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Upturn AI SWOT - About
CDNS 
Cadence Design Systems Inc (CDNS)
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Upturn Advisory Summary
09/16/2025: CDNS (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
23 Analysts rated it
Well-followed company, solid analyst reports, reliable data for confident investing.
1 Year Target Price $369.57
1 Year Target Price $369.57
| 14 | Strong Buy |
| 5 | Buy |
| 3 | Hold |
| 0 | Sell |
| 1 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -9.1% | Avg. Invested days 42 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 09/16/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 95.79B USD | Price to earnings Ratio 92.51 | 1Y Target Price 369.57 |
Price to earnings Ratio 92.51 | 1Y Target Price 369.57 | ||
Volume (30-day avg) 23 | Beta 1 | 52 Weeks Range 221.56 - 376.45 | Updated Date 09/15/2025 |
52 Weeks Range 221.56 - 376.45 | Updated Date 09/15/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 3.8 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 19.88% | Operating Margin (TTM) 29.35% |
Management Effectiveness
Return on Assets (TTM) 11.73% | Return on Equity (TTM) 21.84% |
Valuation
Trailing PE 92.51 | Forward PE 43.48 | Enterprise Value 93250248200 | Price to Sales(TTM) 18.82 |
Enterprise Value 93250248200 | Price to Sales(TTM) 18.82 | ||
Enterprise Value to Revenue 18.32 | Enterprise Value to EBITDA 53.68 | Shares Outstanding 272489984 | Shares Floating 271397315 |
Shares Outstanding 272489984 | Shares Floating 271397315 | ||
Percent Insiders 0.32 | Percent Institutions 90.51 |
Upturn AI SWOT
Cadence Design Systems Inc
Company Overview
History and Background
Cadence Design Systems, Inc. was formed in 1988 through the merger of ECAD and SDA Systems. It provides software, hardware, and IP to design advanced electronics.
Core Business Areas
- Functional Verification: Offers a comprehensive suite of verification tools and platforms, enabling engineers to validate and ensure the correctness of their designs through simulation, emulation, and formal verification.
- Digital Design: Provides digital implementation solutions for designing chips, including synthesis, place and route, and timing closure capabilities.
- Custom IC Design: Offers tools for designing analog, mixed-signal, and RF integrated circuits, including schematic capture, simulation, and layout.
- PCB Design: Provides software and hardware solutions for the design and analysis of printed circuit boards (PCBs).
- IP: Provides IP blocks such as memory controllers, interface IP, and processor subsystems that can be integrated into SoCs.
Leadership and Structure
Anirudh Devgan is the President and CEO. The company operates with a functional organizational structure, with key divisions focused on R&D, sales, and marketing.
Top Products and Market Share
Key Offerings
- Allegro PCB Designer: A PCB design and analysis tool. Competitors include Altium Designer, Mentor Xpedition (Siemens EDA). Cadence has a strong market presence with Allegro; difficult to provide exact numbers but they are a major player.
- JasperGold Verification Platform: A formal verification platform. Competitors include Synopsys' VC Formal, and Siemens EDA's Questa Formal. Market share is significant but variable; difficult to give exact figure without access to proprietary data, but they are a top player.
- Virtuoso Custom IC Design Platform: A custom IC design platform. Competitors include Synopsys' Custom Compiler, and Siemens EDA's Analog FastSPICE. Cadence is considered the leader in analog/mixed signal market.
Market Dynamics
Industry Overview
The EDA (Electronic Design Automation) industry is experiencing robust growth driven by increased complexity in chip design, the rise of AI/ML, and the growth of IoT. Consolidation is present among the top three.
Positioning
Cadence is a leading player in the EDA industry, known for its breadth of solutions and its strong presence in custom IC design and functional verification. Their competitive advantage lies in their integrated solutions and relationships with key clients.
Total Addressable Market (TAM)
The TAM for the EDA market is estimated to be around $15 billion. Cadence is well-positioned to capture a significant portion of this TAM.
Upturn SWOT Analysis
Strengths
- Comprehensive product portfolio
- Strong relationships with leading semiconductor companies
- Leadership in key market segments like Custom IC
- High switching costs for customers
- Strong brand reputation
Weaknesses
- High product pricing compared to smaller players
- Complex product integration can be challenging
- Can be slower to innovate in niche areas compared to startups
Opportunities
- Growth in AI/ML driving demand for more complex chip designs
- Expansion into new markets like automotive and aerospace
- Partnerships with cloud providers
- Acquisitions of smaller innovative EDA companies
Threats
- Intense competition from Synopsys and Siemens EDA
- Potential for disruptive technologies from startups
- Economic slowdown impacting semiconductor demand
- Cybersecurity threats
Competitors and Market Share
Key Competitors
- SNPS
- SI
Competitive Landscape
Cadence faces intense competition from Synopsys and Siemens EDA. Cadence is strong in custom IC, while Synopsys is strong in digital implementation. Siemens EDA is growing in verification. The EDA market requires a strong focus on niche markets.
Major Acquisitions
Future Facilities
- Year: 2022
- Acquisition Price (USD millions): 55
- Strategic Rationale: To expand Cadenceu2019s system analysis capabilities with data center infrastructure management (DCIM).
Growth Trajectory and Initiatives
Historical Growth: Cadence has experienced consistent growth in revenue and earnings over the past decade, driven by strong demand for its products and services.
Future Projections: Analysts project continued growth for Cadence, driven by the increasing complexity of chip design and the growth of AI/ML and IoT. Revenue is expected to grow at a rate of 12-15% annually.
Recent Initiatives: Cadence has focused on expanding its product portfolio through acquisitions, partnerships, and internal development, with a particular emphasis on AI-driven design and verification solutions.
Summary
Cadence is a strong player in the EDA industry, benefitting from its comprehensive product portfolio and strong client relationships. Growth is being fueled by AI and the increased complexity of chip design. Competition and potential economic downturns present risks that must be carefully navigated. Cadence's strategic acquisitions are solidifying its market position, and its focus on AI-driven solutions positions it well for future growth.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings
- Analyst reports
- Industry publications
- Market research reports
Disclaimers:
The information provided is for informational purposes only and should not be considered investment advice. Market data is from third-party sources and may be subject to errors or omissions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Cadence Design Systems Inc
Exchange NASDAQ | Headquaters San Jose, CA, United States | ||
IPO Launch date 1987-06-10 | CEO, President & Director Dr. Anirudh Devgan Ph.D. | ||
Sector Technology | Industry Software - Application | Full time employees 13152 | Website https://www.cadence.com |
Full time employees 13152 | Website https://www.cadence.com | ||
Cadence Design Systems, Inc. provides software, hardware, and other services worldwide. The company offers functional verification services, such as Jasper, a formal verification platform; Xcelium, a parallel logic simulation platform; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification. It also provides digital IC design and sign off products, including Genus synthesis and Joules RTL power solutions, as well as Modus DFT software solution to reduce systems-on-chip design-for-test time; physical implementation tools, such as place and route, optimization, and performing sign-off checks for manufacturing; and Innovus implementation system, a digital IC design and signoff solution. In addition, the company offers custom IC design and simulation, such as Virtuoso Studio, a solution platform for custom, analog, mixed-signal, photonics, and RF semiconductors; and system design and analysis products, a Multiphysics platform that helps in design and simulate electronics and entire systems in electromagnetic, thermal, structure, computational fluid dynamics, molecular, PCB and packaging, mechanical, and structural analysis. Further, it provides semiconductor IP product for design architectures; Functional Verification; digital ic design and signoff; EDA product that addresses the design and verification for semiconductor chips and manufacturing process technologies; and verification IP with memory models to emulate and model the expected behavior and interaction of standard industry system interface protocols. Additionally, it offers services related to methodology, education, and hosted design solutions, as well as technical support and maintenance services. It serves consumer, hyperscale computing, 5G communications, mobile, automotive, aerospace and defense, industrial, and life science industries. Cadence Design Systems, Inc. was incorporated in 1987 and is headquartered in San Jose, California.
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