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CDNS

CDNS

Technology · Software - Application

$390.89-0.92%
Mkt Cap: $107.81B

Performance

CDNS (CDNS) Stock Analysis 2026

Rule-based · Updated daily · Not financial advice

CDNS (CDNS) operates in the Software - Application space within the Technology sector. With a market cap of $107.8B, it qualifies as a mid-cap company. The company is growing revenue strongly while maintaining healthy profitability — a combination that investors typically reward with a premium valuation.

Bull Case5
  • Forward P/E (41.7×) is lower than trailing P/E (90.9×) — analysts expect earnings to improve
  • Revenue growth of 19% YoY shows solid business momentum
  • Earnings grew 23% YoY — bottom-line is expanding fast
  • Exceptional profit margin of 21.2% — the business retains a large share of each dollar earned
  • ROE of 20.7% shows management efficiently converts equity into profit
Bear Case3
  • High P/E of 90.9× implies high expectations already priced in — leaves little room for disappointment
  • High debt-to-equity of 46.99× increases financial risk, especially with elevated interest rates
  • No dividend history — total return depends entirely on price appreciation

Verdict

Buy / Hold

More positives than negatives. Fundamentals support holding while monitoring key risks.

AI Insight

Powered by Claude

AI-generated analysis for informational purposes only. Not financial advice.

Related Articles

Revenue & Results

Dividends

This stock does not pay dividends.

If You Had Invested…

Hypothetical return based on historical prices

$

* Dividend reinvestment calculated at ex-date price. For informational purposes only.

Earnings

Next Earnings

Jul 27, 2026

41

days

EPS (TTM)

$4.30

P/E (TTM)

90.9

Fwd P/E

41.7

Earnings History

SEC EDGAR · official filings

SEC filings

SEC Filings

Official EDGAR documents

All filings

Key Statistics

Valuation

Market Cap$107.81B
P/E Ratio90.90
Forward P/E41.65
P/B Ratio
PEG Ratio3.65
EPS (TTM)$4.30

Trading

Open
Day High
Day Low
52W High$416.69
52W Low$262.75
Volume
Avg Volume (3M)2,378,911
Beta1.15

Dividends

Dividend Yield
Annual Rate
Ex-Div Date
Payout Ratio0.00%

Profitability

Profit Margin21.18%
Operating Margin29.70%
ROE20.66%
ROA10.39%
Revenue Growth18.70%
Earnings Growth23.00%

Balance Sheet

Total Revenue$5.53B
Total Debt$3.08B
Debt / Equity46.99
Current Ratio1.47
Free Cash Flow$1.50B

Fair Value Estimates

Current price: $390.89

Graham Number

√(22.5 × EPS × Book Value)

$47.97

-87.7% downside

Benjamin Graham's intrinsic value formula. Assumes a fair stock trades at no more than 22.5× the product of EPS and book value per share.

Bazin Ceiling Price

Avg. Annual DPS (5Y) ÷ 6%

N/A

Décio Bazin's dividend-based ceiling. The max price you should pay so that dividends alone deliver at least 6% annual yield on your cost basis.

These are simplified estimates. Not financial advice.

Buy & Hold Checklist

Quality criteria for long-term holding

6/10

75% score

Pays dividends

No dividend history found

Dividend consistency (5Y+)

Uninterrupted dividend payments for at least 5 years

ROE above 10%

20.7%

Return on equity — measures how efficiently capital is used

Positive profit margin

21.2%

Net profit margin must be positive — company earns more than it spends

Revenue growth (annual)

+18.7%

Annual revenue must be growing compared to the prior year

Earnings growth (annual)

+23.0%

Annual earnings must be growing compared to the prior year

Debt/Equity below 2×

46.99×

Low financial leverage reduces risk of distress

Current ratio above 1

1.47×

Short-term assets must cover short-term liabilities

Daily liquidity above $5M

$930M/day

High trading volume ensures easy entry and exit

Dividend yield above 0%

Stock must distribute income to shareholders

Related Assets

Technology

About CDNS

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 In novus 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 Ten Silica, 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.

Sector

Technology

Industry

Software - Application

Location

San Jose, United States

Employees

15,110