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Cadence Design SystemsHAM:CDS -0.20%99 FCF Margin % is 36.31% as of Jun. 2026, which is 25% above its 10-year median of 29.00. GuruFocus rates HAM:CDS with a GF Score™ of 99/100 and a GF Value™ of €326.46 (Fairly Valued). The stock has 2 warning signs investors should review. Among 2,820 Software companies, Cadence Design Systems ranks better than 93.48% on this metric.
* 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.
HAM:CDS vs ADBE, DDOG, SNOW: FCF Margin % Comparison
For the Software - Application subindustry, Cadence Design Systems's FCF Margin %, along with its competitors' market caps and FCF Margin % 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 FCF Margin % vs Software Industry
For the Software industry and Technology sector, Cadence Design Systems's FCF Margin % distribution charts can be found below:
* The bar in red indicates where Cadence Design Systems's FCF Margin % 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 (HAM:CDS) has a FCF Margin % of 36.31% as of Jun. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Cadence Design Systems and its competitors. This is 25% above median its historical median of 29.00. Over the past decade, Cadence Design Systems' FCF Margin % has ranged from 21.25 to 34.60. According to the industry distribution chart, Cadence Design Systems ranks #184 out of 2820 companies in the Software industry, placing it in the top 6.5%.
Is Cadence Design Systems' FCF Margin % too high?
Cadence Design Systems' current FCF Margin % of 36.31% is 25% above median its 10-year median of 29.00. Over the past 10 years, this metric has ranged from a low of 21.25 to a high of 34.60. The Software industry median FCF Margin % is 2.30. Cadence Design Systems' value of 36.31% is 1478.7% above this industry median. Based on the distribution chart, Cadence Design Systems ranks #184 out of 2820 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 99/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Cadence Design Systems' FCF Margin % compare to ADBE and DDOG?
According to the Software industry distribution chart, Cadence Design Systems ranks #184 out of 2820 companies for FCF Margin %. This places Cadence Design Systems in the top 7% of its industry — outperforming the majority of peers. The industry median FCF Margin % is 2.30. Cadence Design Systems' value of 36.31% is 1478.7% above this benchmark. Historically, Cadence Design Systems' own FCF Margin % has ranged from 21.25 to 34.60 over the past decade. While the company's 10-year median is 29.00 vs. the industry median of 2.30, 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 FCF Margin % for a Software company?
The median FCF Margin % among Software companies is 2.30, based on 2,820 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cadence Design Systems's current FCF Margin % of 36.31% is 1478.7% 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 FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Cadence Design Systems and its competitors. For the Software industry, the median FCF Margin % is 2.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cadence Design Systems's current FCF Margin % is 36.31%, which is 25% above median its own 10-year median of 29.00. 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 (HAM:CDS) is currently considered Fairly Valued. The stock's GF Value™ is €326.46, compared to a current price of €300.95 — trading 7.8% below its estimated fair value. The current FCF Margin % is 36.31%, which is 25% above median its 10-year median of 29.00 and 1478.7% above the Software industry median of 2.30. 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 FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For Cadence Design Systems (HAM:CDS), the current FCF Margin % is 36.31% 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 (HAM:CDS) Overvalued in 2026?
Based on GuruFocus' analysis, Cadence Design Systems stock appears to be undervalued.
The current stock price of €300.95 is trading 7.8% below its estimated GF Value™ of €326.46.
GuruFocus considers Cadence Design Systems to be Fairly Valued.
Key valuation signals for HAM:CDS:
FCF Margin %: 36.31% (25% above median its 10-year median of 29.00)
GF Value™: €326.46 vs. price of €300.95 (7.8% below fair value)
Industry Position: 1478.7% above the Software median (#184 of 2820)
No single metric tells the full story. See the HAM:CDS 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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