Qualtix Stock Brief
Cadence Design Systems, Inc. (CDNS) stock analysis: business quality, valuation, and entry timing
Cadence makes software and hardware used to design chips and electronic systems. A recurring revenue model with high margins is the core of its business quality, while valuation is often demanding. Public Qualtix model snapshot from 2026-10-26 for CDNS: business quality 72/100, above the model's stronger-company threshold and valuation Fair. Today's verdict and Entry Timing are shown after a free sign-in.
Qualtix evaluates CDNS with a rules-based model that separates business quality, valuation, entry timing, red flags, and data confidence. The model scores first; AI explanations and the full Clean Brief help explain the result afterward.
Coverage note: Qualtix can analyze supported US stocks when SEC/FMP filing data is available. The 1,000+ stock universe refers to the daily screener used for discovery, not the full analysis limit.
CDNS public evidence metrics from the latest validated Qualtix snapshot
| Metric | Value | Why it matters | Source |
|---|---|---|---|
| Revenue growth | 16.1% | 3-year revenue CAGR | FMP, computed |
| FCF margin | 28.8% | Free cash flow divided by revenue | FMP, computed |
| Operating margin | 28.9% | Profitability margin | FMP, computed |
| Gross margin | 88.5% | Revenue retained after direct costs | FMP, computed |
| Return on capital (pre-tax) | 15.0% | Operating profit before tax, divided by equity plus debt | FMP, computed |
| ROE | 14.8% | Return on equity | FMP, computed |
| Cash and debt | Cash $1.5B / Debt $2.5B | Balance-sheet context | FMP, reported |
| TTM P/E | 64.2x | Price to trailing earnings | FMP, computed |
Qualtix view
- Business quality: 72/100, above the model's stronger-company threshold.
- Valuation is currently labeled Fair, which the model weighs separately from business quality.
Today's verdict
- Today's model verdict and Entry Timing for CDNS update every market day and are shown after a free sign-in.
Data and snapshot dates
- Model snapshot date: 2026-10-26.
- Financial data through: 2026-09-30.
- Scored by the current Qualtix model.
- Data-confidence status: high.
What supports the current view
- Business quality clears the model's stronger-company threshold (72/100).
What weakens the current view
- Valuation is currently labeled Fair, so price still matters.
What changed
- Business Quality moved -4 points from the previous snapshot.
What to research next
- Compare CDNS's Fair valuation label with similar companies before treating price as a clear advantage.
- Compare CDNS with SNPS and NVDA to see whether the model edge is company-specific or sector-wide.
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Qualtix is for research and education only. It is not financial advice.