CERENCE INC (CRNC)
US1567271093 - Common Stock
CRNC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 279 industry peers in the Software industry. While CRNC is still in line with the averages on profitability rating, there are concerns on its financial health. CRNC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CRNC was profitable.
CRNC had a positive operating cash flow in the past year.
In the past 5 years CRNC reported 4 times negative net income.
Of the past 5 years CRNC 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -83.73%, CRNC is doing worse than 89.25% of the companies in the same industry.
With a Return On Equity value of -416.79%, CRNC is not doing good in the industry: 86.38% of the companies in the same industry are doing better.
CRNC has a better Return On Invested Capital (7.54%) than 81.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -83.73% | ||
| ROE | -416.79% | ||
| ROIC | 7.54% |
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
With an excellent Operating Margin value of 13.97%, CRNC belongs to the best of the industry, outperforming 82.44% of the companies in the same industry.
CRNC's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 73.69%, CRNC is doing good in the industry, outperforming 62.01% of the companies in the same industry.
CRNC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.97% | ||
| PM (TTM) | N/A | ||
| GM | 73.69% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CRNC is destroying value.
Compared to 1 year ago, CRNC has more shares outstanding
Compared to 5 years ago, CRNC has more shares outstanding
The debt/assets ratio for CRNC is higher compared to a year ago.
2.2 Solvency
CRNC has an Altman-Z score of -0.71. This is a bad value and indicates that CRNC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CRNC (-0.71) is worse than 75.63% of its industry peers.
CRNC has a debt to FCF ratio of 23.14. This is a negative value and a sign of low solvency as CRNC would need 23.14 years to pay back of all of its debts.
CRNC's Debt to FCF ratio of 23.14 is in line compared to the rest of the industry. CRNC outperforms 45.88% of its industry peers.
A Debt/Equity ratio of 1.38 is on the high side and indicates that CRNC has dependencies on debt financing.
The Debt to Equity ratio of CRNC (1.38) is worse than 81.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 23.14 | ||
| Altman-Z | -0.71 |
ROIC/WACC0.79
WACC9.52%
2.3 Liquidity
CRNC has a Current Ratio of 1.22. This is a normal value and indicates that CRNC is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.22, CRNC is not doing good in the industry: 65.59% of the companies in the same industry are doing better.
A Quick Ratio of 1.22 indicates that CRNC should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.22, CRNC is not doing good in the industry: 65.23% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 210.81% over the past year.
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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.57%.
CRNC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.79% yearly.
EPS 1Y (TTM)210.81%
EPS 3Y-23.41%
EPS 5YN/A
EPS Q2Q%-177.78%
Revenue 1Y (TTM)12.57%
Revenue growth 3Y-5.05%
Revenue growth 5Y1.79%
Sales Q2Q%-32.17%
3.2 Future
The Earnings Per Share is expected to grow by 26.55% on average over the next years. This is a very strong growth
Based on estimates for the next years, CRNC will show a small growth in Revenue. The Revenue will grow by 2.46% on average per year.
EPS Next Y-100.68%
EPS Next 2Y-44.59%
EPS Next 3Y-10.81%
EPS Next 5Y26.55%
Revenue Next Year-24.56%
Revenue Next 2Y-7.53%
Revenue Next 3Y2.46%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.67, which indicates a rather cheap valuation of CRNC.
CRNC's Price/Earnings ratio is rather cheap when compared to the industry. CRNC is cheaper than 96.06% of the companies in the same industry.
CRNC is valuated cheaply when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
The Forward Price/Earnings Ratio is negative for CRNC. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.67 | ||
| Fwd PE | N/A |
4.2 Price Multiples
94.27% of the companies in the same industry are more expensive than CRNC, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CRNC indicates a somewhat cheap valuation: CRNC is cheaper than 78.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.93 | ||
| EV/EBITDA | 8.4 |
4.3 Compensation for Growth
CRNC's earnings are expected to decrease with -10.81% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-44.59%
EPS Next 3Y-10.81%
5. Dividend
5.1 Amount
CRNC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CERENCE INC
NASDAQ:CRNC (12/20/2024, 8:03:59 PM)
After market: 7.55 -0.12 (-1.56%)7.67
+0.09 (+1.19%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners90.51%
Inst Owner Change-7.39%
Ins Owners2.15%
Ins Owner Change39.72%
Market Cap328.51M
Analysts71.43
Price Target7.14 (-6.91%)
Short Float %17.8%
Short Ratio2.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)194.34%
Min EPS beat(2)81.16%
Max EPS beat(2)307.51%
EPS beat(4)4
Avg EPS beat(4)117.64%
Min EPS beat(4)22.04%
Max EPS beat(4)307.51%
EPS beat(8)7
Avg EPS beat(8)107.29%
EPS beat(12)9
Avg EPS beat(12)75.54%
EPS beat(16)13
Avg EPS beat(16)60.99%
Revenue beat(2)2
Avg Revenue beat(2)6.88%
Min Revenue beat(2)1%
Max Revenue beat(2)12.76%
Revenue beat(4)4
Avg Revenue beat(4)6.05%
Min Revenue beat(4)1%
Max Revenue beat(4)12.76%
Revenue beat(8)7
Avg Revenue beat(8)5.06%
Revenue beat(12)8
Avg Revenue beat(12)2.95%
Revenue beat(16)10
Avg Revenue beat(16)2.53%
PT rev (1m)42.13%
PT rev (3m)36.36%
EPS NQ rev (1m)-399.98%
EPS NQ rev (3m)-343.34%
EPS NY rev (1m)85.28%
EPS NY rev (3m)88.97%
Revenue NQ rev (1m)-6.99%
Revenue NQ rev (3m)-18.21%
Revenue NY rev (1m)4.52%
Revenue NY rev (3m)3.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.67 | ||
| Fwd PE | N/A | ||
| P/S | 0.99 | ||
| P/FCF | 26.93 | ||
| P/OCF | 19.1 | ||
| P/B | 2.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.4 |
EPS(TTM)1.15
EY14.99%
EPS(NY)-0.01
Fwd EYN/A
FCF(TTM)0.28
FCFY3.71%
OCF(TTM)0.4
OCFY5.23%
SpS7.74
BVpS3.29
TBVpS-3.68
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -83.73% | ||
| ROE | -416.79% | ||
| ROCE | 9.54% | ||
| ROIC | 7.54% | ||
| ROICexc | 10.2% | ||
| ROICexgc | 60.98% | ||
| OM | 13.97% | ||
| PM (TTM) | N/A | ||
| GM | 73.69% | ||
| FCFM | 3.68% |
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 3Y38.84%
ROICexcg growth 5Y29.35%
ROICexc growth 3Y39.52%
ROICexc growth 5Y37.04%
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-Score4
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 23.14 | ||
| Debt/EBITDA | 3.42 | ||
| Cap/Depr | 47% | ||
| Cap/Sales | 1.51% | ||
| Interest Coverage | 7.68 | ||
| Cash Conversion | 30.2% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | -0.71 |
F-Score4
WACC9.52%
ROIC/WACC0.79
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)210.81%
EPS 3Y-23.41%
EPS 5YN/A
EPS Q2Q%-177.78%
EPS Next Y-100.68%
EPS Next 2Y-44.59%
EPS Next 3Y-10.81%
EPS Next 5Y26.55%
Revenue 1Y (TTM)12.57%
Revenue growth 3Y-5.05%
Revenue growth 5Y1.79%
Sales Q2Q%-32.17%
Revenue Next Year-24.56%
Revenue Next 2Y-7.53%
Revenue Next 3Y2.46%
Revenue Next 5YN/A
EBIT growth 1Y402.86%
EBIT growth 3Y-11%
EBIT growth 5Y5.05%
EBIT Next Year-82.8%
EBIT Next 3Y48.38%
EBIT Next 5Y31.94%
FCF growth 1Y408.33%
FCF growth 3Y-41.96%
FCF growth 5Y-31.95%
OCF growth 1Y129.28%
OCF growth 3Y-38.63%
OCF growth 5Y-27.87%