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Nuance Communications

Nasdaq:NUAN
Snowflake Description

Reasonable growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NUAN
Nasdaq
$5B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Nuance Communications, Inc. provides voice recognition and natural language understanding solutions worldwide. The last earnings update was 44 days ago. More info.


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NUAN Share Price and Events
7 Day Returns
0.5%
NasdaqGS:NUAN
0.2%
US Software
-1.1%
US Market
1 Year Returns
6.1%
NasdaqGS:NUAN
31.2%
US Software
6.4%
US Market
NUAN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Nuance Communications (NUAN) 0.5% 1.5% 30.4% 6.1% -8.3% -2.2%
US Software 0.2% 3.6% 25.2% 31.2% 108.9% 137.5%
US Market -1.1% 0.3% 17.2% 6.4% 37.9% 42.1%
1 Year Return vs Industry and Market
  • NUAN underperformed the Software industry which returned 31.2% over the past year.
Price Volatility
NUAN
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Nuance Communications undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Nuance Communications to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Nuance Communications.

NasdaqGS:NUAN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:NUAN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.14 (1 + (1- 21%) (45.86%))
1.37
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.37
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.37 * 5.96%)
10.9%

Discounted Cash Flow Calculation for NasdaqGS:NUAN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Nuance Communications is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:NUAN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.9%)
2019 340.00 Analyst x1 306.59
2020 361.80 Analyst x1 294.19
2021 378.25 Est @ 4.55% 277.35
2022 393.39 Est @ 4% 260.11
2023 407.63 Est @ 3.62% 243.04
2024 421.30 Est @ 3.35% 226.51
2025 434.64 Est @ 3.17% 210.72
2026 447.83 Est @ 3.04% 195.78
2027 461.01 Est @ 2.94% 181.74
2028 474.29 Est @ 2.88% 168.60
Present value of next 10 years cash flows $2,364.65
NasdaqGS:NUAN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $474.29 × (1 + 2.73%) ÷ (10.9% – 2.73%)
$5,966.40
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $5,966.40 ÷ (1 + 10.9%)10
$2,121.00
NasdaqGS:NUAN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,364.65 + $2,121.00
$4,485.65
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $4,485.65 / 285.42
$15.72
NasdaqGS:NUAN Discount to Share Price
Calculation Result
Value per share (USD) From above. $15.72
Current discount Discount to share price of $16.79
= -1 x ($16.79 - $15.72) / $15.72
-6.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Nuance Communications is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Nuance Communications's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Nuance Communications's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:NUAN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $-0.65
NasdaqGS:NUAN Share Price ** NasdaqGS (2019-03-22) in USD $16.79
United States of America Software Industry PE Ratio Median Figure of 84 Publicly-Listed Software Companies 52.08x
United States of America Market PE Ratio Median Figure of 3,062 Publicly-Listed Companies 17.16x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Nuance Communications.

NasdaqGS:NUAN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:NUAN Share Price ÷ EPS (both in USD)

= 16.79 ÷ -0.65

-25.71x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nuance Communications is loss making, we can't compare its value to the US Software industry average.
  • Nuance Communications is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Nuance Communications's expected growth come at a high price?
Raw Data
NasdaqGS:NUAN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -25.71x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
93.3%per year
United States of America Software Industry PEG Ratio Median Figure of 66 Publicly-Listed Software Companies 3.32x
United States of America Market PEG Ratio Median Figure of 2,105 Publicly-Listed Companies 1.44x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Nuance Communications, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Nuance Communications's assets?
Raw Data
NasdaqGS:NUAN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $6.78
NasdaqGS:NUAN Share Price * NasdaqGS (2019-03-22) in USD $16.79
United States of America Software Industry PB Ratio Median Figure of 220 Publicly-Listed Software Companies 5.62x
United States of America Market PB Ratio Median Figure of 5,165 Publicly-Listed Companies 1.85x
NasdaqGS:NUAN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:NUAN Share Price ÷ Book Value per Share (both in USD)

= 16.79 ÷ 6.78

2.47x

* Primary Listing of Nuance Communications.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nuance Communications is good value based on assets compared to the US Software industry average.
X
Value checks
We assess Nuance Communications's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Nuance Communications has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
93.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Nuance Communications expected to grow at an attractive rate?
  • Nuance Communications's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Nuance Communications's earnings growth is expected to exceed the United States of America market average.
  • Nuance Communications's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:NUAN Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:NUAN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 93.3%
NasdaqGS:NUAN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 1.5%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 16%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 10.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:NUAN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:NUAN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-09-30 2,042 470 84 2
2020-09-30 1,940 428 59 5
2019-09-30 1,878 438 22 5
NasdaqGS:NUAN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 2,098 458 -190
2018-09-30 2,052 444 -160
2018-06-30 1,930 292 -196
2018-03-31 1,914 324 -210
2017-12-31 1,899 340 -80
2017-09-30 1,939 379 -151
2017-06-30 1,980 521 -67
2017-03-31 1,971 515 -51
2016-12-31 1,950 550 -24
2016-09-30 1,949 566 -12
2016-06-30 1,947 579 -42
2016-03-31 1,947 573 -70

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Nuance Communications's earnings are expected to grow significantly at over 20% yearly.
  • Nuance Communications's revenue is expected to grow by 1.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:NUAN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Nuance Communications Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:NUAN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-09-30
2020-09-30 0.24 0.24 0.24 1.00
2019-09-30 0.04 0.04 0.04 1.00
NasdaqGS:NUAN Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 -0.65
2018-09-30 -0.55
2018-06-30 -0.67
2018-03-31 -0.72
2017-12-31 -0.27
2017-09-30 -0.52
2017-06-30 -0.23
2017-03-31 -0.18
2016-12-31 -0.08
2016-09-30 -0.04
2016-06-30 -0.14
2016-03-31 -0.23

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Nuance Communications is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Nuance Communications's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Nuance Communications has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Nuance Communications performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Nuance Communications's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Nuance Communications does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Nuance Communications's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Nuance Communications's 1-year growth to the US Software industry average as it is not currently profitable.
Earnings and Revenue History
Nuance Communications's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Nuance Communications Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:NUAN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 2,098.09 -189.69 605.15 307.57
2018-09-30 2,051.66 -159.93 618.08 305.32
2018-06-30 1,930.25 -196.05 596.64 282.98
2018-03-31 1,913.58 -209.85 589.12 273.81
2017-12-31 1,898.93 -79.60 555.83 265.86
2017-09-30 1,939.36 -151.00 564.81 266.10
2017-06-30 1,979.66 -67.10 558.97 264.74
2017-03-31 1,971.29 -51.08 555.97 265.93
2016-12-31 1,950.45 -24.32 559.55 266.93
2016-09-30 1,948.90 -12.46 559.34 271.13
2016-06-30 1,946.82 -41.96 569.20 279.04
2016-03-31 1,946.91 -69.53 574.27 289.47
2015-12-31 1,943.23 -76.58 577.41 294.83
2015-09-30 1,931.14 -115.01 598.14 306.87
2015-06-30 1,929.33 -105.44 605.50 319.69
2015-03-31 1,926.90 -120.30 607.60 328.64
2014-12-31 1,927.49 -145.43 607.64 340.64
2014-09-30 1,923.45 -150.34 615.81 333.78
2014-06-30 1,893.38 -181.21 605.80 329.86
2014-03-31 1,887.65 -161.93 611.93 315.86
2013-12-31 1,862.99 -148.56 601.17 300.96
2013-09-30 1,855.28 -115.24 599.71 289.21
2013-06-30 1,851.82 33.37 591.91 274.85
2013-03-31 1,813.79 146.70 578.44 257.80
2012-12-31 1,753.13 173.43 572.73 242.11
2012-09-30 1,651.51 204.75 532.52 225.44
2012-06-30 1,549.77 83.42 507.34 211.61
2012-03-31 1,446.93 46.20 480.41 197.77

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Nuance Communications has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Nuance Communications has efficiently used its assets last year compared to the US Software industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Nuance Communications improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Nuance Communications's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Nuance Communications has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Nuance Communications's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Nuance Communications's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Nuance Communications is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Nuance Communications's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Nuance Communications's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Nuance Communications Company Filings, last reported 2 months ago.

NasdaqGS:NUAN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,942.14 2,197.73 431.15
2018-09-30 1,717.50 2,185.36 451.54
2018-06-30 1,757.92 2,323.52 485.34
2018-03-31 1,893.68 2,311.48 621.65
2017-12-31 2,025.13 2,299.59 510.51
2017-09-30 1,931.38 2,617.40 844.28
2017-06-30 1,954.54 2,600.66 869.21
2017-03-31 1,949.67 2,584.47 786.48
2016-12-31 1,925.70 2,938.69 1,095.29
2016-09-30 1,931.33 2,433.15 580.46
2016-06-30 1,794.25 2,443.13 597.08
2016-03-31 1,794.58 2,256.57 310.04
2015-12-31 2,268.03 2,119.83 566.44
2015-09-30 2,265.25 2,107.91 536.69
2015-06-30 2,327.26 2,118.58 451.81
2015-03-31 2,401.59 2,142.57 537.69
2014-12-31 2,556.23 2,137.34 579.17
2014-09-30 2,581.99 2,132.23 588.20
2014-06-30 2,593.72 2,375.96 888.49
2014-03-31 2,599.01 2,368.55 809.51
2013-12-31 2,608.62 2,361.28 775.10
2013-09-30 2,638.01 2,354.13 846.85
2013-06-30 2,655.42 2,348.38 873.05
2013-03-31 2,768.86 2,341.60 1,005.30
2012-12-31 2,782.26 2,335.00 961.09
2012-09-30 2,728.28 2,115.91 1,129.76
2012-06-30 2,608.20 1,409.93 539.56
2012-03-31 2,527.59 1,403.92 976.85
  • Nuance Communications's level of debt (113.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (90.5% vs 113.2% today).
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.

  • Whilst loss making Nuance Communications has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Nuance Communications has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 18.9% per year.
X
Financial health checks
We assess Nuance Communications's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Nuance Communications has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Nuance Communications dividends.
If you bought $2,000 of Nuance Communications shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Nuance Communications's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Nuance Communications's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:NUAN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2003 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.9%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:NUAN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-09-30
2020-09-30
2019-09-30

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Nuance Communications has not reported any payouts.
  • Unable to verify if Nuance Communications's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Nuance Communications's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Nuance Communications has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Nuance Communications's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Nuance Communications afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Nuance Communications has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mark Benjamin
COMPENSATION $14,550,160
AGE 47
TENURE AS CEO 0.9 years
CEO Bio

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. Benjamin has a proven track record advancing growth initiatives related to cloud, SaaS, mobile, big data, and IoT solutions. Mr. Benjamin served as President and Chief Operating Officer at NCR Corporation from October 17, 2016 to March 2018. He spent more than 20 years holding various leadership appointments at Automatic Data Processing, Inc. Mr. Benjamin joined NCR from Automatic Data Processing, Inc. (ADP), where he spent 24 years in a series of global assignments. He served as the President of Global Enterprise Solutions at Automatic Data Processing, Inc. since June 2013 until September 30, 2016 and served as its Corporate Vice President. He served as Senior Vice President, National Sales force of ADP TotalSource Group, Inc., a subsidiary of Automatic Data Processing, Inc. His responsibilities included planning, budgeting, strategy, hiring and training for the PEO division of ADP. He served as a Member of ADP TotalSource's Senior Management Team. Previously, Mr. Benjamin was Senior Vice President of ADP's Small Business Services division's service and operations, including its TotalSourceSM and Resource® offerings from April 2008 to June 2011. He served as the President of Employer Services - International, National Account Services, Benefit Services, Therightthing, Globalview and Streamline at Automatic Data Processing, Inc. since July 2011 until June 2013. He served as the Chief Operating Officer of ADP TotalSource, where he was responsible for overall divisional operations. He served as Area President of ADP TotalSource's South and West regions, which include Georgia, Texas, Colorado and Arizona. He served as ADP's Vice President of sales operations and managed the national sales force. After joining ADP in 1992 as a payroll sales representative, Mr. Benjamin progressed rapidly within sales and sales leadership roles to become a General Manager in 1999. Over the next several years, his responsibilities included serving as Senior Vice President of service and sales roles for TotalSourceSM as well as the overall leadership of the unit in 2007. He served as Director of Sales for ADP's PEO division. Additionally, he was responsible for opening the ADP offices and managing its growth in Miami, Chicago and Atlanta. Mr. Benjamin holds a Bachelor's Degree in International Finance and Marketing from the University of Miami.

CEO Compensation
  • Insufficient data for Mark to compare compensation growth.
  • Mark's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Nuance Communications management team in years:

0.6
Average Tenure
47.5
Average Age
  • The average tenure for the Nuance Communications management team is less than 2 years, this suggests a new team.
Management Team

Mark Benjamin

TITLE
CEO & Director
COMPENSATION
$15M
AGE
47
TENURE
0.9 yrs

Dan Tempesta

TITLE
Executive VP & CFO
COMPENSATION
$4M
AGE
48
TENURE
3.7 yrs

Robert Weideman

TITLE
Executive VP & GM of Enterprise Division
COMPENSATION
$5M
AGE
59
TENURE
6.4 yrs

Arthur Giterman

TITLE
Senior VP
AGE
38
TENURE
0.3 yrs

Joe Petro

TITLE
Executive VP & CTO
AGE
51
TENURE
0.5 yrs

Mark Sherwood

TITLE
Senior VP & Chief Information Officer
TENURE
0.7 yrs

Wendy Cassity

TITLE
Executive VP
AGE
43

Richard Mack

TITLE
Senior Vice President of Corporate Marketing & Communications

David Garfinkel

TITLE
Senior Vice President of Corporate Development
TENURE
0.2 yrs

Beth Conway

TITLE
Executive VP & Chief Human Resources Officer
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the Nuance Communications board of directors in years:

0.9
Average Tenure
56
Average Age
  • The average tenure for the Nuance Communications board of directors is less than 3 years, this suggests a new board.
Board of Directors

Lloyd Carney

TITLE
Independent Chairman of the Board
COMPENSATION
$512K
AGE
56
TENURE
0.5 yrs

Mark Benjamin

TITLE
CEO & Director
COMPENSATION
$15M
AGE
47
TENURE
0.9 yrs

Mark Laret

TITLE
Independent Director
COMPENSATION
$338K
AGE
64
TENURE
8.8 yrs

Bob Finocchio

TITLE
Director
COMPENSATION
$354K
AGE
66
TENURE
3.9 yrs

Sanjay Vaswani

TITLE
Director
AGE
58
TENURE
1.1 yrs

Laura Kaiser

TITLE
Director
COMPENSATION
$558K
AGE
56
TENURE
1.3 yrs

Dan Brennan

TITLE
Independent Director
COMPENSATION
$504K
AGE
52
TENURE
0.5 yrs

Tom Ebling

TITLE
Independent Director
COMPENSATION
$504K
AGE
63
TENURE
0.5 yrs

Michal Katz

TITLE
Independent Director
COMPENSATION
$504K
AGE
49
TENURE
0.5 yrs
Who owns this company?
Recent Insider Trading
  • Nuance Communications insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
21. Mar 19 Sell Arthur Giterman Individual 20. Mar 19 20. Mar 19 -5,309 $16.95 $-89,988
05. Mar 19 Sell Stefan Ortmanns Individual 01. Mar 19 01. Mar 19 -8,150 $16.85 $-136,982
25. Feb 19 Sell Daniel Tempesta Individual 21. Feb 19 21. Feb 19 -26,700 $16.35 $-435,734
25. Feb 19 Sell Arthur Giterman Individual 22. Feb 19 22. Feb 19 -3,120 $16.55 $-51,636
21. Feb 19 Sell Mark Benjamin Individual 20. Feb 19 20. Feb 19 -20,005 $16.28 $-324,620
05. Dec 18 Sell Alvaro Monserrat Individual 04. Dec 18 04. Dec 18 -20,000 $16.10 $-321,081
25. May 18 Sell Mark Laret Individual 23. May 18 23. May 18 -15,000 $13.99 $-209,701
X
Management checks
We assess Nuance Communications's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Nuance Communications has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Does Nuance Communications, Inc.'s (NASDAQ:NUAN) Share Price Indicate?

As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … However, could the stock still be trading at a relatively cheap price. … Today I will analyse the most recent data on Nuance Communications’s outlook and valuation to see if the opportunity still exists

Simply Wall St -

Did Nuance Communications, Inc. (NASDAQ:NUAN) Insiders Sell Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Nuance Communications, Inc. … Nuance Communications Insider Transactions Over The Last Year. … So what is clear is that an insider saw fit to sell at around the current price of US$15.09

Simply Wall St -

Estimating The Intrinsic Value Of Nuance Communications, Inc. (NASDAQ:NUAN)

(NASDAQ:NUAN) from its intrinsic value? … by estimating the company's future cash flows and discounting them to their present value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

One Factor To Consider Before Investing In Nuance Communications Inc (NASDAQ:NUAN)

If you are currently a shareholder in Nuance Communications Inc (NASDAQ:NUAN), or considering investing in the stock, you need to examine how the business generates cash, and how it is reinvested. … I’ve analysed below, the health and outlook of Nuance Communications’s cash flow, which will help you understand the stock from a cash standpoint. … I will be analysing Nuance Communications’s FCF by looking at its FCF yield and its operating cash flow growth.

Simply Wall St -

What You Must Know About Nuance Communications Inc's (NASDAQ:NUAN) Financial Strength

Stocks with market capitalization between $2B and $10B, such as Nuance Communications Inc (NASDAQ:NUAN) with a size of US$4.8b, do not attract as much attention from the investing community as do the small-caps and large-caps. … Let’s take a look at NUAN’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself.

Simply Wall St -

Why Did These Investors Just Divested From Nuance Communications Inc (NASDAQ:NUAN)?

Nuance Communications's insiders have divested from. … A well-known argument is that insiders divesting from their own companies’ shares sends a pessimistic signal … The MIT Press (1998) published an article showing that stocks following insider selling underperformed the market by 2.7%

Simply Wall St -

When Will Nuance Communications Inc (NASDAQ:NUAN) Breakeven?

The US$4.10b market-cap posted a loss in its most recent financial year of -US$151.00m and a latest trailing-twelve-month loss of -US$204.08m leading to an even wider gap between loss and breakeven? … The most pressing concern for investors is NUAN’s path to profitability – when will it breakeven … I’ve put together a brief outline of industry analyst expectations for NUAN, its year of breakeven and its implied growth rate.

Simply Wall St -

Should You Buy Nuance Communications Inc (NASDAQ:NUAN) Now?

Nuance Communications Inc (NASDAQ:NUAN), a software company based in United States,. … Today I will analyse the most recent data on Nuance Communications’s outlook and valuation to see if the opportunity still exists? … Check out our latest analysis for Nuance Communications.

Simply Wall St -

What Investors Should Know About Nuance Communications Inc's (NASDAQ:NUAN) Financial Strength

With this increase in debt, the current cash and short-term investment levels stands at US$844.28M for investing into the business. … Additionally, NUAN has generated cash from operations of US$378.87M during the same period of time, resulting in an operating cash to total debt ratio of 14.47%, indicating that NUAN’s debt is not appropriately covered by operating cash. … At the current liabilities level of US$1.11B liabilities, the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 1.19x.

Simply Wall St -

Is Nuance Communications Inc's (NASDAQ:NUAN) CEO Being Overpaid?

During times of negative earnings, the company may be facing a period of reinvestment and growth, or it can be a sign of some headwind. … Even though one size does not fit all, as remuneration should be tailored to the specific company and market, we can determine a high-level benchmark to see if NUAN is an outlier. … Typically I would use earnings and market cap to account for variations in performance, however, NUAN's negative earnings lower the effectiveness of this method.

Simply Wall St -

Company Info

Description

Nuance Communications, Inc. provides voice recognition and natural language understanding solutions worldwide. It operates through five segments: Healthcare, Automotive, Enterprise, Imaging, and Other. The Healthcare segment offers clinical speech and clinical language understanding solutions, such as Dragon Medical, a dictation software that allow physicians to capture and document patient care in real-time; transcription solutions, which enable physicians to streamline clinical documentation with a transcription platforms; clinical document improvement and coding solutions; diagnostic solutions that allow radiologists to document, collaborate, and share medical images and reports; and professional and personal productivity solutions to business users and consumers. The Automotive segment provides branded and personalized virtual assistants and connected car services for automotive manufacturers and their suppliers. The Enterprise segment offers On-Premise solutions and services, an automated customer service solution that comprise automated speech recognition, voice biometrics, transcription, text-to-speech, and dialog and analytics products; and On-Demand multichannel cloud, a platform, which offers enterprises the ability to implement automatic customer service. The Imaging segment provides multi-function printer (MFP) scanning and document management solutions; MFP printing and document management solutions to capture and automate paper to digital work flows; and PDF and OCR software for capturing, creation, and management of document work flows. The Other segment offers voicemail transcription and other value-added services to mobile operators; and speech recognition solutions and predictive text technologies for handset devices. The company was formerly known as ScanSoft, Inc. and changed its name to Nuance Communications, Inc. in October 2005. Nuance Communications, Inc. was founded in 1992 and is headquartered in Burlington, Massachusetts.

Details
Name: Nuance Communications, Inc.
NUAN
Exchange: NasdaqGS
Founded: 1992
$4,792,169,294
285,418,064
Website: http://www.nuance.com
Address: Nuance Communications, Inc.
1 Wayside Road,
Burlington,
Massachusetts, 01803,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS NUAN Common Shares Nasdaq Global Select US USD 11. Dec 1995
DB SC2 Common Shares Deutsche Boerse AG DE EUR 11. Dec 1995
LSE 0K9K Common Shares London Stock Exchange GB USD 11. Dec 1995
Number of employees
Current staff
Staff numbers
10,400
Nuance Communications employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/24 23:57
End of day share price update: 2019/03/22 00:00
Last estimates confirmation: 2019/02/08
Last earnings filing: 2019/02/08
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.