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A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Cadence Design Systems's Debt-to-Equity or its related term are showing as below:
MEX:CDNS'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.13 Med: 0.32 Max: 0.94
Current: 0.39
During the past 13 years, the highest Debt-to-Equity Ratio of Cadence Design Systems was 0.94. The lowest was 0.13. And the median was 0.32.
MEX:CDNS's Debt-to-Equity is ranked worse than 65.14% of 2249
companies
in the Software industry
Industry Median: 0.2
vs MEX:CDNS: 0.39
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Cadence Design Systems Debt-to-Equity Related Terms
Cadence Design Systems Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Cadence Design Systems's Debt-to-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:CDNS vs ADBE, DDOG, SNOW: Debt-to-Equity Comparison
For the Software - Application subindustry, Cadence Design Systems's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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 Debt-to-Equity vs Software Industry
For the Software industry and Technology sector, Cadence Design Systems's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Cadence Design Systems's Debt-to-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Cadence Design Systems (MEX:CDNS) has a Debt-to-Equity of 0.39 as of Jun. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Cadence Design Systems and its competitors. This is 22% above median its historical median of 0.32. Over the past decade, Cadence Design Systems' Debt-to-Equity has ranged from 0.13 to 0.94. According to the industry distribution chart, Cadence Design Systems ranks #1465 out of 2249 companies in the Software industry, placing it in the top 65.1%.
Is Cadence Design Systems' Debt-to-Equity too high?
Cadence Design Systems' current Debt-to-Equity of 0.39 is 22% above median its 10-year median of 0.32. Over the past 10 years, this metric has ranged from a low of 0.13 to a high of 0.94. The Software industry median Debt-to-Equity is 0.20. Cadence Design Systems' value of 0.39 is 95% above this industry median. Based on the distribution chart, Cadence Design Systems ranks #1465 out of 2249 companies in the Software industry, which is below the industry midpoint. Overall, Cadence Design Systems has a GF Score™ of 99/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cadence Design Systems' Debt-to-Equity compare to ADBE and DDOG?
According to the Software industry distribution chart, Cadence Design Systems ranks #1465 out of 2249 companies for Debt-to-Equity. This places Cadence Design Systems in the lower half of its industry. The industry median Debt-to-Equity is 0.20. Cadence Design Systems' value of 0.39 is 95% above this benchmark. Historically, Cadence Design Systems' own Debt-to-Equity has ranged from 0.13 to 0.94 over the past decade. While the company's 10-year median is 0.32 vs. the industry median of 0.20, Cadence Design Systems has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for a Software company?
The median Debt-to-Equity among Software companies is 0.20, based on 2,249 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cadence Design Systems's current Debt-to-Equity of 0.39 is 95% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Cadence Design Systems and its competitors. For the Software industry, the median Debt-to-Equity is 0.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cadence Design Systems's current Debt-to-Equity is 0.39, which is 22% above median its own 10-year median of 0.32. 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 Modestly Undervalued. The stock's GF Value™ is MXN6,856.02, compared to a current price of MXN5,860.00 — trading 14.5% below its estimated fair value. The current Debt-to-Equity is 0.39, which is 22% above median its 10-year median of 0.32 and 95% above the Software industry median of 0.20. Cadence Design Systems' overall GF Score™ is 99/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Cadence Design Systems (MEX:CDNS), the current Debt-to-Equity is 0.39 as of Jun. 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 undervalued.
The current stock price of MXN5,860.00 is trading 14.5% below its estimated GF Value™ of MXN6,856.02.
GuruFocus considers Cadence Design Systems to be Modestly Undervalued.
Key valuation signals for MEX:CDNS:
Debt-to-Equity: 0.39 (22% above median its 10-year median of 0.32)
GF Value™: MXN6,856.02 vs. price of MXN5,860.00 (14.5% below fair value)
Industry Position: 95% above the Software median (#1465 of 2249)
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 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.
99GF Score
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