Cadence Design Systems (XSWX:CDNS) 10-Year ROIIC % : 20.26% (As of Dec. 2025)


XSWX:CDNS Cadence Design Systems Inc XSWX:CDNS
99 GF Score
Price CHF310.65
GF Value CHF314.60
! 4 Warning Signs
View Full Analysis

What is Cadence Design Systems 10-Year ROIIC %?

Cadence Design Systems XSWX:CDNS 99 10-Year ROIIC % is 20.26 as of Dec. 2025. GuruFocus rates XSWX:CDNS with a GF Score™ of 99/100 and a GF Value™ of CHF314.60. The stock has 4 warning signs investors should review. Among 2,120 Software companies, Cadence Design Systems ranks better than 75.19% on this metric.

10-Year Return on Invested Incremental Capital (10-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 10-year. Cadence Design Systems's 10-Year ROIIC % for the quarter that ended in Dec. 2025 was 20.26%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for Cadence Design Systems's 10-Year ROIIC % or its related term are showing as below:

XSWX:CDNS's 10-Year ROIIC % is ranked better than
75.19% of 2120 companies
in the Software industry
Industry Median: 4.185 vs XSWX:CDNS: 20.26

Cadence Design Systems  (XSWX:CDNS) 10-Year ROIIC % Explanation

Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.

High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

Be Aware

It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.


Cadence Design Systems 10-Year ROIIC % Related Terms


Cadence Design Systems 10-Year ROIIC % Historical Data

* Premium members only.

The historical data trend for Cadence Design Systems's 10-Year ROIIC % 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.

Cadence Design Systems 10-Year ROIIC % Chart

Cadence Design Systems Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
10-Year ROIIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 35.21 28.29 31.86 26.98 20.26

Cadence Design Systems Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
10-Year ROIIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.00 20.26 0.00

XSWX:CDNS vs : 10-Year ROIIC % Comparison

For the Software - Application subindustry, Cadence Design Systems's 10-Year ROIIC %, along with its competitors' market caps and 10-Year ROIIC % 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 10-Year ROIIC % vs Software Industry

For the Software industry and Technology sector, Cadence Design Systems's 10-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where Cadence Design Systems's 10-Year ROIIC % falls into.


XSWX:CDNS
99GF Score
Cadence Design Systems Inc XSWX:CDNS
10-Year ROIIC % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Cadence Design Systems 10-Year ROIIC % Calculation

Cadence Design Systems's 10-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:

10-Year ROIIC %=10-Year Incremental Net Operating Profit After Taxes (NOPAT)**/10-Year Incremental Invested Capital**
=( 957.897706 (Dec. 2025) - 272.160916 (Dec. 2015) )/( 4990.116 (Dec. 2025) - 1671.335 (Dec. 2015) )
=685.73679/3318.781
=20.66%***

* 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.

** Annual data of NOPAT and Invested Capital was used to calculate 10-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.

Frequently Asked Questions Learn more about 10-Year ROIIC % →
What does a 10-Year ROIIC % of 20.26 mean?
Cadence Design Systems (XSWX:CDNS) has a 10-Year ROIIC % of 20.26 as of Dec. 2025. 10-Year ROIIC % measures the change in earnings as a percentage of change in investment over 10-year. View historical data on Cadence Design Systems and its competitors. According to the industry distribution chart, Cadence Design Systems ranks #526 out of 2120 companies in the Software industry, placing it in the top 24.8%.
Is Cadence Design Systems' 10-Year ROIIC % too high?
Cadence Design Systems' current 10-Year ROIIC % is 20.26. The Software industry median 10-Year ROIIC % is 4.19. Cadence Design Systems' value of 20.26 is 384.1% above this industry median. Based on the distribution chart, Cadence Design Systems ranks #526 out of 2120 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, reflecting its overall financial health beyond just this single metric.
How does Cadence Design Systems' 10-Year ROIIC % compare to ?
According to the Software industry distribution chart, Cadence Design Systems ranks #526 out of 2120 companies for 10-Year ROIIC %. This places Cadence Design Systems in the top 25% of its industry — outperforming the majority of peers. The industry median 10-Year ROIIC % is 4.19. Cadence Design Systems' value of 20.26 is 384.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 10-Year ROIIC % for a Software company?
The median 10-Year ROIIC % among Software companies is 4.19, based on 2,120 companies in the industry. Companies in the top quartile (top 25%) have a 10-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 10-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cadence Design Systems's current 10-Year ROIIC % of 20.26 is 384.1% 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 10-Year ROIIC % mean?
A high 10-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 10-Year ROIIC % measures the change in earnings as a percentage of change in investment over 10-year. View historical data on Cadence Design Systems and its competitors. For the Software industry, the median 10-Year ROIIC % is 4.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cadence Design Systems's current 10-Year ROIIC % is 20.26. 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?
Cadence Design Systems (XSWX:CDNS) has a current 10-Year ROIIC % of 20.26. The stock's GF Value™ is CHF314.60, compared to a current price of CHF310.65 — trading 1.3% below its estimated fair value. The current 10-Year ROIIC % is 20.26 and 384.1% above the Software industry median of 4.19. 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 10-Year ROIIC % calculated?
10-Year ROIIC % is calculated from a company's financial statements. For Cadence Design Systems (XSWX:CDNS), the current 10-Year ROIIC % is 20.26 as of Dec. 2025. 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 (XSWX:CDNS) Overvalued in 2026?

Based on GuruFocus' analysis, Cadence Design Systems stock appears to be undervalued. The current stock price of CHF310.65 is trading 1.3% below its estimated GF Value™ of CHF314.60.

Key valuation signals for XSWX:CDNS:

  • 10-Year ROIIC %: 20.26
  • GF Value™: CHF314.60 vs. price of CHF310.65 (1.3% below fair value)
  • GF Score™: 99/100 with 4 warning signs
  • Industry Position: 384.1% above the Software median (#526 of 2120)

No single metric tells the full story. See the XSWX:CDNS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Cadence Design Systems Business Description

Comparable Companies
Address 2655 Seely Avenue, Building 5, San Jose, CA, USA, 95134
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

Get the complete analysis for XSWX:CDNS

10-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF310.65
Price
CHF314.60
GF Value