Score Your Stock

US stock · figures in US dollars · scored on full-year results

Cadence Design Systems Cadence Design Systems, Inc.

CDNS · Technology · Software - Application
Top 38% of scored stocks
OkayTop 38% of scored stocks
Weak SpotLimited Data

Cadence Design Systems scores 58/100 on fundamentals: in the top 38% of 503 scored S&P 500 stocks. Its strongest area is Business Strength (100/100); its weakest is Price Fairness (0/100). It carries 2 warning flags: Weak Spot, Limited Data.

Best
Business 100
Weakest
Price 0
  • Carries a Weak Spot flag
  • Carries a Limited Data flag

A financially strong, expensively priced stock with healthy growth, but price fairness needs attention.

Mkt capUS$ 89.6b#143 of 503 in the S&P 500EPSUS$ 5.03P/E65.2×✗ vs sector median 31.5×P/B13.1×✗ vs sector median 7.4×Div yieldNo dividends paidBottom 16% in the S&P 50052w range · 41% of range262.75416.69
as of 31 Oct 2026

Nearby peers

Ranks #44 of 86 in Technology by score

One-Minute Summary

Why Cadence Design Systems scores 58

A financially strong, expensively priced stock with healthy growth, but price fairness needs attention.

Business Strength

100
Why 100?
Pillar score: (2 + 2 + 2 + 2) = 8 of 8 points → 100 · 1 N/A skipped
Return on Equity (ROE)20%Strong4-Year Revenue Growth+14%/yrStrong4-Year Profit Growth+10%/yrStrongNet Profit Margin23%Strong

No data: Quarterly Momentum

Show 3 charts

Net Profit & Equity, with ROE

Net Profit ↑ +32.6%Equity ↑ +102%ROE % 20.1%
Net ProfitEquityROE %
1.0b1.1b1.1b1.4b3.4b4.7b5.5b6.9b202320242025TTM30.6%22.6%20.3%20.1%

Revenue & Net Profit, with Net Margin

Revenue ↑ +49.9%Net Profit ↑ +32.6%Net Margin % 22.5%
RevenueNet ProfitNet Margin %
4.1b4.6b5.3b6.1b1.0b1.1b1.1b1.4b202320242025TTM25.5%22.7%20.9%22.5%

Sales grew about 49.9% over 4 years: customers keep spending more with this company.

Profit climbed about 32.6% over 4 years: the business keeps more money as it grows.

Recent Quarters: Revenue & Net Profit (the last 8 quarters, scored)

Revenue ↑ +24.2%Net Profit ↑ +129.3%Net Margin % 23.2%
RevenueNet ProfitNet Margin %
1.3b1.3b1.4b1.5b1.6b160m287m388m336m367mQ2'25Q3'25Q4'25Q1'26Q2'2612.6%21.4%26.9%22.8%23.2%
▲

Sales grew about 24.2% over the last 5 quarters: customers keep spending more with this company.

Profit grew about 129.3% over the last 5 quarters: the business is keeping more of what it earns.

Why 83?
Pillar score: (2 + 1 + 2) = 5 of 6 points → 83
Debt-to-Equity0.4×StrongCurrent Ratio1.4×OkayInterest Coverage15.5×Strong
Show 2 charts

Debt vs Equity, with D/E ratio

Total Debt ↑ +267.9%Equity ↑ +102%D/E 0.4×
Total DebtEquityD/E
764m2.6b2.6b2.8b3.4b4.7b5.5b6.9b202320242025TTM0.2×0.6×0.5×0.4×

Borrowings grew about 267.9% over 4 years: watch this; rising debt adds pressure in bad times.

Short-term assets vs bills, with Current Ratio

Current Assets ↑ +69.7%Current Liabilities ↑ +55%Current Ratio 1.4×
Current AssetsCurrent LiabilitiesCurrent Ratio
2.0b4.0b4.7b3.4b1.6b1.4b1.6b2.5b202320242025TTM1.2×2.9×2.9×1.4×
Why 75?
Pillar score: (0 + 2 + 2 + 2) = 6 of 8 points → 75
Dividend QualityNo dividends paidWeak
Payout ratio: 0%
Operating Cash FlowPositive & growingStrongFree Cash FlowPositive & growingStrongCash & Cash EquivalentsGrowing & covers near-term debtStrong
Show 3 charts

Operating vs Free Cash Flow

Operating CF ↑ +45.9%Free CF ↑ +40.9%
Operating CFFree CF
1.3b1.3b1.7b2.0b1.2b1.1b1.6b1.8b202320242025TTM

The business generates real cash, and more of it each year: a very healthy sign.

Cash vs Total Debt

Cash ↑ +44%Total Debt ↑ +267.9%
CashTotal Debt
1.0b2.6b3.0b1.5b764m2.6b2.6b2.8b202320242025TTM

Dividends per Share, with Yield

DPS (cents) → +0%Yield % 0%
DPS (cents)Yield %
000020222023202420250%0%0%0%

Dividends per share have been maintained or raised: management shares the rewards with you.

Why 0?
Pillar score: (0 + 0 + 0) = 0 of 6 points → 0
P/E Ratio65.2×WeakP/B Ratio13.1×WeakPEG Ratio6.6Weak
Show chart

Share Price: Weekly Closes (not part of the score)

US$ 387.39US$ 326.52US$ 265.66Oct '25Feb '26Jun '26Oct '26

The share price has been roughly flat over the past year.

Why 40?
Pillar score: (2 + 0 + 2 + 0 + 0) = 4 of 10 points → 40 · 1 N/A skipped
Earnings ConsistencySteadyStrongDebt Trend (4yr)RisingWeakShare Count Trend (4yr)+0%/yrStrongInventory vs Sales (4yr)+20.7 pp/yr vs salesWeakAsset Turnover Trend (4yr)-30.5%Weak

No data: Quarterly Consistency

Show chart

Revenue vs Inventory, with Inventory % of Revenue

Revenue ↑ +49.9%Inventory ↑ +147%Inv. % of Rev. 7.3%
RevenueInventoryInv. % of Rev.
4.1b4.6b5.3b6.1b182m258m304m449m202320242025TTM4.4%5.6%5.7%7.3%
Ranks #44 of 86 in Technology by score

Full Financial History

Every reported figure behind the score, year by year. Download it, or check it against the company's own annual report.

Financial YearRevenueNet ProfitOperating Cash FlowFree Cash FlowCapExCashTotal DebtShort-Term DebtEquityCurrent AssetsCurrent LiabilitiesTotal AssetsTotal LiabilitiesInventoryDividendsReturn on Equity (ROE)Net Profit MarginDebt-to-EquityCurrent RatioInterest CoverageDiv yieldP/E RatioP/B RatioPEG Ratio
2026US$ 6.1bUS$ 1.4bUS$ 2.0bUS$ 1.8bUS$ -211.3mUS$ 1.5bUS$ 2.8bUS$ 648.8mUS$ 6.9bUS$ 3.4bUS$ 2.5bUS$ 12.2bUS$ 5.3bUS$ 448.8m-20%23%0.4×1.4×15.5×----
2025US$ 5.3bUS$ 1.1bUS$ 1.7bUS$ 1.6bUS$ -141.9mUS$ 3.0bUS$ 2.6b-US$ 5.5bUS$ 4.7bUS$ 1.6bUS$ 10.2bUS$ 4.7bUS$ 303.5mUS$ 0.0m20%21%0.5×2.9×14.1×0%76.1×15.4×8.2
2024US$ 4.6bUS$ 1.1bUS$ 1.3bUS$ 1.1bUS$ -142.5mUS$ 2.6bUS$ 2.6b-US$ 4.7bUS$ 4.0bUS$ 1.4bUS$ 9.0bUS$ 4.3bUS$ 257.7mUS$ 0.0m23%23%0.6×2.9×19.4×0%78.8×17.8×6.9
2023US$ 4.1bUS$ 1.0bUS$ 1.3bUS$ 1.2bUS$ -102.5mUS$ 1.0bUS$ 764.4mUS$ 349.3mUS$ 3.4bUS$ 2.0bUS$ 1.6bUS$ 5.7bUS$ 2.3bUS$ 181.7mUS$ 0.0m31%25%0.2×1.2×36.4×0%71.1×21.7×3.1