Cerence Inc. provides AI-powered assistants and innovations for connected and autonomous vehicles It offers edge software components; cloud-connected components; toolkits; applications; and virtual assistant coexistence and professional services.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$98.08|
|52 Week High||US$54.01|
|52 Week Low||US$139.00|
|1 Month Change||-5.15%|
|3 Month Change||-8.46%|
|1 Year Change||54.82%|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||538.96%|
Recent News & Updates
Cerence: Buy The Drop On This Fast Grower
Cerence continues to execute well, and is seeing strong adoption trends. It has strategic partnerships in place, and expansion into the two-wheeler market presents another growth avenue. It maintains a well-funded balance sheet, and the recent drop in share price presents a buying opportunity.
Cerence (NASDAQ:CRNC) Hasn't Managed To Accelerate Its Returns
To find a multi-bagger stock, what are the underlying trends we should look for in a business? Ideally, a business will...
An Intrinsic Calculation For Cerence Inc. (NASDAQ:CRNC) Suggests It's 24% Undervalued
How far off is Cerence Inc. ( NASDAQ:CRNC ) from its intrinsic value? Using the most recent financial data, we'll take...
|CRNC||US Software||US Market|
Return vs Industry: CRNC exceeded the US Software industry which returned 40.7% over the past year.
Return vs Market: CRNC exceeded the US Market which returned 33.4% over the past year.
Stable Share Price: CRNC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: CRNC's weekly volatility (7%) has been stable over the past year.
About the Company
Cerence Inc. provides AI-powered assistants and innovations for connected and autonomous vehicles It offers edge software components; cloud-connected components; toolkits; applications; and virtual assistant coexistence and professional services. The company also provides conversational artificial intelligence, including voice recognition, natural language understanding, and artificial intelligence services. Cerence Inc. is headquartered in Burlington, Massachusetts.
Cerence Fundamentals Summary
|CRNC fundamental statistics|
Is CRNC overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|CRNC income statement (TTM)|
|Cost of Revenue||US$94.97m|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||1.15|
|Net Profit Margin||11.55%|
How did CRNC perform over the long term?See historical performance and comparison
Is Cerence undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CRNC ($98.08) is trading below our estimate of fair value ($166.48)
Significantly Below Fair Value: CRNC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CRNC is poor value based on its PE Ratio (85.1x) compared to the US Software industry average (58.2x).
PE vs Market: CRNC is poor value based on its PE Ratio (85.1x) compared to the US market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: CRNC is poor value based on its PEG Ratio (3.1x)
Price to Book Ratio
PB vs Industry: CRNC is good value based on its PB Ratio (3.6x) compared to the US Software industry average (7.1x).
How is Cerence forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CRNC's forecast earnings growth (27.6% per year) is above the savings rate (2%).
Earnings vs Market: CRNC's earnings (27.6% per year) are forecast to grow faster than the US market (14.7% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: CRNC's revenue (18.6% per year) is forecast to grow faster than the US market (9.9% per year).
High Growth Revenue: CRNC's revenue (18.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if CRNC's Return on Equity is forecast to be high in 3 years time
How has Cerence performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CRNC has high quality earnings.
Growing Profit Margin: CRNC's current net profit margins (11.6%) are lower than last year (21.5%).
Past Earnings Growth Analysis
Earnings Trend: CRNC's earnings have declined by 3.7% per year over the past 5 years.
Accelerating Growth: CRNC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CRNC had negative earnings growth (-36.8%) over the past year, making it difficult to compare to the Software industry average (24.1%).
Return on Equity
High ROE: CRNC's Return on Equity (4.3%) is considered low.
How is Cerence's financial position?
Financial Position Analysis
Short Term Liabilities: CRNC's short term assets ($271.7M) exceed its short term liabilities ($168.9M).
Long Term Liabilities: CRNC's short term assets ($271.7M) do not cover its long term liabilities ($518.3M).
Debt to Equity History and Analysis
Debt Level: CRNC's debt to equity ratio (26.6%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if CRNC's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: CRNC's debt is well covered by operating cash flow (28.5%).
Interest Coverage: CRNC's interest payments on its debt are well covered by EBIT (5x coverage).
What is Cerence current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate CRNC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate CRNC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if CRNC's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CRNC's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of CRNC's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Sanjay Dhawan (57 yo)
Mr. Sanjay Dhawan is the Chief Executive Officer at Cerence Inc. since October 1, 2019. He is also the Director at Cerence Inc. since October 2019. He has been the President of Connected Services Division...
CEO Compensation Analysis
Compensation vs Market: Sanjay's total compensation ($USD12.93M) is above average for companies of similar size in the US market ($USD5.16M).
Compensation vs Earnings: Sanjay's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Experienced Management: CRNC's management team is considered experienced (2 years average tenure).
Experienced Board: CRNC's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CRNC insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.5%.
Cerence Inc.'s employee growth, exchange listings and data sources
- Name: Cerence Inc.
- Ticker: CRNC
- Exchange: NasdaqGS
- Founded: NaN
- Industry: Application Software
- Sector: Software
- Market Cap: US$3.728b
- Shares outstanding: 38.01m
- Website: https://www.cerence.com
Number of Employees
- Cerence Inc.
- 15 Wayside Road
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/26 22:44|
|End of Day Share Price||2021/10/26 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.