268.5 USD
-20.69 (-7.15%)
At close: Feb 3, 2026
268.76 USD
+0.26 (+0.1%)
After Hours: 2/3/2026, 6:06:05 PM
Taking everything into account, CDNS scores 6 out of 10 in our fundamental rating. CDNS was compared to 278 industry peers in the Software industry. While CDNS has a great profitability rating, there are some minor concerns on its financial health. CDNS is valued quite expensively, but it does show have an excellent growth rating. This makes CDNS very considerable for growth investing!
1. Profitability
1.1 Basic Checks
- In the past year CDNS was profitable.
- In the past year CDNS had a positive cash flow from operations.
- CDNS had positive earnings in each of the past 5 years.
- In the past 5 years CDNS always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 11.05%, CDNS belongs to the best of the industry, outperforming 86.33% of the companies in the same industry.
- With an excellent Return On Equity value of 20.41%, CDNS belongs to the best of the industry, outperforming 88.13% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 15.75%, CDNS belongs to the best of the industry, outperforming 92.81% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for CDNS is significantly above the industry average of 10.74%.
- The 3 year average ROIC (20.16%) for CDNS is well above the current ROIC(15.75%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector 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%
1.3 Margins
- CDNS has a Profit Margin of 20.35%. This is amongst the best in the industry. CDNS outperforms 84.89% of its industry peers.
- In the last couple of years the Profit Margin of CDNS has declined.
- Looking at the Operating Margin, with a value of 31.57%, CDNS belongs to the top of the industry, outperforming 93.17% of the companies in the same industry.
- In the last couple of years the Operating Margin of CDNS has grown nicely.
- CDNS has a Gross Margin of 85.55%. This is amongst the best in the industry. CDNS outperforms 92.81% of its industry peers.
- CDNS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CDNS is creating value.
- CDNS has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for CDNS has been reduced compared to 5 years ago.
- Compared to 1 year ago, CDNS has a worse debt to assets ratio.
2.2 Solvency
- The Debt to FCF ratio of CDNS is 1.68, which is an excellent value as it means it would take CDNS, only 1.68 years of fcf income to pay off all of its debts.
- CDNS has a Debt to FCF ratio of 1.68. This is in the better half of the industry: CDNS outperforms 70.14% of its industry peers.
- A Debt/Equity ratio of 0.48 indicates that CDNS is not too dependend on debt financing.
- CDNS's Debt to Equity ratio of 0.48 is on the low side compared to the rest of the industry. CDNS is outperformed by 65.47% of its industry peers.
- Even though the debt/equity ratio score it not favorable for CDNS, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.68 | ||
| Altman-Z | N/A |
ROIC/WACC1.42
WACC11.09%
2.3 Liquidity
- A Current Ratio of 3.05 indicates that CDNS has no problem at all paying its short term obligations.
- CDNS has a better Current ratio (3.05) than 75.18% of its industry peers.
- A Quick Ratio of 2.84 indicates that CDNS has no problem at all paying its short term obligations.
- With a decent Quick ratio value of 2.84, CDNS is doing good in the industry, outperforming 74.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.05 | ||
| Quick Ratio | 2.84 |
3. Growth
3.1 Past
- CDNS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.52%, which is quite impressive.
- CDNS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.21% yearly.
- CDNS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.72%.
- CDNS 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, CDNS 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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 38.19, CDNS can be considered very expensive at the moment.
- CDNS's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.18, CDNS is valued a bit more expensive.
- The Price/Forward Earnings ratio is 32.68, which means the current valuation is very expensive for CDNS.
- CDNS's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of CDNS to the average of the S&P500 Index (25.51), we can say CDNS is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.19 | ||
| Fwd PE | 32.68 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CDNS indicates a somewhat cheap valuation: CDNS is cheaper than 60.79% of the companies listed in the same industry.
- CDNS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.43 | ||
| EV/EBITDA | 42.09 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- CDNS has an outstanding profitability rating, which may justify a higher PE ratio.
- CDNS's earnings are expected to grow with 16.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.86
PEG (5Y)1.72
EPS Next 2Y17.31%
EPS Next 3Y16.39%
5. Dividend
5.1 Amount
- No dividends for CDNS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
268.5
-20.69 (-7.15%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)10-27 2025-10-27/amc
Earnings (Next)02-17 2026-02-17/amc
Inst Owners91.74%
Inst Owner Change-2.32%
Ins Owners0.25%
Ins Owner Change-1.64%
Market Cap73.09B
Revenue(TTM)5.21B
Net Income(TTM)1.06B
Analysts81.88
Price Target389.55 (45.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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)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)-0.24%
PT rev (3m)1.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.17%
EPS NY rev (1m)0.13%
EPS NY rev (3m)3.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.19 | ||
| Fwd PE | 32.68 | ||
| P/S | 14.02 | ||
| P/FCF | 49.43 | ||
| P/OCF | 45.21 | ||
| P/B | 14.06 | ||
| P/tB | 38.84 | ||
| EV/EBITDA | 42.09 |
EPS(TTM)7.03
EY2.62%
EPS(NY)8.22
Fwd EY3.06%
FCF(TTM)5.43
FCFY2.02%
OCF(TTM)5.94
OCFY2.21%
SpS19.15
BVpS19.1
TBVpS6.91
PEG (NY)1.86
PEG (5Y)1.72
Graham Number54.96
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC11.09%
ROIC/WACC1.42
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 / CDNS FAQ
What is the ChartMill fundamental rating of CADENCE DESIGN SYS INC (CDNS) stock?
ChartMill assigns a fundamental rating of 6 / 10 to CDNS.
What is the valuation status for CDNS stock?
ChartMill assigns a valuation rating of 3 / 10 to CADENCE DESIGN SYS INC (CDNS). This can be considered as Overvalued.
Can you provide the profitability details for CADENCE DESIGN SYS INC?
CADENCE DESIGN SYS INC (CDNS) has a profitability rating of 9 / 10.
How financially healthy is CADENCE DESIGN SYS INC?
The financial health rating of CADENCE DESIGN SYS INC (CDNS) is 6 / 10.