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71

CDNS

💻 Technology

Cadence Design Systems, Inc.

Conservative #80Aggressive #202Low RiskLow 36ML↑ 32pt
$301.84+3.86%
Day High$302.78
Day Low$293.43
Volume2.9M
Mkt Cap$82.2B
52W Low $22252W High $376
Market Cap
$81.6B
P/E Ratio
77.0
Sector avg: 87.8
Rev Growth
13.5%
Sector avg: 14.8%
Earnings Growth
1.4%
Profit Margin
22.7%
Sector avg: -110.0%
Debt/Equity
0.55

Why This Score

CDNS scores 71.1 on the Conservative profile, blending a fundamental score (80% weight, emphasizing quality and stability (84% of fundamental weight)) with a machine-learning signal (20% weight) trained on 82 features across 30 years of data.

Strengths
  • Strong profitability: ROE of 22.6% exceeds the 15% quality threshold.
  • High net margin of 22.7%, indicating pricing power and operational efficiency.
  • Positive but moderate momentum (20%) — steady appreciation without overheating.
  • ML model assigns a high-conviction signal (93/100), indicating strong pattern recognition across 82 features.
Risk Factors
  • Signal divergence: Fundamental and ML signals disagree by a significant margin, reducing confidence.
  • Elevated valuation at 77.0x earnings — requires sustained growth to justify the premium.

Minor adjustments (-2.2 points) applied. CDNS's rank of #80 primarily reflects its factor profile relative to the conservative weight vector.

Score Breakdown

Overall Score71.1
Fundamental Score63.4
ML Score93.0

Score by Horizon

3 Month
72.6
6 Month
81.1
Primary
1 Year
85.4

Quality Assessment

A
Earnings Grade
Strong fundamentals, high earnings quality

Position Sizing

Suggested Allocation
5%
Confidence
high

Score Composition Waterfall

How each component affects the final score
Backtested Scoring Levers (IC-calibrated from 30y ElasticNet)
Weinstein (12.1%)
0
Declining
Sentiment (2.5%)
67
Positive
Analyst (6.4%)
70
Favorable
Tradability (post-hoc)
99
Grade A
Base
69.3
SHAP
+2.3
Factors
+1.7
Divergence
-2.2
Final
71.1
Positive adjustment
Negative adjustment
Base blend
Final score

Factor Breakdown

58AVG
Value40
Quality85
Growth60
Stability75
Investment30

Signal SegmentsComputed from ML features

Fundamental (Valuation, Quality, Growth)59.0
Technical (Momentum, Weinstein, Volatility)54.0
External (Sentiment, Analyst, Macro)84.0
Scores below 50 indicate weakness in that segment relative to the universe.

Data Quality

Score
Features
Confidence
Feature Coverage96%

Growth Estimates

Short-term
-5.2% to +1.2%
Medium-term
-7.8% to +1.8%
Long-term
-10.4% to +2.4%

ML Model Core Features100 trained inputs → ML Score: 93

These features are direct inputs to the machine learning model. The model was trained on these signals alongside 100 features (including 12 momentum/technical indicators) to produce the ML percentile score.

Analyst Intelligence
Consensus Score70.0/100
Target Upside+33.6%
Coverage30 analysts
Market Sentiment
Sentiment Score66.7/100
News Volume1 articles
Technical Stage
Weinstein Stage4 — Declining
12M Momentum+0.2%
6M Momentum-0.1%
Volatility+0.1%
Momentum & Technical
Momentum Acceleration+34.1%
Momentum ConsistencyDivergent (-0.74)
Relative Strength vs Sector+15.9%
Trend Strength (ADX Proxy)Moderate (2.4)
Momentum Quality+0.159
Momentum BreadthNarrow
Macro Regime
Bull RegimeYes
High Vol RegimeNo
S&P 500 Return+25.0%
Yield Curve-0.1bp

Sector-Relative AnalysisIn-model features

Value Trap Signal
2%
Low risk
Sector RevGr Rank
P58
Revenue growth vs Technology peers
Sector PE Rank
P14
Valuation vs Technology peers
Sector FCF Rank
P28
Free cash flow vs Technology peers
Growth Deviation
+0.1σ
Z-score vs sector median
Stagnation Flag
NO
Not flagged

Analysis Signals

Scoring Factors
Fundamental score of 55 relative to sector peers55/100
Machine learning model ranks this stock at the 86th percentileP86
ML model weight reduced to 9% due to macro conditions: market in extended rally phase; yield curve inverted (recession indicator); late-cycle economic indicators detected9% ML weight
SHAP feature alignment: +2.4pt (features align with model priorities)—
Blend: 91% fund (54.7) + 9% ML (86.5) + SHAP(+2.4) = 60.0—
Factor quality: +1.8pt (multi-factor composite)—
Risk assessment: low. Annualized volatility 8.0%. Max drawdown 19% (-4.3 pts)Low
Market cap adjustment: +3.5 points ($81.6B market cap)+3.5 pts
Conviction penalty: -1.3pt (conviction=36)—
Divergence penalty: -3.3pt (ML 32pt higher)—
Risk Factors

No risk factors identified.

Sector Peer Comparison(Technology — Rank #20 of 289 stocks)

StockScoreP/ERev GrowthMarginMkt Cap
CDNS71.177.013.5%22.7%$81.6B
MPWR84.891.721.2%81.0%$57.1B
ZM84.218.03.1%21.7%$27.7B
NVDA80.645.2114.2%55.8%$4.5T
CRUS79.719.16.0%17.5%$7.4B
ASML77.848.115.6%29.4%$546.0B
IDCC77.431.8-4.0%48.8%$9.7B
CSCO77.127.65.3%18.0%$303.6B
RMBS75.548.320.7%32.3%$11.0B
DBX75.313.91.9%17.7%$6.4B
FSLR75.017.326.7%30.7%$24.2B
SIMO74.79.210.2%13.8%$4.5B
ADI74.374.116.9%20.6%$165.1B
AAPL72.533.16.4%27.0%$3.9T
OLED72.527.012.4%34.3%$5.9B
AMAT72.336.44.4%24.7%$281.7B
Sector Average47.487.814.8%-110.0%—

Market Sentimentvia FMP

Analyst Consensus
Buy30 analysts
Buy: 25Hold: 4Sell: 1
Price Target
$378consensus
Low $275Median $390High $418
+25.2% to consensus target

Company Overviewvia FMP

Cadence Design Systems, Inc. provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. The company offers functional verification services, including emulation and prototyping hardware. Its functional verification offering consists of JasperGold, a formal verification platform; Xcelium, a parallel logic simulation platform; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification. The company also provides digital IC design and sign off products, including Genus logic synthesis and Joules RTL power solutions, as well as Modus software solution to reduce systems-on-chip design-for-test time; physical implementation tools, such as place and route, optimization, and multiple patterning preparation; and signoff products to signoff the design as ready for silicon manufacturing. In addition, it offers custom IC design and simulation products to create schematic and physical representations of circuits down to the transistor level for analog, mixed-signal, custom digital, memory, and radio frequency designs; and system design and analysis products to develop printed circuit boards and IC packages, as well as to analyze electromagnetic, electro-thermal, and other multi-physics effects. Further, the company provides intellectual property (IP) products comprising pre-verified and customizable functional blocks to integrate into customer's ICs; and verification IP and memory models to emulate and model the expected behavior and interaction of standard industry system interface protocols. Additionally, it offers services related to methodology, education, and hosted design solutions, as well as technical support and maintenance services. The company serves 5G communications, aerospace and defense, automotive, industrial and healthcare, mobile, consumer, and hyperscale computing markets. Cadence Design Systems, Inc. was incorporated in 1987 and is headquartered in San Jose, California.

CEO
Anirudh Devgan
Employees
12,837
Beta
1.00
Industry
Software - Application
FMP-Identified Peers

Technical Picturecomputed from daily prices

RSI (14)
61.0
Neutral
Trend
Bearish
10-day vs 50-day MA
From 52W High
-19.8%
High: $376.45
From 52W Low
+36.2%
Low: $221.56
Moving Averages
10-Day
$294.10
Above
20-Day
$291.70
Above
50-Day
$306.90
Below
200-Day
$323.90
Below
60-Day Support
$262.75
60-Day Resistance
$341.31
Weinstein Stage Analysisbased on 200-day SMA framework
Stage 4 — DecliningScore: 23/100

Stock is in a downtrend below the 200-day moving average. Price is below both the 50-day and 200-day SMAs, indicating sustained selling pressure.

Unfavorable technical position; wait for Stage 1 basing
Price vs 200 SMA
-6.8%
200 SMA Slope (60d)
+4.45%
Rising
Volume Ratio
1.44x
10d avg vs 50d avg
Days in Stage
27
Confidence: 40%
Recent Gap Up

Financial Statementslast 4 quarters via FMP

MetricQ4 2025Q3 2025Q2 2025Q1 2025
Revenue$1.4B$1.3B$1.3B$1.2B
Gross Profit$1.7B$1.3B$1.1B$1.1B
Operating Income$463M$425M$242M$362M
Net Income$388M$287M$160M$274M
EPS (Diluted)$1.42$1.05$0.59$1.00
Gross Margin114.7%95.3%85.6%86.5%
Operating Margin32.2%31.8%19.0%29.1%
Net Margin27.0%21.4%12.5%22.0%

Why This Stock

TechnologyRevenue growth 13.5%Profit margin 22.7%Earnings quality grade A

Tradability FilterGrade A — 99/100Score impact: +10.9pt

Volume
100
2.1M avg/day
Dollar Vol
100
$594M/day
Float
100
272M shares
Mkt Cap
100
$81.6B
Range
95
70% spread
Composite Liquidity Score99/100
FDCBA

Growth Projection Adjustment

0.15x dampening
weinstein declining

Growth estimates have been dampened based on technical and fundamental signals. This is a post-hoc adjustment to prevent overly optimistic projections for stocks showing declining momentum or deteriorating fundamentals.

Free Float
99.7%
Outstanding Shares
272M
Bid-Ask Spread
70.0%
Institutional Tradable
Yes

Scores are generated by a multi-stage ML pipeline combining fundamental analysis, ensemble predictions, and structural risk signals. All data is for research purposes only and does not constitute financial advice. Past performance does not guarantee future results.