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Cadence Design Systems, Inc. CDNS NASDAQ

NASDAQ Global Select • Technology • Software - Application • US • USD

SharesGrow Score
78/100
6/7 Pass
SharesGrow Intrinsic Value
$198.87
-32%
Analyst Price Target
$374.71
+28.2%

Cadence Design Systems, Inc. (CDNS) is a Software - Application company in the Technology sector, currently trading at $292.37. It has a SharesGrow Score of 78/100, indicating a strong investment profile with 6 out of 7 criteria passed.

SharesGrow calculates the intrinsic value of CDNS = $198.87 (-32% from the current price, the stock appears overvalued). Analyst consensus target is CDNS = $375 (+28.2% upside).

Valuation: CDNS trades at a trailing Price-to-Earnings (P/E) of 69.5 (S&P 500 average ~25) with a forward Price/Earnings-to-Growth (PEG) of 4.6.

Financials: revenue is $5.3B, +14.1%/yr average growth. Net income is $1.1B, growing at +9.7%/yr. Net profit margin is 20.9% (strong). Gross margin is 86.4% (-3.2 pp trend).

Balance sheet: total debt is $2.5B against $5.5B equity (Debt-to-Equity (D/E) ratio 0.45, conservative). Current ratio is 2.86 (strong liquidity). Debt-to-assets is 24.4%. Total assets: $10.2B.

Analyst outlook: 25 / 30 analysts rate CDNS as buy (83%) — strong consensus.

SharesGrow 7-Criteria breakdown: Value 27/100 (Fail), Growth 73/100 (Pass), Past 100/100 (Pass), Health 100/100 (Pass), Moat 71/100 (Pass), Future 88/100 (Pass), Income 85/100 (Pass).

$374.71
▲ 28.16% Upside
Average Price Target
Based on 30 Wall Street analysts offering 12-month price targets for Cadence Design Systems, Inc., the average price target is $374.71, with a high forecast of $418.00, and a low forecast of $275.00.
Highest Price Target
$418.00
Average Price Target
$374.71
Lowest Price Target
$275.00

CDNS SharesGrow Score Overview

78/100
SharesGrow Score
Strong investment profile
View full scorecard →
VALUE 27/100
Valuation — P/E, PEG, Forward PEG
GROWTH 73/100
Financials — average growth
PAST 100/100
strong — trend
HEALTH 100/100
Balance sheet — Debt-to-Equity (D/E) ratio, Current ratio is
MOAT 71/100
Gross margin is + market cap
FUTURE 88/100
Analyst outlook — as buy
INCOME 85/100
Net profit margin is
Scores derived from financial statements, analyst ratings, and balance sheet data.

Score Breakdown — CDNS

VALUE Fail
27/100
CDNS trades at a trailing Price-to-Earnings (P/E) of 69.5 (S&P 500 average ~25). Forward PEG 4.6 — overvalued. Trailing PEG 15.1. Analyst consensus target is $375, implying +28.3% from the current price $292. Composite: Price-to-Earnings (20%) + Forward Price/Earnings-to-Growth (35%) + upside (25%) + trailing PEG (20%). ≥ 60 = Pass.
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GROWTH Pass
73/100
CDNS: +14.1%/yr revenue is, +9.7%/yr Net income is average growth. > 5%/yr — strong. Score: >20%/yr = 100, >10% = 80, >5% = 65, >0% = 45, < 0 = 15.
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PAST Pass
100/100
CDNS: 4 / 4 years profitable. strong — 100%. Score = 4 / 4 × 100. ≥ 80 = Pass.
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HEALTH Pass
100/100
Balance sheet CDNS: Debt-to-Equity (D/E) ratio 0.45 (conservative), Current ratio is 2.86 (strong liquidity). Debt-to-Equity < 0.5, Current Ratio > 1.5, Interest Coverage > 8x = ideal. ≥ 70 = Pass.
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MOAT Pass
71/100
CDNS: Gross margin is 86.4% (-3.2 pp trend), $81B market cap. Moat (0-100): margin (35%) + trend (15%) + market cap (30%) + revenue is (20%). Score 71/100. ≥ 70 = Pass.
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FUTURE Pass
88/100
Analyst outlook: 25 / 30 analysts rate CDNS as buy (83%). Analyst consensus target is $375 (+28.3% upside). Score: 60% buy consensus + 40% upside. ≥ 60 = Pass.
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INCOME Pass
85/100
CDNS: Net profit margin is 20.9%. healthy (≥15%). Score: ≥30% = 100, ≥20% = 85, ≥15% = 70, ≥10% = 55, ≥5% = 45, ≥0% = 30, < 0 = 10.
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Stock Chart & Stats

Market Data
52-Week Range221.56-376.45
Volume2.05M
Avg Volume (30D)2.58M
Market Cap$80.72B
Beta (1Y)1.04
Share Statistics
EPS (TTM)4.09
Shares Outstanding$271.33M
IPO Date1987-06-10
Employees12,837
CEOAnirudh Devgan
Financial Highlights & Ratios
Revenue (TTM)$5.3B
Gross Profit$4.57B
EBITDA$1.87B
Net Income$1.11B
Operating Income$1.65B
Total Cash$3B
Total Debt$2.48B
Net Debt$-521.17M
Total Assets$10.15B
Price / Earnings (P/E)71.5
Price / Sales (P/S)15.24
Analyst Forecast
1Y Price Target$385.00
Target High$418.00
Target Low$275.00
Upside+31.7%
Rating ConsensusBuy
Analysts Covering30
Buy 83% Hold 13% Sell 3%
Price Target Summary
Company Info
CountryUS
ExchangeNASDAQ Global Select
CurrencyUSD
ISINUS1273871087

Price Chart

CDNS
Cadence Design Systems, Inc.  ·  NASDAQ Global Select
Technology • Software - Application
221.56 52WK RANGE 376.45
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