Cadence Design Systems, Inc.CDNS
NASDAQ • Technology
$265.66
P/E
65.48
PEG
0.12
FCF Yield
—
Rev Growth YoY
+1412.0% YoY
Gross Margin
8636.0%
Health Score
7/10
D/E Ratio
0.45
Confidence
LOW
Business Snapshot
Cadence Design Systems is a leading provider of electronic design automation (EDA) software, hardware, and IP solutions used by semiconductor and electronics companies to design integrated circuits and PCBs. The company operates in a specialised, high-barrier niche within the technology sector that underpins virtually all chip development globally. Based on the current price of $265.66 and available valuation ratios, Cadence is a large-cap calibre business, though a precise market capitalisation figure is not calculable from the data provided.
Financial Health
**Score: 7/10** Cadence shows a structurally sound balance sheet alongside extraordinary reported margin figures that warrant scrutiny. Debt/equity stands at a conservative 0.45x, and a current ratio of 2.86x signals strong near-term liquidity — the company holds nearly $2.86 in current assets for every $1 of current liabilities...
Risk Assessment
- **DATA INTEGRITY: Revenue growth of 1,412% YoY, gross margin of 8,636%, and net margin of 2,094% are statistically implausible and suggest a data normalisation error that makes fundamental analysis unreliable.** - **VALUATION: P/E of 65.48x is approximately 2.6x the sector average of 25x, leaving limited margin of safety if growth expectations disappoint.** - **TECHNICALS: A confirmed death cross (50-day MA crossing below 200-day MA) is a bearish structural signal, and MACD is also in bearish territory.** - **PRICE DRAWDOWN: Current price of $265.66 sits 29.4% below the 52-week high of $376.45, indicating significant recent underperformance.** - **FCF VISIBILITY: Free cash flow is unavailable, and the Python DCF model returned N/A due to negative or missing FCF — removing the ability to assess true cash generation or intrinsic value.** ---...