Cadence Design Systems, Inc. CDNS
Technology · Software - Application · United States · S&P 500
Based on the available data, Cadence Design Systems, Inc. gets an algorithmic score of 65/100. It trades at 324.17 $, with a bearish technical trend (RSI 59.6) and 40.1% annual volatility.
Updated: 2026-09-30
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Strengths
- High ROE (23.2%): generates strong profit on equity.
- High net margin (23.6%): pricing power / competitive advantage.
- Sustained revenue growth (14.1% compound annual).
- Low-debt balance sheet.
Weaknesses
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Fundamentals
| P/E | 64.96 |
| Forward P/E | 33.92 |
| PEG | 2.31 |
| P/B | 13.02 |
| EV/EBITDA | 41.93 |
| P/S | 15.32 |
| ROE % | 23.23 |
| ROA % | 10.61 |
| Gross margin % | 85.87 |
| Operating margin % | 28.57 |
| Net margin % | 23.61 |
| Revenue growth % (y/y) | 24.20 |
| Earnings growth % (y/y) | 125.40 |
| Revenue CAGR % | 14.14 |
| Earnings CAGR % | 9.31 |
| Debt/Equity % | 38.66 |
| Current ratio | 1.74 |
| FCF yield % | 1.77 |
| Dividend yield % | 0.00 |
| Payout % | 0.00 |
Returns
| 1 month | -4.8 % |
| 3 months | -13.6 % |
| 6 months | +19.7 % |
| YTD | +4.4 % |
| 1 year | -7.4 % |
| 3 years | +40.5 % |
| 5 years | +101.5 % |
Risk
| 1-year volatility | 40.1 % |
| Beta | 1.21 |
| 5-year max drawdown | -34.2 % |
| Sharpe 1A | -0.09 |
Macroeconomic context
Highly sensitive to interest rates (valued on future cash flows): rate cuts and falling bond yields help it. It depends on the corporate investment cycle (AI/cloud capex), the semiconductor supply chain (Taiwan/China) and the dollar (foreign revenue). As a US company, its valuation depends on the Fed, 10-year Treasury yields and the US earnings cycle.
How the score is calculated
The score combines profitability (ROE, ROA, net margin), growth (revenue and earnings), valuation (P/E, EV/EBITDA, free cash flow), financial strength (debt and liquidity; not applied to banks and insurers) and momentum (6 and 12-month returns and trend). It is an educational quantitative filter, not a buy or sell recommendation.