Cadence Design Systems Stock Analysis
| CDNS Stock | USD 354.83 -0.07 -0.02% |
200 Day MA 322.2 | 50 Day MA 301.54 | Beta 1.13 |
Macro event markers
At the current market price of $354.83, CDNS trades below the analyst target price of $379.46. The framework below evaluates CDNS by comparing modeled intrinsic value to current market pricing. The elevated valuation multiple for CDNS shifts analytical emphasis to revenue growth and operating efficiency.
CDNS holds a debt-to-equity ratio of 0.29 relative to information technology peers. Using the latest reported data from December 31, 2025, Net Debt remains stable near $-521.17 million, meaning cash and equivalents exceed total debt — leverage is not a constraint, although Net Debt To EBITDA is broadly unchanged around -0.28x; rather than measuring leverage, the negative ratio signals that Cadence Design's cash exceeds outstanding debt. Leverage changes for Cadence Design should be read alongside capital expenditure patterns to distinguish growth investment from refinancing activity. The rate environment affects debt cost — the same principal carries a different burden at higher interest rates. Asset vs Debt
Equity vs Debt
Price Book 14.87 | Price Sales 17.71 | Shares Float 274.48 million | Wall Street Target Price 379.46 | Earnings Share 4.28 |
Latest disclosures for Cadence Design Systems show $5.3 billion in Total Revenue, $1.1 billion in Net Income, and an operating loss of $4.6 million.
Cadence Design |
Stock Analysis Notes
About 90.0% of CDNS shares are held by institutions such as insurance companies. CDNS had not issued any dividends in recent years. Cadence Design completed a 2-for-1 stock split on 17th of November 1997. Latest disclosures for Cadence Design Systems show $0.18 in Intangibles To Total Assets, $10.2 billion in Total Assets, and a Return On Assets of 11.0%.Price To Sales Ratio | 16.81 |
Investor Insights and Alerts
| Cadence Design is unlikely to experience financial distress in the next 2 years | |
| Latest headline from thelincolnianonline.com: MT Bank Corp Buys 1,559 Shares of Cadence Design Systems, Inc. CDNS |
Largest EPS Surprises
Tracking Cadence Design's earnings surprise history reveals whether the company consistently guides conservatively or tends to miss. Both patterns carry distinct implications for short-term positioning. For this stock, read EPS surprises with profitability quality and forward revisions.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2011-04-27 | 2011-03-31 | 0.08 | 0.09 | 0.01 | 12 | ||
2010-10-27 | 2010-09-30 | 0.03 | 0.04 | 0.01 | 33 | ||
2010-04-28 | 2010-03-31 | 0.01 | 0.02 | 0.01 | 100 |
Environmental, Social, and Governance (ESG) Scores
ESG scores for Cadence Design Systems track environmental, social, and governance factors that can affect operations and valuation over time. For Cadence Design Systems, ESG considerations carry the most weight in governance discipline and workforce stability — areas where operational risk intersects with stakeholder outcomes.
Thematic Classifications
A thematic view of Cadence Design Systems is valuable because it lets investors test the idea inside a broader opportunity set instead of judging the security in isolation. Themes also make it easier to compare substitutes, complements, and diversified extensions of the original idea before capital is allocated.
 | TechnologyResearch or development of technologically based good | |
 | SRI Sustainable GrowthLarge and mid-sized companies that operate under the guidelines of socially responsible investing - SRI |
Top Institutional Investors Holding Cadence Design Stock
At large-cap scale, institutional coverage and secondary-market liquidity are typically well established. The holder split in Cadence Design Systems separates passive index allocation from active institutional positioning. The business currently sits in the Information Technology sector and the Software - Application industry. Watching turnover and volume trends alongside ownership data adds depth to the picture.
| Shares | Van Eck Associates Corporation | 2025-12-31 | 3.5 M | Franklin Resources Inc | 2025-12-31 | 3.1 M | J Stern & Co Llp | 2025-12-31 | 3 M | Northern Trust Corp | 2025-12-31 | 2.9 M | Amvescap Plc. | 2025-12-31 | 2.9 M | Hhg Plc | 2025-12-31 | 2.7 M | The Goldman Sachs Group Inc | 2025-12-31 | 2.6 M | Wellington Management Company Llp | 2025-12-31 | 2.6 M | Principal Financial Group Inc | 2025-12-31 | 2.2 M | Vanguard Group Inc | 2025-12-31 | 27.2 M | Blackrock Inc | 2025-12-31 | 26.1 M |
Market Capitalization
For market cap analysis, Cadence Design Systems is currently valued at $97.89 billion and falls into the large-cap segment of application software companies. To frame that market cap reading, note enterprise value near $99.21 billion, about 275.82 million shares outstanding, and a workforce of about 15,110 people.Profitability
Profitability analysis for Cadence Design Systems focuses on how well revenue converts into operating income, net income, and free cash flow. The key question is whether current profitability is lasting, cyclical, or boosted by items that may not repeat. CDNS has Profit Margin (PM) of 21.0%. Similarly, it shows Operating Margin (OM) of 30.0%.| Last Reported | End Of Year Estimate | ||
| Return On Tangible Assets | 0.17 | 0.17 | |
| Return On Capital Employed | 0.19 | 0.14 | |
| Return On Assets | 11.00% | 11.00% | |
| Return On Equity | 20.00% | 21.00% |
Management Efficiency
CDNS has return on total asset (ROA) of 10.39% suggesting that deployed capital is earning a positive return. This is on par with sector averages. Cadence Design also reports a return on stockholder's equity (ROE) of 20.66%, suggesting that equity holders are earning on their invested capital.| Last Reported | End Of Year Estimate | ||
| Book Value Per Share | 20.18 | 21.18 | |
| Tangible Book Value Per Share | 7.4 | 7.77 | |
| Price Book Value Ratio | 15.49x | 16.27x | |
| Enterprise Value Multiple | 45.02x | 47.27x | |
| Price Fair Value | 15.49x | 16.27x | |
| Enterprise Value | $4.67 billion | $4.9 billion |
Management execution at Cadence Design Systems is evaluated by whether strategy, financial discipline, and operating results are moving in the same direction. The strongest reading comes from linking leadership decisions to return metrics, balance-sheet quality, and the durability of the business model.
Operating Margin | Long Term Debt Total | Three Month Return 25.18 | Short Long Term Debt Total | Ten Year Return 1,403 |
Technical Drivers
According to pricing data from the 7th of May, Cadence Design trades at 354.83 per share. Quantitative signals reflect risk adjusted performance of 0.121, and Mean Deviation of 2.24. Volume-adjusted indicators are evaluated relative to historical ranges. Current technical signals are evaluated against industry dispersion.Price Movement Analysis - Bollinger Bands
This analysis covers thirty-eight data points across the selected time horizon. Bollinger Bands frame Cadence Design price range using a moving average and volatility bands. Movement toward the lower band may indicate short-term downside pressure, while approaches to the upper band can reflect resistance levels or momentum continuation.
Insider Trading Activities
Reviewing insider trades in Cadence Design Systems shows whether management is acting in line with the public story on growth and strategy. U.S. insider activity is disclosed through Form 4 filings, enabling analysis of transaction timing, clustering, and scale.
Outstanding Bonds
Corporate bonds issued by Cadence Design Systems matter because they shape interest expense, maturity risk, and the flexibility management has during tighter credit conditions. Longer-dated obligations can improve financing stability, but they also leave investors more exposed if the underlying business weakens before the debt matures.
| Morgan Stanley 3971 Corp BondUS61744YAL20 | View | |
| MGM Resorts International Corp BondUS552953CD18 | View |
Predictive Daily Indicators
Intraday indicators for Cadence Design Systems suit investors who need a shorter decision cycle and tighter control over timing. For most traders, the benefit is faster feedback on momentum, which sharpens both entries and exits.
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 354.83 | |||
| Day Typical Price | 354.83 | |||
| Price Action Indicator | -0.04 | |||
| Period Momentum Indicator | -0.07 | |||
| Relative Strength Index | 64.09 |
Corporate Filings
F4 | 5th of May 2026 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | |
10Q | 1st of May 2026 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | |
13A | 29th of April 2026 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | |
8K | 27th of April 2026 Report filed with the SEC to announce major events that shareholders should know about | |
F4 | 20th of April 2026 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | |
F4 | 3rd of April 2026 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | |
13A | 26th of March 2026 An amended filing to the original Schedule 13G | |
| 25th of March 2026 Other Reports |
Forecast Models
A forecast for Cadence Design Systems starts with historical data. Prices often signal trend and momentum shifts before fundamentals catch up. The practical edge is not the forecast number itself, but knowing when the data is becoming less predictable.Financial Strength and Earnings Quality Indicators
Cadence Design Systems financial ratings play a critical role in determining how much Cadence Design has to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for Cadence Design's borrowing costs.| Piotroski F Score | 6 | Healthy | View |
| Beneish M Score | -2.52 | Unlikely Manipulator | View |
Debt to Cash Allocation
Tracking debt and cash allocation over time can show when Cadence Design is prioritizing expansion, refinancing, or capital return.
Total debt stands at approximately $2.48 billion with Debt to Equity (D/E) ratio of 0.29. Cadence Design has a current ratio of 1.3, suggesting that it shows limited short-term liquidity to cover its financial obligations when due. Cadence Design's use of debt should be considered alongside its cash position and equity base.Total Assets Over Time
Assets Financed by Debt
Debt finances 26.0% of CDNS's total assets — a relatively low share of the asset base, though leverage can still appear elevated relative to peers when measured against equity rather than total assets.Cadence Design Debt Ratio | 26.0 |
Corporate Bonds Issued
Cadence Design Short Long Term Debt Total
Short Long Term Debt Total | $2.6 billion |
Stock Analysis Methodology
Where does Cadence Design stand on valuation, profitability, and risk? This diagnostic breaks down the key signals. Balance sheet indicators include debt-to-equity of 0.29 and current ratio of 1.33. Financial distress probability is estimated at 1%, indicating low near-term solvency risk.
Cadence Design Systems metrics draw on periodic company reporting and market reference feeds, standardized for cross-period comparison. Professional analyst research is incorporated when coverage is available.
Editorial review and methodology oversight provided by: Raphi Shpitalnik, Junior Member of Macroaxis Editorial Board
Current Cadence Design Analyst Rating Consensus
| Target Price | Consensus | # of Analysts | |
| 379.46 | Strong Buy | 23 | Odds |
Cadence Design Systems analyst recommendation data spans current and historical periods across providers. Shifts in analyst consensus can reflect changes in Cadence Design's business outlook. Most Cadence Design analysts issue ratings four times a year at intervals of three months. These consensus estimates reflect the collective view of professional researchers monitoring Cadence Design's financials. The timing of analyst rating changes for Cadence Design Systems matters as much as the direction of the revision.
Cadence Design Stock Analysis Indicators
Diagnostics snapshot includes 19 indicators such as Begin Period Cash Flow, Long Term Debt, Common Stock Shares Outstanding.
| Begin Period Cash Flow | 2.64 billion | |
| Long Term Debt | 2.48 billion | |
| Common Stock Shares Outstanding | 273.31 million | |
| Total Stockholder Equity | 5.47 billion | |
| Total Cashflows From Investing Activities | -460.52 million | |
| Tax Provision | 413.15 million | |
| Quarterly Earnings Growth Y O Y | 0.23 | |
| Property Plant And Equipment Net | 517 million | |
| Cash And Short Term Investments | 3 billion | |
| Cash | 3 billion | |
| Accounts Payable | 856.86 million | |
| Net Debt | -521.17 million | |
| 50 Day M A | 301.5364 | |
| Total Current Liabilities | 1.64 billion | |
| Other Operating Expenses | 3.65 billion | |
| Non Current Assets Total | 5.48 billion | |
| Forward Price Earnings | 44.6429 | |
| Non Currrent Assets Other | 581.37 million | |
| Stock Based Compensation | 455.18 million |
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