Cadence Design Systems Stock Price and Value Analysis

Should you buy Cadence Design Systems stock? (NasdaqGS:CDNS). Let's see how it does in our automated value investing analysis system.

CDNS Free Cash Flow Trend

Free Cash Flow trendline for CDNS
Free Cash Flow trendline for Cadence Design Systems

Based on historical returns, we believe that Cadence Design Systems can grow its free cash at a rate of about 2%. That's positive!

  • This company has wild ups and downs.
  • This company is making money at a modest rate.
  • This company is less known than others.
  • This stock looks overpriced.
  • This company pays no dividend.

Inside the CDNS Numbers

CDNS Price
(Cadence Design Systems stock price per share)
[?] CDNS Fair Price
(based on intrinsic value)
[?] CDNS Safety Price (based on a variable margin of safety) $10.06
[?] PE Ratio versus Sector 264% higher than other Technology stocks
[?] PE Ratio versus Industry 215% higher than other Unknown stocks
[?] Cash Yield 1.17%
[?] Free Cash Flow Jitter 87%

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 2,511,238 shares shorted. With 274,811,708 shares available for purchase and an average trading volume over the past 10 trading days of 2,675,128, it would take at least 0.939 days for all of the short holders to cover their shorts.

Is Cadence Design Systems Stock on Sale?

We believe that Cadence Design Systems may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Cadence Design Systems looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy CDNS Stock?

Does Cadence Design Systems have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.