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Cadence Design Systems, Inc. (CDNS) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Cadence Design Systems, Inc.

CDNSMarket cap $98BPrice $356.1

Country🇺🇸United States

SectorTechnology

IndustrySoftware

Creates software that designs computer chips and electronic systems used in everything from smartphones to cars. Every major semiconductor company relies on their tools to simulate and verify chips before manufacturing.

In Bastion Portfolios?

52W Return+9%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+14%8

Revenue Forecast

Rev CAGR (1y)+19%8

Rev CAGR (3y)+15%8

Rev CAGR (5y)+13%8

Earnings Forecast

EPS Growth Y+1+112%10

EPS Growth Y+2+18%8

EPS Growth Y+3+16%8

Quality

Margins

EBIT Margin31%9

Net Income Margin24%8

Free Cash Flow Margin29%9

Debt

Net Debt/EBITDA0.57

Efficiency

ROE23%8

ROA13%9

Earnings Stability77

GEAR+STRONG76

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)421

P/E Ratio (Forward 3y)321

P/BV14.31

EV Multiples

EV/EBITDA Fwd331

EV/EBIT Fwd362

Yield

Free Cash Flow Yield1.7%4

Dividend Yieldna–

Momentum

Short term

1 month return+25%10

3 month return-5%5

YTD return+14%7

Mid term

Price vs 52wHigh85%7

1 year return+2%5

Long term

3 year return+46%5

5 year return+137%8

Risk Shield

Price Risk

Beta1.32

Volatility41%4

Free Cash Flow

Free Cash Flow Margin29%9

Free Cash Flow Yield1.7%4

Quality

ROCE20%9

Earnings Stability77

Net Debt/EBITDA0.57

02Growth

Is it actually growing, and how fast?

CDNSCadence Design Systems

Revenue FY25$4.6B

GROWTH RATING↗

STRONG82 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+14%8

Revenue, next 1Y+19%8

Revenue, next 3Y, CAGR+15%8

Revenue, next 5Y, CAGR+13%8

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+112%10

EPS growth, FY27E+18%8

EPS growth, FY28E+16%8

GROWTH ASSESSMENT

STRENGTHS

It out-grows 82% of companies worldwide.

Revenue grew 14%/yr over the last 3 years, ahead of 70% of companies worldwide.8/10

Revenue is set to grow 15%/yr over the next 3 years, ahead of most of the market.8/10

Revenue grew 14%/yr over the last 3 years and is set to keep growing around 15%/yr.

The runway holds up: revenue is set to grow 13%/yr over five years.8/10

Earnings are set to grow in step with sales (EPS about 18%/yr vs revenue 15%/yr).

WATCH

None flagged.

WEAKNESSES

None flagged.

BOTTOM LINE

Elite Compounder

A top-tier grower.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

STRONG67 / 100

SHORT-TERM RETURNS▾SCORE

1-month return+25%10

3-month return-5%5

YTD return+14%7

MID & LONG-TERM▾SCORE

% of 52-week high85%7

1-year return+2%5

3-year return+46%5

5-year return+137%8

MOMENTUM ASSESSMENT

STRENGTHS

Strong long-term results. Long-term holders have seen +46% over three years and +137% over five, ahead of 60% of the market.

Strong recent results. The stock is outperforming over the past month (+25%) and so far this year (+14%).

WATCH

It's up 2% over the past year, but 15% below its 52-week high. That is a touch ahead of the market.

Returns sit at the market level over three months (-5%).

WEAKNESSES

None flagged.

BOTTOM LINE

Momentum Leader

Short- and long-term returns both rank among the best globally. The market is behind it — a core fit for momentum strategies.

04Value

Are you paying a fair price for it?

Stop guessing on Cadence. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

CDNSCadence Design Systems

Revenue FY25$4.6B

GROWTH RATING↗

STRONG82 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+14%8

Revenue, next 1Y+19%8

Revenue, next 3Y, CAGR+15%8

Revenue, next 5Y, CAGR+13%8

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+112%10

EPS growth, FY27E+18%8

EPS growth, FY28E+16%8

GROWTH ASSESSMENT

STRENGTHS

It out-grows 82% of companies worldwide.

Revenue grew 14%/yr over the last 3 years, ahead of 70% of companies worldwide.8/10

Revenue is set to grow 15%/yr over the next 3 years, ahead of most of the market.8/10

Revenue grew 14%/yr over the last 3 years and is set to keep growing around 15%/yr.

The runway holds up: revenue is set to grow 13%/yr over five years.8/10

Earnings are set to grow in step with sales (EPS about 18%/yr vs revenue 15%/yr).

WATCH

None flagged.

WEAKNESSES

None flagged.

BOTTOM LINE

Elite Compounder

A top-tier grower.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

STRONG67 / 100

SHORT-TERM RETURNS▾SCORE

1-month return+25%10

3-month return-5%5

YTD return+14%7

MID & LONG-TERM▾SCORE

% of 52-week high85%7

1-year return+2%5

3-year return+46%5

5-year return+137%8

MOMENTUM ASSESSMENT

STRENGTHS

Strong long-term results. Long-term holders have seen +46% over three years and +137% over five, ahead of 60% of the market.

Strong recent results. The stock is outperforming over the past month (+25%) and so far this year (+14%).

WATCH

It's up 2% over the past year, but 15% below its 52-week high. That is a touch ahead of the market.

Returns sit at the market level over three months (-5%).

WEAKNESSES

None flagged.

BOTTOM LINE

Momentum Leader

Short- and long-term returns both rank among the best globally. The market is behind it — a core fit for momentum strategies.

04Value

Are you paying a fair price for it?

Stop guessing on Cadence. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community