Cadence Design Systems, Inc. (CDNS) — Free Cash Flow Yield
Technology
Cadence Design Systems, Inc. develops computational, AI-driven software, hardware, and silicon intellectual property products and solutions. The company offers functional verification services, such as Jasper, a formal verification platform; Xcelium, a parallel logic simulation platform; Verisium, a generative AI solution; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification, as well as digital IC design and sign off products, including In novus platform; and custom IC design and simulation product include Virtuoso, a platform to design and verify analog. It also provides Xcelium logic simulator and other front-end verification and virtual prototyping technologies; controllers and physical interfaces; PCI Express, universal accelerator and compute express links, and multiple memory interfaces; and Ten Silica, a digital signal processor. In addition, the company's design IP portfolio includes serializer/deserializer, peripheral component interconnect, USB, and other standard protocols; and Secure-IC, a solution for embedded security IP. Additionally, it provides System Design and Analysis (SD&A) platform, a solution that enables end-to-end system-level design and verification across chips, packages, PCBs, and electronic systems; Allegro X and Orca X platforms for PCB and advanced packaging; Sigrity X for signal and power integrity; AIR for RF design; Fidelity for computational fluid dynamics; Celsius for thermal and airflow analysis; Clarity 3D solver for electromagnetic and power electronics analysis and simulation; Integrity 3D-IC solution for 3D-IC and multi-chiplet designs; the Optimality Intelligent System Explorer, Reality digital twin, and Millennium enterprise multiphasic platforms; Allegro system design platform; and molecular modeling and simulation solutions and services. The company has a strategic collaboration with NVIDIA. The company was incorporated in 1987 and is headquartered in San Jose, California.
| Metric | Value |
|---|---|
| FCF Yield | 1.8% |
| Technology Sector Avg FCF Yield | 4.0% |
| Annual Free Cash Flow | $1.6B |
| Market Cap | $89.5B |
| P/E Ratio | 64.6x |
Cadence Design Systems, Inc.'s FCF yield of 1.8% is below the Technology sector average (4.0%).
Frequently Asked Questions
What is Cadence Design Systems, Inc.'s (CDNS) free cash flow yield?
Cadence Design Systems, Inc.'s (CDNS) free cash flow yield is 1.8%. That is below the Technology sector average (4.0%).
Is CDNS's free cash flow yield good?
At 1.8%, CDNS's free cash flow yield is considered weak — yields above 10% are generally excellent, 7–10% good, 4–7% fair, and below 4% weak, though context varies by sector and growth stage.
How much free cash flow does Cadence Design Systems, Inc. generate?
Cadence Design Systems, Inc. generated $1.6B in free cash flow, against a market cap of $89.5B.
How is free cash flow yield calculated?
Free cash flow yield = (Free Cash Flow ÷ Market Capitalization) × 100%. Free cash flow equals operating cash flow minus capital expenditures.
Data from public filings. Not investment advice. Calculate your own FCF yield →