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

Europe • Euronext Milan • BIT:1CDNS • US1273871087

273.75 EUR
-34.35 (-11.15%)
Last: Jan 23, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership
Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to 1CDNS. 1CDNS was compared to 122 industry peers in the Software industry. 1CDNS gets an excellent profitability rating and is at the same time showing great financial health properties. 1CDNS shows excellent growth, but is valued quite expensive already. With these ratings, 1CDNS could be worth investigating further for growth and quality investing!.


Dividend Valuation Growth Profitability Health

8

1. Profitability

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

  • 1CDNS has a Return On Assets of 11.05%. This is in the better half of the industry: 1CDNS outperforms 77.39% of its industry peers.
  • 1CDNS has a better Return On Equity (20.41%) than 77.39% of its industry peers.
  • 1CDNS has a Return On Invested Capital of 15.75%. This is amongst the best in the industry. 1CDNS outperforms 85.22% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for 1CDNS is significantly above the industry average of 13.45%.
  • The last Return On Invested Capital (15.75%) for 1CDNS is well below the 3 year average (20.16%), which needs to be investigated, but indicates that 1CDNS had better years and this may not be a problem.
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

  • 1CDNS has a Profit Margin of 20.35%. This is in the better half of the industry: 1CDNS outperforms 75.65% of its industry peers.
  • 1CDNS's Profit Margin has declined in the last couple of years.
  • 1CDNS has a better Operating Margin (31.57%) than 88.70% of its industry peers.
  • In the last couple of years the Operating Margin of 1CDNS has grown nicely.
  • Looking at the Gross Margin, with a value of 85.55%, 1CDNS belongs to the top of the industry, outperforming 80.87% of the companies in the same industry.
  • 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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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
  • The debt/assets ratio for 1CDNS is higher compared to a year ago.
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

  • 1CDNS has a debt to FCF ratio of 1.68. This is a very positive value and a sign of high solvency as it would only need 1.68 years to pay back of 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 64.35% of its industry peers.
  • 1CDNS has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
  • Looking at the Debt to Equity ratio, with a value of 0.48, 1CDNS is doing worse than 61.74% of the companies in the same industry.
  • Even though the debt/equity ratio score it not favorable for 1CDNS, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 0.48
Debt/FCF 1.68
Altman-Z N/A
ROIC/WACC1.43
WACC11.01%
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

  • 1CDNS has a Current Ratio of 3.05. This indicates that 1CDNS is financially healthy and has no problem in meeting its short term obligations.
  • 1CDNS's Current ratio of 3.05 is amongst the best of the industry. 1CDNS outperforms 83.48% of its industry peers.
  • A Quick Ratio of 2.84 indicates that 1CDNS has no problem at all paying its short term obligations.
  • Looking at the Quick ratio, with a value of 2.84, 1CDNS belongs to the top of the industry, outperforming 83.48% of the companies in the same industry.
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. Growth

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.
  • 1CDNS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.72%.
  • The Revenue has been growing by 14.72% on average over the past years. This is quite good.
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

  • The Earnings Per Share is expected to grow by 13.14% on average over the next years. This is quite good.
  • Based on estimates for the next years, 1CDNS will show a quite strong growth in Revenue. The Revenue will grow by 11.93% on average per year.
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

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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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Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • 1CDNS is valuated quite expensively with a Price/Earnings ratio of 46.40.
  • Compared to the rest of the industry, the Price/Earnings ratio of 1CDNS is on the same level as its industry peers.
  • 1CDNS's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.93.
  • The Price/Forward Earnings ratio is 39.72, which means the current valuation is very expensive for 1CDNS.
  • The rest of the industry has a similar Price/Forward Earnings ratio as 1CDNS.
  • When comparing the Price/Forward Earnings ratio of 1CDNS to the average of the S&P500 Index (27.77), we can say 1CDNS is valued slightly more expensively.
Industry RankSector Rank
PE 46.4
Fwd PE 39.72
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 60.07
EV/EBITDA 47.51
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.
  • 1CDNS's earnings are expected to grow with 16.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.25
PEG (5Y)2.09
EPS Next 2Y17.31%
EPS Next 3Y16.39%

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

0

5. Dividend

5.1 Amount

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

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Find the best dividend stocksShow peers with best dividend

CADENCE DESIGN SYS INC

BIT:1CDNS (1/23/2026, 7:00:00 PM)

273.75

-34.35 (-11.15%)

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 Cap74.51B
Revenue(TTM)5.21B
Net Income(TTM)1.06B
Analysts81.88
Price Target333.89 (21.97%)
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 46.4
Fwd PE 39.72
P/S 17.04
P/FCF 60.07
P/OCF 54.94
P/B 17.08
P/tB 47.2
EV/EBITDA 47.51
EPS(TTM)5.9
EY2.16%
EPS(NY)6.89
Fwd EY2.52%
FCF(TTM)4.56
FCFY1.66%
OCF(TTM)4.98
OCFY1.82%
SpS16.07
BVpS16.02
TBVpS5.8
PEG (NY)2.25
PEG (5Y)2.09
Graham Number46.12
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
WACC11.01%
ROIC/WACC1.43
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 46.4 and the Price/Book (PB) ratio is 17.08.


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.