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

Cadence Design Systems, Inc. (CDNS) has a MoatMap StockRank of 77/100 based on Quality (73/100), Value (20/100), and Momentum (66/100) factor scores. The current signal is BUY. Cadence Design Systems is a premier quality compounder with an un-copyable moat in Electronic Design Automation (EDA) software. As the industry hits physical limits, designing multi-chiplet architectures (like CoWoS) requires Cadence's specialized 3D-IC design tools, creating an asymmetric demand wave with high recurring IP revenue.

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$411.68
Market Cap$103.1B
P/E (TTM)96.19
P/E (Forward)43.87
Price/Book17.31
Return on Equity20.7%
Return on Invested Capital19.2%
Debt/Equity46.99
Gross Margin86.1%
Operating Margin29.7%
Revenue Growth18.7%
Free Cash Flow$1.5B

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 77/100, with a Buy signal. It is a composite of Quality (73), Value (20), and Momentum (66) factor ranks across MoatMap’s 19,000+ stock universe.
Does Cadence Design Systems, Inc. have an economic moat?
Cadence Design Systems, Inc. (CDNS) has a Quality factor score of 73/100. 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 Buy, based on a StockRank of 77/100. 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).
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