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CADENCE DESIGN SYSTEMS INC (CDNS)

Services-Prepackaged Software · Services-Prepackaged Software · NASDAQ

$314.98

-0.49%

Investingg Score

47.7 / 100

Sell

Business overview

  • Operating margin stands at 28.2 percent.
  • Free cash flow margin is reported at 30 percent.
  • Gross margin data is unavailable.

These figures indicate robust operational efficiency and strong cash generation, though lack of gross margin data leaves a minor gap in profitability analysis.

Financial health

  • Balance sheet pillar score is 60 out of 100.
  • Market capitalization is 85611249020 dollars.
  • FCF yield is 1.9 percent.

The balance sheet score reflects stable fundamental footing, though a lower free cash flow yield introduces valuation sensitivity.

Gross Margin
Data unavailable
Operating Margin
28.2%
Current Ratio
2.9x
Debt / Equity
Data unavailable
Free Cash Flow (TTM)
$1.6B
Interest Coverage
13x

Valuation

  • Price-to-earnings ratio is 81.04.
  • Forward P/E ratio is 37.32.
  • Price-to-sales ratio is 16.06.

These multiples suggest that a high valuation is currently priced into the stock, leaving little room for error.

P/E (TTM)
81.0x
Forward P/E
37.3x
Price / Sales
16.1x
EV / EBITDA
Data unavailable
FCF Yield
1.8%

Key risks

  • High trailing price-to-earnings ratio of 81.04 introduces valuation risk.
  • Technical indicators show weakness, with the price 11.7 percent below its 50-day moving average.
  • Free cash flow yield of 1.9 percent is relatively low.

Market cap $85.6B · data as of 2026-08-19

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Analyze CDNS with Investingg AI

Not investment advice. Investingg AI summarizes public data and AI-generated analysis for informational purposes only.