Cadence Design SystemsFRA:CDS +3.47%99 OCF Yield % is 1.54 as of Jun. 29, 2026, which is 43% below its 10-year median of 2.68. GuruFocus rates FRA:CDS with a GF Score™ of 99/100 and a GF Value™ of €333.54 (Fairly Valued). The stock has 4 warning signs investors should review. Among 2,866 Software companies, Cadence Design Systems ranks worse than 57.61% on this metric.
OCF Yield % is calculated as Cash Flow from Operations divided by Market Capitalization. It is a financial solvency ratio that compares the operating cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, OCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high operating cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Cadence Design Systems OCF Yield % Related Terms
Cadence Design Systems OCF Yield % Historical Data
* 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.
For the Software - Application subindustry, Cadence Design Systems's OCF Yield %, along with its competitors' market caps and OCF Yield % 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 Yield % vs Software Industry
For the Software industry and Technology sector, Cadence Design Systems's OCF Yield % distribution charts can be found below:
* The bar in red indicates where Cadence Design Systems's OCF Yield % 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 (FRA:CDS) has a OCF Yield % of 1.54 as of Jun. 29, 2026. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on Cadence Design Systems and its competitors. This is 43% below median its historical median of 2.68. Over the past decade, Cadence Design Systems' OCF Yield % has ranged from 1.23 to 6.22. According to the industry distribution chart, Cadence Design Systems ranks #1651 out of 2866 companies in the Software industry, placing it in the top 57.6%.
Is Cadence Design Systems' OCF Yield % too high?
Cadence Design Systems' current OCF Yield % of 1.54 is 43% below median its 10-year median of 2.68. Over the past 10 years, this metric has ranged from a low of 1.23 to a high of 6.22. The Software industry median OCF Yield % is 3.20. Cadence Design Systems' value of 1.54 is 51.8% below this industry median. Based on the distribution chart, Cadence Design Systems ranks #1651 out of 2866 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 Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Cadence Design Systems' OCF Yield % compare to NOW and ADP?
According to the Software industry distribution chart, Cadence Design Systems ranks #1651 out of 2866 companies for OCF Yield %. This places Cadence Design Systems in the lower half of its industry. The industry median OCF Yield % is 3.20. Cadence Design Systems' value of 1.54 is 51.8% below this benchmark. Historically, Cadence Design Systems' own OCF Yield % has ranged from 1.23 to 6.22 over the past decade. While the company's 10-year median is 2.68 vs. the industry median of 3.20, Cadence Design Systems has consistently been below 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 Yield % for a Software company?
The median OCF Yield % among Software companies is 3.20, based on 2,866 companies in the industry. Companies in the top quartile (top 25%) have a OCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, OCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cadence Design Systems's current OCF Yield % of 1.54 is 51.8% below 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 Yield % mean?
A high OCF Yield % can signal that a stock is expensive relative to its fundamentals. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on Cadence Design Systems and its competitors. For the Software industry, the median OCF Yield % is 3.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cadence Design Systems's current OCF Yield % is 1.54, which is 43% below median its own 10-year median of 2.68. 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 (FRA:CDS) is currently considered Fairly Valued. The stock's GF Value™ is €333.54, compared to a current price of €333.75 — trading 0.1% above its estimated fair value. The current OCF Yield % is 1.54, which is 43% below median its 10-year median of 2.68 and 51.8% below the Software industry median of 3.20. Cadence Design Systems' overall GF Score™ is 99/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is OCF Yield % calculated?
OCF Yield % is calculated from a company's financial statements. For Cadence Design Systems (FRA:CDS), the current OCF Yield % is 1.54 as of Jun. 29, 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 (FRA:CDS) Overvalued in 2026?
Based on GuruFocus' analysis, Cadence Design Systems stock appears to be overvalued.
The current stock price of €333.75 is trading 0.1% above its estimated GF Value™ of €333.54.
GuruFocus considers Cadence Design Systems to be Fairly Valued.
Key valuation signals for FRA:CDS:
OCF Yield %: 1.54 (43% below median its 10-year median of 2.68)
GF Value™: €333.54 vs. price of €333.75 (0.1% above fair value)
Industry Position: 51.8% below the Software median (#1651 of 2866)
No single metric tells the full story. See the FRA: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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