Compound Radar

Cadence Design Systems, Inc. (CDNS) Stock Analysis

Price $343.08
Market cap $94.63B
Entry status Wait

Last updated Oct 27, 2026

Health Check

Last analyzed Oct 23, 2026

82
82/100 Elite Quality
  • Financial Health 75
  • Profitability 75
  • Business Quality 100
  • Balance Sheet 65
  • Cash Flow 80

Why this rating?

Health 82/100 — Elite Quality

Strongest Business Quality 100/100
Softest Balance Sheet 65/100
Wait

Entry timing is weak right now. Quality may be fine; the setup is not.

Company overview

Cadence Design Systems, Inc. (CDNS) is a Software - Application company in the Technology sector. Compound Radar rates Cadence Design Systems, Inc. 82/100 (Elite Quality) due to high business quality, strong revenue growth, and manageable leverage.

Investment profile

  • Quality High
  • Growth Strong
  • Balance Sheet Adequate
  • Valuation Elevated

Financial highlights

Valuation

  • P/E 68.21
  • Forward P/E 35.02
  • PEG 2.47
  • EV/Revenue 15.39

Profitability

  • Revenue Growth 24.2%
  • Gross Margin 85.9%
  • Operating Margin 28.6%
  • Net Margin 23.6%
  • ROE 23.2%

Financial strength

  • Cash $1.53B
  • Debt $2.65B
  • Net Cash $-1.12B
  • Free Cash Flow $1.59B
  • Current Ratio 1.74

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FAQ

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