CERENCE INC (CRNC) Fundamental Analysis & Valuation
NASDAQ:CRNC • US1567271093
Current stock price
9 USD
+0.3 (+3.45%)
At close:
8.99 USD
-0.01 (-0.11%)
After Hours:
This CRNC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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.
- CRNC had negative earnings in 4 of the past 5 years.
- Of the past 5 years CRNC 4 years had a positive operating cash flow.
1.2 Ratios
- CRNC has a Return On Assets (0.06%) which is in line with its industry peers.
- CRNC has a Return On Equity of 0.22%. This is comparable to the rest of the industry: CRNC outperforms 59.93% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 8.81%, CRNC belongs to the top of the industry, outperforming 81.62% of the companies in the same industry.
| Industry Rank | Sector 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
1.3 Margins
- With a Profit Margin value of 0.11%, CRNC perfoms like the industry average, outperforming 57.35% of the companies in the same industry.
- 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.
- CRNC has a better Gross Margin (78.94%) than 77.57% of its industry peers.
- CRNC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
2. CRNC Health Analysis
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.
- 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.
2.2 Solvency
- Based on the Altman-Z score of -0.67, we must say that CRNC is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of -0.67, CRNC is not doing good in the industry: 74.26% of the companies in the same industry are doing better.
- CRNC has a debt to FCF ratio of 2.31. This is a good value and a sign of high solvency as CRNC would need 2.31 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 2.31, CRNC is doing good in the industry, outperforming 65.44% of the companies in the same industry.
- A Debt/Equity ratio of 1.14 is on the high side and indicates that CRNC has dependencies on debt financing.
- CRNC has a Debt to Equity ratio of 1.14. This is in the lower half of the industry: CRNC underperforms 77.21% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 2.31 | ||
| Altman-Z | -0.67 |
ROIC/WACC0.97
WACC9.13%
2.3 Liquidity
- A Current Ratio of 1.88 indicates that CRNC should not have too much problems paying its short term obligations.
- CRNC has a Current ratio (1.88) which is in line with its industry peers.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.86 |
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%.
- CRNC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -20.04% yearly.
- The Revenue has grown by 29.46% in the past year. This is a very strong growth!
- CRNC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.32% yearly.
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
- CRNC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 50.00% yearly.
- The Revenue is expected to grow by 4.62% on average over the next years.
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
- 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. CRNC Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 12.00, the valuation of CRNC can be described as correct.
- CRNC's Price/Earnings ratio is rather cheap when compared to the industry. CRNC is cheaper than 86.76% of the companies in the same industry.
- CRNC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.89.
- CRNC is valuated reasonably with a Price/Forward Earnings ratio of 11.73.
- CRNC's Price/Forward Earnings ratio is rather cheap when compared to the industry. CRNC is cheaper than 83.46% of the companies 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 38.50.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12 | ||
| Fwd PE | 11.73 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CRNC is valued cheaply inside the industry as 93.38% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of CRNC indicates a rather cheap valuation: CRNC is cheaper than 97.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.43 | ||
| EV/EBITDA | 7.03 |
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.
- CRNC's earnings are expected to grow with 13.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.39
PEG (5Y)N/A
EPS Next 2Y19.67%
EPS Next 3Y13.83%
5. CRNC Dividend Analysis
5.1 Amount
- No dividends for CRNC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CRNC Fundamentals: All Metrics, Ratios and Statistics
9
+0.3 (+3.45%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-04 2026-02-04/amc
Earnings (Next)05-07 2026-05-07/bmo
Inst Owners80.24%
Inst Owner Change-0.23%
Ins Owners3.1%
Ins Owner Change30.96%
Market Cap405.18M
Revenue(TTM)315.96M
Net Income(TTM)335.00K
Analysts48.89
Price Target10.46 (16.22%)
Short Float %13.82%
Short Ratio6.13
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)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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12 | ||
| Fwd PE | 11.73 | ||
| P/S | 1.28 | ||
| P/FCF | 5.43 | ||
| P/OCF | 4.51 | ||
| P/B | 2.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.03 |
EPS(TTM)0.75
EY8.33%
EPS(NY)0.77
Fwd EY8.53%
FCF(TTM)1.66
FCFY18.4%
OCF(TTM)1.99
OCFY22.17%
SpS7.02
BVpS3.34
TBVpS-3.3
PEG (NY)0.39
PEG (5Y)N/A
Graham Number7.50935 (-16.56%)
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | -0.67 |
F-Score8
WACC9.13%
ROIC/WACC0.97
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 8 / 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.