About Cadence Design Systems, Inc.
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.
Cadence Design Systems, Inc. (CDNS) is a Technology company in the Software - Application industry with a market capitalisation of $78.5B. The stock trades at 56.54x trailing earnings.
- Sector
- Technology
- Industry
- Software - Application
- Market cap
- $78.5B
- P/E ratio
- 56.54
- Forward P/E
- 29.86
- EPS (TTM)
- $5.04
- Revenue (TTM)
- $5.8B
- Free cash flow
- $1.6B
- Profit margin
- 23.6%
- Beta
- 1.14
- Shares outstanding
- 275.4M
Financial health: Strong8.8/10
7 strengths, 1 concern. Weakest points: peg ratio.
- Current ratio: 2.86 (Strong, benchmark > 1.5) — Short-term assets cover 2.86x short-term liabilities, against Graham's 1.5x floor. It has improved over the last 4 years.
- Return on equity: 23.2% (Strong, benchmark > 15%) — Earns 23.2% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 85.9% (Strong, benchmark > 40%) — Keeps 85.9% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 23.6% (Strong, benchmark > 10%) — Turns 23.6% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $1.6B (Strong, benchmark positive) — Generated $1.6B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 24.2% (Strong, benchmark > 10%) — Revenue changed 24.2% year on year, comfortably past the > 10% mark.
- Earnings growth: 125.4% (Strong, benchmark > 10%) — Earnings changed 125.4% year on year, comfortably past the > 10% mark.
- PEG ratio: 2.15 (Concern, benchmark < 1) — At 2.15, the price looks expensive relative to expected growth — Lynch treated 1.0 as fair value.