CDNS
Technology · Software - Application
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 $108.8B, 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.
- Forward P/E (42.0×) is lower than trailing P/E (91.7×) — 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
- High P/E of 91.7× 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
- Price is near its 52-week high — limited near-term upside, higher pullback risk
Verdict
Buy / Hold
More positives than negatives. Fundamentals support holding while monitoring key risks.
AI Insight
Powered by ClaudeAI-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)
91.7
Fwd P/E
42.0
Earnings History
SEC EDGAR · official filings
SEC Filings
Official EDGAR documents
Key Statistics
Valuation
Trading
Dividends
Profitability
Balance Sheet
Fair Value Estimates
Current price: $394.50
Graham Number
√(22.5 × EPS × Book Value)
$47.97
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
$938M/dayHigh 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