Cadence Design Systems, Inc.CDNS

Technology
Neutral

ASignal's systematic analysis rates CDNS as Neutral. Cadence Design Systems, Inc. has a market cap of $105.96B, a P/E of 90.18, a 21.2% net margin, and 18.7% year-over-year revenue growth.

Reflects the latest available analysis · analyzed Jul 11, 2026

The case on CDNS

Bull vs bear, surfaced by ASignal's framework agents from public market data. The precise verdict: ASignal Rank, confidence, and price targets - is in the app.

Bull case
  • Strong revenue growth (18.7% YoY)
  • High gross margin (86.08%) indicating pricing power
  • ROE of 20.66% reflects strong capital efficiency
  • Positive and growing free cash flow ($1.5B)
  • Debt-to-equity ratio of 0.47x is within healthy range
VS
Bear case
  • High P/E ratio (90.18x) relative to market average
  • Forward P/E of 40.87x suggests elevated expectations
  • PEG ratio of 3.55x indicates potential overvaluation relative to growth
  • MACD below signal line indicating weakening momentum
  • No Reddit mentions, suggesting limited retail interest or potential data gap

Key facts

Sector
Technology
Market cap
$105.96B
P/E ratio
90.18
Gross margin
86.1%
Net margin
21.2%
Rev growth YoY
18.7%
Price (Jul 11, 2026)
$384.17

Peers

Clustered with CDNS by analysis-profile similarity.

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See the full verdict on CDNS

ASignal Rank (1-4), confidence score, Buffett / Ackman / Dalio grades, price targets, and the full reasoning behind the call.

How ASignal analyzes CDNS

Most investors never get a second opinion, let alone several. ASignal runs CDNS past a panel of specialized investor-framework agents, each calibrated on a distinct school of investing: Warren Buffett's value discipline, Bill Ackman's activist lens, and Ray Dalio's macro view. They don't just score in isolation, they argue: a dedicated Challenger agent pushes back on every conclusion until the panel settles on a reasoned consensus, weighing fundamentals, macro conditions, market sentiment, and price action together. The kind of cross-examined read that takes a research desk hours, ASignal delivers in under two minutes, refreshed every cycle.

The signal direction and the bull and bear case above are free. The precise read, ASignal Rank, framework grades, price targets, and full reasoning, stays with subscribers.

Cadence Design Systems, Inc. (CDNS) Stock Analysis - ASignal rates it Neutral