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Upturn AI SWOT - About
CDNS 
Cadence Design Systems Inc (CDNS)
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Upturn Advisory Summary
04/01/2025: CDNS (2-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
AI Based Fundamental Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Analysis of Past Performance
Type Stock | Historic Profit 5.13% | Avg. Invested days 53 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 70.41B USD | Price to earnings Ratio 66.23 | 1Y Target Price 317.85 |
Price to earnings Ratio 66.23 | 1Y Target Price 317.85 | ||
Volume (30-day avg) 2685416 | Beta 1.05 | 52 Weeks Range 230.09 - 328.99 | Updated Date 03/31/2025 |
52 Weeks Range 230.09 - 328.99 | Updated Date 03/31/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 3.84 |
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 22.74% | Operating Margin (TTM) 33.71% |
Management Effectiveness
Return on Assets (TTM) 11.86% | Return on Equity (TTM) 26.13% |
Valuation
Trailing PE 66.23 | Forward PE 38.17 | Enterprise Value 70213978470 | Price to Sales(TTM) 15.17 |
Enterprise Value 70213978470 | Price to Sales(TTM) 15.17 | ||
Enterprise Value to Revenue 15.13 | Enterprise Value to EBITDA 42.12 | Shares Outstanding 274313984 | Shares Floating 272855326 |
Shares Outstanding 274313984 | Shares Floating 272855326 | ||
Percent Insiders 0.89 | Percent Institutions 92.01 |
Analyst Ratings
Rating 4.29 | Target Price 320.54 | Buy 5 | Strong Buy 12 |
Buy 5 | Strong Buy 12 | ||
Hold 3 | Sell - | Strong Sell 1 | |
Strong Sell 1 |
Upturn AI SWOT
Cadence Design Systems Inc
Company Overview
History and Background
Cadence Design Systems was founded in 1988 through the merger of ECAD Inc. and SDA Systems. It has grown through strategic acquisitions and organic development to become a leader in electronic design automation (EDA) software.
Core Business Areas
- Digital & Signoff: Provides solutions for digital design, implementation, and signoff verification, encompassing tools for logic synthesis, placement, routing, and timing analysis.
- Custom IC & PCB: Offers tools for designing custom integrated circuits and printed circuit boards, including schematic capture, simulation, and layout.
- IP: Delivers a portfolio of intellectual property (IP) for various applications, including memory interfaces, SerDes, and processors.
- System Design & Analysis: Provides solutions for system-level design and analysis, including multi-physics simulation and verification.
Leadership and Structure
Cadence is led by Anirudh Devgan (CEO) and has a typical corporate structure with functional departments such as R&D, sales, marketing, and finance.
Top Products and Market Share
Key Offerings
- Virtuoso: A leading custom IC design platform used for designing analog, mixed-signal, and RF circuits. Competitors include Synopsys' Custom Compiler and Siemens EDA's Solido.
- Allegro: A PCB design platform for creating complex circuit board layouts. Competitors include Altium Designer and Zuken CR-8000.
- Genus Synthesis Solution: Digital synthesis solution for SoC designs. Competitors include Synopsys Design Compiler and Siemens EDA's Catapult HLS.
- Xcelium Logic Simulator: High-performance logic simulation solution. Competitors include Synopsys VCS and Siemens EDA's Questa.
Market Dynamics
Industry Overview
The EDA industry is experiencing growth driven by increasing complexity of electronic devices, growing demand for advanced nodes and the growing demand for IP. Cloud EDA is also gaining traction.
Positioning
Cadence is a leading player in the EDA industry, known for its comprehensive portfolio of tools and strong relationships with semiconductor manufacturers.
Total Addressable Market (TAM)
The EDA market is expected to reach over $15 billion in the coming years. Cadence is well-positioned to capitalize on this growth.
Upturn SWOT Analysis
Strengths
- Comprehensive product portfolio
- Strong relationships with semiconductor manufacturers
- Innovation in AI-driven design
- Strong financial performance
Weaknesses
- High product cost
- Complexity of software
- Integration challenges between tools
- Reliance on Semiconductor industry
Opportunities
- Growth in AI and machine learning applications
- Expansion into new markets such as automotive and aerospace
- Adoption of cloud-based EDA solutions
- Increasing demand for IP
Threats
- Intense competition from Synopsys and Siemens EDA
- Economic downturns affecting semiconductor industry
- Rapid technological changes
- Security vulnerabilities in EDA software
Competitors and Market Share
Key Competitors
- SNPS
- SI
Competitive Landscape
Cadence competes with Synopsys and Siemens EDA on product functionality, performance, and price. Cadence is known for its strong customer relationships and innovative solutions.
Major Acquisitions
Future Facilities
- Year: 2022
- Acquisition Price (USD millions): 50
- Strategic Rationale: Expanded Cadence's system analysis capabilities for data center design.
OpenEye Scientific Software
- Year: 2022
- Acquisition Price (USD millions): 500
- Strategic Rationale: Expanded Cadence's Molecular Modeling and Simulation capabilities.
Growth Trajectory and Initiatives
Historical Growth: Cadence has demonstrated consistent revenue and earnings growth through a combination of organic expansion and strategic acquisitions.
Future Projections: Analysts project continued growth in revenue and earnings, driven by strong demand for EDA solutions and IP.
Recent Initiatives: Recent initiatives include investments in AI-driven design automation and expansion of the IP portfolio.
Summary
Cadence Design Systems is a strong player in the EDA industry with a comprehensive product portfolio and consistent financial growth. The company benefits from strong customer relationships and innovation in AI-driven design. However, it faces intense competition and needs to be mindful of high product costs and economic downturns.
Similar Companies
- SNPS
- KEYS
- ANSS
Sources and Disclaimers
Data Sources:
- Company Filings
- Analyst Reports
- Industry Publications
Disclaimers:
This analysis is based on available information and is not financial advice. Market conditions can change rapidly.
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 12700 | Website https://www.cadence.com |
Full time employees 12700 | 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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