Stock · CDNS · Technology
United States · Large Cap · listed since 1987 · Revenue 12 mo. $6.1B
Price as of 11/06/2026
Cadence Design Systems, Inc. develops computational, AI-driven software, hardware, and silicon intellectual property products and solutions.
Cadence Design Systems, Inc. develops computational, AI-driven software, hardware, and silicon intellectual property products and solutions. The company offers functional verification services, such as Jasper, a formal verification platform; Xcelium, a parallel logic simulation platform; Verisium, a generative AI solution; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification, as well as digital IC design and sign off products, including Innovus platform; and custom IC design and simulation product include Virtuoso, a platform to design and verify analog. It also provides Xcelium logic simulator and other front-end verification and virtual prototyping technologies; controllers and physical interfaces; PCI Express, universal accelerator and compute express links, and multiple memory interfaces; and Tensilica, a digital signal processor. In addition, the company's design IP portfolio includes serializer/deserializer, peripheral component interconnect, USB, and other standard protocols; and Secure-IC, a solution for embedded security IP. Additionally, it provides System Design and Analysis (SD&A) platform, a solution that enables end-to-end system-level design and verification across chips, packages, PCBs, and electronic systems; Allegro X and Orca X platforms for PCB and advanced packaging; Sigrity X for signal and power integrity; AIR for RF design; Fidelity for computational fluid dynamics; Celsius for thermal and airflow analysis; Clarity 3D solver for electromagnetic and power electronics analysis and simulation; Integrity 3D-IC solution for 3D-IC and multi-chiplet designs; the Optimality Intelligent System Explorer, Reality digital twin, and Millennium enterprise multiphasic platforms; Allegro system design platform; and molecular modeling and simulation solutions and services. The company has a strategic collaboration with NVIDIA. The company was incorporated in 1987 and is headquartered in San Jose, California.
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Summary
52.0 of 100
Mean of the six area values. Each area value is the mean of the stock's ranks among the companies in its sector. 50 is the middle of the sector, not a share of companies beaten.
Analysis
What the price requires
If free cash flow stays at €1.4B (2025), it supports €15.8B. The remaining €62.6B of the market value assume it grows 22.3% a year for 10 years and not at all afterwards.
Required FCF growth per year
22.3%
no growth afterwards
Price to operating cash flow 44.8×, below its usual range.
Middle half of 20 quarters: 46.5× to 56.8×, median 49.0×.
Measures only against its own past, not against what the company is worth. Price as of 11/06/2026.
with respect to the priced-in expectation
with respect to the priced-in expectation
Since the last quarter
Q2 → Q3 2026
3 more unchanged: FCF margin, Net debt, Shares outstanding
Derivation
Each area value is the average of its metrics' ranks within the sector (0 to 100, 50 is the middle). For metrics where lower is better, the rank is mirrored. The overall value is the average of the area values.
Price as of 11/06/2026.
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Return on equity | 20.26% | 14.60% | Rank 67 |
| Return on capital (Greenblatt) | 46.45% | 29.77% | Rank 62 |
| EBIT margin | 31.15% | 17.40% | Rank 82 |
| FCF margin | 29.96% | 18.54% | Rank 82 |
| Gross margin | 86.36% | 48.47% | Rank 96 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Revenue growth, 1 year | 14.12% | 12.70% | Rank 56 |
| Earnings growth, 3 years per year | 9.54% | 9.54% | Rank 50 |
| Earnings growth, 5 years per year | 13.95% | 14.07% | Rank 49 |
| Sustainable growth (ROE × retained earnings) | 2.68% | 2.87% | Rank 47 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Earnings yield | 1.27% | 2.64% | Rank 25 |
| FCF yield | 1.82% | 3.06% | Rank 32 |
| EV/saleslower is better | 16.39 | 5.18 | Rank 15 |
| EV/EBITlower is better | 52.63 | 26.24 | Rank 25 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Share price, 1 year | −11.00% | −0.59% | Rank 37 |
| Share price, 6 months | −11.31% | −4.46% | Rank 42 |
| Share price, 3 months | −0.56% | −5.84% | Rank 59 |
| Distance from 52-week high | −23.17% | −33.23% | Rank 66 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Accruals (Sloan)lower is better | −1.67% | 1.65% | Rank 71 |
| Change in share countlower is better | −0.19% | −0.17% | Rank 51 |
| Dividend streak in years | – | 8 | Rank 18 |
| Price reaction to results, market-adjusted | 5.83% | −1.57% | Rank 82 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Equity ratio | 53.92% | 53.98% | Rank 50 |
| Net debt/EBITDAlower is better | −0.28 | −0.20 | Rank 51 |
| Debt to equitylower is better | 0.45 | 0.33 | Rank 37 |
| Volatility, 1 yearlower is better | 41.34% | 50.37% | Rank 74 |
Ten years in figures
| Year | Revenue, $B | EBIT margin | FCF | Shares | Net debt, $M |
|---|---|---|---|---|---|
| 2016 | 1.8 | 13.5% | $391.2M | 291M | 228.3 |
| 2017 | 1.9 | 16.7% | $412.8M | 280M | 41.3 |
| 2018 | 2.1 | 18.5% | $543.2M | 281M | −88.0 |
| 2019 | 2.3 | 21.1% | $655.0M | 281M | −359.2 |
| 2020 | 2.7 | 24.1% | $810.1M | 280M | −581.6 |
| 2021 | 3.0 | 26.1% | $1.0B | 279M | −741.4 |
| 2022 | 3.6 | 30.2% | $1.1B | 275M | 5.1 |
| 2023 | 4.1 | 30.6% | $1.2B | 273M | −243.7 |
| 2024 | 4.6 | 29.1% | $1.1B | 274M | −59.0 |
| 2025 | 5.3 | 31.2% | $1.6B | 273M | −521.2 |
3 of 7 StockScorer Score rules met · How the score is built
Cadence Design Systems Inc mainly meets criteria in the Profitability category. Result from 18 strategies checked.
Cadence Design Systems Inc is rated here with the StockScorer Score strategy, the flagship rule set. It compares return and cash-flow metrics with the median of the company's own sector and checks growth and price trend.
3 of 7 rules met
5 of 11 points
Detail data
Excerpt from 18 strategies checked. The full evaluation is visible after a free sign-up.
With a free account, you can see the match across all strategies checked in one complete overview.
Selected fundamental metrics for Cadence Design Systems Inc.
| Metric | Stock | Sector |
|---|---|---|
| P/E ratio | 78.9 | 35.1 |
| P/B ratio | 16.0 | 5.5 |
| Return on equity (ROE) | 20.3% | 14.6% |
| Equity ratio | 53.9% | 54.0% |
| Debt-to-equity (D/E) | 0.45 | 0.33 |
| Dividend yield | 0.0% | 0.9% |
How comparable stocks in the same sector score in the StockScorer model.
| Symbol | Company | Rating |
|---|---|---|
| CDNS | Cadence Design Systems Incthis page | |
| INTU | Intuit Inc | High7.3 |
| ADBE | Adobe Inc. | High7.3 |
| SNOW | Snowflake Inc. | locked |
| DDOG | Datadog Inc | locked |
| NOW | ServiceNow Inc | locked |
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Learn more about the metrics in the metrics glossary or all rated stocks in the stock overview.
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