12.64 USD
-0.31 (-2.39%)
12.67 USD
+0.03 (+0.24%)
Taking everything into account, CRNC scores 3 out of 10 in our fundamental rating. CRNC was compared to 281 industry peers in the Software industry. Both the profitability and financial health of CRNC have multiple concerns. CRNC has a valuation in line with the averages, but on the other hand it scores bad on growth.
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
CRNC has a Return On Assets (-2.97%) which is in line with its industry peers.
The Return On Equity of CRNC (-12.42%) is comparable to the rest of the industry.
The Return On Invested Capital of CRNC (1.96%) is better than 66.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.97% | ||
| ROE | -12.42% | ||
| ROIC | 1.96% |
ROA(3y)-30.35%
ROA(5y)-22.38%
ROE(3y)-145.77%
ROE(5y)-95.29%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CRNC has a Operating Margin of 5.21%. This is in the better half of the industry: CRNC outperforms 68.68% of its industry peers.
In the last couple of years the Operating Margin of CRNC has declined.
Looking at the Gross Margin, with a value of 72.74%, CRNC is in line with its industry, outperforming 58.72% of the companies in the same industry.
In the last couple of years the Gross Margin of CRNC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.21% | ||
| PM (TTM) | N/A | ||
| GM | 72.74% |
OM growth 3Y-23.64%
OM growth 5Y-15%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.11%
GM growth 5Y1.54%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CRNC is destroying 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.
CRNC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.72, we must say that CRNC is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.72, CRNC is not doing good in the industry: 75.44% of the companies in the same industry are doing better.
The Debt to FCF ratio of CRNC is 4.27, which is a neutral value as it means it would take CRNC, 4.27 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 4.27, CRNC perfoms like the industry average, outperforming 59.79% of the companies in the same industry.
A Debt/Equity ratio of 1.33 is on the high side and indicates that CRNC has dependencies on debt financing.
With a Debt to Equity ratio value of 1.33, CRNC is not doing good in the industry: 79.36% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 4.27 | ||
| Altman-Z | -0.72 |
ROIC/WACC0.2
WACC9.79%
2.3 Liquidity
CRNC has a Current Ratio of 1.89. 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 1.89, CRNC perfoms like the industry average, outperforming 58.01% of the companies in the same industry.
A Quick Ratio of 1.87 indicates that CRNC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.87, CRNC is in line with its industry, outperforming 58.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.87 |
3. Growth
3.1 Past
CRNC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -53.39%.
Measured over the past years, CRNC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -20.04% on average per year.
The Revenue for CRNC has decreased by -24.05% in the past year. This is quite bad
CRNC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.32% yearly.
EPS 1Y (TTM)-53.39%
EPS 3Y-23.77%
EPS 5Y-20.04%
EPS Q2Q%-77.14%
Revenue 1Y (TTM)-24.05%
Revenue growth 3Y-8.43%
Revenue growth 5Y-5.32%
Sales Q2Q%10.65%
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 50.00% on average per year.
The Revenue is expected to grow by 4.56% on average over the next years.
EPS Next Y22.74%
EPS Next 2Y-2.46%
EPS Next 3Y-1.64%
EPS Next 5Y50%
Revenue Next Year4.7%
Revenue Next 2Y2.2%
Revenue Next 3Y4.56%
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
With a Price/Earnings ratio of 23.41, CRNC is valued on the expensive side.
CRNC's Price/Earnings ratio is a bit cheaper when compared to the industry. CRNC is cheaper than 68.68% of the companies in the same industry.
CRNC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 19.21, which indicates a rather expensive current valuation of CRNC.
CRNC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CRNC is cheaper than 74.02% of the companies in the same industry.
CRNC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.41 | ||
| Fwd PE | 19.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CRNC is valued a bit cheaper than 71.17% of the companies in the same industry.
90.04% of the companies in the same industry are more expensive than CRNC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.13 | ||
| EV/EBITDA | 29.18 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.03
PEG (5Y)N/A
EPS Next 2Y-2.46%
EPS Next 3Y-1.64%
5. Dividend
5.1 Amount
No dividends for CRNC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12.64
-0.31 (-2.39%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners71.9%
Inst Owner Change-2.72%
Ins Owners5.46%
Ins Owner Change14.88%
Market Cap568.04M
Revenue(TTM)251.78M
Net Income(TTM)-18.71M
Analysts48.89
Price Target10.54 (-16.61%)
Short Float %19.94%
Short Ratio4.41
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)118.77%
Min EPS beat(2)54.97%
Max EPS beat(2)182.56%
EPS beat(4)4
Avg EPS beat(4)102.78%
Min EPS beat(4)54.97%
Max EPS beat(4)182.56%
EPS beat(8)8
Avg EPS beat(8)110.21%
EPS beat(12)11
Avg EPS beat(12)105.79%
EPS beat(16)13
Avg EPS beat(16)82.35%
Revenue beat(2)2
Avg Revenue beat(2)9.43%
Min Revenue beat(2)7.58%
Max Revenue beat(2)11.28%
Revenue beat(4)3
Avg Revenue beat(4)4.61%
Min Revenue beat(4)-1.86%
Max Revenue beat(4)11.28%
Revenue beat(8)7
Avg Revenue beat(8)5.33%
Revenue beat(12)10
Avg Revenue beat(12)4.91%
Revenue beat(16)11
Avg Revenue beat(16)3.37%
PT rev (1m)-12.06%
PT rev (3m)-12.06%
EPS NQ rev (1m)189.32%
EPS NQ rev (3m)245.92%
EPS NY rev (1m)0%
EPS NY rev (3m)11.98%
Revenue NQ rev (1m)86.27%
Revenue NQ rev (3m)86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.41 | ||
| Fwd PE | 19.21 | ||
| P/S | 2.26 | ||
| P/FCF | 12.13 | ||
| P/OCF | 9.29 | ||
| P/B | 3.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.18 |
EPS(TTM)0.54
EY4.27%
EPS(NY)0.66
Fwd EY5.2%
FCF(TTM)1.04
FCFY8.24%
OCF(TTM)1.36
OCFY10.77%
SpS5.6
BVpS3.35
TBVpS-3.3
PEG (NY)1.03
PEG (5Y)N/A
Graham Number6.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.97% | ||
| ROE | -12.42% | ||
| ROCE | 2.48% | ||
| ROIC | 1.96% | ||
| ROICexc | 2.35% | ||
| ROICexgc | 7.25% | ||
| OM | 5.21% | ||
| PM (TTM) | N/A | ||
| GM | 72.74% | ||
| FCFM | 18.59% |
ROA(3y)-30.35%
ROA(5y)-22.38%
ROE(3y)-145.77%
ROE(5y)-95.29%
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
ROICexgc growth 3Y-28.03%
ROICexgc growth 5Y-16.95%
ROICexc growth 3Y-6.51%
ROICexc growth 5Y0.48%
OM growth 3Y-23.64%
OM growth 5Y-15%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.11%
GM growth 5Y1.54%
F-Score4
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 4.27 | ||
| Debt/EBITDA | 8.43 | ||
| Cap/Depr | 136.09% | ||
| Cap/Sales | 5.7% | ||
| Interest Coverage | 2.36 | ||
| Cash Conversion | 258.38% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.87 | ||
| Altman-Z | -0.72 |
F-Score4
WACC9.79%
ROIC/WACC0.2
Cap/Depr(3y)71.65%
Cap/Depr(5y)65.63%
Cap/Sales(3y)2.98%
Cap/Sales(5y)3.47%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-53.39%
EPS 3Y-23.77%
EPS 5Y-20.04%
EPS Q2Q%-77.14%
EPS Next Y22.74%
EPS Next 2Y-2.46%
EPS Next 3Y-1.64%
EPS Next 5Y50%
Revenue 1Y (TTM)-24.05%
Revenue growth 3Y-8.43%
Revenue growth 5Y-5.32%
Sales Q2Q%10.65%
Revenue Next Year4.7%
Revenue Next 2Y2.2%
Revenue Next 3Y4.56%
Revenue Next 5YN/A
EBIT growth 1Y-71.8%
EBIT growth 3Y-30.08%
EBIT growth 5Y-19.53%
EBIT Next Year419.96%
EBIT Next 3Y152.1%
EBIT Next 5Y83.78%
FCF growth 1Y283.75%
FCF growth 3YN/A
FCF growth 5Y12.66%
OCF growth 1Y255.74%
OCF growth 3YN/A
OCF growth 5Y6.43%
CERENCE INC / CRNC FAQ
Can you provide the ChartMill fundamental rating for CERENCE INC?
ChartMill assigns a fundamental rating of 3 / 10 to CRNC.
What is the valuation status of CERENCE INC (CRNC) stock?
ChartMill assigns a valuation rating of 5 / 10 to CERENCE INC (CRNC). This can be considered as Fairly Valued.
How profitable is CERENCE INC (CRNC) stock?
CERENCE INC (CRNC) has a profitability rating of 3 / 10.
Can you provide the financial health for CRNC stock?
The financial health rating of CERENCE INC (CRNC) is 3 / 10.
How sustainable is the dividend of CERENCE INC (CRNC) stock?
The dividend rating of CERENCE INC (CRNC) is 0 / 10 and the dividend payout ratio is 0%.