Cadence Design Systems, Inc.
CDNS
Market Cap$78.38B
Close$
Earnings Call Q1 2025
April 28, 2025 - AI Summary
Strong Financial Performance: Cadence reported a revenue growth of 23% year-over-year in Q1 2025, reaching $1.242 billion, and a non-GAAP EPS increase of 34%. This performance led the company to raise its full-year revenue guidance to a range of $5.15 billion to $5.23 billion, indicating solid momentum and strong demand for innovative technologies.
Resilient Business Model: The company’s ratable software business model and predominantly recurring revenue mix provide excellent visibility and resilience amid macroeconomic uncertainty. Cadence's exit backlog for Q1 remained robust, underpinning their business strength moving forward.
Opportunities in AI and Partnerships: Cadence is strategically positioned to capitalize on opportunities in the AI market. The expanded partnership with NVIDIA aims to enhance their AI-driven design tools and capabilities. This collaboration, along with significant customer expansions in the AI, HPC, and automotive sectors, highlights the company’s growth potential.
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$177.79
39.6% downside
Current Fair Value
39.6% downsideOvervalued by 39.6% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $78.38 Billion |
|---|---|
| Enterprise Value | $78.81 Billion |
| Dividend Yield | $0 (0%) |
| Earnings per Share | $3.89 |
| Beta | 1.05 |
| Outstanding Shares | 271,973,000 |
Return
| Return on Equity | - |
|---|---|
| Return on Assets | - |
| Return on Invested Capital | - |
Valuation & Multiples
| P/E Ratio | 72.2 |
|---|---|
| PEG | 689.35 |
| Price to Sales | 17.32 |
| Price to Book Ratio | 17.32 |
| Enterprise Value to Revenue | 16.17 |
| Enterprise Value to EBIT | 58.53 |
| Enterprise Value to Net Income | 72 |
| Total Debt to Enterprise | 0.04 |
| Debt to Equity | 0.67 |
Revenue Sources
No data
Insider Trades
ESG Score
No data
About Cadence Design Systems, Inc.
CEO: Lip-Bu Tan