CDNS · NASDAQ · STOCK
Cadence Design Systems (CDNS) Stock Analysis
$279.95
52W $262.75 – $416.69
54/100
$75.45B
54.1
1.14
Is CDNS Bullish or Bearish?
Mixed.
Innellis AI committee rates Cadence Design Systems (CDNS) Watch with a composite score of 54/100
, based on 6 analysts with 50% agreement.
Last updated September 17, 2026.
What Would Change This View
- Upgrade to Buy
- Requires a committee score of 60.0 — +6.50 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Reduce
- Requires the score to fall below 40.0 — -13.50 from today. The band boundary is 45.0, 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
The committee is genuinely divided. Growth Analyst sees a compelling case — eps growing 36.0% yoy. Technical Analyst remains cautious — price structure making lower highs and lower lows. This disagreement is itself the signal — the setup is not clean in either direction.
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
Bear Case
- P/E of 55.9 is expensive by classic value standards — Value
- Price-to-book of 15.5x prices in significant intangible value — Value
- Price structure making lower highs and lower lows — Technical
- RSI at 21 is in oversold territory (could mean either capitulation or a bounce setup) — Technical
- MACD histogram negative -- bearish momentum — Technical
- Trend and market structure agree -- coherent bearish picture — 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 September 17, 2026
Overall Committee Score
54/100
Agreement
50%
Analysts
6
Conviction
Contested
Sector Rank
Top 82%
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 55.9 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
bearish
32
/ 100 · High confidence
Price action is deteriorating -- trend and/or momentum are working against this name
− Price structure making lower highs and lower lows
Risk Analyst
bearish
35
/ 100 · Low confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− Bollinger bandwidth of 28.8% signals elevated volatility
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 2514.55)
Investment Thesis Evolution
Committee score moved marginally from 53.5 to 53.5.
- New bearish signals: 1 appeared.
- Bearish pressure eased: 1 signal(s) disappeared.
Analyst-level changes:
- Value Analyst: +1 bearish signal(s).
Comparing 2026-09-16 to 2026-09-17 (1 day apart).
Technical Analysis
RSI (14)
20.9
Oversold
MACD Histogram
-3.417
Bearish Momentum
Trend Direction
Downtrend
Weekly: Sideways
Market Structure
Lh Ll
Support
$270.44
Resistance
$287.00
Bollinger %B
0.10
Inside Bands
Price vs Moving Averages
EMA 9
$290.20
Below
EMA 21
$305.49
Below
EMA 50
$324.24
Below
EMA 200
$330.22
Below
Fundamental Analysis
Valuation
25
Growth
83
Profitability
100
Financial Health
89
Cash Flow
70
Valuation
P/E Ratio
54.1×
P/B Ratio
10.91×
PEG Ratio
1.50
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 54.1 (rich relative to a 15-40x range); Price-to-book of 10.9x; PEG ratio of 1.5 (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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