10.69 USD
-0.1 (-0.93%)
10.69 USD
0 (0%)
Taking everything into account, CRNC scores 3 out of 10 in our fundamental rating. CRNC was compared to 276 industry peers in the Software industry. CRNC may be in some trouble as it scores bad on both profitability and health. 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.
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
The Return On Assets of CRNC (-2.97%) is comparable to the rest of the industry.
CRNC has a Return On Equity (-12.42%) which is comparable to the rest of the industry.
CRNC has a Return On Invested Capital of 1.96%. This is in the better half of the industry: CRNC outperforms 66.67% 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
Looking at the Operating Margin, with a value of 5.21%, CRNC is in the better half of the industry, outperforming 68.84% of the companies in the same industry.
CRNC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 72.74%, CRNC is in line with its industry, outperforming 58.33% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CRNC is destroying value.
Compared to 1 year ago, CRNC has more shares outstanding
CRNC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CRNC has an improved debt to assets ratio.
2.2 Solvency
CRNC has an Altman-Z score of -0.85. 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 (-0.85) is worse than 76.45% of its industry peers.
CRNC has a debt to FCF ratio of 4.27. This is a neutral value as CRNC would need 4.27 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.27, CRNC is doing good in the industry, outperforming 60.14% 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.
CRNC has a Debt to Equity ratio of 1.33. This is in the lower half of the industry: CRNC underperforms 79.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 4.27 | ||
| Altman-Z | -0.85 |
ROIC/WACC0.2
WACC9.81%
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.
The Current ratio of CRNC (1.89) is comparable to the rest of the industry.
A Quick Ratio of 1.87 indicates that CRNC should not have too much problems paying its short term obligations.
CRNC's Quick ratio of 1.87 is in line compared to the rest of the industry. CRNC outperforms 56.88% of its industry peers.
| 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.
CRNC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -24.05%.
Measured over the past years, CRNC shows a decrease in Revenue. The Revenue has been decreasing by -5.32% on average per year.
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.
CRNC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.56% yearly.
EPS Next Y46.96%
EPS Next 2Y25.68%
EPS Next 3Y-1.64%
EPS Next 5Y50%
Revenue Next Year27.79%
Revenue Next 2Y9.82%
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.
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
The Price/Earnings ratio is 19.80, which indicates a rather expensive current valuation of CRNC.
Compared to the rest of the industry, the Price/Earnings ratio of CRNC indicates a somewhat cheap valuation: CRNC is cheaper than 74.28% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.51. CRNC is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 13.57 indicates a correct valuation of CRNC.
82.97% of the companies in the same industry are more expensive than CRNC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CRNC to the average of the S&P500 Index (23.13), we can say CRNC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.8 | ||
| Fwd PE | 13.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CRNC is valued a bit cheaper than 73.91% of the companies in the same industry.
91.30% 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 | 10.26 | ||
| EV/EBITDA | 24.89 |
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.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y25.68%
EPS Next 3Y-1.64%
5. Dividend
5.1 Amount
CRNC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
10.69
-0.1 (-0.93%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners69.24%
Inst Owner Change-2.75%
Ins Owners7%
Ins Owner Change14.88%
Market Cap480.41M
Revenue(TTM)251.78M
Net Income(TTM)-18.71M
Analysts48.89
Price Target11.56 (8.14%)
Short Float %18.77%
Short Ratio5.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)9.68%
PT rev (3m)-3.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)245.92%
EPS NY rev (1m)19.73%
EPS NY rev (3m)34.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)86%
Revenue NY rev (1m)22.05%
Revenue NY rev (3m)21.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.8 | ||
| Fwd PE | 13.57 | ||
| P/S | 1.91 | ||
| P/FCF | 10.26 | ||
| P/OCF | 7.85 | ||
| P/B | 3.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.89 |
EPS(TTM)0.54
EY5.05%
EPS(NY)0.79
Fwd EY7.37%
FCF(TTM)1.04
FCFY9.75%
OCF(TTM)1.36
OCFY12.73%
SpS5.6
BVpS3.35
TBVpS-3.3
PEG (NY)0.42
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 | -0.85 |
F-Score4
WACC9.81%
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 Y46.96%
EPS Next 2Y25.68%
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 Year27.79%
Revenue Next 2Y9.82%
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 Year588.61%
EBIT Next 3Y48.44%
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 for CRNC stock?
ChartMill assigns a valuation rating of 6 / 10 to CERENCE INC (CRNC). This can be considered as Fairly Valued.
What is the profitability of CRNC stock?
CERENCE INC (CRNC) has a profitability rating of 3 / 10.
What is the valuation of CERENCE INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CERENCE INC (CRNC) is 19.8 and the Price/Book (PB) ratio is 3.19.
Is the dividend of CERENCE INC sustainable?
The dividend rating of CERENCE INC (CRNC) is 0 / 10 and the dividend payout ratio is 0%.