CDNS
Cadence Design Systems
Information Technology · Application Software · US
$376.19
Data: 2026-05-15
✓ ETHICAL PASS

STRONG MOAT
HIGH
Data Confidence: 100.0%
Key Metrics

How this company measures up on the fundamentals that matter

Market Cap
$96.5B
Total market value of the company
81.40
Expensive — high growth expected
37.31
Based on estimated future earnings — lower means cheaper
Rev Growth
+18.7%
Year-over-year revenue change
Profit Margin
21.2%
How much profit the company keeps from each dollar of revenue
20.7%
Return on equity — how efficiently it uses shareholder money
Analyst Target
$379.55
+1% from current price — median analyst estimate
Recommendation
STRONG_BUY
Consensus view from 26 analysts covering this stock
About Cadence Design Systems

Cadence Design Systems, Inc. develops computational, AI-driven software, hardware, and silicon intellectual property products and solutions. The company offers functional verification services, such as Jasper, a formal verification platform; Xcelium, a parallel logic simulation platform; Verisium, a generative AI solution; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification, as well as digital IC design and sign off products, including In novus platform; and custom IC design and simulation product include Virtuoso, a platform to design and verify analog. It also provides Xcelium logic simulator and other front-end verification and virtual prototyping technologies; controllers and physical interfaces; PCI Express, universal accelerator and compute express links, and multiple memory interfaces; and Ten Silica, a digital signal processor. In addition, the company's design IP portfolio includes serializer/deserializer, peripheral component interconnect, USB, and other standard protocols; and Secure-IC, a solution for embedded security IP. Additionally, it provides System Design and Analysis (SD&A) platform, a solution that enables end-to-end system-level design and verification across chips, packages, PCBs, and electronic systems; Allegro X and Orca X platforms for PCB and advanced packaging; Sigrity X for signal and power integrity; AIR for RF design; Fidelity for computational fluid dynamics; Celsius for thermal and airflow analysis; Clarity 3D solver for electromagnetic and power electronics analysis and simulation; Integrity 3D-IC solution for 3D-IC and multi-chiplet designs; the Optimality Intelligent System Explorer, Reality digital twin, and Millennium enterprise multiphasic platforms; Allegro system design platform; and molecular modeling and simulation solutions and services. The company has a strategic collaboration with NVIDIA. The company was incorporated in 1987 and is headquartered in San Jose, California.

https://www.cadence.com

Country: United States Employees: 15,110 Industry: Software - Application
Ethical Screening

Five compliance checks based on AAOIFI standards — all must pass for ethical clearance

Business Activity
PASS
Core business does not involve prohibited activities
Debt Ratio
25.8% PASS
Debt must be below 33% of total assets
Cash Ratio
0.7% PASS
Interest-bearing cash below 33% of assets
Receivables
34.4% PASS
Receivables below 49% of assets
Revenue Purity
1.9% PASS
Non-compliant revenue below 5% — any excess requires purification
Valuation
$175.42
What our model estimates this business is worth per share
-114.5%
Trading above fair value — no margin of safety
Rating
OVERVALUED
Overall assessment combining ethics, valuation, and quality
86.7th
Ranks in the top 13% of our 13,571 screened universe
Ethical Score
76.6
Valuation Score
30.5
Quality Score
80.3
Combined
59.3

Trading at $350, 100% above fair value of $175. Strong competitive moat. 21% profit margins. Passes all ethical screens. Ranks better than 59% of screened stocks.

Quantitative Intelligence

Statistical analysis of price behaviour, risk, and market regime — independent of fundamental data

ACCUMULATION
Smart money appears to be building positions quietly
0.520
Good returns relative to risk taken
0.0470
Modest edge detected — smaller position warranted
0.470
Drawdown risk outweighs the returns — higher risk profile
Annual Return
13.6%
Historical annualised return based on price data
-29.1%
Largest peak-to-trough decline — the worst it has been
BEAR
Statistical model detects bearish conditions
Days in State
266
How long the current regime has persisted — longer means more stable
Market Data

Trading characteristics and market positioning

1.13
Moves slightly more than the broader market
52W High
$376.45
0% below the year high
52W Low
$262.75
43% above the year low
Avg Volume
2,533,283
Average daily shares traded — higher means easier to buy and sell
2.6
Days it would take all short sellers to cover — higher means more crowded
Short % Float
2.3%
Low short interest — limited bearish positioning
0.0%
Annual dividend as a percentage of the share price
$4.28
Earnings per share over the last 12 months
Financial Health

Balance sheet strength and cash generation — the foundation of long-term value

0.47
Conservative use of debt — low financial risk
1.47
Adequate but worth monitoring
Quick Ratio
1.21
Like current ratio but excludes inventory — stricter test
Gross Margin
86.1%
Revenue left after cost of goods — higher means pricing power
Operating Margin
29.7%
Profit from core operations before interest and tax
$1.5B
Positive — the business generates more cash than it spends
Revenue (TTM)
$5.5B
Total revenue over the last 12 months
Net Income
$1.2B
Profitable — the bottom line is positive
Analyst Coverage
Analysts
26
Target High
$425.00
Target Median
$379.55
Target Low
$275.00
Recent Insider Activity

SEC Form 4 filings — what company insiders are buying and selling

Date Insider Title Type Shares Value
2026-05-18 SCANNELL PAUL Officer 1,071 $369,559
2026-05-18 SCANNELL PAUL Officer 1,071 $369,559
2026-05-07 PLUMMER JAMES D Director 779
2026-05-07 ADAMS MARK W Director 779
2026-05-07 LIUSON JULIA Director 714
2026-05-07 VAN DEN HOVE LUC Director 714
2026-05-07 GAVRIELOV MOSHE NACHUM Director 714
2026-05-07 PLUMMER JAMES D Director 714
2026-05-07 BRENNAN ITA M Director 714
2026-05-07 KRAKAUER MARY LOUISE Director 714
Source: SEC Form 4 filings via public data. View all insider activity at
Insider Intelligence
Explore the Ethical Screener View Track Record

Data sourced from public filings and market feeds. Not financial advice. Updated: 2026-05-15

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