CDNSCadence Design Systems

$316.49-2.4% 1Y

$316.49

$265.6652 weeks$416.39

Is the business good?

Good

A genuinely good business: earnings fully cash-backed (1.4×) and margins widening.

2 good, 1 neutral, 1 without data

Profits arrive as cash1.39×derived · Jun 30, 2026

Operating profit is fully backed by cash. Conversion is worsening vs a year ago.

Margin direction, 3 years+1.8 pts

Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.

Where ROE comes from11% ROA

Margin-driven, fat margins on slower asset turns. ROE 20% = margin × turnover × leverage.

Unless marked, from derived.

Against the whole market›

Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.

FCF conversionmiddle of the market

Leverage (Debt/EBITDA)better than 77% of the market

Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.

Cadence Design Systems earns 18% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.

18%

Return on invested capital · cost of capital 9.0% · 8.7 points above what the capital costs: growth creates value

Operating margin: 30%
Operating margin · Software - Application median 6.9% · 12 months to Q2 2026
Cash conversion: 1.39×
Cash conversion · 1.69× a year ago · operating cash flow covers the operating profit after tax
Share count, year on year: +1.2%
Share count, year on year · shareholders own a smaller slice than a year ago

Details›

Operating margin12 months to Q2 2026: 30%
Net margin12 months to Q2 2026: 24%
Free cash flow margin: 29%
R&D as % of revenue: 33%
Revenue, trailing twelve months: $5.84B
Free cash flow, trailing twelve months: $1.68B
Net income, trailing twelve months: $1.38B
Return on invested capitaloperating profit after tax ÷ debt + equity − cash: 18%

Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.

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