CADENCE DESIGN SYS INC (CDS.DE) Fundamental Analysis & Valuation

FRA:CDS • US1273871087

Current stock price

243.4 EUR
-0.55 (-0.23%)
Last:

This CDS.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. CDS.DE Profitability Analysis

1.1 Basic Checks

  • In the past year CDS was profitable.
  • CDS had a positive operating cash flow in the past year.
  • Each year in the past 5 years CDS has been profitable.
  • Each year in the past 5 years CDS had a positive operating cash flow.
CDS.DE Yearly Net Income VS EBIT VS OCF VS FCFCDS.DE 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

  • With an excellent Return On Assets value of 10.92%, CDS belongs to the best of the industry, outperforming 80.56% of the companies in the same industry.
  • With a decent Return On Equity value of 20.26%, CDS is doing good in the industry, outperforming 78.70% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 14.48%, CDS belongs to the top of the industry, outperforming 84.26% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for CDS is above the industry average of 13.30%.
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%
CDS.DE Yearly ROA, ROE, ROICCDS.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • Looking at the Profit Margin, with a value of 20.94%, CDS belongs to the top of the industry, outperforming 82.41% of the companies in the same industry.
  • CDS's Profit Margin has been stable in the last couple of years.
  • Looking at the Operating Margin, with a value of 31.36%, CDS belongs to the top of the industry, outperforming 87.96% of the companies in the same industry.
  • CDS's Operating Margin has improved in the last couple of years.
  • CDS has a better Gross Margin (86.36%) than 79.63% of its industry peers.
  • CDS'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%
CDS.DE Yearly Profit, Operating, Gross MarginsCDS.DE 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. CDS.DE Health Analysis

2.1 Basic Checks

  • CDS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • CDS has less shares outstanding than it did 1 year ago.
  • CDS has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, CDS has an improved debt to assets ratio.
CDS.DE Yearly Shares OutstandingCDS.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M
CDS.DE Yearly Total Debt VS Total AssetsCDS.DE 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

  • An Altman-Z score of 12.32 indicates that CDS is not in any danger for bankruptcy at the moment.
  • CDS has a better Altman-Z score (12.32) than 95.37% of its industry peers.
  • The Debt to FCF ratio of CDS is 1.56, which is an excellent value as it means it would take CDS, only 1.56 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of CDS (1.56) is better than 67.59% of its industry peers.
  • A Debt/Equity ratio of 0.45 indicates that CDS is not too dependend on debt financing.
  • CDS's Debt to Equity ratio of 0.45 is in line compared to the rest of the industry. CDS outperforms 40.74% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.45
Debt/FCF 1.56
Altman-Z 12.32
ROIC/WACC1.32
WACC10.93%
CDS.DE Yearly LT Debt VS Equity VS FCFCDS.DE 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

  • CDS has a Current Ratio of 2.86. This indicates that CDS is financially healthy and has no problem in meeting its short term obligations.
  • CDS has a better Current ratio (2.86) than 85.19% of its industry peers.
  • A Quick Ratio of 2.67 indicates that CDS has no problem at all paying its short term obligations.
  • With an excellent Quick ratio value of 2.67, CDS belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.86
Quick Ratio 2.67
CDS.DE Yearly Current Assets VS Current LiabilitesCDS.DE 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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7

3. CDS.DE Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 19.60% over the past year.
  • CDS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.68% yearly.
  • The Revenue has grown by 14.12% in the past year. This is quite good.
  • The Revenue has been growing by 14.57% on average over the past years. This is quite good.
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, CDS 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 Y15.46%
EPS Next 2Y15.17%
EPS Next 3Y13.6%
EPS Next 5Y14.49%
Revenue Next Year13.94%
Revenue Next 2Y13.15%
Revenue Next 3Y13.02%
Revenue Next 5Y12.98%

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.
CDS.DE Yearly Revenue VS EstimatesCDS.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2B 4B 6B 8B 10B
CDS.DE Yearly EPS VS EstimatesCDS.DE 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. CDS.DE Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 39.26, which means the current valuation is very expensive for CDS.
  • Compared to the rest of the industry, the Price/Earnings ratio of CDS is on the same level as its industry peers.
  • The average S&P500 Price/Earnings ratio is at 24.88. CDS is valued rather expensively when compared to this.
  • A Price/Forward Earnings ratio of 34.01 indicates a quite expensive valuation of CDS.
  • CDS's Price/Forward Earnings is on the same level as the industry average.
  • CDS is valuated expensively when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 39.26
Fwd PE 34.01
CDS.DE Price Earnings VS Forward Price EarningsCDS.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • CDS's Enterprise Value to EBITDA is on the same level as the industry average.
  • CDS's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 48.73
EV/EBITDA 40.5
CDS.DE Per share dataCDS.DE 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 CDS does not grow enough to justify the current Price/Earnings ratio.
  • CDS has an outstanding profitability rating, which may justify a higher PE ratio.
  • CDS's earnings are expected to grow with 13.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.54
PEG (5Y)1.9
EPS Next 2Y15.17%
EPS Next 3Y13.6%

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

0

5. CDS.DE Dividend Analysis

5.1 Amount

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

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CDS.DE Fundamentals: All Metrics, Ratios and Statistics

CADENCE DESIGN SYS INC

FRA:CDS (3/26/2026, 7:00:00 PM)

243.4

-0.55 (-0.23%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-17
Earnings (Next)04-27
Inst Owners89.74%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner ChangeN/A
Market Cap67.15B
Revenue(TTM)5.30B
Net Income(TTM)1.11B
Analysts83.13
Price Target323.39 (32.86%)
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)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)-3.65%
PT rev (3m)-3.38%
EPS NQ rev (1m)-0.83%
EPS NQ rev (3m)6.08%
EPS NY rev (1m)0.36%
EPS NY rev (3m)0.45%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)4.62%
Revenue NY rev (1m)1.29%
Revenue NY rev (3m)1.29%
Valuation
Industry RankSector Rank
PE 39.26
Fwd PE 34.01
P/S 14.6
P/FCF 48.73
P/OCF 44.73
P/B 14.13
P/tB 38.54
EV/EBITDA 40.5
EPS(TTM)6.2
EY2.55%
EPS(NY)7.16
Fwd EY2.94%
FCF(TTM)4.99
FCFY2.05%
OCF(TTM)5.44
OCFY2.24%
SpS16.67
BVpS17.23
TBVpS6.32
PEG (NY)2.54
PEG (5Y)1.9
Graham Number49.02
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 12.32
F-Score7
WACC10.93%
ROIC/WACC1.32
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 Y15.46%
EPS Next 2Y15.17%
EPS Next 3Y13.6%
EPS Next 5Y14.49%
Revenue 1Y (TTM)14.12%
Revenue growth 3Y14.14%
Revenue growth 5Y14.57%
Sales Q2Q%6.2%
Revenue Next Year13.94%
Revenue Next 2Y13.15%
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 3Y15.52%
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 / CDS.DE Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for CADENCE DESIGN SYS INC?

ChartMill assigns a fundamental rating of 7 / 10 to CDS.DE.


What is the valuation status for CDS stock?

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


What is the profitability of CDS stock?

CADENCE DESIGN SYS INC (CDS.DE) has a profitability rating of 8 / 10.


How financially healthy is CADENCE DESIGN SYS INC?

The financial health rating of CADENCE DESIGN SYS INC (CDS.DE) is 9 / 10.