CERENCE INC (CRNC) Fundamental Analysis & Valuation

NASDAQ:CRNC • US1567271093

Current stock price

6.06 USD
-0.45 (-6.91%)
At close:
6.0635 USD
+0 (+0.06%)
After Hours:

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

5

1. CRNC Profitability Analysis

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.
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 better Return On Equity (0.22%) than 60.43% of its industry peers.
  • With an excellent Return On Invested Capital value of 8.81%, CRNC belongs to the best of the industry, outperforming 82.37% of the companies in the same industry.
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 has a Profit Margin (0.11%) which is in line with its industry peers.
  • CRNC has a Operating Margin of 17.76%. This is amongst the best in the industry. CRNC outperforms 85.97% 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 78.94%, CRNC is in the better half of the industry, outperforming 78.42% of the companies in the same industry.
  • CRNC's Gross Margin has improved in the last couple of years.
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.
  • The number of shares outstanding for CRNC has been increased compared to 1 year ago.
  • CRNC has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for CRNC has been reduced compared to a year ago.
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

  • Based on the Altman-Z score of -0.83, we must say that CRNC is in the distress zone and has some risk of bankruptcy.
  • CRNC has a worse Altman-Z score (-0.83) than 73.38% of its industry peers.
  • 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 Debt to FCF ratio of 2.31. This is in the better half of the industry: CRNC outperforms 65.47% 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.
  • The Debt to Equity ratio of CRNC (1.14) is worse than 77.70% of its industry peers.
  • Although CRNC's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 1.14
Debt/FCF 2.31
Altman-Z -0.83
ROIC/WACC0.96
WACC9.15%
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

  • CRNC has a Current Ratio of 1.88. 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 1.88, CRNC perfoms like the industry average, outperforming 55.76% of the companies in the same industry.
  • A Quick Ratio of 1.86 indicates that CRNC should not have too much problems paying its short term obligations.
  • CRNC has a Quick ratio (1.86) which 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

  • CRNC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -53.39%.
  • The earnings per share for CRNC have been decreasing by -20.04% on average. This is quite bad
  • Looking at the last year, CRNC shows a very strong growth in Revenue. The Revenue has grown by 29.46%.
  • 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.
  • CRNC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.64% yearly.
EPS Next Y29.4%
EPS Next 2Y13.48%
EPS Next 3Y-5.04%
EPS Next 5Y50%
Revenue Next Year27.41%
Revenue Next 2Y7.78%
Revenue Next 3Y4.64%
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.
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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8

4. CRNC Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 8.08, which indicates a very decent valuation of CRNC.
  • Based on the Price/Earnings ratio, CRNC is valued cheaply inside the industry as 89.93% 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 24.88.
  • The Price/Forward Earnings ratio is 8.78, which indicates a very decent valuation of CRNC.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of CRNC indicates a rather cheap valuation: CRNC is cheaper than 86.33% of the companies listed in the same industry.
  • CRNC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.19.
Industry RankSector Rank
PE 8.08
Fwd PE 8.78
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

  • 94.96% of the companies in the same industry are more expensive than CRNC, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of CRNC indicates a rather cheap valuation: CRNC is cheaper than 98.20% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 3.66
EV/EBITDA 5.24
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 cheap valuation may be justified as CRNC's earnings are expected to decrease with -5.04% in the coming years.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y13.48%
EPS Next 3Y-5.04%

More info and screens

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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Find the best dividend stocksShow peers with best dividend

CRNC Fundamentals: All Metrics, Ratios and Statistics

CERENCE INC

NASDAQ:CRNC (3/27/2026, 8:09:35 PM)

After market: 6.0635 +0 (+0.06%)

6.06

-0.45 (-6.91%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-04
Earnings (Next)05-05
Inst Owners80.11%
Inst Owner Change15.51%
Ins Owners3.1%
Ins Owner Change26.32%
Market Cap272.82M
Revenue(TTM)315.96M
Net Income(TTM)335.00K
Analysts48.89
Price Target10.2 (68.32%)
Short Float %14.43%
Short Ratio6.14
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)-11.76%
PT rev (3m)-11.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.45%
EPS NY rev (1m)-11.95%
EPS NY rev (3m)-11.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.28%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.3%
Valuation
Industry RankSector Rank
PE 8.08
Fwd PE 8.78
P/S 0.86
P/FCF 3.66
P/OCF 3.04
P/B 1.81
P/tB N/A
EV/EBITDA 5.24
EPS(TTM)0.75
EY12.38%
EPS(NY)0.69
Fwd EY11.39%
FCF(TTM)1.66
FCFY27.33%
OCF(TTM)1.99
OCFY32.92%
SpS7.02
BVpS3.34
TBVpS-3.3
PEG (NY)0.27
PEG (5Y)N/A
Graham Number7.51
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 -0.83
F-Score8
WACC9.15%
ROIC/WACC0.96
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 Y29.4%
EPS Next 2Y13.48%
EPS Next 3Y-5.04%
EPS Next 5Y50%
Revenue 1Y (TTM)29.46%
Revenue growth 3Y-8.43%
Revenue growth 5Y-5.32%
Sales Q2Q%126.1%
Revenue Next Year27.41%
Revenue Next 2Y7.78%
Revenue Next 3Y4.64%
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 5 / 10 to CRNC.


What is the valuation status for CRNC stock?

ChartMill assigns a valuation rating of 8 / 10 to CERENCE INC (CRNC). This can be considered as Undervalued.


What is the profitability of CRNC stock?

CERENCE INC (CRNC) has a profitability rating of 5 / 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 8.08 and the Price/Book (PB) ratio is 1.81.


Is the dividend of CERENCE INC sustainable?

The dividend rating of CERENCE INC (CRNC) is 0 / 10 and the dividend payout ratio is 0%.