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

BIT:1CDNS • US1273871087

Current stock price

252.3 EUR
+6.5 (+2.64%)
Last:

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

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.
  • Each year in the past 5 years 1CDNS has been profitable.
  • 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 2025 500M 1B 1.5B

1.2 Ratios

  • 1CDNS's Return On Assets of 10.92% is amongst the best of the industry. 1CDNS outperforms 80.67% of its industry peers.
  • 1CDNS has a Return On Equity of 20.26%. This is in the better half of the industry: 1CDNS outperforms 78.15% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 14.48%, 1CDNS belongs to the top of the industry, outperforming 84.87% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for 1CDNS is above the industry average of 13.78%.
Industry RankSector Rank
ROA 10.92%
ROE 20.26%
ROIC 14.48%
ROA(3y)13.68%
ROA(5y)14.69%
ROE(3y)24.47%
ROE(5y)25.95%
ROIC(3y)17.13%
ROIC(5y)17.76%
1CDNS.MI Yearly ROA, ROE, ROIC1CDNS.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • With an excellent Profit Margin value of 20.94%, 1CDNS belongs to the best of the industry, outperforming 83.19% of the companies in the same industry.
  • 1CDNS's Profit Margin has been stable in the last couple of years.
  • Looking at the Operating Margin, with a value of 31.36%, 1CDNS belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
  • 1CDNS's Operating Margin has improved in the last couple of years.
  • 1CDNS has a better Gross Margin (86.36%) than 81.51% of its industry peers.
  • 1CDNS's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 31.36%
PM (TTM) 20.94%
GM 86.36%
OM growth 3Y1.71%
OM growth 5Y5.38%
PM growth 3Y-4.23%
PM growth 5Y-1%
GM growth 3Y-1.21%
GM growth 5Y-0.51%
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 2025 20 40 60 80

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9

2. 1CDNS.MI Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1CDNS is creating some value.
  • Compared to 1 year ago, 1CDNS has less shares outstanding
  • The number of shares outstanding for 1CDNS has been reduced compared to 5 years ago.
  • 1CDNS has a better debt/assets ratio than last year.
1CDNS.MI Yearly Shares Outstanding1CDNS.MI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • 1CDNS has an Altman-Z score of 12.93. This indicates that 1CDNS is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 12.93, 1CDNS belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
  • 1CDNS has a debt to FCF ratio of 1.56. This is a very positive value and a sign of high solvency as it would only need 1.56 years to pay back of all of its debts.
  • With a decent Debt to FCF ratio value of 1.56, 1CDNS is doing good in the industry, outperforming 61.34% of the companies in the same industry.
  • A Debt/Equity ratio of 0.45 indicates that 1CDNS is not too dependend on debt financing.
  • With a Debt to Equity ratio value of 0.45, 1CDNS is not doing good in the industry: 61.34% of the companies in the same industry are doing better.
  • 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 0.45
Debt/FCF 1.56
Altman-Z 12.93
ROIC/WACC1.39
WACC10.44%
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 2025 1B 2B 3B 4B 5B

2.3 Liquidity

  • A Current Ratio of 2.86 indicates that 1CDNS has no problem at all paying its short term obligations.
  • 1CDNS has a better Current ratio (2.86) than 83.19% of its industry peers.
  • 1CDNS has a Quick Ratio of 2.67. This indicates that 1CDNS is financially healthy and has no problem in meeting its short term obligations.
  • The Quick ratio of 1CDNS (2.67) is better than 82.35% of its industry peers.
Industry RankSector Rank
Current Ratio 2.86
Quick Ratio 2.67
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 2025 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. 1CDNS.MI Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 19.60% over the past year.
  • 1CDNS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.68% yearly.
  • 1CDNS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.12%.
  • 1CDNS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.57% yearly.
EPS 1Y (TTM)19.6%
EPS 3Y18.69%
EPS 5Y20.68%
EPS Q2Q%5.85%
Revenue 1Y (TTM)14.12%
Revenue growth 3Y14.14%
Revenue growth 5Y14.57%
Sales Q2Q%6.2%

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 14.49% on average per year.
  • The Revenue is expected to grow by 12.98% on average over the next years. This is quite good.
EPS Next Y15.4%
EPS Next 2Y15.2%
EPS Next 3Y14.46%
EPS Next 5Y14.49%
Revenue Next Year14.05%
Revenue Next 2Y13.22%
Revenue Next 3Y13.02%
Revenue Next 5Y12.98%

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.
  • 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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3

4. 1CDNS.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 41.70 indicates a quite expensive valuation of 1CDNS.
  • 1CDNS's Price/Earnings is on the same level as the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 27.89, 1CDNS is valued a bit more expensive.
  • 1CDNS is valuated quite expensively with a Price/Forward Earnings ratio of 36.12.
  • The rest of the industry has a similar Price/Forward Earnings ratio as 1CDNS.
  • 1CDNS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 38.50, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 41.7
Fwd PE 36.12
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

  • 1CDNS's Enterprise Value to EBITDA ratio is in line with the industry average.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as 1CDNS.
Industry RankSector Rank
P/FCF 51.74
EV/EBITDA 43.03
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.
  • 1CDNS has an outstanding profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as 1CDNS's earnings are expected to grow with 14.46% in the coming years.
PEG (NY)2.71
PEG (5Y)2.02
EPS Next 2Y15.2%
EPS Next 3Y14.46%

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

0

5. 1CDNS.MI Dividend Analysis

5.1 Amount

  • 1CDNS does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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

CADENCE DESIGN SYS INC

BIT:1CDNS (4/15/2026, 7:00:00 PM)

252.3

+6.5 (+2.64%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-17
Earnings (Next)04-27
Inst Owners89.81%
Inst Owner ChangeN/A
Ins Owners0.34%
Ins Owner ChangeN/A
Market Cap69.60B
Revenue(TTM)5.30B
Net Income(TTM)1.11B
Analysts83.13
Price Target314.93 (24.82%)
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 Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.92%
Min EPS beat(2)1.98%
Max EPS beat(2)5.86%
EPS beat(4)4
Avg EPS beat(4)3.78%
Min EPS beat(4)1.98%
Max EPS beat(4)5.86%
EPS beat(8)8
Avg EPS beat(8)4.05%
EPS beat(12)12
Avg EPS beat(12)3.19%
EPS beat(16)16
Avg EPS beat(16)4.44%
Revenue beat(2)0
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-0.82%
Max Revenue beat(2)-0.75%
Revenue beat(4)1
Avg Revenue beat(4)-0.81%
Min Revenue beat(4)-1.71%
Max Revenue beat(4)0.03%
Revenue beat(8)2
Avg Revenue beat(8)-0.64%
Revenue beat(12)3
Avg Revenue beat(12)-0.73%
Revenue beat(16)6
Avg Revenue beat(16)-0.24%
PT rev (1m)-5.68%
PT rev (3m)N/A
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)10.48%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)3.87%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)6.59%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)3.4%
Valuation
Industry RankSector Rank
PE 41.7
Fwd PE 36.12
P/S 15.5
P/FCF 51.74
P/OCF 47.5
P/B 15
P/tB 40.92
EV/EBITDA 43.03
EPS(TTM)6.05
EY2.4%
EPS(NY)6.98
Fwd EY2.77%
FCF(TTM)4.88
FCFY1.93%
OCF(TTM)5.31
OCFY2.11%
SpS16.27
BVpS16.82
TBVpS6.17
PEG (NY)2.71
PEG (5Y)2.02
Graham Number47.8501 (-81.03%)
Profitability
Industry RankSector Rank
ROA 10.92%
ROE 20.26%
ROCE 19.5%
ROIC 14.48%
ROICexc 23%
ROICexgc 65.08%
OM 31.36%
PM (TTM) 20.94%
GM 86.36%
FCFM 29.96%
ROA(3y)13.68%
ROA(5y)14.69%
ROE(3y)24.47%
ROE(5y)25.95%
ROIC(3y)17.13%
ROIC(5y)17.76%
ROICexc(3y)25.61%
ROICexc(5y)25.63%
ROICexgc(3y)70.1%
ROICexgc(5y)64.45%
ROCE(3y)23.08%
ROCE(5y)24.07%
ROICexgc growth 3Y1.82%
ROICexgc growth 5Y10.8%
ROICexc growth 3Y-4.26%
ROICexc growth 5Y1.27%
OM growth 3Y1.71%
OM growth 5Y5.38%
PM growth 3Y-4.23%
PM growth 5Y-1%
GM growth 3Y-1.21%
GM growth 5Y-0.51%
F-Score7
Asset Turnover0.52
Health
Industry RankSector Rank
Debt/Equity 0.45
Debt/FCF 1.56
Debt/EBITDA 1.31
Cap/Depr 62.27%
Cap/Sales 2.68%
Interest Coverage 14.84
Cash Conversion 91.51%
Profit Quality 143.11%
Current Ratio 2.86
Quick Ratio 2.67
Altman-Z 12.93
F-Score7
WACC10.44%
ROIC/WACC1.39
Cap/Depr(3y)68.4%
Cap/Depr(5y)69.25%
Cap/Sales(3y)2.75%
Cap/Sales(5y)2.8%
Profit Quality(3y)122.92%
Profit Quality(5y)129.8%
High Growth Momentum
Growth
EPS 1Y (TTM)19.6%
EPS 3Y18.69%
EPS 5Y20.68%
EPS Q2Q%5.85%
EPS Next Y15.4%
EPS Next 2Y15.2%
EPS Next 3Y14.46%
EPS Next 5Y14.49%
Revenue 1Y (TTM)14.12%
Revenue growth 3Y14.14%
Revenue growth 5Y14.57%
Sales Q2Q%6.2%
Revenue Next Year14.05%
Revenue Next 2Y13.22%
Revenue Next 3Y13.02%
Revenue Next 5Y12.98%
EBIT growth 1Y19.58%
EBIT growth 3Y16.1%
EBIT growth 5Y20.74%
EBIT Next Year21.71%
EBIT Next 3Y16.18%
EBIT Next 5Y15.44%
FCF growth 1Y41.94%
FCF growth 3Y12.39%
FCF growth 5Y14.39%
OCF growth 1Y37.14%
OCF growth 3Y11.66%
OCF growth 5Y13.82%

CADENCE DESIGN SYS INC / 1CDNS.MI Fundamental Analysis FAQ

What is the fundamental rating for 1CDNS stock?

ChartMill assigns a fundamental rating of 7 / 10 to 1CDNS.MI.


What is the valuation status for 1CDNS stock?

ChartMill assigns a valuation rating of 3 / 10 to CADENCE DESIGN SYS INC (1CDNS.MI). This can be considered as Overvalued.


Can you provide the profitability details for CADENCE DESIGN SYS INC?

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


How financially healthy is CADENCE DESIGN SYS INC?

The financial health rating of CADENCE DESIGN SYS INC (1CDNS.MI) is 9 / 10.