Cadence Design Systems, Inc.
CDNS · Technology · · USDFahodi Score STRONG SELL Short-term (Swing)
27
/ 100
Technical
0
Trend & RS
64
Momentum
36
Fundamental (0%)
67
Macro
22
Liquidity
63
| Component | Score | Weight |
|---|---|---|
| Technical | 0.0 | 40% |
| Trend & RS | 64.3 | 20% |
| Momentum | 36.2 | 20% |
| Fundamental | 66.7 | 0% |
| Macro | 22.5 | 15% |
| Liquidity | 63.2 | 5% |
Trade Setup
| Entry | 311.43 |
| Stop Loss | 283.29 (9.0%) |
| Target 1 (1:1) | 339.57 (+9.0%) |
| Target 2 (2:1) | 367.71 (+18.1%) |
| ATR(14) | 14.07 (4.5%) |
| Risk per Share | 28.14 |
| Reward:Risk | 2:1 |
ATR-based levels. Adjust for support/resistance zones.
Factor Profile
| Factor | Score | Z | Bar |
|---|---|---|---|
| Value | 0.0 | -2.00 | |
| Momentum | 36.2 | -0.55 | |
| Quality | 51.8 | +0.07 | |
| Composite | 29.3 | ||
Quality Scores
Piotroski F-Score
6
/9 —
Average
✓
✓
✗
✗
✓
✗
✓
✓
✓
1. Positive Net Income
2. Positive Roa
3. Positive Cfo
4. Quality Earnings
5. Lower Leverage
6. Higher Liquidity
7. No Dilution
8. Higher Gross Margin
9. Higher Asset Turnover
Altman Z-Score
Insufficient Data
Valuation vs Peers Overvalued
| Metric | Stock | Sector | vs Peers |
|---|---|---|---|
| P/E Ratio | 61.9 | 28.0 | +121% above |
| P/B Ratio | 12.4 | 6.0 | Above |
| Dividend Yield | 0.0% | 0.8% | Below avg |
Comparing against Technology median multiples.
Trading at a premium to sector peers — verify growth justifies premium.
Intrinsic Value (DCF) Significantly Overvalued
Intrinsic Value
140.04
vs
Market Price
311.43
Upside
-55.0%
| Margin of Safety | -122.4% |
| Stage 1 PV (5yr FCF) | 7,839,298,866 |
| Terminal Value PV | 30,583,417,109 |
| Total Enterprise Value | 38,422,715,975 |
Assumptions
| Base FCF | 1,104,101,082 |
| Growth Rate (5yr) | 22.0% |
| Terminal Growth | 2.5% |
| Discount Rate (WACC) | 9.0% |
2-stage DCF: 5yr projected FCF + Gordon Growth terminal value. Estimates only — adjust growth and WACC for your own assumptions.
Position Sizing — Kelly Criterion
4.6%
Recommended Size
12.74%
Full Kelly
6.37%
Half Kelly
5.0%
Max Cap (Moderate)
Kelly inputs derived from quant score 27/100. Estimated win rate 48%, avg win 6.6%, avg loss 4.5%. Position was capped at the moderate risk maximum. This is analytical output, not a recommendation to trade.
RECOVERY
Regime: RECOVERY (40% confidence) — position size reduced 8%
Signal Summary STRONG SELL
0
Bullish Signals
4
Bearish Signals
41.88
RSI(14)
-0.4707
MACD
Relative Strength (RS) IMPROVING
85
/ 99
RS Rating
✓ O'Neil PASS (≥80)
| RS vs SPY | ↑ RISING (-3.2% vs SPY 3M) |
| RS vs Sector | INLINE (Technology) |
| RS New High | No (22d since high) |
| Sector Outperformance | -13.9% (3M) |
RS Line — stock / SPY (90 bars)
← older
newer →
RS vs SPY
50-day SMA of RS
IMPROVING:
Gaining momentum — the stock is starting to outperform the market. Watch for RS new high confirmation.
Technical Indicators
| Indicator | Value | Signal |
|---|---|---|
| Rsi | 41.88 | NEUTRAL |
| Macd | -0.4707 | BEARISH |
| Ma Cross | 320.38 / 327.71 | DEATH CROSS |
| Trend Short | BELOW SMA50 | |
| Trend Long | BELOW SMA200 | |
| Bollinger | MIDDLE | |
| Volume | 1.31x | NORMAL |
Key Levels
| Level | Price |
|---|---|
| 52-Week High | 416.69 |
| Bollinger Upper | 352.67 |
| SMA(200) | 327.71 |
| SMA(50) | 320.38 |
| SMA(20) | 328.97 |
| Current Price | 311.43 |
| Bollinger Lower | 305.26 |
| 52-Week Low | 262.75 |
| ATR(14) | 14.07 |
Advanced Technical Analysis
Click to expand
Wyckoff Phase & Volume Spread Analysis
Wyckoff Phase
ACCUMULATION E
Confidence
50%
Acc: 1.0 |
Dist: 1.0 |
Markup: 0.0 |
Markdown: 0.0
Volume Spread Analysis (last 5 bars)
| Date | Signal | Vol | Description |
|---|---|---|---|
| 2026-10-30 | Normal | 0.82x | Normal bar — no special VSA pattern |
| 2026-11-02 | Normal | 0.89x | Normal bar — no special VSA pattern |
| 2026-11-03 | Normal | 0.94x | Normal bar — no special VSA pattern |
| 2026-11-04 | Normal | 0.83x | Normal bar — no special VSA pattern |
| 2026-11-05 | Normal | 1.31x | Normal bar — no special VSA pattern |
Ichimoku Cloud BEARISH
| Line | Value | Status |
|---|---|---|
| Tenkan-sen (9) | 328.43 | Below Kijun |
| Kijun-sen (26) | 333.55 | Base line |
| Senkou A | 330.99 | Leading span A |
| Senkou B | 317.49 | Leading span B |
| Cloud | 317.49 – 330.99 | Bullish (Green) |
| Price vs Cloud | 311.43 | Below Cloud |
| Chikou Span | 350.73 | Bearish |
| Alignment Score | 1/4 | BEARISH |
TTM Squeeze & Divergences
TTM Squeeze
SQUEEZE OFF
No squeeze
Momentum:
BEARISH
BB: 305.26 – 352.67 | KC: 308.24 – 349.69
Divergences (last 60 bars)
No significant divergences detected in the last 60 bars.
Anchored VWAP
VWAP: 326.64
Anchor: 2026-02-03 (52w Low)
BELOW AVWAP
-4.7%
Heikin-Ashi Trend
WEAKLY BEARISH
Full data via /api/advanced/CDNS
Valuation
| Metric | Value |
|---|---|
| Market Cap | 85.45B |
| P/E (TTM) | 61.91 |
| Forward P/E | N/A |
| P/B | 12.43 |
| EPS | 5.03 |
Financial Health
| Metric | Value |
|---|---|
| Revenue Growth | 22.0% |
| Profit Margin | 22.5% |
| ROE | 22.9% |
| Debt/Equity | 40.91 |
| Current Ratio | 1.36 |
| Dividend Yield | N/A |
| Payout Ratio | N/A |
| Beta | 1.10 |
Trading Data
311.43
Open
311.43
Day High
311.43
Day Low
3.30M
Volume (1.4x avg)
Price Chart (90 Days)
Candlesticks (green=up, red=down)
SMA 20
SMA 50
Bollinger Bands (upper/lower)
Volume (green=buying, red=selling)