CADENCE DESIGN SYS INC (1CDNS.MI) Fundamental Analysis & Valuation

BIT:1CDNS • US1273871087

250 EUR
+8.35 (+3.46%)
Last: Feb 10, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership

This 1CDNS.MI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

6

1CDNS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 121 industry peers in the Software industry. 1CDNS gets an excellent profitability rating and is at the same time showing great financial health properties. 1CDNS is valued quite expensive, but it does show an excellent growth. These ratings would make 1CDNS suitable for growth and quality investing!


Dividend Valuation Growth Profitability Health

8

1. 1CDNS.MI Profitability Analysis

1.1 Basic Checks

  • 1CDNS had positive earnings in the past year.
  • 1CDNS had a positive operating cash flow in the past year.
  • 1CDNS had positive earnings in each of the past 5 years.
  • 1CDNS had a positive operating cash flow in each of the past 5 years.
1CDNS.MI Yearly Net Income VS EBIT VS OCF VS FCF1CDNS.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 11.05%, 1CDNS belongs to the top of the industry, outperforming 80.34% of the companies in the same industry.
  • With a decent Return On Equity value of 20.41%, 1CDNS is doing good in the industry, outperforming 76.07% of the companies in the same industry.
  • With an excellent Return On Invested Capital value of 15.75%, 1CDNS belongs to the best of the industry, outperforming 85.47% of the companies in the same industry.
  • 1CDNS had an Average Return On Invested Capital over the past 3 years of 20.16%. This is significantly above the industry average of 13.12%.
  • The 3 year average ROIC (20.16%) for 1CDNS is well above the current ROIC(15.75%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 11.05%
ROE 20.41%
ROIC 15.75%
ROA(3y)15.55%
ROA(5y)15.49%
ROE(3y)28.03%
ROE(5y)26.64%
ROIC(3y)20.16%
ROIC(5y)18.92%
1CDNS.MI Yearly ROA, ROE, ROIC1CDNS.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

1.3 Margins

  • Looking at the Profit Margin, with a value of 20.35%, 1CDNS is in the better half of the industry, outperforming 78.63% of the companies in the same industry.
  • 1CDNS's Profit Margin has declined in the last couple of years.
  • 1CDNS's Operating Margin of 31.57% is amongst the best of the industry. 1CDNS outperforms 88.03% of its industry peers.
  • In the last couple of years the Operating Margin of 1CDNS has grown nicely.
  • 1CDNS has a Gross Margin of 85.55%. This is amongst the best in the industry. 1CDNS outperforms 81.20% of its industry peers.
  • In the last couple of years the Gross Margin of 1CDNS has remained more or less at the same level.
Industry RankSector Rank
OM 31.57%
PM (TTM) 20.35%
GM 85.55%
OM growth 3Y4.75%
OM growth 5Y6.92%
PM growth 3Y-0.79%
PM growth 5Y-11.69%
GM growth 3Y-1.39%
GM growth 5Y-0.58%
1CDNS.MI Yearly Profit, Operating, Gross Margins1CDNS.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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7

2. 1CDNS.MI Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1CDNS is creating value.
  • Compared to 1 year ago, 1CDNS has more shares outstanding
  • 1CDNS has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, 1CDNS has a worse debt to assets ratio.
1CDNS.MI Yearly Shares Outstanding1CDNS.MI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
1CDNS.MI Yearly Total Debt VS Total Assets1CDNS.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

2.2 Solvency

  • The Debt to FCF ratio of 1CDNS is 1.68, which is an excellent value as it means it would take 1CDNS, only 1.68 years of fcf income to pay off all of its debts.
  • 1CDNS has a Debt to FCF ratio of 1.68. This is in the better half of the industry: 1CDNS outperforms 60.68% of its industry peers.
  • A Debt/Equity ratio of 0.48 indicates that 1CDNS is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.48, 1CDNS is doing worse than 61.54% of the companies in the same industry.
  • Although 1CDNS's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.48
Debt/FCF 1.68
Altman-Z N/A
ROIC/WACC1.44
WACC10.93%
1CDNS.MI Yearly LT Debt VS Equity VS FCF1CDNS.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

2.3 Liquidity

  • A Current Ratio of 3.05 indicates that 1CDNS has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 3.05, 1CDNS belongs to the top of the industry, outperforming 86.32% of the companies in the same industry.
  • A Quick Ratio of 2.84 indicates that 1CDNS has no problem at all paying its short term obligations.
  • 1CDNS has a better Quick ratio (2.84) than 86.32% of its industry peers.
Industry RankSector Rank
Current Ratio 3.05
Quick Ratio 2.84
1CDNS.MI Yearly Current Assets VS Current Liabilites1CDNS.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

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7

3. 1CDNS.MI Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 28.52% over the past year.
  • Measured over the past years, 1CDNS shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.21% on average per year.
  • Looking at the last year, 1CDNS shows a quite strong growth in Revenue. The Revenue has grown by 19.72% in the last year.
  • 1CDNS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.72% yearly.
EPS 1Y (TTM)28.52%
EPS 3Y21.73%
EPS 5Y22.21%
EPS Q2Q%17.68%
Revenue 1Y (TTM)19.72%
Revenue growth 3Y15.81%
Revenue growth 5Y14.72%
Sales Q2Q%10.15%

3.2 Future

  • Based on estimates for the next years, 1CDNS will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.14% on average per year.
  • The Revenue is expected to grow by 11.93% on average over the next years. This is quite good.
EPS Next Y20.59%
EPS Next 2Y17.31%
EPS Next 3Y16.39%
EPS Next 5Y13.14%
Revenue Next Year13.96%
Revenue Next 2Y13.23%
Revenue Next 3Y12.93%
Revenue Next 5Y11.93%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
1CDNS.MI Yearly Revenue VS Estimates1CDNS.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2B 4B 6B 8B 10B
1CDNS.MI Yearly EPS VS Estimates1CDNS.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15 20

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2

4. 1CDNS.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • 1CDNS is valuated quite expensively with a Price/Earnings ratio of 41.81.
  • 1CDNS's Price/Earnings ratio is in line with the industry average.
  • 1CDNS is valuated expensively when we compare the Price/Earnings ratio to 26.45, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 35.77 indicates a quite expensive valuation of 1CDNS.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of 1CDNS is on the same level as its industry peers.
  • 1CDNS's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.65.
Industry RankSector Rank
PE 41.81
Fwd PE 35.77
1CDNS.MI Price Earnings VS Forward Price Earnings1CDNS.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1CDNS.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as 1CDNS.
Industry RankSector Rank
P/FCF 54.09
EV/EBITDA 42.77
1CDNS.MI Per share data1CDNS.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1CDNS does not grow enough to justify the current Price/Earnings ratio.
  • The excellent profitability rating of 1CDNS may justify a higher PE ratio.
  • A more expensive valuation may be justified as 1CDNS's earnings are expected to grow with 16.39% in the coming years.
PEG (NY)2.03
PEG (5Y)1.88
EPS Next 2Y17.31%
EPS Next 3Y16.39%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. 1CDNS.MI Dividend Analysis

5.1 Amount

  • No dividends for 1CDNS!.
Industry RankSector Rank
Dividend Yield 0%

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1CDNS.MI Fundamentals: All Metrics, Ratios and Statistics

CADENCE DESIGN SYS INC

BIT:1CDNS (2/10/2026, 7:00:00 PM)

250

+8.35 (+3.46%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)10-27
Earnings (Next)02-17
Inst Owners91.74%
Inst Owner ChangeN/A
Ins Owners0.25%
Ins Owner ChangeN/A
Market Cap68.05B
Revenue(TTM)5.21B
Net Income(TTM)1.06B
Analysts81.88
Price Target333.89 (33.56%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.96%
Min EPS beat(2)4.06%
Max EPS beat(2)5.86%
EPS beat(4)4
Avg EPS beat(4)3.6%
Min EPS beat(4)1.28%
Max EPS beat(4)5.86%
EPS beat(8)8
Avg EPS beat(8)3.98%
EPS beat(12)12
Avg EPS beat(12)3.22%
EPS beat(16)16
Avg EPS beat(16)4.67%
Revenue beat(2)1
Avg Revenue beat(2)-0.36%
Min Revenue beat(2)-0.75%
Max Revenue beat(2)0.03%
Revenue beat(4)1
Avg Revenue beat(4)-0.92%
Min Revenue beat(4)-1.71%
Max Revenue beat(4)0.03%
Revenue beat(8)2
Avg Revenue beat(8)-0.69%
Revenue beat(12)3
Avg Revenue beat(12)-0.68%
Revenue beat(16)7
Avg Revenue beat(16)-0.18%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)0.21%
EPS NY rev (1m)3.95%
EPS NY rev (3m)3.95%
Revenue NQ rev (1m)1.33%
Revenue NQ rev (3m)1.33%
Revenue NY rev (1m)1.64%
Revenue NY rev (3m)1.64%
Valuation
Industry RankSector Rank
PE 41.81
Fwd PE 35.77
P/S 15.34
P/FCF 54.09
P/OCF 49.47
P/B 15.38
P/tB 42.51
EV/EBITDA 42.77
EPS(TTM)5.98
EY2.39%
EPS(NY)6.99
Fwd EY2.8%
FCF(TTM)4.62
FCFY1.85%
OCF(TTM)5.05
OCFY2.02%
SpS16.29
BVpS16.25
TBVpS5.88
PEG (NY)2.03
PEG (5Y)1.88
Graham Number46.76
Profitability
Industry RankSector Rank
ROA 11.05%
ROE 20.41%
ROCE 20.09%
ROIC 15.75%
ROICexc 23.73%
ROICexgc 60.82%
OM 31.57%
PM (TTM) 20.35%
GM 85.55%
FCFM 28.37%
ROA(3y)15.55%
ROA(5y)15.49%
ROE(3y)28.03%
ROE(5y)26.64%
ROIC(3y)20.16%
ROIC(5y)18.92%
ROICexc(3y)28.2%
ROICexc(5y)26.78%
ROICexgc(3y)72.83%
ROICexgc(5y)62.51%
ROCE(3y)25.95%
ROCE(5y)24.28%
ROICexgc growth 3Y4.04%
ROICexgc growth 5Y11.48%
ROICexc growth 3Y-4.84%
ROICexc growth 5Y2.66%
OM growth 3Y4.75%
OM growth 5Y6.92%
PM growth 3Y-0.79%
PM growth 5Y-11.69%
GM growth 3Y-1.39%
GM growth 5Y-0.58%
F-Score7
Asset Turnover0.54
Health
Industry RankSector Rank
Debt/Equity 0.48
Debt/FCF 1.68
Debt/EBITDA 1.33
Cap/Depr 63.33%
Cap/Sales 2.65%
Interest Coverage 250
Cash Conversion 86.74%
Profit Quality 139.37%
Current Ratio 3.05
Quick Ratio 2.84
Altman-Z N/A
F-Score7
WACC10.93%
ROIC/WACC1.44
Cap/Depr(3y)78.99%
Cap/Depr(5y)69.81%
Cap/Sales(3y)3.02%
Cap/Sales(5y)2.97%
Profit Quality(3y)119.11%
Profit Quality(5y)128.61%
High Growth Momentum
Growth
EPS 1Y (TTM)28.52%
EPS 3Y21.73%
EPS 5Y22.21%
EPS Q2Q%17.68%
EPS Next Y20.59%
EPS Next 2Y17.31%
EPS Next 3Y16.39%
EPS Next 5Y13.14%
Revenue 1Y (TTM)19.72%
Revenue growth 3Y15.81%
Revenue growth 5Y14.72%
Sales Q2Q%10.15%
Revenue Next Year13.96%
Revenue Next 2Y13.23%
Revenue Next 3Y12.93%
Revenue Next 5Y11.93%
EBIT growth 1Y29.6%
EBIT growth 3Y21.31%
EBIT growth 5Y22.65%
EBIT Next Year23.27%
EBIT Next 3Y17.85%
EBIT Next 5Y16.55%
FCF growth 1Y19.71%
FCF growth 3Y2.64%
FCF growth 5Y11.29%
OCF growth 1Y20.58%
OCF growth 3Y4.62%
OCF growth 5Y11.56%

CADENCE DESIGN SYS INC / 1CDNS.MI FAQ

What is the fundamental rating for 1CDNS stock?

ChartMill assigns a fundamental rating of 6 / 10 to 1CDNS.MI.


What is the valuation status for 1CDNS stock?

ChartMill assigns a valuation rating of 2 / 10 to CADENCE DESIGN SYS INC (1CDNS.MI). This can be considered as Overvalued.


What is the profitability of 1CDNS stock?

CADENCE DESIGN SYS INC (1CDNS.MI) has a profitability rating of 8 / 10.


What are the PE and PB ratios of CADENCE DESIGN SYS INC (1CDNS.MI) stock?

The Price/Earnings (PE) ratio for CADENCE DESIGN SYS INC (1CDNS.MI) is 41.81 and the Price/Book (PB) ratio is 15.38.


What is the expected EPS growth for CADENCE DESIGN SYS INC (1CDNS.MI) stock?

The Earnings per Share (EPS) of CADENCE DESIGN SYS INC (1CDNS.MI) is expected to grow by 20.59% in the next year.