CDNS · NASDAQ · STOCK
Cadence Design Systems (CDNS) Stock Analysis
$329.78
52W $262.75 – $416.69
62/100
$87.00B
62.4
1.14
⚠
Buy rating, but near-term risk/reward is unfavorable
The long-term recommendation is based on the composite investment score. The near-term risk/reward is based on nearby support and resistance levels. These can differ when a strong company trades close to resistance with support further below.
Is CDNS Bullish or Bearish?
Bullish.
Innellis AI committee rates Cadence Design Systems (CDNS) Buy with a composite score of 62/100
, based on 5 analysts with 60% agreement.
Last updated August 25, 2026.
What Would Change This View
- Upgrade to Strong Buy
- Requires a committee score of 75.0 — +13.39 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Watch
- Requires the score to fall below 55.0 — -6.61 from today. The band boundary is 60.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
Positive signals support the current rating — eps growing 36.0% yoy. The committee sees sufficient evidence to maintain the constructive view.
Bull & Bear Case
Bull Case
- ROE of 22.9% shows genuine earnings power backing the valuation — Value
- EPS growing 36.0% YoY — Growth
- 5 consecutive earnings beats -- consistent execution — Growth
- Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
- Weekly trend (sideways) confirms the daily trend -- multi-timeframe agreement — Technical
Bear Case
- P/E of 64.7 is expensive by classic value standards — Value
- Price-to-book of 15.5x prices in significant intangible value — Value
- MACD histogram negative -- bearish momentum — Technical
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of August 25, 2026
Overall Committee Score
62/100
Agreement
60%
Analysts
5
Conviction
Moderate
Sector Rank
Top 19%
of 287 Technology peers
Value Analyst
neutral
49
/ 100 · High confidence
Fair value -- neither a bargain nor obviously overpriced
+ ROE of 22.9% shows genuine earnings power backing the valuation
− P/E of 64.7 is expensive by classic value standards
Growth Analyst
bullish
79
/ 100 · High confidence
Strong, accelerating growth with consistent execution
+ EPS growing 36.0% YoY
Technical Analyst
neutral
54
/ 100 · High confidence
Mixed or range-bound price action
+ Weekly trend (sideways) confirms the daily trend -- multi-timeframe agreement
− MACD histogram negative -- bearish momentum
Macro Analyst
bullish
65
/ 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst
bullish
62
/ 100 · Low confidence
News flow and recent filings/analyst actions are net positive
Portfolio Manager
neutral
45
/ 100 · High confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− Sector concentration is already high (HHI 3063.01)
Investment Thesis Evolution
Committee score moved marginally from 61.6 to 61.6.
Comparing 2026-08-24 to 2026-08-25 (1 day apart).
Technical Analysis
RSI (14)
33.0
Neutral
MACD Histogram
-0.163
Bearish Momentum
Trend Direction
Sideways
Weekly: Sideways
Market Structure
Lh Ll
Support
$295.45
Resistance
$323.29
Bollinger %B
0.17
Inside Bands
Price vs Moving Averages
EMA 9
$320.18
Above
EMA 21
$328.90
Above
EMA 50
$341.54
Below
EMA 200
$334.12
Below
Fundamental Analysis
Valuation
21
Growth
83
Profitability
100
Financial Health
89
Cash Flow
70
Valuation
P/E Ratio
62.4×
P/B Ratio
12.58×
PEG Ratio
1.73
Dividend Yield
0.00%
52W High
$416.69
52W Low
$262.75
Quality & Growth
ROE
2025.7%
ROA
1092.2%
Gross Margin
8849.8%
Operating Margin
3082.9%
Revenue Growth YoY
—
Debt / Equity
0.36
AI Fundamental Assessment
P/E ratio of 62.4 (rich relative to a 15-40x range); Price-to-book of 12.6x; PEG ratio of 1.7 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 20.3%; Return on assets of 10.9%; Net margin of 23.6%; Gross margin of 88.5%; Current ratio of 1.74 (healthy short-term liquidity); Debt-to-equity of 0.36; Free cash flow per share is positive (6.15); Most recent quarter beat estimates by 0.7%; 5 consecutive earnings beats; EPS growth accelerating (-1.5% -> +7.7% QoQ); Average YoY EPS growth of 27.9%; Analyst estimates rising over recent quarters
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