Last Price$241.7(3.5%)
Market Cap$67.7B
LTM Rule of 40 (EBIT margin)
42.7%
5Y avg
40.3%
Software - Application industry
median
3.8%
Stock quality & Intrinsic value
7/10
(0.4%) overvalued
Cadence Design Systems, Inc. Rule of 40 (EBIT margin)
Annual
Quarterly
LTM
Industry median
Company stand-alone
Crunching data... Almost there!
| Dec'05 | Dec'06 | Dec'07 | Jan'09 | Jan'10 | Jan'11 | Dec'11 | Dec'12 | Dec'13 | Jan'15 | Jan'16 | Dec'16 | Dec'17 | Dec'18 | Dec'19 | Jan'21 | Jan'22 | Dec'22 | Dec'23 | Dec'24 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Rule of 40 (EBIT margin) | 19.9% | 26.8% | 28.5% | (187.2%) | (32.4%) | 8.4% | 33.3% | 31.3% | 23.0% | 21.3% | 24.4% | 20.2% | 23.7% | 28.6% | 30.3% | 38.9% | 37.5% | 49.3% | 45.4% | 42.6% |
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Cadence Design Systems, Inc. (CDNS) Rule of 40 (EBIT margin) comparison analysis
General
LTM Rule of 40 (EBIT margin)
OTHER METRICS
Company name
Revenue growth
EPS growth
Net Income margin
Cadence Design Systems, Inc.CDNS
42.7%
13.5%
0.8%
22.7%
Median Peer Set
31.3%
16.7%
46.2%
18.6%
Coinbase Global, Inc.COIN
137.5%
111.2%
2,507.5%
39.3%
AppLovin CorporationAPP
83.3%
16.5%
N/A
10.9%
Shopify Inc.SHOP
37.9%
25.8%
1,470.0%
22.7%
Intuit Inc.INTU
36.0%
13.3%
24.8%
18.2%
ServiceNow, Inc.NOW
34.9%
22.4%
(18.4%)
13.0%
Salesforce, Inc.CRM
27.7%
11.2%
1,923.8%
11.9%
SAP SESAP
26.7%
3.7%
67.5%
19.7%
Uber Technologies, Inc.UBER
24.7%
18.0%
423.3%
22.4%
Workday, Inc.WDAY
21.3%
16.8%
N/A
19.0%
MicroStrategy IncorporatedMSTR
(326.2%)
(6.6%)
N/A
(251.7%)
CDNS key stats
USD
Millions
Billions
Annual
Quarterly
Trailing
Key stats
Income statement
Balance sheet
Cash Flow Statement
Valuation
Ratios
Per share
Per employee
Dividends & Yields
| Dec'05 | Dec'06 | Dec'07 | Jan'09 | Jan'10 | Jan'11 | Dec'11 | Dec'12 | Dec'13 | Jan'15 | Jan'16 | Dec'16 | Dec'17 | Dec'18 | Dec'19 | Jan'21 | Jan'22 | Dec'22 | Dec'23 | Dec'24 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
% growth | 1,329.2 11.0% | 1,483.9 11.6% | 1,615.0 8.8% | 1,038.6 (35.7%) | 852.6 (17.9%) | 936.0 9.8% | 1,149.8 22.9% | 1,326.4 15.4% | 1,460.1 10.1% | 1,580.9 8.3% | 1,702.1 7.7% | 1,816.1 6.7% | 1,943.0 7.0% | 2,138.0 10.0% | 2,336.3 9.3% | 2,682.9 14.8% | 2,988.2 11.4% | 3,561.7 19.2% | 4,090.0 14.8% | 4,641.3 13.5% |
| Cost of Goods Sold (COGS) | 228.8 | 227.1 | 214.5 | 209.5 | 169.2 | 156.4 | 195.2 | 191.1 | 200.2 | 223.7 | 238.5 | 256.5 | 237.4 | 258.7 | 266.4 | 305.5 | 307.0 | 371.6 | 435.0 | 210.9 |
% margin | 1,100.4 82.8% | 1,256.8 84.7% | 1,400.5 86.7% | 829.1 79.8% | 683.4 80.2% | 779.5 83.3% | 954.7 83.0% | 1,135.3 85.6% | 1,259.9 86.3% | 1,357.2 85.8% | 1,463.6 86.0% | 1,559.6 85.9% | 1,705.6 87.8% | 1,879.3 87.9% | 2,070.0 88.6% | 2,377.4 88.6% | 2,681.2 89.7% | 3,190.1 89.6% | 3,654.9 89.4% | 4,430.4 95.5% |
| Operating Expenses | 936.8 | 1,032.1 | 1,089.6 | 1,038.8 | 775.6 | 782.5 | 833.9 | 923.5 | 1,052.9 | 1,140.3 | 1,173.7 | 1,273.7 | 1,372.3 | 1,472.0 | 1,569.5 | 1,722.6 | 1,903.2 | 2,116.4 | 2,403.7 | 3,079.6 |
| Research & Development Expenses (R&D) | 370.1 | 460.1 | 494.0 | 457.9 | 354.7 | 376.4 | 400.7 | 454.1 | 534.0 | 603.0 | 637.6 | 735.3 | 804.2 | 884.8 | 935.9 | 1,033.7 | 1,134.3 | 1,251.5 | 1,441.8 | 1,549.1 |
| Selling, General & Administrative Expenses (SG&A) | 518.9 | 548.9 | 576.1 | 510.4 | 409.5 | 392.0 | 416.7 | 454.4 | 499.5 | 513.3 | 512.4 | 520.3 | 553.3 | 573.1 | 621.5 | 670.9 | 749.3 | 846.3 | 920.6 | 1,039.8 |
% margin | 118.8 8.9% | 224.6 15.1% | 317.9 19.7% | (1,573.3) (151.5%) | (123.6) (14.5%) | (13.2) (1.4%) | 120.4 10.5% | 211.7 16.0% | 189.0 12.9% | 206.6 13.1% | 285.4 16.8% | 244.9 13.5% | 324.0 16.7% | 396.2 18.5% | 491.8 21.1% | 645.6 24.1% | 779.1 26.1% | 1,073.7 30.1% | 1,251.2 30.6% | 1,350.8 29.1% |
| Interest Income | 0.0 | 0.0 | 48.1 | 20.4 | 2.6 | 1.2 | 1.3 | 1.5 | 1.7 | 1.8 | 2.7 | 2.9 | 3.9 | 8.1 | 9.5 | 3.8 | 2.6 | 10.1 | 29.6 | 0.0 |
| Interest Expense | 0.0 | 0.0 | 12.4 | 11.6 | 28.9 | 36.3 | 43.0 | 34.7 | 37.6 | 34.1 | 28.3 | 23.7 | 25.7 | 23.1 | 18.8 | 20.7 | 17.0 | 22.9 | 36.2 | (76.0) |
| Pre-tax Income | 128.5 | 241.9 | 364.1 | (1,601.7) | (153.5) | (47.0) | 95.4 | 188.3 | 159.0 | 181.0 | 267.6 | 237.2 | 315.0 | 376.4 | 479.0 | 632.7 | 768.4 | 1,045.4 | 1,281.9 | 1,395.8 |
% effective tax rate | 79.1 61.6% | 99.7 41.2% | 67.8 18.6% | 252.3 (15.8%) | (3.6) 2.4% | (189.3) 403.1% | 23.2 24.3% | (251.7) (133.7%) | (5.2) (3.3%) | 22.1 12.2% | 15.2 5.7% | 34.1 14.4% | 110.9 35.2% | 30.6 8.1% | (510.0) (106.5%) | 42.1 6.7% | 72.5 9.4% | 196.4 18.8% | 240.8 18.8% | 340.3 24.4% |
% margin | 49.3 3.7% | 142.6 9.6% | 296.3 18.3% | (1,854.0) (178.5%) | (149.9) (17.6%) | 142.3 15.2% | 72.2 6.3% | 439.9 33.2% | 164.2 11.2% | 158.9 10.1% | 252.4 14.8% | 203.1 11.2% | 204.1 10.5% | 345.8 16.2% | 989.0 42.3% | 590.6 22.0% | 696.0 23.3% | 849.0 23.8% | 1,041.1 25.5% | 1,055.5 22.7% |
| EPS | 0.18 | 0.51 | 1.09 | (7.29) | (0.58) | 0.55 | 0.27 | 1.63 | 0.59 | 0.56 | 0.88 | 0.71 | 0.75 | 1.26 | 3.62 | 2.16 | 2.54 | 3.13 | 3.86 | 3.89 |
| Diluted EPS | 0.16 | 0.46 | 1.01 | (7.29) | (0.58) | 0.54 | 0.27 | 1.57 | 0.56 | 0.52 | 0.81 | 0.70 | 0.73 | 1.23 | 3.53 | 2.11 | 2.50 | 3.09 | 3.82 | 3.85 |
% margin | 377.9 28.4% | 401.3 27.0% | 507.1 31.4% | (1,461.4) (140.7%) | (31.5) (3.7%) | 61.9 6.6% | 230.1 20.0% | 312.2 23.5% | 305.3 20.9% | 332.5 21.0% | 408.8 24.0% | 406.5 22.4% | 448.9 23.1% | 526.0 24.6% | 620.6 26.6% | 799.2 29.8% | 927.7 31.0% | 1,200.4 33.7% | 1,419.6 34.7% | 1,350.8 29.1% |
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FAQ
1) What is Cadence Design Systems, Inc.'s Rule of 40 (EBIT margin)?
As of today, Microsoft Corp's last 12-month Rule of 40 (EBIT margin) is 42.7%, based on the financial report for Dec 31, 2024 (Q4’2024). The average annual Rule of 40 (EBIT margin) for Cadence Design Systems, Inc. have been 43.0% over the past three years, and 42.4% over the past five years.
2) Is Cadence Design Systems, Inc.'s Rule of 40 (EBIT margin) Good?
As of today, Cadence Design Systems, Inc.'s Rule of 40 (EBIT margin) is 42.7%, which is higher than industry median of 3.8%. It indicates that Cadence Design Systems, Inc.'s Rule of 40 (EBIT margin) is Good.