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 284 industry peers in the Software industry. CRNC may be in some trouble as it scores bad on both profitability and health. CRNC is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year CRNC has reported negative net income.
CRNC had a positive operating cash flow in the past year.
CRNC had negative earnings in 4 of the past 5 years.
Of the past 5 years CRNC 4 years had a positive operating cash flow.
1.2 Ratios
CRNC has a worse Return On Assets (-103.03%) than 89.79% of its industry peers.
With a Return On Equity value of -527.10%, CRNC is not doing good in the industry: 83.80% of the companies in the same industry are doing better.
| 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
CRNC's Operating Margin has improved in the last couple of years.
CRNC's Gross Margin of 67.75% is in line compared to the rest of the industry. CRNC outperforms 51.76% of its industry peers.
In the last couple of years the Gross Margin of CRNC has grown nicely.
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.
CRNC has more shares outstanding than it did 1 year ago.
CRNC has more shares outstanding than it did 5 years ago.
CRNC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -1.25, we must say that CRNC is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -1.25, CRNC is doing worse than 75.00% of the companies in the same industry.
The Debt to FCF ratio of CRNC is 10.76, which is on the high side as it means it would take CRNC, 10.76 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.76, CRNC is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 1.63 is on the high side and indicates that CRNC has dependencies on debt financing.
CRNC has a worse Debt to Equity ratio (1.63) than 78.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.63 | ||
| Debt/FCF | 10.76 | ||
| Altman-Z | -1.25 |
ROIC/WACCN/A
WACC9.41%
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.
CRNC has a Current ratio (1.32) which is comparable to the rest of the industry.
CRNC has a Quick Ratio of 1.30. This is a normal value and indicates that CRNC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.30, CRNC is in line with its industry, outperforming 40.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
CRNC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -100.00%.
Measured over the past years, CRNC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -23.41% on average per year.
CRNC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -30.10%.
The Revenue has been growing slightly by 1.79% on average over the past years.
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.
The Revenue is expected to decrease by -4.90% on average over the next years.
EPS Next Y-87.72%
EPS Next 2Y-42.84%
EPS Next 3Y-20.34%
EPS Next 5Y26.55%
Revenue Next Year-25.03%
Revenue Next 2Y-9.51%
Revenue Next 3Y-4.9%
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
CRNC is valuated quite expensively with a Price/Forward Earnings ratio of 25.85.
CRNC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CRNC is cheaper than 70.42% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, CRNC is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 25.85 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, CRNC is valued cheaper than 84.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.6 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as CRNC's earnings are expected to decrease with -20.34% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-42.84%
EPS Next 3Y-20.34%
5. Dividend
5.1 Amount
CRNC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.71
+0.78 (+8.73%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners77.56%
Inst Owner Change2.61%
Ins Owners5.32%
Ins Owner Change11.35%
Market Cap419.47M
Analysts72.31
Price Target11.82 (21.73%)
Short Float %22.74%
Short Ratio6.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
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)-12.03%
PT rev (3m)65.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)604.95%
EPS NY rev (1m)-5.83%
EPS NY rev (3m)1895.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)22%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 25.85 | ||
| P/S | 1.72 | ||
| P/FCF | 17.6 | ||
| P/OCF | 14.33 | ||
| P/B | 3.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0
EYN/A
EPS(NY)0.38
Fwd EY3.87%
FCF(TTM)0.55
FCFY5.68%
OCF(TTM)0.68
OCFY6.98%
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 | -1.25 |
F-Score3
WACC9.41%
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-87.72%
EPS Next 2Y-42.84%
EPS Next 3Y-20.34%
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-25.03%
Revenue Next 2Y-9.51%
Revenue Next 3Y-4.9%
Revenue Next 5YN/A
EBIT growth 1Y-145.1%
EBIT growth 3Y-11%
EBIT growth 5Y5.05%
EBIT Next Year-58.84%
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%