Nuance Communications, Inc. provides conversational artificial intelligence (AI) innovations that bring intelligence to everyday work and life.
Reasonable growth potential and slightly overvalued.
Share Price & News
How has Nuance Communications's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NUAN's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: NUAN exceeded the US Software industry which returned 29.5% over the past year.
Return vs Market: NUAN exceeded the US Market which returned 14% over the past year.
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
2 weeks ago | Simply Wall StWhy We’re Not Keen On Nuance Communications, Inc.’s (NASDAQ:NUAN) 6.7% Return On Capital
1 month ago | Simply Wall StAre Nuance Communications's (NASDAQ:NUAN) Statutory Earnings A Good Reflection Of Its Earnings Potential?
1 month ago | Simply Wall StIs Now The Time To Look At Buying Nuance Communications, Inc. (NASDAQ:NUAN)?
Is Nuance Communications undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: NUAN ($22.82) is trading above our estimate of fair value ($12.45)
Significantly Below Fair Value: NUAN is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: NUAN is good value based on its PE Ratio (41.9x) compared to the Software industry average (48.4x).
PE vs Market: NUAN is poor value based on its PE Ratio (41.9x) compared to the US market (17.7x).
Price to Earnings Growth Ratio
PEG Ratio: NUAN is poor value based on its PEG Ratio (1.1x)
Price to Book Ratio
PB vs Industry: NUAN is good value based on its PB Ratio (5.2x) compared to the US Software industry average (5.8x).
How is Nuance Communications forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NUAN's forecast earnings growth (38.9% per year) is above the savings rate (1.7%).
Earnings vs Market: NUAN's earnings (38.9% per year) are forecast to grow faster than the US market (13.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: NUAN's revenue (0.4% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: NUAN's revenue (0.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NUAN's Return on Equity is forecast to be high in 3 years time (37.1%)
How has Nuance Communications performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NUAN has a large one-off loss of $80.9M impacting its December 31 2019 financial results.
Growing Profit Margin: NUAN became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: NUAN has become profitable over the past 5 years, growing earnings by 14.3% per year.
Accelerating Growth: NUAN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: NUAN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (18.4%).
Return on Equity
High ROE: NUAN's Return on Equity (12.5%) is considered low.
Return on Assets
Return on Capital Employed
How is Nuance Communications's financial position?
Financial Position Analysis
Short Term Liabilities: NUAN's short term assets ($910.2M) exceed its short term liabilities ($534.3M).
Long Term Liabilities: NUAN's short term assets ($910.2M) do not cover its long term liabilities ($2.0B).
Debt to Equity History and Analysis
Debt Level: NUAN's debt to equity ratio (133.1%) is considered high.
Reducing Debt: NUAN's debt to equity ratio has increased from 83.7% to 133.1% over the past 5 years.
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: NUAN is profitable, therefore cash runway is not a concern.
Forecast Cash Runway: NUAN is profitable, therefore cash runway is not a concern.
What is Nuance Communications's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
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.
Stability and Growth of Payments
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.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mark Benjamin (48yo)
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's total compensation ($USD12.58M) is above average for companies of similar size in the US market ($USD6.39M).
Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.
|CEO & Director||1.8yrs||US$12.58m||0.055% $3.6m|
|Executive VP & CFO||4.6yrs||US$6.90m||0.13% $8.6m|
|Executive VP & CTO||1.4yrs||US$5.78m||0.094% $6.0m|
|Executive VP & GM of Enterprise Division||7.3yrs||US$6.40m||0.18% $11.7m|
|Executive Vice President of Corporate Transformation||11.5yrs||US$5.89m||0.081% $5.3m|
|Senior VP||1.3yrs||no data||0.037% $2.4m|
|Senior VP & Chief Information Officer||1.6yrs||no data||no data|
|Senior Vice President of Investor Relations||0.8yrs||no data||no data|
|Executive VP||0yrs||no data||0.035% $2.3m|
|Senior Vice President of Corporate Development||1.1yrs||no data||no data|
Experienced Management: NUAN's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
|CEO & Director||1.8yrs||US$12.58m||0.055% $3.6m|
|Independent Director||4.8yrs||US$344.97k||0.038% $2.4m|
|Independent Director||2yrs||US$344.97k||0.011% $722.9k|
|Independent Director||1.4yrs||US$75.00k||0.0048% $308.5k|
|Independent Chairman of the Board||1.4yrs||US$210.00k||0.0084% $539.6k|
|Independent Director||1.4yrs||US$75.00k||0.0086% $551.8k|
|Independent Director||9.7yrs||US$335.83k||0.022% $1.4m|
|Independent Director||2.2yrs||US$324.97k||0.016% $1.0m|
|Independent Director||1.4yrs||US$65.00k||0.0036% $231.1k|
Experienced Board: NUAN's board of directors are not considered experienced ( 1.8 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: NUAN insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Nuance Communications, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Nuance Communications, Inc.
- Ticker: NUAN
- Exchange: NasdaqGS
- Founded: 1992
- Industry: Application Software
- Sector: Software
- Market Cap: US$6.454b
- Shares outstanding: 282.89m
- Website: https://www.nuance.com
Number of Employees
- Nuance Communications, Inc.
- 1 Wayside Road
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|NUAN||NasdaqGS (Nasdaq Global Select)||Yes||Common Shares||US||USD||Dec 1995|
|SC2||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||Dec 1995|
|SC2||XTRA (XETRA Trading Platform)||Yes||Common Shares||DE||EUR||Dec 1995|
|0K9K||LSE (London Stock Exchange)||Yes||Common Shares||GB||USD||Dec 1995|
Nuance Communications, Inc. provides conversational artificial intelligence (AI) innovations that bring intelligence to everyday work and life. The company delivers solutions that understand, analyze, and respond to people - amplifying human intelligence to increase productivity and security. It offers customers high accuracy in automated speech recognition, natural language understanding capabilities, dialog and information management, biometric speaker authentication, text-to-speech, and domain knowledge along with professional services and implementation support. Its Healthcare segment provides clinical speech and clinical language understanding solutions that improve the clinical documentation process, from capturing the complete patient record to improving clinical documentation and quality measures for reimbursement. The company’s Enterprise segment primarily engages in using speech, natural language understanding, and artificial intelligence to provide automated customer solutions and services for voice, mobile, Web, and messaging channels. Its Other segment provides voicemail transcription services to mobile operators. The company serves organizations across healthcare, financial services, telecommunications, government, and retail. Nuance Communications, Inc. markets and sells its solutions and technologies directly through sales force, as well as through a network of resellers, including system integrators, independent software vendors, value-added resellers, distributors, hardware vendors, telecommunications carriers, and e-commerce Website worldwide. Nuance Communications, Inc. has a strategic partnership with Mila to collaborate on research and advance work in machine learning. 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.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/25 01:17|
|End of Day Share Price||2020/02/24 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.