Cadence Design Systems Inc. (CDNS) — RQD Stock Rating Cockpit

Per the Roarable RQD rating, CDNS carries an RQD Score of 73 and a letter grade of B, labeled "Roarable Buy — Good Risk/Reward." The score is built from five pillars:

• Fundamental Cash Engine: 18 / 20. Per the Roarable RQD rating, this pillar reflects ROIC of 15.7% and an FCF yield of 1.69%. The FCF yield is low in absolute terms, which means the market is pricing the cash stream at a premium; the strength here is returns on capital rather than cheapness.
• Whale 13F Flow: 14 / 20. The rating describes institutional accumulation and options positioning. No supporting holder detail is provided in the holders section, so the magnitude of this flow cannot be verified here.
• Insider Conviction: 11 / 20. The rating references SEC Form 4 and Congressional PTR cluster flow. The underlying transactions are not itemized in the source data, so this is the weakest-supported pillar in terms of visible evidence.
• Macro Regime Fit: 12 / 20. Per the rating, beta is 1.14 with sector sensitivity. For a prospective investor, this implies moderately above-market price movement in broad selloffs or rallies, a risk to weigh against portfolio volatility tolerance.
• Forensic Balance Sheet: 18 / 20. Per the rating, Altman Z is 13.92, Piotroski F is 9/9, and Debt/Equity is 0.45. These point to a financially sound balance sheet with strong distress-risk and quality-screen readings.

Taken together, the score suggests a high-quality operating and balance-sheet profile, paired with a valuation that the market has already priced richly (see Snapshot). Upside drivers implied by the pillars are continued capital efficiency and balance-sheet strength; the principal valuation tradeoff is the gap between an elevated P/E and a thin FCF yield, which leaves less margin for error if growth or sentiment weakens.

Cadence Design Systems Inc. (CDNS) is a NASDAQ-listed issuer in the Technology sector, Computer Software: Prepackaged Software industry, per the profile. Per the market data, its operating margin is 28.2% and net margin is 20.9%. Not available in source data for specific products, customer segments, or revenue model detail.

Per the SEC financials, revenue grew from $4090.0M (FY 2023) to $5296.8M (FY 2025), and net income rose from $1041.1M to $1108.9M over the same span. Per the Roarable RQD rating, ROIC is 15.7%, and the forensic pillar cites an Altman Z-Score of 13.92 and a Piotroski F-Score of 9/9. Per the Roarable RQD rating, Debt/Equity is 0.45. The FY 2023 debt figure ($12103.4M) is far above the FY 2024 and FY 2025 figures and is not explained in the source data; treat it as an open question. Gross margin is reported as 0% in the market data, which is not interpretable without further detail.

• Beat-and-raise Q3 report (GREEN, CATALYST): An Investor's Business Daily headline describes a beat-and-raise Q3 report. The underlying figures are not provided.
• Valuation debate (YELLOW, MARKET WIRE): A Yahoo Finance headline describes the stock as trading rich after a 122% five-year run, and another describes it as looking fully valued despite AI hopes. Both are headlines only; the 122% figure is attributed to the headline and not independently verified.
• Mixed session action (GREEN, CATALYST): A Yahoo Finance headline notes the stock sank as the market gained. Market data shows a change of 0.09%.
• Risk watch: The recurring "fully valued" framing aligns with the 84.8x TTM P/E in the Snapshot.
• Proprietary signals: None. Per the Butterfly Supply-Chain Graph, there are no butterfly links and no proprietary signals.

• What drives the FY 2023 debt figure of $12103.4M relative to FY 2024 ($2100.0M) and FY 2025 ($2480.2M), and is it a reporting or classification difference?
• Which specific insider Form 4 transactions and 13F holders underlie the "whale" and "insider" pillar scores?
• What does the reported 0% gross margin represent, given the operating margin of 28.2%?
• What were the actual Q3 results behind the "beat-and-raise" headline, and what guidance changes accompanied them?
• What are the upstream and downstream dependencies for CDNS, given the empty supply-chain graph?