CERENCE INC (CRNC) Fundamental Analysis & Valuation

NASDAQ:CRNC • US1567271093

Current stock price

9.67 USD
+0.57 (+6.26%)
At close:
9.7 USD
+0.03 (+0.31%)
After Hours:

This CRNC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. CRNC Profitability Analysis

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.
CRNC Yearly Net Income VS EBIT VS OCF VS FCFCRNC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -200M -400M

1.2 Ratios

  • The Return On Assets of CRNC (0.06%) is comparable to the rest of the industry.
  • CRNC has a Return On Equity (0.22%) which is comparable to the rest of the industry.
  • CRNC has a Return On Invested Capital of 8.81%. This is amongst the best in the industry. CRNC outperforms 81.99% of its industry peers.
Industry RankSector Rank
ROA 0.06%
ROE 0.22%
ROIC 8.81%
ROA(3y)-30.35%
ROA(5y)-22.38%
ROE(3y)-145.77%
ROE(5y)-95.29%
ROIC(3y)N/A
ROIC(5y)N/A
CRNC Yearly ROA, ROE, ROICCRNC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -100 -200 -300 -400

1.3 Margins

  • CRNC's Profit Margin of 0.11% is in line compared to the rest of the industry. CRNC outperforms 56.25% of its industry peers.
  • Looking at the Operating Margin, with a value of 17.76%, CRNC belongs to the top of the industry, outperforming 85.66% of the companies in the same industry.
  • CRNC's Operating Margin has declined in the last couple of years.
  • With a decent Gross Margin value of 78.94%, CRNC is doing good in the industry, outperforming 79.04% of the companies in the same industry.
  • In the last couple of years the Gross Margin of CRNC has grown nicely.
Industry RankSector Rank
OM 17.76%
PM (TTM) 0.11%
GM 78.94%
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%
CRNC Yearly Profit, Operating, Gross MarginsCRNC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50 -50 -100 -150

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4

2. CRNC Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CRNC is destroying value.
  • CRNC has more shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, CRNC has more shares outstanding
  • Compared to 1 year ago, CRNC has an improved debt to assets ratio.
CRNC Yearly Shares OutstandingCRNC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M
CRNC Yearly Total Debt VS Total AssetsCRNC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

2.2 Solvency

  • CRNC has an Altman-Z score of -0.62. This is a bad value and indicates that CRNC is not financially healthy and even has some risk of bankruptcy.
  • With a Altman-Z score value of -0.62, CRNC is not doing good in the industry: 75.37% of the companies in the same industry are doing better.
  • The Debt to FCF ratio of CRNC is 2.31, which is a good value as it means it would take CRNC, 2.31 years of fcf income to pay off all of its debts.
  • CRNC has a better Debt to FCF ratio (2.31) than 64.34% of its industry peers.
  • CRNC has a Debt/Equity ratio of 1.14. This is a high value indicating a heavy dependency on external financing.
  • Looking at the Debt to Equity ratio, with a value of 1.14, CRNC is doing worse than 79.41% of the companies in the same industry.
  • Even though the debt/equity ratio score it not favorable for CRNC, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 1.14
Debt/FCF 2.31
Altman-Z -0.62
ROIC/WACC0.93
WACC9.51%
CRNC Yearly LT Debt VS Equity VS FCFCRNC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M 1B

2.3 Liquidity

  • A Current Ratio of 1.88 indicates that CRNC should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.88, CRNC is in line with its industry, outperforming 54.78% of the companies in the same industry.
  • CRNC has a Quick Ratio of 1.86. This is a normal value and indicates that CRNC is financially healthy and should not expect problems in meeting its short term obligations.
  • The Quick ratio of CRNC (1.86) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.88
Quick Ratio 1.86
CRNC Yearly Current Assets VS Current LiabilitesCRNC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. CRNC Growth Analysis

3.1 Past

  • The earnings per share for CRNC have decreased strongly by -53.39% in the last year.
  • 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 has grown by 29.46% in the past year. This is a very strong growth!
  • The Revenue has been decreasing by -5.32% on average over the past years.
EPS 1Y (TTM)-53.39%
EPS 3Y-23.77%
EPS 5Y-20.04%
EPS Q2Q%700%
Revenue 1Y (TTM)29.46%
Revenue growth 3Y-8.43%
Revenue growth 5Y-5.32%
Sales Q2Q%126.1%

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.
  • Based on estimates for the next years, CRNC will show a small growth in Revenue. The Revenue will grow by 4.62% on average per year.
EPS Next Y30.93%
EPS Next 2Y19.67%
EPS Next 3Y13.83%
EPS Next 5Y50%
Revenue Next Year27.42%
Revenue Next 2Y8.28%
Revenue Next 3Y4.62%
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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
CRNC Yearly Revenue VS EstimatesCRNC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 100M 200M 300M
CRNC Yearly EPS VS EstimatesCRNC Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3 4

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7

4. CRNC Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 12.89, CRNC is valued correctly.
  • Based on the Price/Earnings ratio, CRNC is valued cheaply inside the industry as 84.93% of the companies are valued more expensively.
  • CRNC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.64.
  • CRNC is valuated correctly with a Price/Forward Earnings ratio of 12.60.
  • Based on the Price/Forward Earnings ratio, CRNC is valued cheaply inside the industry as 80.88% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 21.36, CRNC is valued a bit cheaper.
Industry RankSector Rank
PE 12.89
Fwd PE 12.6
CRNC Price Earnings VS Forward Price EarningsCRNC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, CRNC is valued cheaper than 91.91% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, CRNC is valued cheaper than 96.32% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.84
EV/EBITDA 7.68
CRNC Per share dataCRNC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 6

4.3 Compensation for Growth

  • CRNC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • A more expensive valuation may be justified as CRNC's earnings are expected to grow with 13.83% in the coming years.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y19.67%
EPS Next 3Y13.83%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. CRNC Dividend Analysis

5.1 Amount

  • CRNC does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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CRNC Fundamentals: All Metrics, Ratios and Statistics

CERENCE INC

NASDAQ:CRNC (5/1/2026, 8:19:13 PM)

After market: 9.7 +0.03 (+0.31%)

9.67

+0.57 (+6.26%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Industry Strength8.7
Industry Growth62.73
Earnings (Last)02-04
Earnings (Next)05-07
Inst Owners80.24%
Inst Owner Change0.5%
Ins Owners3.1%
Ins Owner Change30.96%
Market Cap435.34M
Revenue(TTM)315.96M
Net Income(TTM)335.00K
Analysts48.89
Price Target10.46 (8.17%)
Short Float %13.64%
Short Ratio8.38
Dividend
Industry RankSector 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)1
Avg EPS beat(2)4.57%
Min EPS beat(2)-44.55%
Max EPS beat(2)53.69%
EPS beat(4)3
Avg EPS beat(4)69.16%
Min EPS beat(4)-44.55%
Max EPS beat(4)182.56%
EPS beat(8)7
Avg EPS beat(8)101.72%
EPS beat(12)10
Avg EPS beat(12)78.06%
EPS beat(16)12
Avg EPS beat(16)78.58%
Revenue beat(2)1
Avg Revenue beat(2)3.08%
Min Revenue beat(2)-1.45%
Max Revenue beat(2)7.61%
Revenue beat(4)3
Avg Revenue beat(4)4.71%
Min Revenue beat(4)-1.45%
Max Revenue beat(4)11.28%
Revenue beat(8)6
Avg Revenue beat(8)4.72%
Revenue beat(12)9
Avg Revenue beat(12)4.19%
Revenue beat(16)11
Avg Revenue beat(16)3.4%
PT rev (1m)2.5%
PT rev (3m)-9.56%
EPS NQ rev (1m)18.51%
EPS NQ rev (3m)2.58%
EPS NY rev (1m)1.18%
EPS NY rev (3m)-10.91%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)-6.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.29%
Valuation
Industry RankSector Rank
PE 12.89
Fwd PE 12.6
P/S 1.38
P/FCF 5.84
P/OCF 4.85
P/B 2.89
P/tB N/A
EV/EBITDA 7.68
EPS(TTM)0.75
EY7.76%
EPS(NY)0.77
Fwd EY7.94%
FCF(TTM)1.66
FCFY17.13%
OCF(TTM)1.99
OCFY20.63%
SpS7.02
BVpS3.34
TBVpS-3.3
PEG (NY)0.42
PEG (5Y)N/A
Graham Number7.50935 (-22.34%)
Profitability
Industry RankSector Rank
ROA 0.06%
ROE 0.22%
ROCE 11.16%
ROIC 8.81%
ROICexc 10.86%
ROICexgc 40.63%
OM 17.76%
PM (TTM) 0.11%
GM 78.94%
FCFM 23.6%
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-Score8
Asset Turnover0.52
Health
Industry RankSector Rank
Debt/Equity 1.14
Debt/FCF 2.31
Debt/EBITDA 2.59
Cap/Depr 148.18%
Cap/Sales 4.82%
Interest Coverage 13.84
Cash Conversion 135.28%
Profit Quality 22259.1%
Current Ratio 1.88
Quick Ratio 1.86
Altman-Z -0.62
F-Score8
WACC9.51%
ROIC/WACC0.93
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%700%
EPS Next Y30.93%
EPS Next 2Y19.67%
EPS Next 3Y13.83%
EPS Next 5Y50%
Revenue 1Y (TTM)29.46%
Revenue growth 3Y-8.43%
Revenue growth 5Y-5.32%
Sales Q2Q%126.1%
Revenue Next Year27.42%
Revenue Next 2Y8.28%
Revenue Next 3Y4.62%
Revenue Next 5YN/A
EBIT growth 1Y401.52%
EBIT growth 3Y-30.08%
EBIT growth 5Y-19.53%
EBIT Next Year602.28%
EBIT Next 3Y45.33%
EBIT Next 5Y83.78%
FCF growth 1Y5121.85%
FCF growth 3YN/A
FCF growth 5Y12.66%
OCF growth 1Y1224.09%
OCF growth 3YN/A
OCF growth 5Y6.43%

CERENCE INC / CRNC Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for CERENCE INC?

ChartMill assigns a fundamental rating of 4 / 10 to CRNC.


What is the valuation status for CRNC stock?

ChartMill assigns a valuation rating of 7 / 10 to CERENCE INC (CRNC). This can be considered as Undervalued.


Can you provide the profitability details for CERENCE INC?

CERENCE INC (CRNC) has a profitability rating of 4 / 10.


Can you provide the financial health for CRNC stock?

The financial health rating of CERENCE INC (CRNC) is 4 / 10.


What is the expected EPS growth for CERENCE INC (CRNC) stock?

The Earnings per Share (EPS) of CERENCE INC (CRNC) is expected to grow by 30.93% in the next year.