Valuation check: CDNS's ROE is 20.09%, below the Technology sector average of 54.72%.
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+ Follow20.09%
Return on Equity measures how efficiently a company uses shareholders' equity to generate profits. A higher ROE indicates better profitability relative to equity.
Cadence Design Systems (CDNS) currently reports a ROE of 20.09%. That is below the Technology sector average of 54.72%. Use the charts on this page to explore Cadence Design Systems's ROE history and peer comparisons.
Cadence Design Systems's ROE of 20.09% is lower than the Technology sector average of 54.72%. That is roughly 63.3% below the sector mean. A reading lower peers can reflect different growth expectations, capital structure, or profitability — so it is worth checking the peer comparison chart before drawing conclusions.
There is no universal 'good' ROE, but Cadence Design Systems's current 20.09% should be judged against Technology norms (sector average: 54.72%) and against CDNS's own history. Strong, stable readings often indicate durable competitive advantage; volatile or declining ones deserve a closer look at margins and capital efficiency.
Start with the current ROE of 20.09%, then check the historical chart for trend and the peer comparison chart for relative positioning. The Technology average is 54.72%. From there, open related valuation or income-statement pages for Cadence Design Systems, and consider following CDNS for alerts when major investors trade the stock.
Cadence Design Systems is classified in the Technology sector. On ROE, it currently shows 20.09% versus a sector average near 54.72%. Sector peers often share similar capital intensity and growth regimes, so relative rankings inside Technology are usually more informative than comparing CDNS with unrelated industries.