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Upturn AI SWOT - About
CDNS 
Cadence Design Systems Inc (CDNS)
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Upturn Advisory Summary
06/27/2025: CDNS (1-star) is currently NOT-A-BUY. Pass it for now.
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
These Stocks/ETFs, based on Upturn Advisory, have historically outperformed the market, making them a top-tier choice for investors.
Year Target Price $318.24
Year Target Price $318.24
| 14 | Strong Buy |
| 5 | Buy |
| 3 | Hold |
| 0 | Under performing |
| 1 | Sell |
Analysis of Past Performance
Type Stock | Historic Profit -16.58% | Avg. Invested days 41 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 06/27/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 83.33B USD | Price to earnings Ratio 77.46 | 1Y Target Price 320.2 |
Price to earnings Ratio 77.46 | 1Y Target Price 320.2 | ||
Volume (30-day avg) - | Beta 0.98 | 52 Weeks Range 221.56 - 326.19 | Updated Date 06/29/2025 |
52 Weeks Range 221.56 - 326.19 | Updated Date 06/29/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 3.94 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 22.19% | Operating Margin (TTM) 29.09% |
Management Effectiveness
Return on Assets (TTM) 12.73% | Return on Equity (TTM) 25.92% |
Valuation
Trailing PE 77.46 | Forward PE 45.05 | Enterprise Value 83031903400 | Price to Sales(TTM) 17.1 |
Enterprise Value 83031903400 | Price to Sales(TTM) 17.1 | ||
Enterprise Value to Revenue 17.03 | Enterprise Value to EBITDA 47.56 | Shares Outstanding 273041984 | Shares Floating 272023553 |
Shares Outstanding 273041984 | Shares Floating 272023553 | ||
Percent Insiders 0.33 | Percent Institutions 91.99 |
Analyst Ratings
Rating 4.35 | Target Price 318.24 | Buy 5 | Strong Buy 14 |
Buy 5 | Strong Buy 14 | ||
Hold 3 | Sell - | Strong Sell 1 | |
Strong Sell 1 |
Upturn AI SWOT
Cadence Design Systems Inc
Company Overview
History and Background
Cadence Design Systems, Inc. was founded in 1988 through the merger of ECAD, Inc. and SDA Systems. It provides software, hardware, and services for designing and verifying complex electronic systems. Cadence has grown through strategic acquisitions and organic development.
Core Business Areas
- Digital & Signoff: Includes tools for digital design, physical implementation, and signoff verification of integrated circuits.
- Custom IC Design & Simulation: Offers solutions for designing and simulating analog, mixed-signal, and RF circuits.
- System Design & Verification: Provides platforms and tools for system-level design, verification, and analysis.
- IP: Offerings a library of IP, including memory interfaces and high-speed SerDes, as well as Tensilica processors, to help customers accelerate their designs.
Leadership and Structure
Anirudh Devgan is the President and CEO. The company has a traditional corporate structure with executive leadership overseeing various business units and functions.
Top Products and Market Share
Key Offerings
- Virtuoso: A comprehensive custom IC design platform. It is a leading tool in the analog/mixed-signal design market. Competitors include Synopsys' Custom Compiler and Siemens EDA's Solido Variation Designer. Cadence is the market leader.
- Xcelium Logic Simulator: A high-performance logic simulator for verifying digital designs. Competitors include Synopsys' VCS and Siemens EDA's Questa. Market share is competitive.
- Allegro PCB Designer: A printed circuit board (PCB) design and analysis solution. Competitors include Siemens EDA's Xpedition and Altium Designer. Cadence is considered a leader in this space.
- Tensilica IP: Configurable and extensible processor IP cores for a wide range of applications. Competitors include Arm and Synopsys. Market share is growing due to its adoption in AI and automotive applications.
Market Dynamics
Industry Overview
The EDA (Electronic Design Automation) industry is experiencing growth driven by increasing complexity of electronic systems, advancements in AI and machine learning, and the rise of IoT. Cloud based EDA tools are also growing in popularity.
Positioning
Cadence Design Systems Inc. is a leader in the EDA market, offering a broad portfolio of solutions and a strong presence across various application segments. Cadence is known for leading innovation and customer service
Total Addressable Market (TAM)
The EDA market's TAM is estimated to be around $15 billion. Cadence is well-positioned to capture a significant portion of this market through its comprehensive product portfolio and partnerships.
Upturn SWOT Analysis
Strengths
- Broad Product Portfolio
- Strong Customer Relationships
- Leading Technology
- Experienced Management Team
- Strong Financial Performance
Weaknesses
- High Software Costs Can Be a Barrier for Smaller Companies
- Reliance on a Few Key Customers
- Complexity of Software May Require Significant Training
Opportunities
- Growth in AI and Machine Learning Applications
- Expansion into New Markets (e.g., Automotive)
- Adoption of Cloud-Based EDA Solutions
- Increasing Complexity of Electronic Systems
- Potential Acquisitions to Expand Product Offering
Threats
- Intense Competition
- Rapid Technological Changes
- Economic Downturns Impacting R&D Spending
- Geopolitical Risks (e.g., trade wars)
- Emergence of Disruptive Technologies
Competitors and Market Share
Key Competitors
- SNPS
- MENT
Competitive Landscape
Cadence is a strong competitor in the EDA market. They have a competitive advantage in mixed signal simulation, and place a high value on customer service. Synopsys is Cadence's largest competitor.
Major Acquisitions
Numeca International
- Year: 2021
- Acquisition Price (USD millions): 162.4
- Strategic Rationale: Expanded Cadence's system analysis portfolio into computational fluid dynamics (CFD).
Growth Trajectory and Initiatives
Historical Growth: Cadence has experienced consistent growth over the past several years, driven by strong demand for its EDA solutions and strategic acquisitions.
Future Projections: Analyst estimates typically project continued revenue and earnings growth for Cadence, driven by trends in AI, automotive, and cloud computing.
Recent Initiatives: Cadence has been actively investing in AI-driven EDA tools, expanding its IP portfolio, and partnering with leading semiconductor companies.
Summary
Cadence is a fundamentally strong company and a leader in the EDA market. It boasts a broad product portfolio, and experienced management team. Its success relies on being able to adapt to fast paced technology changes, and continued high performance as it relates to their customer relationships.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Website
- SEC Filings
- Analyst Reports
- Industry Publications
Disclaimers:
This analysis is for informational purposes only and should not be considered investment advice. Market data is subject to change. This data contains approximations.
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 12837 | Website https://www.cadence.com |
Full time employees 12837 | 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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