A Business at a Glance
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This Annual Report and the documents incorporated by reference in this Annual Report contain statements that are not historical in nature, are predictive, or that depend upon or refer to future events or conditions or contain other forward-looking statements. Statements including, but not limited to, statements regarding artificial intelligence (“AI"), other technological and market advancements and their impacts on our business; the extent, timing and mix of future revenues and customer demand; the deployment of our products and services; the impact of the macroeconomic and geopolitical environment, including but not limited to, expanded trade controls, tariffs, conflicts around the world, volatility in foreign currency exchange rates, inflation and changes in interest rates; the impact of government actions; future costs, expenses, tax rates and uses of cash; pending legal, administrative and tax proceedings; restructuring actions and associated charges and benefits; pending acquisit
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 5.3B | 5.3B | 4.6B | 4.1B | 3.0B | 2.7B |
| Net Income | 1.1B | 1.1B | 1.1B | 1.0B | 696M | 591M |
| EPS | $4.06 | $4.06 | $3.85 | $3.82 | $2.50 | $2.11 |
| Free Cash Flow | 1.6B | 1.6B | 1.1B | 1.2B | 1.0B | 810M |
| ROIC | 21.9% | 57.0% | 54.9% | 42.6% | 40.8% | 61.3% |
| Gross Margin | 74.0% | 74.0% | 74.3% | 76.2% | 75.7% | 74.6% |
| Debt/Equity | 0.45 | 0.45 | 0.53 | 0.29 | 0.27 | 0.14 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 1.5B | 1.5B | 1.4B | 1.3B | 779M | 646M |
| Operating Margin | 28.2% | 28.2% | 29.1% | 30.6% | 26.1% | 24.1% |
| ROE | 20.3% | 21.9% | 22.6% | 30.6% | 25.4% | 23.7% |
| Shares Outstanding | 273M | 273M | 274M | 273M | 278M | 280M |
CADENCE DESIGN SYSTEMS INC passes 6 of 9 quality checks, suggesting mixed fundamentals.
CADENCE DESIGN SYSTEMS INC trades at 71.0x trailing earnings, compared to its 15-year median P/E of 63.3x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 49.5x vs a median of 42.6x. The company's 5-year average ROIC is 51.3% with a gross margin of 74.9%. Total shareholder yield (buybacks) is 1.2%. At current prices, the estimated annualized return to fair value is +15.5%.
CADENCE DESIGN SYSTEMS INC (CDNS) has a current P/E ratio of 71.0, compared to its historical median P/E of 63.3. The stock is currently considered Fair based on its historical valuation range.
CADENCE DESIGN SYSTEMS INC (CDNS) has a 5-year average return on invested capital (ROIC) of 51.3%. This indicates strong capital allocation and a potential competitive advantage.
CADENCE DESIGN SYSTEMS INC (CDNS) has a market capitalization of $78.7B. It is classified as a large-cap stock.
CADENCE DESIGN SYSTEMS INC (CDNS) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 1.18%.
Based on historical P/E analysis, CADENCE DESIGN SYSTEMS INC (CDNS) appears fair. The current P/E of 71.0 is 12% above its historical median of 63.3. The estimated fair value CAGR (P/E method) is 12.4%.
CADENCE DESIGN SYSTEMS INC (CDNS) operates in the Services-Prepackaged Software industry, within the Technology sector.
CADENCE DESIGN SYSTEMS INC (CDNS) reported annual revenue of $5.3 billion in its most recent fiscal year, based on SEC EDGAR filings.
CADENCE DESIGN SYSTEMS INC (CDNS) has a net profit margin of 20.9%. This is a strong margin indicating high profitability.
CADENCE DESIGN SYSTEMS INC (CDNS) generated $1.6 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
CADENCE DESIGN SYSTEMS INC (CDNS) has a debt-to-equity ratio of 0.45. This indicates a conservatively financed balance sheet.
CADENCE DESIGN SYSTEMS INC (CDNS) reported earnings per share (EPS) of $4.06 in its most recent fiscal year.
CADENCE DESIGN SYSTEMS INC (CDNS) has a return on equity (ROE) of 21.9%. This indicates the company generates strong returns for shareholders.
CADENCE DESIGN SYSTEMS INC (CDNS) has a 5-year average gross margin of 74.9%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 17 years of financial data for CADENCE DESIGN SYSTEMS INC (CDNS), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
CADENCE DESIGN SYSTEMS INC (CDNS) has a book value per share of $20.04, based on its most recent annual SEC filing.