Cadence Design Systems Inc CDNS

Morningstar Rating
$388.05 −2.94 (0.75%)
View Full Chart

Company Report

Cadence Is Deploying AI Agents to Drive Semiconductor Design

Cadence Design Systems is a leading provider of software tools used by engineers to design semiconductor chips. This software is referred to as electronic design automation software. EDA solutions are indispensable to major semiconductor design firms, and increasingly a growing number of “electronic systems” companies that design a product that uses semiconductors, such as modern automobiles. The semiconductor industry does not function without companies like Cadence in the background.

Price vs Fair Value

CDNS is trading at a 478% premium.
Price
$390.90
Fair Value
$462.00
Uncertainty
High
1-Star Price
$732.30
5-Star Price
$588.00
Economic Moat
Nvz
Capital Allocation
Sbvsgfxlq

Bulls Say, Bears Say

Bulls

With limited competition and products that are essential in support of the semiconductor industry, which generates more than $500 billion in annual revenue, Cadence’s moat is wide and durable.

Bears

The valuation is not cheap, and the market is already giving Cadence full credit for the upcoming growth cycle. Any hiccups along the way will lead to declines in valuation.

News

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Trading Information

Previous Close Price
$390.90
Day Range
$382.24399.42
52-Week Range
$262.80416.67
Bid/Ask
$386.87 / $387.38
Shares Outstanding
275.82M
Market Cap
$106.74B
Volume/Avg
345,938 / 2M

Key Statistics

Price/Earnings (Normalized)
51.91
Price/Sales
19.33
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Total Yield
0.79%

Company Profile

Cadence Design Systems is a provider of electronic design automation software, intellectual property, and system design and analysis products. EDA software automates and aids in the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution. Cadence offers a portfolio of design IP, as well as system design and analysis products, which enables system-level analysis and verification solutions.
Sector
Technology
Industry
Software - Application
Stock Style Box
Large Growth
Total Number of Employees
13,800

Competitors

Valuation

Metric
CDNS
SNPS
SIE
Price/Earnings (Normalized)
51.9134.7026.61
Price/Book Value
16.432.923.17
Price/Sales
19.339.832.65
Price/Cash Flow
53.7632.2418.87
Price/Earnings
CDNS
SNPS
SIE

Financial Strength

Metric
CDNS
SNPS
SIE
Quick Ratio
1.130.991.01
Current Ratio
1.471.431.39
Interest Coverage
13.611.985.90
Quick Ratio
CDNS
SNPS
SIE

Profitability

Metric
CDNS
SNPS
SIE
Return on Assets (Normalized)
15.60%3.31%5.09%
Return on Equity (Normalized)
29.09%5.59%13.61%
Return on Invested Capital (Normalized)
19.81%4.92%6.25%
Return on Assets
CDNS
SNPS
SIE

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