Cadence Design SystemsXTER:CDS -2.63%97 OCF Margin % is 24.13% as of Mar. 2026, which is 24% below its 10-year median of 31.94. GuruFocus rates XTER:CDS with a GF Score™ of 97/100 and a GF Value™ of €323.52 (Fairly Valued). The stock has 4 warning signs investors should review. Among 2,816 Software companies, Cadence Design Systems ranks better than 88.32% 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.
XTER:CDS vs ADBE, INTU, ADP: OCF Margin % Comparison
For the Software - Application subindustry, Cadence Design Systems's OCF Margin %, along with its competitors' market caps and OCF 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 OCF Margin % vs Software Industry
For the Software industry and Technology sector, Cadence Design Systems's OCF Margin % distribution charts can be found below:
* The bar in red indicates where Cadence Design Systems's OCF 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 (XTER:CDS) has a OCF Margin % of 24.13% as of Mar. 2026. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on Cadence Design Systems and its competitors. This is 24% below median its historical median of 31.94. Over the past decade, Cadence Design Systems' OCF Margin % has ranged from 24.23 to 36.84. According to the industry distribution chart, Cadence Design Systems ranks #329 out of 2816 companies in the Software industry, placing it in the top 11.7%.
Is Cadence Design Systems' OCF Margin % too high?
Cadence Design Systems' current OCF Margin % of 24.13% is 24% below median its 10-year median of 31.94. Over the past 10 years, this metric has ranged from a low of 24.23 to a high of 36.84. The Software industry median OCF Margin % is 6.77. Cadence Design Systems' value of 24.13% is 256.4% above this industry median. Based on the distribution chart, Cadence Design Systems ranks #329 out of 2816 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' OCF Margin % compare to ADBE and INTU?
According to the Software industry distribution chart, Cadence Design Systems ranks #329 out of 2816 companies for OCF Margin %. This places Cadence Design Systems in the top 12% of its industry — outperforming the majority of peers. The industry median OCF Margin % is 6.77. Cadence Design Systems' value of 24.13% is 256.4% above this benchmark. Historically, Cadence Design Systems' own OCF Margin % has ranged from 24.23 to 36.84 over the past decade. While the company's 10-year median is 31.94 vs. the industry median of 6.77, 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 OCF Margin % for a Software company?
The median OCF Margin % among Software companies is 6.77, based on 2,816 companies in the industry. Companies in the top quartile (top 25%) have a OCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, OCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cadence Design Systems's current OCF Margin % of 24.13% is 256.4% 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 OCF Margin % mean?
A high OCF Margin % can signal that a stock is expensive relative to its fundamentals. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on Cadence Design Systems and its competitors. For the Software industry, the median OCF Margin % is 6.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cadence Design Systems's current OCF Margin % is 24.13%, which is 24% below median its own 10-year median of 31.94. 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 (XTER:CDS) is currently considered Fairly Valued. The stock's GF Value™ is €323.52, compared to a current price of €323.70 — trading 0.1% above its estimated fair value. The current OCF Margin % is 24.13%, which is 24% below median its 10-year median of 31.94 and 256.4% above the Software industry median of 6.77. 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 OCF Margin % calculated?
OCF Margin % is calculated from a company's financial statements. For Cadence Design Systems (XTER:CDS), the current OCF Margin % is 24.13% as of Mar. 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 (XTER:CDS) Overvalued in 2026?
Based on GuruFocus' analysis, Cadence Design Systems stock appears to be overvalued.
The current stock price of €323.70 is trading 0.1% above its estimated GF Value™ of €323.52.
GuruFocus considers Cadence Design Systems to be Fairly Valued.
Key valuation signals for XTER:CDS:
OCF Margin %: 24.13% (24% below median its 10-year median of 31.94)
GF Value™: €323.52 vs. price of €323.70 (0.1% above fair value)
Industry Position: 256.4% above the Software median (#329 of 2816)
No single metric tells the full story. See the XTER: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.
97GF Score
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