Cadence Design Systems Inc (CDNS) scored on five pillars from its reported financial statements, and ranked against 260 Technology companies.
Cadence Design Systems Inc (CDNS) scores 7.9 out of 10 as of , computed from its reported financial statements. That reads as high quality. The reading rests on solvency, and predictability is what holds it back.
Data provided by Twelve Data. Scores are computed by Lemma Analysis from reported financials.
We cannot judge Cadence Design Systems Inc yet, because fewer than five years had both a return on capital and a cost of capital we could measure. This is not a “no”.
Quantitative signs of a moat, read from the filed statements. This is not a judgement of where it comes from (brand, network effects, switching costs). How Lemma measures a moat →
On the filings behind it, Cadence Design Systems Inc earns 7.9 out of 10 for business quality as of October 16, 2026. That is high quality on our scale. A high reading means most of the pillars are strong, with no serious weakness pulling the average down. The figure is a weighted average of five pillars, each scored from 0 to 10 against sector-aware benchmarks from reported statements.
Set against 260 Technology companies, Cadence Design Systems Inc lands at the 94th percentile, near the very top of the group. The median across the group is 5.9, and the top quarter begins at 6.7, so Cadence Design Systems Inc is well above the typical company here.
Profitability scores 8.1 out of 10, which reads as strong. The median across 252 Technology companies is 4.6, so Cadence Design Systems Inc is well above its peers on this pillar and ranks at the 86th percentile. A reading this strong says the business earns well on what it sells and on the capital it uses, the kind of margin profile competitors find hard to copy.
On solvency, Cadence Design Systems Inc scores 9.6, a strong reading. Its peers have a median of 8.0 across 194 Technology companies, which places it well above them, at the 79th percentile. Strong solvency points to a balance sheet that can carry its debts comfortably, with interest well covered and little pressure from creditors.
Cadence Design Systems Inc’s growth score is 7.8 out of 10 (strong). Against a median of 6.4 among 207 Technology companies, that is above the group and the 69th percentile. A high growth score rewards a business that is getting bigger in a way that reaches the bottom line, not just the top one.
Cadence Design Systems Inc’s efficiency score is 7.2 out of 10 (strong). Against a median of 7.1 among 240 Technology companies, that is in line with the group and the 54th percentile. A strong efficiency reading usually shows up as healthy cash conversion: reported profit arriving as real cash rather than staying on the balance sheet.
On predictability, Cadence Design Systems Inc scores 6.6, an average reading. Its peers have a median of 4.7 across 258 Technology companies, which places it well above them, at the 88th percentile. An average predictability reading means results have wobbled about as much as is normal for the sector.
The profile is uneven. Solvency leads at 9.6 while predictability trails at 6.6, a gap of 3.0 points, so the overall averages a clear strength against a clear soft spot. A solvency lead means the balance sheet is the company’s strongest asset, a cushion that buys time when trading gets harder. A predictability shortfall means the record is volatile, so the averages behind the other pillars move more than they appear to.
Every scored pillar is at or above the median of Technology companies, so there is no catch-up left to lift the overall. The risk runs the other way: a one point fall in profitability, the heaviest of them, would take the score from 7.9 to about 7.7. All five pillars could be scored, so the overall uses the full set of weights out of 100: profitability 25, solvency 20, growth 20, efficiency 15, predictability 20.
These are the Technology companies closest to Cadence Design Systems Inc in market value. Each has its own page scored on the same five pillars, so the comparison is like for like.
How much profit the company generates from its capital and sales.
The company’s ability to service debt and meet its obligations.
How fast revenue, earnings and cash flow are compounding.
How well assets and earnings convert into cash and output.
How stable and consistent results have been over time.
Each metric is scored from 0 to 10 against sector-aware benchmarks, where higher is better. Metrics roll up into five pillars, and the pillars combine into the overall score using the weights shown. Sector-sensitive metrics are judged relative to peers in the same sector.
This score is a systematic, backward-looking read of reported fundamentals. It does not judge valuation, management quality, competitive moat, or future prospects, and can be distorted by one-off items or unusual accounting. Treat it as a starting point, not a recommendation.
Educational only. Not investment advice.
On this reading Cadence Design Systems Inc scores 7.9 out of 10, which reads as high quality. Its strongest pillar is solvency, its weakest is predictability. Quality is not the same as a good investment: the score says nothing about the price you would pay.
Cadence Design Systems Inc ranks at the 94th percentile of the 260 Technology companies Lemma publishes a score for. The median there is 5.9 and the top quarter starts at 6.7, against Cadence Design Systems Inc’s 7.9.
Five pillars, each scored from 0 to 10 against sector-aware benchmarks and then weighted into one overall reading: profitability, solvency, growth, efficiency and predictability. Everything comes from reported financials, and nothing comes from price, sentiment or forecasts.
This page last changed on October 16, 2026. The score moves with the financial statements, so the page changes when a new filing moves the reading rather than on a schedule. Live figures for CDNS are in the app.
No. Quality and valuation are separate questions, and a good business at the wrong price is still a bad purchase. Score the business here, then price it with a DCF you control.
Inside Lemma Analysis the same five pillars run on every company we cover, with the metrics behind each one, current fundamentals, a DCF you control and a watchlist that tells you when the price catches up.
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