What is Cadence Design Systems, Inc.'s (CDNS) StockRank?

MoatMap's StockRank for Cadence Design Systems, Inc. (CDNS) is 57/100, with a Hold signal. This is a composite score combining Quality (77), Value (23), and Momentum (52) factor ranks across MoatMap's universe of 25,000+ stocks.

Does Cadence Design Systems, Inc. have an economic moat?

Cadence Design Systems, Inc. (CDNS) has a Quality factor score of 77/100. 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 financial 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 57/100. 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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CDNS

HoldPremium Grower

Cadence Design Systems, Inc. · Technology · United States · $93.7B · Avg Vol: $654M/d

StockRank

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P/E (TTM)

58.2x

ROE

23.2%

D/E

0.4x

Dividend %

—

COMPANY DESCRIPTION

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)

Year	2022	2023	2024	2025	CAGR	TTM	2026E	2027E	Fwd CAGR
Revenue	3.6B	4.1B	4.6B	5.3B	14.1%	5.8B	6.3B	7.2B	16.3%
EPS	3.13	3.86	3.89	4.09	9.3%	5.03	4.84	5.67	17.8%
Shares	272.7M	271.7M	273.9M	271.8M	-0.3%	275.4M	—	—	—
Debt	887.4M	764.4M	2.6B	2.6B	43.4%	2.7B	—	—	—
Equity	2.7B	3.4B	4.7B	5.5B	25.9%	—	—	—	—
Op CF	1.2B	1.3B	1.3B	1.7B	11.7%	1.9B	—	—	—
Inv CF	-738.6M	-412.2M	-837.1M	-460.5M	—	—	—	—	—
Fin CF	-657.0M	-803.6M	1.2B	-949.0M	—	—	—	—	—

Loading 1Y...

PRICE (1Y)-14.5%

SMA 50SMA 200

$284.60

RSI (14)

35.6

52W High

$416.69

From 52W High

0.7%

SCORE BREAKDOWN

Quality

ROIC

20.1%85.5

ROE

23.2%85.0

GP/Assets

49.4%87.7

Op. Margin

28.6%92.2

FCF/Assets

14.1%88.9

Piotroski

781.3

Int. Cover

14.4x54.4

D/E Ratio

0.39x34.6

Current Ratio

1.74x42.0

Value

P/E (TTM)

58.2x25.4

EV/EBITDA

37.9x25.4

P/FCF

65.6x32.5

P/B

11.8x9.7

P/S

13.8x12.1

Div Yield

—N/A

Momentum

52W High %

68%56.5

RS 6M

-16%44.4

SMA 50/200

1.03x57.1

EPS Rev 4W

+0.1%24.0

EPS Rev 12W

+1.7%58.1

EPS Improve

+90%54.5

Q Growth

129%76.4

FUNDAMENTALS

Market Cap

$93.7B

P/E (Forward)

30.7x

Gross Margin

85.9%

SECTOR PEERS

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

Ticker	Company	Mkt Cap	StockRank	Signal
CDNS	Cadence Design Systems, Inc.(you)	$93.7B	57	Hold
INTU	Intuit Inc.	$97.9B	61	Hold
DDOG	Datadog, Inc.	$85.1B	61	Hold
SHOP.TO	Shopify Inc.	$183.1B	57	Hold
TEAM.MX	Atlassian Corporation	$49.1B	59	Hold
CSU.TO	Constellation Software Inc.	$46.4B	60	Hold
ADSK	Autodesk, Inc.	$55.0B	64	Hold
PAYX	Paychex, Inc.	$45.2B	62	Hold
UBER	Uber Technologies, Inc.	$161.0B	67	Buy
SAP	SAP SE	$255.7B	59	Hold

Peer medians: ROE 7.6% · P/E 28.3x · Gross margin 32.4%

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

Cadence Design Systems, Inc. (CDNS) has a MoatMap StockRank of 57/100 based on Quality (77/100), Value (23/100), and Momentum (52/100) factor scores. The current signal is HOLD.

Key Financial Metrics

Price	$284.60
Market Cap	$93.7B
P/E (TTM)	58.19
P/E (Forward)	30.67
Price/Book	11.75
Return on Equity	23.2%
Return on Invested Capital	20.1%
Debt/Equity	0.39x
Gross Margin	85.9%
Operating Margin	28.6%
Revenue Growth	24.2%
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 57/100, with a Hold signal. It is a composite of Quality (77), Value (23), and Momentum (52) factor ranks across MoatMap’s universe of 25,000+ stocks.
Does Cadence Design Systems, Inc. have an economic moat?: Cadence Design Systems, Inc. (CDNS) has a Quality factor score of 77/100. 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 57/100. 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).