Stocktoria
CADENCE DESIGN SYSTEMS INC CDNS
CADENCE DESIGN SYSTEMS INC (CDNS) earns a Piotroski F-score of 5/9 (mixed financial health), with an Altman Z″ in the safe zone. It does not currently pay a dividend. FY2025 revenue was $5.3B at a 20.9% net margin.
Quality score trend · recomputed for each fiscal year
Each year's score is computed from that year's filing — a rising Piotroski F or Altman Z″ means improving financial health, a fall is worth a look.
Analyst price target
Recent analyst actions
| Date | Firm | Rating |
|---|---|---|
| 2026-07-28 | B of A Securities | Buy (main) |
| 2026-07-28 | Rosenblatt | Buy (main) |
| 2026-07-28 | Citigroup | Buy (main) |
| 2026-07-28 | Baird | Outperform (main) |
| 2026-07-28 | Needham | Buy (reit) |
| 2026-07-28 | Piper Sandler | Neutral (main) |
Wall Street analyst consensus — a sentiment gauge, not our scoring.
Forward estimates · earnings calendar →
Consensus analyst estimates and scheduled dates — forward-looking, may change.
Smart money · insiders, last 12 months
Open-market insider purchases minus sells (SEC Form 4) — real buying with their own money is a bullish “smart money” signal; grants and option exercises are excluded.
How it ranks in Services · percentile among 982 companies
Percentile vs other Services companies we cover — e.g. “stronger than 90%” means only 10% score higher on that measure.
Piotroski F breakdown · 5/9 tests passed
- Positive return on assets
- Positive operating cash flow
- Rising ROA
- Cash flow exceeds net income
- Lower long-term debt
- Rising current ratio
- No share dilution
- Rising gross margin
- Rising asset turnover
Altman Z″ components · safe zone
| Component | Value |
|---|---|
| Working capital / assets | 0.299 |
| Retained earnings / assets | 0.699 |
| EBIT / assets | 0.147 |
| Equity / liabilities | 1.17 |
Sector peers · similar-size Services companies compare side by side →
| Ticker | Company | Piotroski F | Altman Z″ | P / E | Revenue growth |
|---|---|---|---|---|---|
| CDNS | CADENCE DESIGN SYSTEMS INC | 5/9 | 6.46 | 93.8 | +14.1% |
| TEAM | Atlassian Corp | 7/9 | -1.36 | — | +19.7% |
| CRWV | CoreWeave, Inc. | 5/9 | -1.3 | — | +167.9% |
| TWLO | TWILIO INC | 6/9 | 3.34 | 859.4 | +13.7% |
| GEN | Gen Digital Inc. | 7/9 | 0.5 | 15.1 | +27.1% |
| RBLX | Roblox Corp | 5/9 | -2.7 | — | +35.8% |
| CRWD | CrowdStrike Holdings, Inc. | 4/9 | 2.07 | — | +21.7% |
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.
FAQ
Is CDNS financially healthy?
CADENCE DESIGN SYSTEMS INC's Piotroski F-score is 5/9 (8–9 is excellent, 0–3 weak), and its Altman Z″ distress score is in the safe zone.
Does CDNS pay a dividend?
No, CADENCE DESIGN SYSTEMS INC does not currently pay a dividend.
How profitable is CDNS?
In FY2025, CADENCE DESIGN SYSTEMS INC had a net margin of 20.9% and a return on equity of 20.3%.
Is CDNS overvalued or undervalued?
CADENCE DESIGN SYSTEMS INC trades at about 79.6× trailing earnings — above its 10-year norm (10-year range 20.4×–77.3×, median 61.5×). Stocktoria reports the data, not buy/sell advice.
What is the analyst price target for CDNS?
The average Wall-Street price target for CADENCE DESIGN SYSTEMS INC is $403.67, about 24.9% above the recent price, from 26 analysts (consensus: strong buy).
Is CDNS a good stock to buy?
Stocktoria doesn't give buy or sell advice, but here is the data on CADENCE DESIGN SYSTEMS INC: a Piotroski F-score of 5/9, an Altman Z″ in the safe zone, a P/E of about 93.8×. Weigh these quality and valuation signals against your own goals.
Computed from company filings · US · as of 2025-12-31. Facts plus Stocktoria's own computed scores — not investment advice.