CRNC Stock Overview
Cerence Inc. provides AI powered virtual assistants for the mobility/transportation market worldwide.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$77.07|
|52 Week High||US$139.00|
|52 Week Low||US$74.10|
|1 Month Change||-21.49%|
|3 Month Change||-31.83%|
|1 Year Change||-14.93%|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||402.09%|
Recent News & Updates
These 4 Measures Indicate That Cerence (NASDAQ:CRNC) Is Using Debt Safely
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...
|CRNC||US Software||US Market|
Return vs Industry: CRNC underperformed the US Software industry which returned 33.7% over the past year.
Return vs Market: CRNC underperformed the US Market which returned 21.3% over the past year.
|CRNC Average Weekly Movement||8.3%|
|Software Industry Average Movement||7.4%|
|Market Average Movement||5.9%|
|10% most volatile stocks in US Market||15.1%|
|10% least volatile stocks in US Market||2.2%|
Stable Share Price: CRNC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: CRNC's weekly volatility (8%) has been stable over the past year.
About the Company
Cerence Inc. provides AI powered virtual assistants for the mobility/transportation market worldwide. The company offers edge software components; cloud-connected components and related toolkits and applications; and virtual assistant coexistence and professional services. It also provides conversational artificial intelligence-based solutions, including speech recognition, natural language understanding, speech signal enhancement, text-to-speech, and acoustic modeling technology.
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$93.56m|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
|Earnings per share (EPS)||1.19|
|Net Profit Margin||11.85%|
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 ($77.07) is trading below our estimate of fair value ($162.76)
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 (64.7x) compared to the US Software industry average (43.6x).
PE vs Market: CRNC is poor value based on its PE Ratio (64.7x) compared to the US market (17.2x).
Price to Earnings Growth Ratio
PEG Ratio: CRNC is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: CRNC is good value based on its PB Ratio (2.9x) compared to the US Software industry average (6.4x).
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 (29.4% per year) is above the savings rate (2%).
Earnings vs Market: CRNC's earnings (29.4% per year) are forecast to grow faster than the US market (14.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: CRNC's revenue (18% per year) is forecast to grow faster than the US market (10.1% per year).
High Growth Revenue: CRNC's revenue (18% 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 became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: CRNC's earnings have declined by 1.3% per year over the past 5 years.
Accelerating Growth: CRNC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: CRNC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (20.5%).
Return on Equity
High ROE: CRNC's Return on Equity (4.4%) is considered low.
How is Cerence's financial position?
Financial Position Analysis
Short Term Liabilities: CRNC's short term assets ($287.0M) exceed its short term liabilities ($165.3M).
Long Term Liabilities: CRNC's short term assets ($287.0M) do not cover its long term liabilities ($508.5M).
Debt to Equity History and Analysis
Debt Level: CRNC's net debt to equity ratio (10.7%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if CRNC's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: CRNC's debt is well covered by operating cash flow (27.4%).
Interest Coverage: CRNC's interest payments on its debt are well covered by EBIT (4.7x coverage).
What is Cerence current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate CRNC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate CRNC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if CRNC's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CRNC's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of CRNC's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Sanjay Dhawan (57 yo)
Mr. Sanjay Dhawan is the Chief Executive Officer at Cerence Inc. since October 1, 2019. He is also the Director at Cerence Inc. since October 2019. He has been the President of Connected Services Division...
CEO Compensation Analysis
Compensation vs Market: Sanjay's total compensation ($USD12.93M) is above average for companies of similar size in the US market ($USD5.20M).
Compensation vs Earnings: Sanjay's compensation has been consistent with company performance over the past year.
Experienced Management: CRNC's management team is considered experienced (2.1 years average tenure).
Experienced Board: CRNC's board of directors are not considered experienced ( 2.1 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%.
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$2.970b
- Shares outstanding: 38.54m
- 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||2021/11/26 23:06|
|End of Day Share Price||2021/11/26 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.