-CHI officer: Sr. Vice President SELL 6319 $317.96 $2009189
2026-01-08 TENG CHIN-CHI officer: Sr. Vice President SELL 3000 $78.76 $236280
2026-01-02 Cunningham Paul officer: Sr. Vice President SELL 1000 $315.70 $315700
2025-12-16 WALL JOHN M officer: Sr. VP & CFO BUY 15000 $202.94 $3044100
2025-12-16 WALL JOHN M officer: Sr. VP & CFO SELL 5500 $317.34 $1745391
2025-12-16 WALL JOHN M officer: Sr. VP & CFO BUY 3418 $138.02 $471752
2025-12-16 WALL JOHN M officer: Sr. VP & CFO SELL 9828 $318.11 $3126398
2025-12-16 WALL JOHN M officer: Sr. VP & CFO BUY 8000 $142.50 $1140000
2025-12-16 WALL JOHN M officer: Sr. VP & CFO BUY 1387 $138.02 $191434
Showing last 10 insider transactions. Green badges indicate purchases (bullish signal), red badges indicate sales.
Company Information

Cadence Design Systems, Inc. provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. The company offers functional verification services, including emulation and prototyping hardware. Its functional verification offering consists of JasperGold, a formal verification platform; Xcelium, a parallel logic simulation platform; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification. The company also provides digital IC design and sign off products, including Genus logic synthesis and Joules RTL power solutions, as well as Modus software solution to reduce systems-on-chip design-for-test time; physical implementation tools, such as place and route, optimization, and multiple patterning preparation; and signoff products to signoff the design as ready for silicon manufacturing. In addition, it offers custom IC design and simulation products to create schematic and physical representations of circuits down to the transistor level for analog, mixed-signal, custom digital, memory, and radio frequency designs; and system design and analysis products to develop printed circuit boards and IC packages, as well as to analyze electromagnetic, electro-thermal, and other multi-physics effects. Further, the company provides intellectual property (IP) products comprising pre-verified and customizable functional blocks to integrate into customer's ICs; and verification IP and memory models to emulate and model the expected behavior and interaction of standard industry system interface protocols. Additionally, it offers services related to methodology, education, and hosted design solutions, as well as technical support and maintenance services. The company serves 5G communications, aerospace and defense, automotive, industrial and healthcare, mobile, consumer, and hyperscale computing markets. Cadence Design Systems, Inc. was incorporated in 1987 and is headquartered in San Jose, California.


CEO Anirudh Devgan
Employees 12837
Country US
IPO Date 1987-06-10
Exchange NASDAQ
Website https://www.cadence.com
Sector Technology
Industry Software - Application
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Rating Metrics Explained
DCF Score (Discounted Cash Flow)

Measures the intrinsic value of the stock based on projected future cash flows. A higher score indicates the stock is undervalued relative to its DCF valuation.

ROE Score (Return on Equity)

Evaluates how efficiently a company generates profit from shareholders' equity. Higher ROE indicates better profitability and management effectiveness.

ROA Score (Return on Assets)

Measures how efficiently a company uses its assets to generate profit. A higher ROA means better asset utilization and operational efficiency.

D/E Score (Debt-to-Equity)

Assesses the company's financial leverage and risk. Lower debt-to-equity ratios indicate less financial risk and better balance sheet health.

P/E Score (Price-to-Earnings)

Compares stock price to earnings per share. A lower P/E ratio may indicate the stock is undervalued, while a higher ratio could suggest overvaluation or growth expectations.

P/B Score (Price-to-Book)

Compares market price to book value per share. Lower P/B ratios may indicate undervaluation relative to the company's net asset value.


Rating Recommendations:

Each metric is scored on a scale of 1-5, where the scores are determined by comparing the company's performance against industry benchmarks and historical data:

  • Strong Buy (5/5): Excellent score - strong positive indicator
    • The metric significantly outperforms industry averages (top 20% of companies)
    • Indicates exceptional financial health or attractive valuation in that category
  • Buy (4/5): Good score - positive indicator
    • Above-average performance (top 40% of companies)
    • Shows strong fundamentals with room for improvement
  • Neutral (3/5): Average score - neutral indicator
    • Performance in line with industry median (middle 20%)
    • Neither significantly positive nor negative signal
  • Sell (2/5): Below average - negative indicator
    • Below-average performance (bottom 40% of companies)
    • Suggests weakness in this particular metric
  • Strong Sell (1/5): Poor score - strong negative indicator
    • Significantly underperforms industry (bottom 20%)
    • Indicates potential risk or overvaluation in that category
Note: The overall rating combines all six component scores to provide a comprehensive investment assessment. No single metric should be used in isolation for investment decisions.