CDNS logo
Cadence Design Systems Inc.
CDNS
290.63 (4.00%) 11.63
Information Technology
Software
Cadence Design Systems Inc. develops computational AI-driven software hardware and silicon intellectual property (IP) products and solutions. The company offers functional verification services such as Jasper a formal verification platform; Xcelium a parallel logic simulation platform; Verisium a generative AI solution; Palladium an enterprise emulation platform; and Protium a prototyping platform for chip verification as well as digital IC design and sign off products including Innovus platform; and custom IC design and simulation product include Virtuoso a platform to design and verify analog. It also provides Xcelium logic simulator and other front-end verification and virtual prototyping technologies; controllers and physical interfaces; PCI express universal accelerator and compute express links and multiple memory interfaces; and Tensilica a digital signal processor. In addition the company’s design IP portfolio includes high-speed serializer/deserializer peripheral component interconnect USB and other standard protocols; and Secure-IC a solution for embedded security IP. Additionally it provides System Design and Analysis (SD&A) platform a solution that enables critical end-to-end system-level design and verification across chips packages PCBs and complete electronic systems; Allegro X and OrCAD X platforms for PCB and advanced packaging; Sigrity X for signal and power integrity; AWR for RF design; Fidelity for computational fluid dynamics; Celsius for thermal and airflow analysis; Clarity 3D solver for electromagnetic and power electronics analysis and simulation; Integrity 3D-IC solution for advanced 3D-IC and multi-chiplet designs; the optimality intelligent system explorer Reality digital twin and Millennium enterprise multiphysics platforms; Allegro system design platform; and molecular modeling and simulation solutions and services. The company was incorporated in 1987 and is headquartered in San Jose California.

Quality Checklist 8/8

5Y Shares Out Change < 0%
ROIC > 10%
Debt/Equity < 1
Current Ratio > 1
Quick Ratio > 1
Net Margin > 10%
Past Net Income CAGR > 0%
Est. EPS Growth > 5%
0.0%of Portfolio

My holdings

Day change:
Total change:
Shares:
Cost basis:
Market cap: $79.24(B)
EV: $82.37(B)
Total Equity: $5.47(B)
Earnings date: Apr-27-2026
P/E: 71.06
Forward P/E: 35.66
P/FCF: 49.77
P/S: 14.89
P/B: 14.43
EPS: $4.1
EPS (fwd): $8.2
FCF/share: $5.8
Revenue/share: $19.5
Book value/share: $20.1
ROIC: 14.1%
ROA: 11.3%
ROE: 21.7%
Debt/Equity: 0.49
Current Ratio: 2.90
Gross margin: 86.4%
Operating margin: 31.5%
Net margin: 20.9%
Dividend/share: $0.0
Div. yield: 0.00%

CDNS Valuation & Price Targets

Current Price
$291

Favorite Valuation Methods

More Valuation Methods

DCF (simple)
N/A
N/A
DCF (exit mult.)
N/A
N/A
DDM
N/A
N/A
EPS growth
N/A
N/A
Revenue growth
N/A
N/A
Peter Lynch FV
N/A
N/A
Graham No.
N/A
N/A

PEvaluation

45% overvalued
Low
$120
Mid
$159
High
$199
Current price
$291
Fair P/E
Margin of safety
EPS
Market Model
ROICRevenue growthFCF MarginShares outstan...Debt/EquityDebt/EBITDA
Economic moat: None/narrow

EPS Estimates

LowAvgHigh#
FY+18.18.28.323
FY+28.69.39.723
FY+39.210.511.08
FY+49.910.611.42
FY+512.612.612.61

Analyst Price Targets

30% undervalued
Low
$275
Mid
$379
High
$410
Current price
$291

Analyst Recommendations

Strong Buy5
Buy17
Hold4
Sell0
Strong Sell0

2-stage DCF

First Stage Duration: 5 Years
Starting Free Cash Flow
First Stage Growth Rate
LowMidHigh
Terminal Growth Rate
LowMidHigh
Discount Rate

Discounted Cash Flow

Forecast years: 5 Years
Terminal Growth Rate
LowMidHigh
Discount Rate
Free cash flow estimates:
Y+1 est.
Y+2 est.
0.00%
Y+3 est.
0.00%
Y+4 est.
0.00%
Y+5 est.
0.00%

Discounted Cash Flow (exit mult.)

Forecast years: 5 Years
Exit FCF Multiple
LowMidHigh
Discount Rate
Free cash flow estimates:
Y+1 est.
Y+2 est.
0.00%
Y+3 est.
0.00%
Y+4 est.
0.00%
Y+5 est.
0.00%

Dividend Discount Model

Annual Dividend
First Stage Length (Years): 0 Years
First Stage Growth Rate
Final Growth Rate
Discount Rate

EPS Growth

Forecast years: 5 Years
Starting EPS
EPS Growth Rate
LowMidHigh
Final P/E
LowMidHigh
Discount Rate

Revenue Growth Valuation

Forecast Years: 10 Years
Base Revenue
Revenue Growth Rate
LowMidHigh
Final Net Margin
LowMidHigh
Final P/E Ratio
LowMidHigh
Discount Rate

Peter Lynch Fair Value

Earnings Per Share
Growth Rate

Graham Formula

Earnings Per Share
EPS Growth (7-10 years)
Government Bond Rate

TTM Financials

Income (TTM)

RevenueGrossNet
Revenue$5.30(B)
Gross profit$4.57(B)
EBITDA$1.91(B)
Net income$1.11(B)
Gross margin86.4%
Operating margin31.5%
Net margin20.9%
Shares outstanding272.65(M)

Balance sheet

Cash & ST inv.Other ST assetsLong term assetsCurrent liabilitiesLong term debtOther LT liabilitiesEquity
Total assets$10.15(B)
Current assets$4.67(B)
Total liabilities$4.68(B)
Current liabilities$1.64(B)
Cash & Short-term inv.$3.16(B)
Long-term debt$2.48(B)
Total intangibles$3.47(B)
PP&E$692.97(M)

Cash flow (TTM)

CFOCFICFF
FCF$1.59(B)
CapEx$-141.87(M)
Dividends paid$0
Stock issued$145.90(M)
Stock repurchased$-1.09(B)
Stock-based comp.$455.18(M)
Debt issued$0
Debt repaid$-350.00(M)

Per share data (TTM)

Price: $291
Revenue: $19.5 (14.9x | 6.7%) Gross profit: $16.8 (17.3x | 5.8%) Earnings: $4.09 (71.1x | 1.4%)
FCF: $5.84 (49.8x | 2.0%) Stock-based Comp.: $1.67 (174.1x | 0.6%) CapEx.: $0.52 (558.5x | 0.2%) Dividend: $0.00 (N/A | 0.0%)
Total Assets: $37.2 (7.8x | 12.8%) Total Liabilities: $17.2 (16.9x | 5.9%) Book Value: $20.1 (14.4x | 6.9%) Cash & ST inv.: $11.6 (25.1x | 4.0%) Debt: $9.10 (31.9x | 3.1%)
Earnings FY+1: $8.15 (35.7x | 2.8%) Earnings FY+2: $9.26 (31.4x | 3.2%) Earnings FY+3: $10.5 (27.7x | 3.6%) Earnings FY+4: $10.6 (27.3x | 3.7%) Earnings FY+5: $12.6 (23.0x | 4.3%)
FCF FY+1: $6.57 (44.3x | 2.3%) FCF FY+2: $7.91 (36.8x | 2.7%) FCF FY+3: $9.04 (32.2x | 3.1%) FCF FY+4: $7.98 (36.4x | 2.7%) FCF FY+5: $12.7 (22.8x | 4.4%)

Summary

Growth Estimates

Revenue

CAGR: 12.4%
FY+1FY+2FY+3FY+4FY+5
FY+1$5.97(B)
FY+2(+12.0%)$6.69(B)
FY+3(+12.9%)$7.55(B)
FY+4(+8.2%)$8.17(B)
FY+5(+16.5%)$9.52(B)

Net Income

CAGR: 11.8%
FY+1FY+2FY+3FY+4FY+5
FY+1$2.23(B)
FY+2(+14.0%)$2.54(B)
FY+3(+12.4%)$2.85(B)
FY+4(+2.7%)$2.93(B)
FY+5(+18.7%)$3.48(B)

EPS

CAGR: 11.5%
FY+1FY+2FY+3FY+4FY+5
FY+1$8.15
FY+2(+13.6%)$9.26
FY+3(+13.3%)$10.49
FY+4(+1.3%)$10.63
FY+5(+18.6%)$12.61

FCF per share

CAGR: 18.0%
FY+1FY+2FY+3FY+4FY+5
FY+1$6.57
FY+2(+20.4%)$7.91
FY+3(+14.3%)$9.04
FY+4(-11.8%)$7.98
FY+5(+59.5%)$12.72

Historical Financials

Showing limited histrical data.
TTM (Y)TTM (Q)FYFQ
Income(show more...)
Q3'20 (TTM)Q3'21 (TTM)Q3'22 (TTM)Q3'23 (TTM)Q3'24 (TTM)Q3'25 (TTM)0.01.0(B)2.0(B)3.0(B)4.0(B)5.0(B)
Revenue Operating Income Net IncomeCOGSGross ProfitTotal OpEx.R&DSG&AInterest ExpenseInterest IncomeOther Non-operating IncomePre-tax incomeIncome tax
Cash flow(show more...)
Q3'20 (TTM)Q3'21 (TTM)Q3'22 (TTM)Q3'23 (TTM)Q3'24 (TTM)Q3'25 (TTM)0.0200.0(M)400.0(M)600.0(M)800.0(M)1.0(B)1.2(B)1.4(B)
Stock-based Comp. FCFCFONet IncomeD&AChange in Working CapitalCFFStock IssuedStock RepurchasedDebt IssuedDebt RepaidDividend PaidCFIAcquisitionsDivestituresCapital Expenditures
Balance sheet(show more...)
Q3'20 (TTM)Q3'21 (TTM)Q3'22 (TTM)Q3'23 (TTM)Q3'24 (TTM)Q3'25 (TTM)0.02.0(B)4.0(B)6.0(B)8.0(B)
Total Assets Total LiabilitiesCurrent assetsCash and EquivalentsShort-term investmentsInventoriesReceivablesNon-current assetsNet PP&EIntangible AssetsGoodwillCurrent liabilitiesShort-Term DebtAccounts payableNon-current liabilitiesLong-Term DebtTotal Equity
Per share data(show more...)
Q3'20 (TTM)Q3'21 (TTM)Q3'22 (TTM)Q3'23 (TTM)Q3'24 (TTM)Q3'25 (TTM)0.01.02.03.04.05.0
EPS (Basic) FCF/Share Dividend/ShareEPS (Diluted)Book value/ShareCash & ST inv./ShareDebt/Share
Ratios(show more...)
Q3'20 (TTM)Q3'21 (TTM)Q3'22 (TTM)Q3'23 (TTM)Q3'24 (TTM)Q3'25 (TTM)0.020.040.060.0
P/E P/S EV/EarningsP/FCFP/BEV/FCFDebt/EquityPayout ratio
Margins(show more...)
Q3'20 (TTM)Q3'21 (TTM)Q3'22 (TTM)Q3'23 (TTM)Q3'24 (TTM)Q3'25 (TTM)0%20%40%60%80%
Net Income Margin Operating Margin Gross MarginEBITDA MarginFCF Margin
Returns(show more...)
Q3'20 (TTM)Q3'21 (TTM)Q3'22 (TTM)Q3'23 (TTM)Q3'24 (TTM)Q3'25 (TTM)0%10%20%30%
ROIC ROAROCEROE
Shares outstanding(show more...)
Q3'20 (TTM)Q3'21 (TTM)Q3'22 (TTM)Q3'23 (TTM)Q3'24 (TTM)Q3'25 (TTM)0.050.0(M)100.0(M)150.0(M)200.0(M)250.0(M)
Shares (Basic)Shares (Diluted)
Market Cap.(show more...)
Q3'20 (TTM)Q3'21 (TTM)Q3'22 (TTM)Q3'23 (TTM)Q3'24 (TTM)Q3'25 (TTM)0.020.0(B)40.0(B)60.0(B)80.0(B)
Market Cap.

KPIs

Revenue Segments As A Percent Of Total Revenue(show more...)
9/202312/20233/20246/20249/202412/20243/20256/20259/202512/2025
Core EDA System Design and Analysis IP
Revenue By Geography(show more...)
6/20239/202312/20233/20246/20249/202412/20243/20256/20259/2025
Americas EMEA Asia Japan

CDNS vs Peers

Similar Companies

Ownership

Major holders

*Excludes indirect insider ownership

Insiders: 0.29%
Institutions: 90.28%
Other: 9.43%

Institutional ownership

10.00% Vanguard Group Inc9.61% Blackrock Inc.4.63% State Street Corporati...3.46% FMR, LLC2.83% Jennison Associates LL...2.80% Geode Capital Manageme...1.83% JPMORGAN CHASE & CO1.76% Massachusetts Financia...1.70% Alliancebernstein L.P.1.59% NORGES BANK50.07% Others

Trading Summary

In the past year, insiders have bought $0.00 worth of the company's stock, and sold $45.84(M).

Congress members have bought between $21007 - $140000 worth of the company's stock, and sold between $174013 - $485000.

Insider transactions

$0.002026-03$0.00
$2950902026-02$0.00
$2.32(M)2026-01$0.00
$19.91(M)2025-12$0.00
$4.04(M)2025-11$0.00
$3482702025-10$0.00
$3.02(M)2025-09$0.00
$3.30(M)2025-08$0.00
$3.15(M)2025-07$0.00
$3.22(M)2025-06$0.00
$3.80(M)2025-05$0.00
$1.63(M)2025-04$0.00
$6198362025-03$0.00
DateSharesTotal ($)Price ($)NameTitle
Sell2026-02-021,000295,090295.1CUNNINGHAM PAUL ALEXANDEROfficer
Sell2026-01-086,3192,009,189318.0TENG CHIN-CHIOfficer
Grant2026-01-083,000236,28078.8TENG CHIN-CHIOfficer
Sell2026-01-021,000315,700315.7CUNNINGHAM PAUL ALEXANDEROfficer
Grant2025-12-3126500.0VAN DEN HOVE LUCDirector
Sell2025-12-1627,8058,857,772318.6WALL JOHN MChief Financial Officer
Grant2025-12-1627,8054,847,286174.3WALL JOHN MChief Financial Officer
Sell2025-12-105,4901,863,495339.4SCANNELL PAULOfficer
Sell2025-12-1018060,747337.5BRENNAN ITA MDirector
Sell2025-12-085,9772,020,166338.0TENG CHIN-CHIOfficer
Grant2025-12-082,677369,489138.0TENG CHIN-CHIOfficer
Sell2025-12-0520,0006,800,000340.0DEVGAN ANIRUDHChief Executive Officer
Grant2025-12-0520,0001,575,20078.8DEVGAN ANIRUDHChief Executive Officer
Sell2025-12-011,000312,640312.6CUNNINGHAM PAUL ALEXANDEROfficer
Sell2025-11-065,8001,884,652324.9TENG CHIN-CHIOfficer
Grant2025-11-062,400212,72888.6TENG CHIN-CHIOfficer
Sell2025-11-055,5501,819,280327.8DEVGAN ANIRUDHChief Executive Officer
Sell2025-11-031,000340,260340.3CUNNINGHAM PAUL ALEXANDEROfficer
Grant2025-10-313000.0DEVGAN ANIRUDHChief Executive Officer
Sell2025-10-011,000348,270348.3CUNNINGHAM PAUL ALEXANDEROfficer
Sell2025-09-307,5002,618,670349.2WALL JOHN MChief Financial Officer
Sell2025-09-1018060,213334.5BRENNAN ITA MDirector
Sell2025-09-021,000343,950343.9CUNNINGHAM PAUL ALEXANDEROfficer
Sell2025-08-188,4102,944,364350.1TENG CHIN-CHIOfficer
Grant2025-08-184,910386,71278.8TENG CHIN-CHIOfficer
Grant2025-08-181,00000.0CUNNINGHAM PAUL ALEXANDEROfficer
Sell2025-08-011,000358,720358.7CUNNINGHAM PAUL ALEXANDEROfficer
Sell2025-07-179,0882,841,684312.7TENG CHIN-CHIOfficer
Grant2025-07-175,588771,256138.0TENG CHIN-CHIOfficer
Sell2025-07-011,000306,350306.4CUNNINGHAM PAUL ALEXANDEROfficer
Sell2025-06-178,8922,675,799300.9TENG CHIN-CHIOfficer
Grant2025-06-175,392768,360142.5TENG CHIN-CHIOfficer
Sell2025-06-131,000302,000302.0CUNNINGHAM PAUL ALEXANDEROfficer
Grant2025-06-1211033,864307.9SOHN YOUNG KDirector
Sell2025-06-1018054,720304.0BRENNAN ITA MDirector
Sell2025-06-02650185,880286.0CUNNINGHAM PAUL ALEXANDEROfficer
Sell2025-05-16868277,715319.9PLUMMER JAMES DDirector
Grant2025-05-1510,59900.0TAXAY MARCGeneral Counsel
Grant2025-05-0877900.0LIUSON JULIADirector
Grant2025-05-0877900.0BRENNAN ITA MDirector
Grant2025-05-0877900.0KRAKAUER MARY LOUISEDirector
Grant2025-05-0877900.0ADAMS MARK WDirector
Grant2025-05-0877900.0SANGIOVANNI VINCENTELLI ALBERTODirector
Grant2025-05-0877900.0SOHN YOUNG KDirector
Grant2025-05-0877900.0PLUMMER JAMES DDirector
Grant2025-05-0877900.0GAVRIELOV MOSHE NACHUMDirector
Grant2025-05-0877900.0CHEW LEWISDirector
Sell2025-05-0210,7373,328,470310.0DEVGAN ANIRUDHChief Executive Officer
Grant2025-05-0286800.0ADAMS MARK WDirector
Grant2025-05-0286800.0PLUMMER JAMES DDirector
Sell2025-05-01650196,950303.0CUNNINGHAM PAUL ALEXANDEROfficer
Sell2025-04-294,7101,413,000300.0SCANNELL PAULOfficer
Sell2025-04-2418049,500275.0BRENNAN ITA MDirector
Sell2025-04-01650164,216252.6CUNNINGHAM PAUL ALEXANDEROfficer
Grant2025-03-1756,84900.0WALL JOHN MChief Financial Officer
Grant2025-03-1750,90600.0TENG CHIN-CHIOfficer
Grant2025-03-1750,90600.0CUNNINGHAM PAUL ALEXANDEROfficer
Grant2025-03-1714,85000.0NISEWANER KARNAGeneral Counsel
Sell2025-03-171,850455,562246.2NISEWANER KARNAGeneral Counsel
Grant2025-03-1721,72000.0SCANNELL PAULOfficer
Grant2025-03-17178,35800.0DEVGAN ANIRUDHChief Executive Officer
Grant2025-03-075,000690,100138.0CUNNINGHAM PAUL ALEXANDEROfficer
Sell2025-03-03650164,274252.7CUNNINGHAM PAUL ALEXANDEROfficer
Sell2025-02-18571169,073296.1NISEWANER KARNAGeneral Counsel

Congressional trading

$0.002026-03$0.00
$0.002026-02$0.00
$0.002026-01$0.00
$0.002025-12$0.00
$80012025-11$0.00
$80012025-10$0.00
$80012025-09$0.00
$80012025-08$16001
$0.002025-07$0.00
$1825022025-06$16001
$750012025-05$0.00
$0.002025-04$40501
$160012025-03$8001
DatePoliticianPartyChamberAmount ($)
Sell2025-11-03Ro KhannaDHouse$1,001 - $15,000
Sell2025-10-27Michael T. McCaulRHouse$1,001 - $15,000
Sell2025-09-23Val T. HoyleDHouse$1,001 - $15,000
Buy2025-08-26Ro KhannaDHouse$1,001 - $15,000
Buy2025-08-26Ro KhannaDHouse$1,001 - $15,000
Sell2025-08-05Gilbert Ray Cisneros, Jr.DHouse$1,001 - $15,000
Sell2025-06-27Michael T. McCaulRHouse$50,001 - $100,000
Sell2025-06-27Michael T. McCaulRHouse$50,001 - $100,000
Buy2025-06-23Ro KhannaDHouse$1,001 - $15,000
Buy2025-06-20Ro KhannaDHouse$1,001 - $15,000
Sell2025-06-16Michael T. McCaulRHouse$15,001 - $50,000
Sell2025-05-12Jefferson ShreveRHouse$50,001 - $100,000
Buy2025-04-23Ro KhannaDHouse$1,001 - $15,000
Buy2025-04-09Ro KhannaDHouse$15,001 - $50,000
Sell2025-03-27Greg LandsmanDHouse$1,001 - $15,000
Buy2025-03-17Rob BresnahanRHouse$1,001 - $15,000
Sell2025-03-06Ro KhannaDHouse$1,001 - $15,000
Sell2025-02-26Gilbert Ray Cisneros, Jr.DHouse$1,001 - $15,000
Sell2025-02-25Ro KhannaDHouse$1,001 - $15,000
Sell2025-02-19Ro KhannaDHouse$1,001 - $15,000

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