Cadence Design Systems (XSWX:CDNS) 10-Year RORE % : 10.87% (As of Mar. 2026)


XSWX:CDNS Cadence Design Systems Inc XSWX:CDNS
99 GF Score
Price CHF310.65
GF Value CHF314.60
! 4 Warning Signs
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What is Cadence Design Systems 10-Year RORE %?

Cadence Design Systems XSWX:CDNS 99 10-Year RORE % is 10.87 as of Mar. 2026. 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 1,301 Software companies, Cadence Design Systems ranks better than 58.42% on this metric.

Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments. Cadence Design Systems's 10-Year RORE % for the quarter that ended in Mar. 2026 was 10.87%.

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

XSWX:CDNS's 10-Year RORE % is ranked better than
58.42% of 1301 companies
in the Software industry
Industry Median: 8.47 vs XSWX:CDNS: 10.87

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

Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.

There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 10-year period is chosen.

Be Aware

Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.


Cadence Design Systems 10-Year RORE % Related Terms


Cadence Design Systems 10-Year RORE % Historical Data

* Premium members only.

The historical data trend for Cadence Design Systems's 10-Year RORE % 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 RORE % Chart

Cadence Design Systems Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
10-Year RORE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.32 16.00 16.31 12.47 11.24

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 RORE % 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 12.15 10.80 11.04 11.24 10.87

XSWX:CDNS vs : 10-Year RORE % Comparison

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

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

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


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

Cadence Design Systems's 10-Year RORE % for the quarter that ended in Mar. 2026 is calculated as:

10-Year RORE %=( Most Recent EPS (Diluted)- First Period EPS (Diluted) )/( Cumulative EPS (Diluted) for 10-year -Cumulative Dividends per Share for 10-year )
=( 3.416-0.782 )/( 24.231-0 )
=2.634/24.231
=10.87 %

* 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.

In the calculation of 10-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 10-year before.

Frequently Asked Questions Learn more about 10-Year RORE % →
What does a 10-Year RORE % of 10.87 mean?
Cadence Design Systems (XSWX:CDNS) has a 10-Year RORE % of 10.87 as of Mar. 2026. 10-Year RORE % shows how much a company earns by reinvesting its retained earnings in 10-year. View historical data on Cadence Design Systems and its competitors. According to the industry distribution chart, Cadence Design Systems ranks #541 out of 1301 companies in the Software industry, placing it in the top 41.6%.
Is Cadence Design Systems' 10-Year RORE % too high?
Cadence Design Systems' current 10-Year RORE % is 10.87. The Software industry median 10-Year RORE % is 8.47. Cadence Design Systems' value of 10.87 is 28.3% above this industry median. Based on the distribution chart, Cadence Design Systems ranks #541 out of 1301 companies in the Software industry, which is above the industry midpoint. 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 RORE % compare to ?
According to the Software industry distribution chart, Cadence Design Systems ranks #541 out of 1301 companies for 10-Year RORE %. This puts Cadence Design Systems in the upper half of its industry. The industry median 10-Year RORE % is 8.47. Cadence Design Systems' value of 10.87 is 28.3% 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 RORE % for a Software company?
The median 10-Year RORE % among Software companies is 8.47, based on 1,301 companies in the industry. Companies in the top quartile (top 25%) have a 10-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 10-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cadence Design Systems's current 10-Year RORE % of 10.87 is 28.3% 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 RORE % mean?
A high 10-Year RORE % can signal that a stock is expensive relative to its fundamentals. 10-Year RORE % shows how much a company earns by reinvesting its retained earnings in 10-year. View historical data on Cadence Design Systems and its competitors. For the Software industry, the median 10-Year RORE % is 8.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cadence Design Systems's current 10-Year RORE % is 10.87. 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 RORE % of 10.87. 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 RORE % is 10.87 and 28.3% above the Software industry median of 8.47. 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 RORE % calculated?
10-Year RORE % is calculated from a company's financial statements. For Cadence Design Systems (XSWX:CDNS), the current 10-Year RORE % is 10.87 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 (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 RORE %: 10.87
  • GF Value™: CHF314.60 vs. price of CHF310.65 (1.3% below fair value)
  • GF Score™: 99/100 with 4 warning signs
  • Industry Position: 28.3% above the Software median (#541 of 1301)

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

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

CHF310.65
Price
CHF314.60
GF Value