Cadence Design Systems, Inc. (cdns)
CDNS — Company Overview
Cadence Design Systems, Inc. (CDNS) is a large-cap company in the Technology sector, operating in Software - Application.
| Ticker | CDNS |
| Sector | Technology |
| Industry | Software - Application |
| Exchange | NMS |
| Market cap | $85.12B |
| Last price | $309.09 |
| Size category | Large Cap |
CDNS — Business Description
Cadence Design Systems, Inc. (CDNS) operates in Software - Application within the broader Technology market. Cadence Design Systems, Inc. develops computational, AI-driven software, hardware, and silicon intellectual property 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 In novus 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 technolog…
Official website: https://www.cadence.com.
CDNS — Investment Thesis
The investment thesis for Cadence Design Systems, Inc. (CDNS) rests on how Technology dynamics, profitability, and valuation interact at today's price.
- Revenue is expanding at roughly 24.2% year-over-year (public data).
- Trailing P/E of 61.45× implies elevated growth expectations at the current price.
- Forward P/E (32.38×) is below trailing P/E — earnings may be expected to improve.
- Equity market capitalization is approximately $85.12B.
See the free estimates and earnings pages for public targets and growth metrics. Ownership, live news, and deeper models remain in Vest Terminal.
CDNS — Financial Health
Financial health for Cadence Design Systems, Inc. (CDNS) is summarized from publicly reported profitability, leverage, and cash-flow metrics.
Profit margin of 23.6% indicates solid bottom-line conversion. Positive free cash flow of $1.61B supports balance-sheet flexibility.
| Trailing P/E | 61.45× |
| Forward P/E | 32.38× |
| Price / Sales | 14.60× |
| Price / Book | 12.41× |
| Gross margin | 85.9% |
| Operating margin | 28.6% |
| Profit margin | 23.6% |
| Return on equity | 23.2% |
| Debt / Equity | 38.66 |
| Free cash flow | $1.61B |
CDNS — Growth Outlook
Growth outlook for Cadence Design Systems, Inc. (CDNS) depends on demand trends in Software - Application and the company's ability to convert revenue into sustainable earnings.
- Revenue growth of 24.2% indicates strong top-line momentum.
- Earnings growth of 125.4% year-over-year supports improving profitability.
- Price is 25.8% below the 52-week high.
- Shares trade 17.6% above the 52-week low — limited rebound so far.
CDNS — Competitive Position
Cadence Design Systems, Inc. (CDNS) is evaluated against peers on scale, margin structure, and capital efficiency within Technology.
- Competes within Technology, specifically in Software - Application.
- Market capitalization of $85.12B places CDNS among large-cap peers.
- Gross margin near 85.9% may reflect pricing power or favorable mix.
CDNS — Strengths
Strengths for Cadence Design Systems, Inc. (CDNS) inferred from public financial metrics:
- Revenue growth of 24.2% year-over-year.
- Earnings growth of 125.4% year-over-year.
- Return on equity near 23.2% — efficient use of shareholder capital.
- Gross margin of 85.9% supports competitive unit economics.
- Positive free cash flow ($1.61B).
- Moderate leverage (debt/equity 38.66).
CDNS — Weaknesses
Weaknesses and pressure points for Cadence Design Systems, Inc. (CDNS) based on available data:
- Elevated trailing P/E (61.45×) limits valuation margin of safety.
- Price 26% below the 52-week high — sustained negative sentiment.
CDNS — Opportunities
- Sustained revenue growth (24.2%) could support multiple expansion if margins hold.
- Trading 17.6% above the 52-week low — potential recovery if fundamentals stabilize.
- Positive free cash flow enables reinvestment, debt reduction, or shareholder returns.
- Forward earnings multiple below trailing P/E — potential earnings acceleration ahead.
CDNS — Risks
- Rich valuation (P/E 61.45×) increases downside if growth slows.
CDNS — Summary
Cadence Design Systems, Inc. (CDNS) is a large-cap Technology company focused on Software - Application, listed on NMS. Last price $309.09 with market cap $85.12B. Trailing P/E 61.45×. Revenue grew 24.2% year-over-year per public data. Notable strengths include revenue growth of 24.2% year-over-year. Key watch items include elevated trailing p/e (61.45×) limits valuation margin of safety. Public estimates and earnings snapshots for Cadence Design Systems, Inc. are on this site; ownership, live news, and deeper models remain in Vest Terminal.
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Cadence Design Systems, Inc. FAQ
What does Cadence Design Systems, Inc. (CDNS) do?
Cadence Design Systems, Inc. develops computational, AI-driven software, hardware, and silicon intellectual property products and solutions. The company offers functional verification services, such as Jasper, a formal verification platform; Xcelium, a parallel logic simulation…
What is CDNS's P/E ratio?
Cadence Design Systems, Inc. has a trailing P/E of 61.45× based on publicly available market data.
Does CDNS pay a dividend?
Indicated dividend yield: none reported. Confirm ex-dates and payout history in Vest Terminal.
What sector is CDNS in?
Cadence Design Systems, Inc. is classified in Technology (Software - Application) on NMS.
What is CDNS's market capitalization?
Approximate market cap: $85.12B.
What are the main risks for CDNS?
Key risks include elevated valuation, among factors on this page.
What are the strengths of CDNS?
Potential positives include revenue growth of 24.2% year-over-year, earnings growth of 125.4% year-over-year.
Where can I get analyst estimates for CDNS?
Public analyst price targets and consensus for Cadence Design Systems, Inc. are on the free /stocks/cdns/estimates page. Deeper estimate history and models are available in Vest Terminal.