# Cadence Design Systems Inc. (CDNS) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Technology / Software. Price $292.70, market value $80.6 billion.

## Valuation
- **P/E (trailing): 58.2×** (5-yr avg 70.6×, 3-yr avg 75.4×). Cadence Design Systems Inc. trades at 58.2× trailing earnings, close to its own five-year average of 70.6×. The Technology median in the September 2026 study was 32.1×. Forward P/E is 30.7×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 5.62**. A PEG of 5.62 means the P/E is high relative to expected earnings growth; the price already assumes a lot.
- **Price / sales: 13.8×**. Each dollar of revenue is priced at 13.8×, a level that requires very high margins or very fast growth to justify.
- **Price / book: 11.8×**. The shares trade at 11.8× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **Free-cash-flow yield: 2.1%** (5-yr avg 1.9%). Free cash flow equals 2.1% of the market value, in line with its five-year average of 1.9%.
- **Earnings yield: 1.7%**. The inverse of the P/E: 1.7% of the price is earned each year.

## Profitability
- **Operating margin: 30.3%**. 30.3% of revenue is left after running the business, an exceptional level.
- **Net margin: 20.9%**. 20.9% of each dollar of sales reaches the bottom line.
- **Return on equity: 20.3%**. 20.3% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on assets: 13.6%**. Each dollar of assets produces 13.6% of profit.

## Growth
- **Revenue growth (1 yr): 14.1%** (3-yr 14.1%/yr, 5-yr 14.6%/yr). Revenue grew 14.1% over the last year, against 14.6% a year compounded over five years.
- **EPS growth (1 yr): 5.5%** (3-yr 9.5%/yr, 5-yr 14.0%/yr). Earnings per share rose 5.5%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 12.4%/yr**. Free cash flow has compounded at 12.4% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Current ratio: 2.86** (quick 2.86). Current assets cover the next year's liabilities 2.86 times.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. Cadence Design Systems Inc. does not currently pay a dividend.

## Analyst view
- **Analyst consensus: strong_buy** (27 analysts). 27 analysts cover Cadence Design Systems Inc.; the consensus is strong_buy, with an average price target of $403.12 (+38% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -16.2%** (YTD -6.4%, 3-mo -22.2%). The shares are down 16.2% over twelve months including dividends.
- **From 52-week high: -29.8%** (11.4% above the low). Trading 30% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 31**. An RSI of 31 is neutral.
- **Beta (1 yr): 1.65** (volatility 41%). Beta of 1.65 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=CDNS · Page: https://foliofundamentals.com/stocks/cdns

Not investment advice.