CERENCE INC (CRNC) Stock Fundamental Analysis
USA - NASDAQ:CRNC - US1567271093 - Common Stock
9.62 USD
+0.34 (+3.66%)
9.7 USD
+0.08 (+0.83%)
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. There are concerns on the financial health of CRNC while its profitability can be described as average. 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.
CRNC had negative earnings in 4 of the past 5 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 -4.05%, CRNC is in line with its industry, outperforming 44.84% of the companies in the same industry.
The Return On Equity of CRNC (-16.55%) is comparable to the rest of the industry.
CRNC has a Return On Invested Capital of 0.79%. This is in the better half of the industry: CRNC outperforms 62.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.05% | ||
| ROE | -16.55% | ||
| ROIC | 0.79% |
ROA(3y)-37.21%
ROA(5y)-22.01%
ROE(3y)-156.16%
ROE(5y)-93.19%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CRNC's Operating Margin of 2.16% is fine compared to the rest of the industry. CRNC outperforms 63.35% of its industry peers.
CRNC's Operating Margin has improved in the last couple of years.
CRNC has a Gross Margin (70.76%) 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 | 2.16% | ||
| PM (TTM) | N/A | ||
| GM | 70.76% |
OM growth 3Y-6.27%
OM growth 5Y3.2%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.09%
GM growth 5Y1.84%
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.
Compared to 1 year ago, CRNC has a worse debt to assets ratio.
2.2 Solvency
CRNC has an Altman-Z score of -0.97. This is a bad value and indicates that CRNC is not financially healthy and even has some risk of bankruptcy.
CRNC's Altman-Z score of -0.97 is on the low side compared to the rest of the industry. CRNC is outperformed by 75.09% of its industry peers.
The Debt to FCF ratio of CRNC is 4.77, which is a neutral value as it means it would take CRNC, 4.77 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.77, CRNC is in line with its industry, outperforming 58.72% of the companies in the same industry.
A Debt/Equity ratio of 1.28 is on the high side and indicates that CRNC has dependencies on debt financing.
The Debt to Equity ratio of CRNC (1.28) is worse than 77.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 4.77 | ||
| Altman-Z | -0.97 |
ROIC/WACC0.08
WACC9.4%
2.3 Liquidity
A Current Ratio of 1.77 indicates that CRNC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.77, CRNC perfoms like the industry average, outperforming 55.52% of the companies in the same industry.
CRNC has a Quick Ratio of 1.75. 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 Quick ratio (1.75) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.75 |
3. Growth
3.1 Past
CRNC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -54.96%.
Measured over the past years, CRNC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -23.41% on average per year.
The Revenue for CRNC has decreased by -31.20% in the past year. This is quite bad
CRNC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.79% yearly.
EPS 1Y (TTM)-54.96%
EPS 3Y-23.41%
EPS 5YN/A
EPS Q2Q%-36.84%
Revenue 1Y (TTM)-31.2%
Revenue growth 3Y-5.05%
Revenue growth 5Y1.79%
Sales Q2Q%-11.77%
3.2 Future
The Earnings Per Share is expected to grow by 26.55% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -7.42% on average over the next years.
EPS Next Y-65.41%
EPS Next 2Y-24.36%
EPS Next 3Y-23.74%
EPS Next 5Y26.55%
Revenue Next Year-24.04%
Revenue Next 2Y-10.82%
Revenue Next 3Y-7.42%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
CRNC is valuated correctly with a Price/Earnings ratio of 16.31.
Compared to the rest of the industry, the Price/Earnings ratio of CRNC indicates a rather cheap valuation: CRNC is cheaper than 81.85% of the companies listed in the same industry.
CRNC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.28.
A Price/Forward Earnings ratio of 14.62 indicates a correct valuation of CRNC.
82.92% of the companies in the same industry are more expensive than CRNC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 33.61, CRNC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.31 | ||
| Fwd PE | 14.62 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CRNC indicates a rather cheap valuation: CRNC is cheaper than 93.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.98 | ||
| EV/EBITDA | 31.47 |
4.3 Compensation for Growth
A cheap valuation may be justified as CRNC's earnings are expected to decrease with -23.74% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-24.36%
EPS Next 3Y-23.74%
5. Dividend
5.1 Amount
CRNC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.62
+0.34 (+3.66%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners71.9%
Inst Owner Change-0.11%
Ins Owners5.46%
Ins Owner Change-6.83%
Market Cap416.74M
Revenue(TTM)245.95M
Net Income(TTM)-25.77M
Analysts48.89
Price Target10.54 (9.56%)
Short Float %17.18%
Short Ratio3.6
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)133.76%
Min EPS beat(2)84.96%
Max EPS beat(2)182.56%
EPS beat(4)4
Avg EPS beat(4)109.32%
Min EPS beat(4)81.16%
Max EPS beat(4)182.56%
EPS beat(8)7
Avg EPS beat(8)98.37%
EPS beat(12)11
Avg EPS beat(12)104.54%
EPS beat(16)13
Avg EPS beat(16)79.82%
Revenue beat(2)2
Avg Revenue beat(2)6.35%
Min Revenue beat(2)1.42%
Max Revenue beat(2)11.28%
Revenue beat(4)3
Avg Revenue beat(4)5.9%
Min Revenue beat(4)-1.86%
Max Revenue beat(4)12.76%
Revenue beat(8)7
Avg Revenue beat(8)5.37%
Revenue beat(12)10
Avg Revenue beat(12)4.42%
Revenue beat(16)10
Avg Revenue beat(16)2.78%
PT rev (1m)-12.06%
PT rev (3m)-10.92%
EPS NQ rev (1m)-17.39%
EPS NQ rev (3m)-54.29%
EPS NY rev (1m)-13.33%
EPS NY rev (3m)12.07%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-3.97%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)2.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.31 | ||
| Fwd PE | 14.62 | ||
| P/S | 1.69 | ||
| P/FCF | 9.98 | ||
| P/OCF | 7.64 | ||
| P/B | 2.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 31.47 |
EPS(TTM)0.59
EY6.13%
EPS(NY)0.66
Fwd EY6.84%
FCF(TTM)0.96
FCFY10.02%
OCF(TTM)1.26
OCFY13.09%
SpS5.68
BVpS3.59
TBVpS-3.31
PEG (NY)N/A
PEG (5Y)N/A
Graham Number6.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.05% | ||
| ROE | -16.55% | ||
| ROCE | 1% | ||
| ROIC | 0.79% | ||
| ROICexc | 0.93% | ||
| ROICexgc | 2.78% | ||
| OM | 2.16% | ||
| PM (TTM) | N/A | ||
| GM | 70.76% | ||
| FCFM | 16.97% |
ROA(3y)-37.21%
ROA(5y)-22.01%
ROE(3y)-156.16%
ROE(5y)-93.19%
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 3Y38.84%
ROICexgc growth 5Y29.35%
ROICexc growth 3Y39.52%
ROICexc growth 5Y37.04%
OM growth 3Y-6.27%
OM growth 5Y3.2%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.09%
GM growth 5Y1.84%
F-Score4
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.28 | ||
| Debt/FCF | 4.77 | ||
| Debt/EBITDA | 12.12 | ||
| Cap/Depr | 115.38% | ||
| Cap/Sales | 5.2% | ||
| Interest Coverage | 0.95 | ||
| Cash Conversion | 332.31% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.75 | ||
| Altman-Z | -0.97 |
F-Score4
WACC9.4%
ROIC/WACC0.08
Cap/Depr(3y)50.56%
Cap/Depr(5y)51.08%
Cap/Sales(3y)2.85%
Cap/Sales(5y)3.48%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-54.96%
EPS 3Y-23.41%
EPS 5YN/A
EPS Q2Q%-36.84%
EPS Next Y-65.41%
EPS Next 2Y-24.36%
EPS Next 3Y-23.74%
EPS Next 5Y26.55%
Revenue 1Y (TTM)-31.2%
Revenue growth 3Y-5.05%
Revenue growth 5Y1.79%
Sales Q2Q%-11.77%
Revenue Next Year-24.04%
Revenue Next 2Y-10.82%
Revenue Next 3Y-7.42%
Revenue Next 5YN/A
EBIT growth 1Y-91.13%
EBIT growth 3Y-11%
EBIT growth 5Y5.05%
EBIT Next Year-26.14%
EBIT Next 3Y-3.8%
EBIT Next 5Y31.94%
FCF growth 1Y372.79%
FCF growth 3Y-41.96%
FCF growth 5Y-31.95%
OCF growth 1Y726.85%
OCF growth 3Y-38.63%
OCF growth 5Y-27.87%
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 6 / 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 4 / 10.
Can you provide the financial health for CRNC stock?
The financial health rating of CERENCE INC (CRNC) is 2 / 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%.