FCF Yield
Updated 200h ago
Sector Performance
20th percentileCDNS
1.5%
Sector Median
4.2%
Sector Avg
7.7%
Deep Analysis
The current FCF Yield of 1.5% means that for every $100 invested in CDNS stock, the company generates $1.50 in free cash flow (the cash left after operating and capital expenses).
This is well below the sector median of 4.2%, placing CDNS in the 20th percentile among its peers, indicating weaker cash-flow generation relative to the industry. The trend is decreasing over the last eight quarters, with the most recent quarterly change of -6.3% (from 1.6% to 1.5%) and no year-over-year data available. The combination of a low FCF Yield and a steady decline suggests the company is generating less cash per dollar of market value, which can increase investment risk if the trend continues. This metric does not support a bullish stance and instead aligns with the overall NEUTRAL verdict by highlighting a lack of compelling cash-flow returns without pointing to an immediate deterioration.
Frequently Asked Questions
What does the FCF Yield tell investors about CDNS?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
Who are CDNS's closest peers by FCF Yield?
The closest peers by FCF Yield include: FMC (-12.9%), NCLH (-13.0%), XEL (-13.6%), SG (-13.6%), GS (-14.0%).
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
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1.5%
Sector Median
4.2%
Sector Avg
7.7%
How CDNS's FCF Yield compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.