Cadence Design Systems, Inc.CDNS

Technology
Neutral

ASignal's systematic analysis rates CDNS as Neutral. Cadence Design Systems, Inc. has a market cap of $93.78B, a P/E of 67.6, a 23.6% net margin, and 24.2% year-over-year revenue growth.

Reflects the latest available analysis · analyzed Aug 1, 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 (24.2% YoY)
  • High gross margin (85.87%) indicating pricing power
  • Positive free cash flow ($1.61B) and strong operating cash flow
  • High return on equity (23.23%)
  • Low debt-to-equity ratio (0.39x)
  • RSI near oversold level (34.05), potential for rebound
VS
Bear case
  • Negative MACD histogram suggesting weakening momentum
  • Price below both SMA20 and SMA50, indicating short-term downtrend
  • High P/E (67.60x) and forward P/E (35.65x) relative to market
  • Elevated PEG ratio (3.04x) suggesting overvaluation relative to growth
  • No Reddit mentions, indicating low retail sentiment visibility

Key facts

Sector
Technology
Market cap
$93.78B
P/E ratio
67.6
Gross margin
85.9%
Net margin
23.6%
Rev growth YoY
24.2%
Price (Aug 1, 2026)
$340.02

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