CERENCE INC (CRNC)
US1567271093 - Common Stock
Overall CRNC gets a fundamental rating of 4 out of 10. We evaluated CRNC 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.
In the past year CRNC had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: CRNC reported negative net income in multiple years.
CRNC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -85.94%, CRNC is doing worse than 89.25% of the companies in the same industry.
CRNC has a worse Return On Equity (-375.63%) than 85.66% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.65%, CRNC belongs to the top of the industry, outperforming 86.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -85.94% | ||
| ROE | -375.63% | ||
| ROIC | 9.65% |
ROA(3y)-8.41%
ROA(5y)-3.91%
ROE(3y)-15.75%
ROE(5y)-7.95%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CRNC has a better Operating Margin (16.77%) than 85.30% of its industry peers.
The Gross Margin of CRNC (74.72%) is better than 65.59% of its industry peers.
CRNC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.77% | ||
| PM (TTM) | N/A | ||
| GM | 74.72% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.13%
GM growth 5Y-0.68%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CRNC is creating some value.
The number of shares outstanding for CRNC has been increased compared to 1 year ago.
The number of shares outstanding for CRNC has been increased compared to 5 years ago.
Compared to 1 year ago, CRNC has a worse debt to assets ratio.
2.2 Solvency
CRNC has an Altman-Z score of -0.81. This is a bad value and indicates that CRNC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.81, CRNC is doing worse than 75.63% of the companies in the same industry.
CRNC has a debt to FCF ratio of 16.23. This is a negative value and a sign of low solvency as CRNC would need 16.23 years to pay back of all of its debts.
CRNC has a Debt to FCF ratio of 16.23. This is comparable to the rest of the industry: CRNC outperforms 48.03% of its industry peers.
CRNC has a Debt/Equity ratio of 1.26. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CRNC (1.26) is worse than 79.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 16.23 | ||
| Altman-Z | -0.81 |
ROIC/WACC1.35
WACC7.14%
2.3 Liquidity
A Current Ratio of 1.31 indicates that CRNC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.31, CRNC is in line with its industry, outperforming 40.14% of the companies in the same 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 40.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
CRNC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 835.71%, which is quite impressive.
The earnings per share for CRNC have been decreasing by -39.12% on average. This is quite bad
Looking at the last year, CRNC shows a very strong growth in Revenue. The Revenue has grown by 31.49%.
Measured over the past years, CRNC shows a small growth in Revenue. The Revenue has been growing by 1.23% on average per year.
EPS 1Y (TTM)835.71%
EPS 3Y-39.12%
EPS 5YN/A
EPS Q2Q%575%
Revenue 1Y (TTM)31.49%
Revenue growth 3Y-3.82%
Revenue growth 5Y1.23%
Sales Q2Q%14.4%
3.2 Future
The Earnings Per Share is expected to grow by 17.14% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.43% on average over the next years.
EPS Next Y146.34%
EPS Next 2Y-46.44%
EPS Next 3Y-13.5%
EPS Next 5Y17.14%
Revenue Next Year12.59%
Revenue Next 2Y-9.85%
Revenue Next 3Y-2.45%
Revenue Next 5Y2.43%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 2.15, the valuation of CRNC can be described as very cheap.
Based on the Price/Earnings ratio, CRNC is valued cheaper than 99.28% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.65. CRNC is valued rather cheaply when compared to this.
The Forward Price/Earnings Ratio is negative for CRNC. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.15 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CRNC is valued cheaply inside the industry as 97.85% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CRNC is valued cheaply inside the industry as 98.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.81 | ||
| EV/EBITDA | 3.85 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A cheap valuation may be justified as CRNC's earnings are expected to decrease with -13.50% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y-46.44%
EPS Next 3Y-13.5%
5. Dividend
5.1 Amount
CRNC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CERENCE INC
NASDAQ:CRNC (11/20/2024, 8:15:07 PM)
Premarket: 2.83 +0.01 (+0.35%)2.82
-0.15 (-5.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap117.88M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.15 | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -85.94% | ||
| ROE | -375.63% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.77% | ||
| PM (TTM) | N/A | ||
| GM | 74.72% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)835.71%
EPS 3Y-39.12%
EPS 5Y
EPS Q2Q%
EPS Next Y146.34%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)31.49%
Revenue growth 3Y-3.82%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y