CERENCE INC (CRNC) Stock Fundamental Analysis
NASDAQ:CRNC - Nasdaq - US1567271093 - Common Stock - Currency: USD
Overall CRNC gets a fundamental rating of 2 out of 10. We evaluated CRNC against 283 industry peers in the Software industry. CRNC has a bad profitability rating. Also its financial health evaluation is rather negative. CRNC has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
CRNC had negative earnings in the past year.
In the past year CRNC had a positive cash flow from operations.
In the past 5 years CRNC reported 4 times negative net income.
CRNC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
CRNC has a Return On Assets of -103.03%. This is amonst the worse of the industry: CRNC underperforms 90.91% of its industry peers.
CRNC's Return On Equity of -527.10% is on the low side compared to the rest of the industry. CRNC is outperformed by 87.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -103.03% | ||
| ROE | -527.1% | ||
| ROIC | N/A |
ROA(3y)-37.21%
ROA(5y)-22.01%
ROE(3y)-156.16%
ROE(5y)-93.19%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
In the last couple of years the Operating Margin of CRNC has grown nicely.
With a Gross Margin value of 67.75%, CRNC perfoms like the industry average, outperforming 50.18% of the companies in the same industry.
CRNC's Gross Margin has improved in the last couple of years.
CRNC does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 67.75% |
OM growth 3Y-6.27%
OM growth 5Y3.2%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.09%
GM growth 5Y1.84%
2. Health
2.1 Basic Checks
CRNC does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, CRNC has more shares outstanding
Compared to 5 years ago, CRNC has more shares outstanding
CRNC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -1.10, we must say that CRNC is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -1.10, CRNC is not doing good in the industry: 76.73% of the companies in the same industry are doing better.
CRNC has a debt to FCF ratio of 10.76. This is a negative value and a sign of low solvency as CRNC would need 10.76 years to pay back of all of its debts.
CRNC has a Debt to FCF ratio (10.76) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.63 is on the high side and indicates that CRNC has dependencies on debt financing.
CRNC's Debt to Equity ratio of 1.63 is on the low side compared to the rest of the industry. CRNC is outperformed by 82.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 10.76 | ||
| Altman-Z | -1.1 |
ROIC/WACCN/A
WACC11.15%
2.3 Liquidity
CRNC has a Current Ratio of 1.32. This is a normal value and indicates that CRNC is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CRNC (1.32) is comparable to the rest of the industry.
A Quick Ratio of 1.30 indicates that CRNC should not have too much problems paying its short term obligations.
The Quick ratio of CRNC (1.30) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The earnings per share for CRNC have decreased strongly by -100.00% in the last year.
The earnings per share for CRNC have been decreasing by -23.41% on average. This is quite bad
The Revenue for CRNC has decreased by -30.10% in the past year. This is quite bad
CRNC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.79% yearly.
EPS 1Y (TTM)-100%
EPS 3Y-23.41%
EPS 5YN/A
EPS Q2Q%-102.68%
Revenue 1Y (TTM)-30.1%
Revenue growth 3Y-5.05%
Revenue growth 5Y1.79%
Sales Q2Q%-63.21%
3.2 Future
Based on estimates for the next years, CRNC will show a very strong growth in Earnings Per Share. The EPS will grow by 26.55% on average per year.
Based on estimates for the next years, CRNC will show a decrease in Revenue. The Revenue will decrease by -4.68% on average per year.
EPS Next Y-91.02%
EPS Next 2Y-39.94%
EPS Next 3Y-18.22%
EPS Next 5Y26.55%
Revenue Next Year-24.86%
Revenue Next 2Y-9.91%
Revenue Next 3Y-4.68%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Forward Earnings ratio of 30.26 indicates a quite expensive valuation of CRNC.
CRNC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CRNC is cheaper than 68.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.70. CRNC is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 30.26 |
4.2 Price Multiples
CRNC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CRNC is cheaper than 81.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.74 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
CRNC's earnings are expected to decrease with -18.22% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-39.94%
EPS Next 3Y-18.22%
5. Dividend
5.1 Amount
CRNC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12.55
-0.91 (-6.76%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners77.56%
Inst Owner Change-93.53%
Ins Owners5.32%
Ins Owner Change42.91%
Market Cap542.16M
Analysts73.85
Price Target13.43 (7.01%)
Short Float %20.08%
Short Ratio0.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)84.89%
Min EPS beat(2)81.16%
Max EPS beat(2)88.61%
EPS beat(4)4
Avg EPS beat(4)134.29%
Min EPS beat(4)59.85%
Max EPS beat(4)307.51%
EPS beat(8)7
Avg EPS beat(8)82.51%
EPS beat(12)9
Avg EPS beat(12)81.72%
EPS beat(16)13
Avg EPS beat(16)65.66%
Revenue beat(2)1
Avg Revenue beat(2)5.45%
Min Revenue beat(2)-1.86%
Max Revenue beat(2)12.76%
Revenue beat(4)3
Avg Revenue beat(4)4.72%
Min Revenue beat(4)-1.86%
Max Revenue beat(4)12.76%
Revenue beat(8)6
Avg Revenue beat(8)3.93%
Revenue beat(12)8
Avg Revenue beat(12)2.96%
Revenue beat(16)9
Avg Revenue beat(16)2.14%
PT rev (1m)88.1%
PT rev (3m)167.34%
EPS NQ rev (1m)106.09%
EPS NQ rev (3m)332.45%
EPS NY rev (1m)1413.75%
EPS NY rev (3m)293.38%
Revenue NQ rev (1m)22.65%
Revenue NQ rev (3m)23.37%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)4.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 30.26 | ||
| P/S | 2.22 | ||
| P/FCF | 22.74 | ||
| P/OCF | 18.53 | ||
| P/B | 4.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0
EYN/A
EPS(NY)0.41
Fwd EY3.31%
FCF(TTM)0.55
FCFY4.4%
OCF(TTM)0.68
OCFY5.4%
SpS5.65
BVpS2.79
TBVpS-3.92
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -103.03% | ||
| ROE | -527.1% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 67.75% | ||
| FCFM | 9.77% |
ROA(3y)-37.21%
ROA(5y)-22.01%
ROE(3y)-156.16%
ROE(5y)-93.19%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-6.27%
OM growth 5Y3.2%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.09%
GM growth 5Y1.84%
F-Score3
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 10.76 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 52.22% | ||
| Cap/Sales | 2.22% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | -1.1 |
F-Score3
WACC11.15%
ROIC/WACCN/A
Cap/Depr(3y)50.56%
Cap/Depr(5y)51.08%
Cap/Sales(3y)2.85%
Cap/Sales(5y)3.48%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-100%
EPS 3Y-23.41%
EPS 5YN/A
EPS Q2Q%-102.68%
EPS Next Y-91.02%
EPS Next 2Y-39.94%
EPS Next 3Y-18.22%
EPS Next 5Y26.55%
Revenue 1Y (TTM)-30.1%
Revenue growth 3Y-5.05%
Revenue growth 5Y1.79%
Sales Q2Q%-63.21%
Revenue Next Year-24.86%
Revenue Next 2Y-9.91%
Revenue Next 3Y-4.68%
Revenue Next 5YN/A
EBIT growth 1Y-145.1%
EBIT growth 3Y-11%
EBIT growth 5Y5.05%
EBIT Next Year-74.94%
EBIT Next 3Y-3.74%
EBIT Next 5Y31.94%
FCF growth 1Y203.65%
FCF growth 3Y-41.96%
FCF growth 5Y-31.95%
OCF growth 1Y414.68%
OCF growth 3Y-38.63%
OCF growth 5Y-27.87%