CDNS FCF Yield Analysis
Updated 105h ago·SEC filings & market data
Key Takeaway
Free cash flow yield shows the annual free cash flow a company generates as a percentage of its market value, so CDNS's 1.7% means it produces about $1.70 in cash for every $100 of equity priced in.
Sector Performance
22th percentileCDNS
1.7%
Sector Median
4.2%
Sector Avg
9.2%
Prior Period
1.5%(Jul 2026)
Deep Analysis
Free cash flow yield shows the annual free cash flow a company generates as a percentage of its market value, so CDNS's 1.7% means it produces about $1.70 in cash for every $100 of equity priced in.
That 1.7% sits well below the sector median of 4.2%, placing CDNS in the 22nd percentile among peers, meaning most comparable companies offer a higher cash return. The year-over-year change is N/A, but versus the prior quarter the metric rose 13.3% from 1.5% to 1.7%. The level is low relative to the sector, yet the quarterly uptick suggests recent free cash flow improvement. For an investor, this combination signals limited current cash yield but a possible early positive turn, which reduces some downside risk from a valuation standpoint. This metric aligns with the NEUTRAL verdict: the low yield argues caution, while the quarterly increase prevents it from being a clear negative. Overall, the FCF yield neither strongly supports nor contradicts neutral—it leans toward it.
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: JACK (23.5%), BBWI (23.7%), YELP (25.7%), MET (27.9%), WIX (29.2%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
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.
Master CDNS's Valuation
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1.7%
Sector Median
4.2%
Sector Avg
9.2%
How CDNS's FCF Yield compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.