CDNS

HoldPremium Grower

Cadence Design Systems, Inc. · Technology · United States · $87.2B cap · $790.4M/day traded

$322.17 +1.8% · close 26 Oct · scored 27 Oct

Premium Grower: Strong business with the market behind it, priced at a premium.

62
StockRank
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Quality
76
Value
20
Momentum
62

As of 27 Oct 2026, MoatMap's StockRank for Cadence Design Systems, Inc. (CDNS) is 62/100, ranked against 24,000+ stocks in 35 markets (Quality 76, Value 20, Momentum 62, each scored against its sector).

Does StockRank work? Each month we publish how every decile did, whichever way it went. See the record →

P/E (TTM)
62.9x
peers 26.9x
ROE
23.2%
peers 8.2%
D/E
0.4x
peers 0.2x
Dividend %
—
trailing yield

ABOUT CADENCE DESIGN SYSTEMS, INC.

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Cadence Design Systems is a leading provider of electronic design automation (EDA) software, hardware, and intellectual property that are crucial for designing and verifying integrated circuits and electronic systems. The company boasts a significant competitive moat driven by the highly specialized nature of its software, deep customer integration, and high switching costs within the semiconductor industry. Cadence holds a dominant market position, providing indispensable tools for advanced chip development.

FINANCIAL SUMMARY (USD)

Year2022202320242025CAGRTTM2026E2027EFwd CAGR
Revenue3.6B4.1B4.6B5.3B14.1%5.8B6.3B7.2B16.4%
EPS3.133.863.894.099.3%5.034.855.6917.9%
Shares272.7M271.7M273.9M271.8M-0.3%275.4M———
Debt887.4M764.4M2.6B2.6B43.4%2.7B———
Equity2.7B3.4B4.7B5.5B25.9%————
Op CF1.2B1.3B1.3B1.7B11.7%1.9B———
Inv CF-738.6M-412.2M-837.1M-460.5M—————
Fin CF-657.0M-803.6M1.2B-949.0M—————
Loading 1Y...
PRICE (1Y) · USD+17.6%
27429531733836015 Sep6 Oct26 Oct
SMA 50SMA 200

Price checkNo clear trendExperimental

No clear trend: not near its 52-week low, and not in a steady uptrend.

SwingsBumpy

Calmer than 52% of stocks we rank over the past year (41% a year).

How this is worked out

StockRank judges the business. The price check reads only the chart: it is the price side of the Momentum score, in words.

The rules: Still falling is a new 52-week low in the last two weeks, at least 25% below the high. Finding a floor is no new low since. Turning up is 20 or more trading days without a new low, at least 10% off it, and back above a rising 50-day average. In an uptrend is above the 200-day average and within 15% of the high.

In 2,112 US drawdowns since 2001, buying while the price was still falling was followed by a further 20% drop 42% of the time. Waiting for a turn like this one cut that to 33%, at about 7% higher prices and with no better returns. Part of that cut is simply not buying: 13% of falls never turned, and waiting kept those out. Among turns that were bought, 38% still fell another 20%, and 33% of turns were followed by a new low within six months. The benefit was largest in crashes such as 2008 and 2020.

What it measures: day-to-day price moves over the past year, as a yearly figure, ranked against every stock we cover. Very calm under 20% a year, Calm 20 to 30%, Average 30 to 40%, Bumpy 40 to 55%, Very bumpy above that.

What we found: across about 13,500 stocks in 34 markets (2002 to 2025), past swings were a good guide to the next year's, and bumpier stocks fell further. How much further changed too much between eras to put a number on it.

Calm is not safe: a calm stock can still slide steadily.

Rules fixed before any data was fetched. Describes the chart, not a recommendation.

Close
$322.17
RSI (14)
30.4
52-Week Range-22.7% from high
Low $262.75High $416.69

SCORE BREAKDOWN

Quality
76
ROIC
20.1%83.0
ROE
23.2%84.7
GP/Assets
49.4%88.4
Op. Margin
28.6%91.4
FCF/Assets
14.1%88.6
Piotroski
780.1
Int. Cover
14.4x52.9
D/E Ratio
0.39x34.4
Current Ratio
1.74x41.8
Value
20
P/E (TTM)
62.9x21.4
EV/EBITDA
40.9x21.7
P/FCF
61.0x26.4
P/B
12.7x7.7
P/S
14.9x9.1
Div Yield
—N/A
Momentum
62
52W High %
77%72.3
RS 6M
-11%47.6
SMA 50/200
0.97x45.6
EPS Rev 4W
+0.3%69.0
EPS Rev 12W
+1.8%69.6
EPS Improve
+90%55.9
Q Growth
129%75.1

FUNDAMENTALS

Market Cap
$87.2B
P/E (Forward)
33.1x
Gross Margin
85.9%

SECTOR PEERS

Closest peers in Technology, ranked by industry match, size, and score similarity. Cross-listings of CDNS are excluded.

TickerCompanyMkt CapStockRankSignal
CDNSCadence Design Systems, Inc.(you)$87.2B62Hold
DDOGDatadog, Inc.$96.8B63Hold
INTUIntuit Inc.$91.8B66Buy
TEAMAtlassian Corporation$57.6B60Hold
UBERUber Technologies, Inc.$136.2B71Buy
NOWServiceNow, Inc.$164.3B54Hold
SAPSAP SE$274.9B63Hold
ADSKAutodesk, Inc.$52.7B77Buy
CSU.TOConstellation Software Inc.$51.4B78Buy
ADPAutomatic Data Processing, Inc.$120.5B83Strong Buy

Peer medians: ROE 8.2% · P/E 26.9x · Gross margin 33.1%

Company Deep Dive

Business segments breakdown, earnings transcript analysis, management credibility scoring, competitive landscape, and scenario modelling.

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Cadence Design Systems, Inc. (CDNS): Stock Score Summary

Cadence Design Systems, Inc. (CDNS) has a MoatMap StockRank of 62/100 based on Quality (76/100), Value (20/100), and Momentum (62/100) factor scores. The current signal is HOLD.

Cadence Design Systems is a leading provider of electronic design automation (EDA) software, hardware, and intellectual property that are crucial for designing and verifying integrated circuits and electronic systems. The company boasts a significant competitive moat driven by the highly specialized nature of its software, deep customer integration, and high switching costs within the semiconductor industry. Cadence holds a dominant market position, providing indispensable tools for advanced chip development.

Key Financial Metrics

Price$322.17
Market Cap$87.2B
P/E (TTM)62.92
P/E (Forward)33.07
Price/Book12.71
Return on Equity23.2%
Return on Invested Capital20.1%
Debt/Equity0.39x
Gross Margin85.9%
Operating Margin28.6%
Revenue Growth24.2%
Free Cash Flow$1.4B

Cadence Design Systems, Inc. operates in the Software - Application industry, part of the Technology sector (United States).

Frequently Asked Questions

What is Cadence Design Systems, Inc.’s (CDNS) StockRank?
MoatMap’s StockRank for Cadence Design Systems, Inc. (CDNS) is 62/100, with a Hold signal. It is a composite of Quality (76), Value (20), and Momentum (62), each scored against its sector. The composite is then ranked across MoatMap’s universe of 24,000+ stocks.
Does Cadence Design Systems, Inc. have an economic moat?
Cadence Design Systems, Inc. (CDNS) has a Quality factor score of 76/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage: the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is Cadence Design Systems, Inc. a buy, hold, or sell?
MoatMap’s current signal for Cadence Design Systems, Inc. (CDNS) is Hold, based on a StockRank of 62/100. Signals are derived mechanically from the StockRank composite and should be one input among many; combine with your own thesis on management, competitive position, and valuation.
What sector is Cadence Design Systems, Inc. in?
Cadence Design Systems, Inc. (CDNS) operates in the Technology sector, specifically the Software - Application industry (United States).