Cadence Design Systems, Inc. CDNS
Composite 54/100; the shares have moved about 43% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Valuation ranks 20/100 — a strong mark against it.
Balance-sheet strength ranks 78/100 — a strong point in its favour. Quality ranks 68/100 — a moderate point in its favour. Growth ranks 64/100 — a moderate point in its favour.
Valuation ranks 20/100 — a strong mark against it. Momentum ranks 37/100 — a moderate mark against it.
What the company does Cadence Design Systems provides AI-driven software, hardware, and silicon IP for chip design and verification. Its platforms (Jasper, Xcelium, Verisium) and IP portfolio (PCIe, USB, memory interfaces) serve semiconductor and system design workflows.
Key financials ROE 23.2%, ROA 10.6%, ROCE 18.1%; gross/operating/net margins 85.9%/28.6%/23.6%. Revenue growth 14.1%, EPS growth 5.3%. Debt/equity 0.39, net debt/EBITDA 0.52, interest coverage 14.83.
Stock health Sideravia scores: Overall 55.9 (strong quality, richly valued), Quality 77.2, Growth 63.9, Strength 79.0, Valuation 15.2, Momentum 38.0. Piotroski F-Score 7/9, Altman Z 11.95. RSI(14) 38.80.
Price vs fair value The stock trades at a discount of 29.00% versus the analyst mean target of 403.94. - Recent 1-day decline of -7.60% amid broader tech selloff (headlines 2026-09-01). - PCIe 6.0 subsystem achieves first-pass compliance, reinforcing IP leadership (headlines 2026-09-01). - Analyst concerns raised about cash generation supporting growth and buybacks (headlines 2026-08-31).
Looking forward Forward P/E 38.91, PEG 0.64, EV/EBITDA 38.63. Growth and valuation metrics suggest high expectations embedded in current price.
This is not investment advice. Sideravia provides automated, data-driven analysis for information and education only. Nothing on this page is a personal recommendation or an invitation to buy or sell any security, and it does not consider your objectives or financial situation. Assessments are generated by rules applied uniformly to every covered stock — how our scores work.
Data as of 2026-09-05, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.