11.74 USD
-0.36 (-2.98%)
11.76 USD
+0.02 (+0.17%)
Overall CRNC gets a fundamental rating of 3 out of 10. We evaluated CRNC against 276 industry peers in the Software industry. Both the profitability and financial health of CRNC have multiple concerns. CRNC is valued correctly, but it does not seem to be growing.
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.
- 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 -2.97%, CRNC is in line with its industry, outperforming 48.19% of the companies in the same industry.
- CRNC has a Return On Equity (-12.42%) which is comparable to the rest of the industry.
- Looking at the Return On Invested Capital, with a value of 1.96%, CRNC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| 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's Operating Margin of 5.21% is fine compared to the rest of the industry. CRNC outperforms 68.84% of its industry peers.
- In the last couple of years the Operating Margin of CRNC has declined.
- CRNC has a Gross Margin (72.74%) which is comparable to the rest of the industry.
- CRNC's Gross Margin has improved in the last couple of years.
| 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
- CRNC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- CRNC has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, CRNC has more shares outstanding
- CRNC has a better debt/assets ratio than last year.
2.2 Solvency
- CRNC has an Altman-Z score of -0.77. This is a bad value and indicates that CRNC is not financially healthy and even has some risk of bankruptcy.
- CRNC has a Altman-Z score of -0.77. This is in the lower half of the industry: CRNC underperforms 76.09% of its industry peers.
- 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.
- The Debt to FCF ratio of CRNC (4.27) is better than 60.14% of its industry peers.
- A Debt/Equity ratio of 1.33 is on the high side and indicates that CRNC has dependencies on debt financing.
- CRNC's Debt to Equity ratio of 1.33 is on the low side compared to the rest of the industry. CRNC is outperformed by 80.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 4.27 | ||
| Altman-Z | -0.77 |
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.
- CRNC has a Current ratio of 1.89. This is comparable to the rest of the industry: CRNC outperforms 56.52% of its industry peers.
- A Quick Ratio of 1.87 indicates that CRNC should not have too much problems paying its short term obligations.
- CRNC has a Quick ratio (1.87) which is comparable to the rest of the 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%.
- CRNC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -20.04% yearly.
- 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
- CRNC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 50.00% yearly.
- Based on estimates for the next years, CRNC will show a small growth in Revenue. The Revenue will grow by 4.56% on average per year.
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
- A Price/Earnings ratio of 21.74 indicates a rather expensive valuation of CRNC.
- Based on the Price/Earnings ratio, CRNC is valued a bit cheaper than the industry average as 71.01% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of CRNC to the average of the S&P500 Index (27.47), we can say CRNC is valued slightly cheaper.
- The Price/Forward Earnings ratio is 14.90, which indicates a correct valuation of CRNC.
- Based on the Price/Forward Earnings ratio, CRNC is valued cheaply inside the industry as 80.43% of the companies are valued more expensively.
- CRNC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.74 | ||
| Fwd PE | 14.9 |
4.2 Price Multiples
- CRNC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CRNC is cheaper than 70.65% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, CRNC is valued cheaper than 90.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.27 | ||
| EV/EBITDA | 27.57 |
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)0.46
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% |
11.74
-0.36 (-2.98%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-19 2025-11-19/amc
Earnings (Next)02-04 2026-02-04/bmo
Inst Owners69.63%
Inst Owner Change0.01%
Ins Owners7%
Ins Owner Change14.88%
Market Cap527.60M
Revenue(TTM)251.78M
Net Income(TTM)-18.71M
Analysts48.89
Price Target11.56 (-1.53%)
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)0%
PT rev (3m)-3.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)245.92%
EPS NY rev (1m)0%
EPS NY rev (3m)34.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)21.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.74 | ||
| Fwd PE | 14.9 | ||
| P/S | 2.1 | ||
| P/FCF | 11.27 | ||
| P/OCF | 8.62 | ||
| P/B | 3.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.57 |
EPS(TTM)0.54
EY4.6%
EPS(NY)0.79
Fwd EY6.71%
FCF(TTM)1.04
FCFY8.87%
OCF(TTM)1.36
OCFY11.59%
SpS5.6
BVpS3.35
TBVpS-3.3
PEG (NY)0.46
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 | -0.77 |
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 21.74 and the Price/Book (PB) ratio is 3.5.
Is the dividend of CERENCE INC sustainable?
The dividend rating of CERENCE INC (CRNC) is 0 / 10 and the dividend payout ratio is 0%.