NasdaqGS:NUAN

Stock Analysis Report

Executive Summary

Nuance Communications, Inc. provides voice recognition and natural language understanding solutions worldwide.

Snowflake

Fundamentals

Mediocre balance sheet and overvalued.


Similar Companies

Share Price & News

How has Nuance Communications's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.5%

NUAN

-3.0%

US Software

0.4%

US Market


1 Year Return

-9.0%

NUAN

23.8%

US Software

11.4%

US Market

Return vs Industry: NUAN underperformed the US Software industry which returned 23.8% over the past year.

Return vs Market: NUAN underperformed the US Market which returned 11.4% over the past year.


Shareholder returns

NUANIndustryMarket
7 Day-1.5%-3.0%0.4%
30 Day-4.1%-3.1%0.3%
90 Day-7.8%-9.0%-1.2%
1 Year-9.0%-9.0%25.6%23.8%13.9%11.4%
3 Year8.7%8.7%110.3%101.8%47.2%37.6%
5 Year4.7%4.7%159.3%140.5%62.4%44.6%

Price Volatility Vs. Market

How volatile is Nuance Communications's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Nuance Communications undervalued compared to its fair value and its price relative to the market?

2.16x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: NUAN ($15.52) is trading above our estimate of fair value ($14.97)

Significantly Below Fair Value: NUAN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NUAN is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: NUAN is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NUAN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NUAN is good value based on its PB Ratio (2.2x) compared to the US Software industry average (5.2x).


Next Steps

Future Growth

How is Nuance Communications forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

17.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NUAN is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: NUAN is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: NUAN is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: NUAN's revenue is expected to decline over the next 3 years (-2% per year).

High Growth Revenue: NUAN's revenue is forecast to decline over the next 3 years (-2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NUAN's Return on Equity is forecast to be low in 3 years time (16.9%).


Next Steps

Past Performance

How has Nuance Communications performed over the past 5 years?

2.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NUAN is unprofitable, but has reduced losses over the past 5 years at a rate of 2.8% per year.

Accelerating Growth: Unable to compare NUAN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NUAN is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (23%).


Return on Equity

High ROE: NUAN has a negative Return on Equity (-0.65%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: NUAN is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: NUAN is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Nuance Communications's financial position?


Financial Position Analysis

Short Term Liabilities: NUAN's short term assets ($1.2B) exceeds its short term liabilities ($668.0M)

Long Term Liabilities: NUAN's short term assets (1.2B) do not cover its long term liabilities (2.5B)


Debt to Equity History and Analysis

Debt Level: NUAN's debt to equity ratio (94.2%) is considered high

Reducing Debt: NUAN's debt to equity ratio has increased from 91.5% to 94.2% over the past 5 years.


Balance Sheet

Inventory Level: NUAN has a low level of unsold assets or inventory.

Debt Coverage by Assets: NUAN's debt is not covered by short term assets (assets are 0.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable NUAN has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: NUAN is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -13.4% per year.


Next Steps

Dividend

What is Nuance Communications's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate NUAN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NUAN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if NUAN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NUAN'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 NUAN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Nuance Communications's salary, the management and board of directors tenure and is there insider trading?

1.1yrs

Average management tenure


CEO

Mark Benjamin (48yo)

1.5yrs

Tenure

US$14,550,160

Compensation

Mr. Mark D. Benjamin has been Chief Executive Officer of Nuance Communications, Inc. since April 2018 and serves as its Director since April 2018 With extensive experience serving technology markets, Mr. B ...


CEO Compensation Analysis

Compensation vs. Market: Mark has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Insufficient data to compare Mark's compensation with company performance.


Management Age and Tenure

1.1yrs

Average Tenure

49yo

Average Age

Experienced Management: NUAN's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Age and Tenure

1.5yrs

Average Tenure

57yo

Average Age

Experienced Board: NUAN's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$173,67112 Jun 19
Mark Laret
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$17.39
SellUS$89,98821 Mar 19
Arthur Giterman
EntityIndividual
Role
Chief Accounting Officer
Senior VP
Shares5,309
Max PriceUS$16.95
SellUS$136,98205 Mar 19
Stefan Ortmanns
EntityIndividual
Shares8,150
Max PriceUS$16.85
SellUS$51,63625 Feb 19
Arthur Giterman
EntityIndividual
Role
Chief Accounting Officer
Senior VP
Shares3,120
Max PriceUS$16.55
SellUS$435,73425 Feb 19
Daniel Tempesta
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares26,700
Max PriceUS$16.35
SellUS$324,62021 Feb 19
Mark Benjamin
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares20,005
Max PriceUS$16.28
SellUS$321,08105 Dec 18
Alvaro Monserrat
EntityIndividual
Shares20,000
Max PriceUS$16.10

Ownership Breakdown


Management Team

  • David Garfinkel

    Senior Vice President of Corporate Development

    • Tenure: 0.8yrs
  • Robert Weideman (60yo)

    Executive VP & GM of Enterprise Division

    • Tenure: 7yrs
    • Compensation: US$4.98m
  • Dan Tempesta (49yo)

    Executive VP & CFO

    • Tenure: 4.3yrs
    • Compensation: US$4.06m
  • Joe Petro (52yo)

    Executive VP & CTO

    • Tenure: 1.1yrs
  • Tracy Krumme (51yo)

    Senior Vice President of Investor Relations

    • Tenure: 0.5yrs
  • Mark Benjamin (48yo)

    CEO & Director

    • Tenure: 1.5yrs
    • Compensation: US$14.55m
  • Wendy Cassity (44yo)

    Executive VP

    • Tenure: 0yrs
  • Mark Sherwood

    Senior VP & Chief Information Officer

    • Tenure: 1.3yrs
  • Arthur Giterman (39yo)

    Senior VP

    • Tenure: 0.9yrs
  • Beth Conway

    Executive VP & Chief People Officer

    • Tenure: 0.8yrs

Board Members

  • Bob Finocchio (67yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$354.16k
  • Sanjay Vaswani (59yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$552.72k
  • Tom Ebling (64yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$504.09k
  • Lloyd Carney (57yo)

    Independent Chairman of the Board

    • Tenure: 1.1yrs
    • Compensation: US$511.51k
  • Dan Brennan (53yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$504.09k
  • Mark Laret (65yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$337.63k
  • Mark Benjamin (48yo)

    CEO & Director

    • Tenure: 1.5yrs
    • Compensation: US$14.55m
  • Laura Kaiser (57yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$558.18k
  • Michal Katz (50yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$503.54k

Company Information

Nuance Communications, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nuance Communications, Inc.
  • Ticker: NUAN
  • Exchange: NasdaqGS
  • Founded: 1992
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$4.433b
  • Shares outstanding: 285.64m
  • Website: https://www.nuance.com

Number of Employees


Location

  • Nuance Communications, Inc.
  • 1 Wayside Road
  • Burlington
  • Massachusetts
  • 1803
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NUANNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDDec 1995
SC2DB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1995
0K9KLSE (London Stock Exchange)YesCommon SharesGBUSDDec 1995

Biography

Nuance Communications, Inc. provides voice recognition and natural language understanding solutions worldwide. It operates through five segments: Healthcare, Automotive, Enterprise, Imaging, and Other. The ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/24 00:00
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.