Cadence Design Systems, Inc. (CDNS) Stock Analysis
Last updated Sep 8, 2026
Health Check
Last analyzed Sep 7, 2026
- Financial Health 75
- Profitability 75
- Business Quality 100
- Balance Sheet 65
- Cash Flow 80
Why this rating?
Health 82/100 — Elite Quality
A usable setup — not as clean as Strong Entry, but timing is not mixed or weak.
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 Fair
Financial highlights
Valuation
- P/E 56.48
- Forward P/E 29.77
- PEG 2.21
- EV/Revenue 14
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
Similar companies
Peers in Software - Application, ranked by Financial Health.
Latest quoted price for the name. Helps anchor the setup in today’s market level.
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Good Entry Good EntryA usable setup — not as clean as Strong Entry, but timing is not mixed or weak.
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Watch WatchWorth tracking, but timing is mixed — not a clear setup yet.
- Autodesk, Inc. Software - Application ADSK$212.21 80 Health 80 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- Chime Financial, Inc. Software - Application CHYM$32.31 80 Health 80 / 100
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Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- Duolingo, Inc. Software - Application DUOL$146.39 78 Health 78 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- Intuit Inc. Software - Application INTU$318.93 76 Health 76 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
FAQ
How Compound Radar scores and tracks Cadence Design Systems, Inc. (CDNS).