Information Technology · Application Software · US stock · price as of 16 Oct 2026
Key indicators
Price
$319.51
52-week range
$262.75 – $416.69
Market cap
$87.5B
P/E (trailing)
74.6×
EV / EBITDA
47.2×
Free-cash-flow yield
1.6%
Dividend yield
–
Revenue (last 12 months)
$5.5B
Revenue growth (3y a year)
14.1%
Operating margin
28.3%
Return on invested capital
22.3%
Net debt / EBITDA
–
Fair value
Fair value is not shown for this company.
X-Ray Score
45/ 100 · Medium confidence · ahead of 35% of sector peers
Valuation22
Growth54
Profitability61
Financial health47
Dividends–
Five-year price chart navy: price · brown: 200-day average · blue band: fair value range
Executive summary
Cadence Design Systems provides software, hardware and intellectual property used to design chips, circuit boards and electronic systems. Engineers at semiconductor makers, technology companies, carmakers and other electronics firms use its tools to design, simulate and verify products before manufacturing. The offering spans digital and analog chip design, system analysis and reusable design blocks, used in areas such as data centres, mobile devices and vehicles.
Cadence earns revenue from software licences, subscriptions and maintenance, from hardware systems used to test chip designs, and from licensing design blocks and providing services. The last twelve months brought in $5.5 billion, and growth over the last three years was 14.1% a year. The operating margin is 28.3%, and the business earns a profit of 22% on the capital invested in it. No dividend is paid.
StocksXray gives Cadence Design Systems Inc an X-Ray Score of 45 out of 100 (medium confidence), ahead of 35% of the S&P 500 stocks in its sector. Its strongest lens is profitability (61) and its weakest is valuation (22).
XStocksXray
Cadence Design Systems Inc (CDNS)
Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months
FY2022
FY2022
FY2023
FY2024
FY2025
Now
Price
$186.35
$160.64
$272.37
$300.46
$312.58
$319.51
Market cap
$52.0B
$44.2B
$74.3B
$82.3B
$85.4B
$87.5B
P/E
74.5×
52.0×
71.3×
78.0×
77.0×
74.6×
EV / revenue
17.0×
12.2×
17.9×
17.1×
15.5×
15.6×
EV / EBITDA
55.2×
35.9×
52.4×
51.4×
47.8×
47.2×
Price / free cash flow
50.2×
39.5×
59.6×
73.6×
53.8×
61.2×
Free-cash-flow yield
2.0%
2.5%
1.7%
1.4%
1.9%
1.6%
Price / book
19.0×
16.1×
21.8×
17.6×
15.6×
13.3×
Dividend yield
–
–
–
–
–
–
Fundamentals checklist ● 1 Good · ● 10 Average · ● 2 Bad · each check graded against the sector
Cash quality
Earnings backed by cash−3.5%Average
Free-cash-flow yield1.6%Bad
Risk models
Altman Z score4.7×Average
Piotroski F-Score6 of 9Average
Growth
EPS growth (3y)9.5%Average
Free-cash-flow growth (3y)12.4%Average
Revenue growth (3y)14.1%Good
Growth consistency90%Average
Balance sheet
Current ratio1.5×Average
Interest cover13.1×Average
Valuation
EBIT / EV yield1.8%Bad
Profitability
Return on invested capital22.3%Average
Operating margin28.3%Average
XStocksXray
Cadence Design Systems Inc (CDNS)
Financials US$ millions, from SEC filings; last column is the last twelve months
Income statement
FY22
FY22
FY23
FY24
FY25
LTM
Revenue
2,988
3,562
4,090
4,641
5,297
5,529
Gross profit
–
–
–
–
–
–
Operating income
779
1,074
1,251
1,351
1,492
1,562
Net income
696
849
1,041
1,055
1,109
1,171
Diluted EPS ($)
2.50
3.09
3.82
3.85
4.06
4.28
Free cash flow
1,036
1,119
1,247
1,118
1,587
1,430
Gross margin
–
–
–
–
–
–
Operating margin
26.1%
30.1%
30.6%
29.1%
28.2%
28.3%
Net margin
23.3%
23.8%
25.5%
22.7%
20.9%
21.2%
Balance sheet
FY22
FY22
FY23
FY24
FY25
LTM
Total assets
4,386
5,137
5,669
8,974
10,153
12,098
Cash
1,089
882
1,008
2,644
3,001
1,407
Total debt
–
–
–
–
–
–
Equity
2,741
2,745
3,404
4,674
5,474
6,561
Dividend per share ($)
–
–
–
–
–
–
Revenue and net income US$ billions: navy revenue, teal net income
Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value blends three models and carries a typical error of about 40%, so treat it as a range. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.