Cadence Design Systems (MEX:CDNS) Moat Score: 8/10 (As of Jul. 01, 2026)


MEX:CDNS Cadence Design Systems Inc MEX:CDNS
97 GF Score
Price MXN6,638.98
GF Value MXN6,638.52
Valuation Fairly Valued
! 4 Warning Signs
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What is Cadence Design Systems Moat Score?

Cadence Design Systems MEX:CDNS +1.55% 97 Moat Score is 8 as of Jul. 01, 2026. GuruFocus rates MEX:CDNS with a GF Score™ of 97/100 and a GF Value™ of MXN6,638.52 (Fairly Valued). The stock has 4 warning signs investors should review. Among 2,843 Software companies, Cadence Design Systems ranks better than 99.86% on this metric.

Cadence Design Systems has the Moat Score of 8, which implies that the company might have Wide Moat - Clear and robust wide moat.

Cadence Design Systems has Wide Moat: Cadence Design Systems Inc has a robust wide moat due to its strong market leadership in electronic design automation software. The company benefits from high customer switching costs, valuable intellectual property, and consistent innovation. Its strong brand and deep customer loyalty, combined with significant pricing power and economies of scale, reinforce its durable competitive advantages.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Cadence Design Systems might have Wide Moat - Clear and robust wide moat.

Cadence Design Systems  (MEX:CDNS) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Cadence Design Systems Moat Score Related Terms

MEX:CDNS vs NOW, ADP, SNOW: Moat Score Comparison

For the Software - Application subindustry, Cadence Design Systems's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Cadence Design Systems Moat Score vs Software Industry

For the Software industry and Technology sector, Cadence Design Systems's Moat Score distribution charts can be found below:

* The bar in red indicates where Cadence Design Systems's Moat Score falls into.


MEX:CDNS
97GF Score
Cadence Design Systems Inc MEX:CDNS
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 8 mean?
Cadence Design Systems (MEX:CDNS) has a Moat Score of 8 as of Jul. 01, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Cadence Design Systems ranks #4 out of 2843 companies in the Software industry, placing it in the top 0.099999999999994%.
Is Cadence Design Systems' Moat Score too high?
Cadence Design Systems' current Moat Score is 8. Based on the distribution chart, Cadence Design Systems ranks #4 out of 2843 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Cadence Design Systems has a GF Score™ of 97/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Cadence Design Systems' Moat Score compare to NOW and ADP?
According to the Software industry distribution chart, Cadence Design Systems ranks #4 out of 2843 companies for Moat Score. This places Cadence Design Systems in the top 0% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Software company?
A good Moat Score depends on the Software industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Cadence Design Systems's current Moat Score is 8. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cadence Design Systems stock overvalued right now?
Based on GuruFocus' analysis, Cadence Design Systems (MEX:CDNS) is currently considered Fairly Valued. The stock's GF Value™ is MXN6,638.52, compared to a current price of MXN6,638.98 — trading 0% above its estimated fair value. The current Moat Score is 8. Cadence Design Systems' overall GF Score™ is 97/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Cadence Design Systems (MEX:CDNS), the current Moat Score is 8 as of Jul. 01, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Cadence Design Systems (MEX:CDNS) Overvalued in 2026?

Based on GuruFocus' analysis, Cadence Design Systems stock appears to be overvalued. The current stock price of MXN6,638.98 is trading 0% above its estimated GF Value™ of MXN6,638.52. GuruFocus considers Cadence Design Systems to be Fairly Valued.

Key valuation signals for MEX:CDNS:

  • Moat Score: 8
  • GF Value™: MXN6,638.52 vs. price of MXN6,638.98 (0% above fair value)
  • GF Score™: 97/100 with 4 warning signs

No single metric tells the full story. See the MEX:CDNS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Cadence Design Systems Business Description

Address 2655 Seely Avenue, Building 5, San Jose, CA, USA, 95134
Cadence Design Systems is a provider of electronic design automation software, intellectual property, and system design and analysis products. EDA software automates and aids in the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution. Cadence offers a portfolio of design IP, as well as system design and analysis products, which enables system-level analysis and verification solutions.
97GF Score

Get the complete analysis for MEX:CDNS

Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

MXN6,638.98
Price
MXN6,638.52
GF Value