(CRNC) Cerence - Overview
Exchange: NASDAQ •
Country: United States •
Currency: USD •
Type: Common Stock •
ISIN: US1567271093
Stock: AI Assistant, Edge, Cloud, Speech, Automotive
Total Rating 17
Risk 41
Buy Signal -1.38
| Risk 5d forecast | |
|---|---|
| Volatility | 106% |
| Relative Tail Risk | -19.3% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.08 |
| Alpha | -63.88 |
| Character TTM | |
|---|---|
| Beta | 2.245 |
| Beta Downside | 2.261 |
| Drawdowns 3y | |
|---|---|
| Max DD | 93.25% |
| CAGR/Max DD | -0.38 |
EPS (Earnings per Share)
Revenue
Risks
Fundamental:
P/E ratio: 376.0
Technicals: volatileDescription: CRNC Cerence February 28, 2026
Cerence Inc. (NASDAQ: CRNC) develops AI-driven conversational assistants for the mobility and transportation sector, delivering edge-software, cloud-connected components, and professional services that enable speech recognition, natural-language understanding, text-to-speech, and acoustic tuning across a global OEM base.
In its FY 2025 results, Cerence reported revenue of $421 million, a 12% year-over-year increase, with recurring subscription revenue now representing 68% of total sales and operating loss narrowed to $15 million as cash balances rose to $152 million. The company’s CaLLM Edge solution, co-developed with Arm and SiMa.ai, is currently deployed in 15 major automotive manufacturers, accelerating on-device AI inference and reducing latency by up to 40%.
The automotive software market is a key growth driver: analysts project global spend on in-car AI assistants to exceed $30 billion by 2027, expanding at a 23% CAGR, fueled by stricter hands-free driving regulations and consumer demand for seamless voice-first experiences.
For a deeper dive into Cerence’s valuation metrics and competitive positioning, you might find ValueRay’s research worth exploring.
Piotroski VR‑10 (Strict, 0-10) 6.5
| Net Income: 335.0k TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA 8.53 > 1.0 |
| NWC/Revenue: 27.50% < 20% (prev 19.70%; Δ 7.80% < -1%) |
| CFO/TA 0.15 > 3% & CFO 89.8m > Net Income 335.0k |
| Net Debt (108.3m) to EBITDA (58.6m): 1.85 < 3 |
| Current Ratio: 1.88 > 1.5 & < 3 |
| Outstanding Shares: last quarter (45.0m) vs 12m ago 4.79% < -2% |
| Gross Margin: 78.59% > 18% (prev 0.67%; Δ 7792 % > 0.5%) |
| Asset Turnover: 51.82% > 50% (prev 39.52%; Δ 12.29% > 0%) |
| Interest Coverage Ratio: 5.69 > 6 (EBITDA TTM 58.6m / Interest Expense TTM 8.49m) |
Altman Z'' -5.90
| A: 0.14 (Total Current Assets 186.1m - Total Current Liabilities 99.2m) / Total Assets 602.0m |
| B: -1.57 (Retained Earnings -945.7m / Total Assets 602.0m) |
| C: 0.08 (EBIT TTM 48.4m / Avg Total Assets 609.8m) |
| D: -2.15 (Book Value of Equity -971.0m / Total Liabilities 451.6m) |
| Altman-Z'' Score: -5.90 = D |
Beneish M -3.24
| DSRI: 0.83 (Receivables 51.2m/47.7m, Revenue 316.0m/244.1m) |
| GMI: 0.85 (GM 78.59% / 66.84%) |
| AQI: 1.00 (AQ_t 0.61 / AQ_t-1 0.61) |
| SGI: 1.29 (Revenue 316.0m / 244.1m) |
| TATA: -0.15 (NI 335.0k - CFO 89.8m) / TA 602.0m) |
| Beneish M-Score: -3.24 (Cap -4..+1) = AA |
What is the price of CRNC shares?
As of March 05, 2026, the stock is trading at USD 7.55 with a total of 578,219 shares traded.
Over the past week, the price has changed by -1.95%, over one month by -29.96%, over three months by -41.70% and over the past year by -26.98%.
Over the past week, the price has changed by -1.95%, over one month by -29.96%, over three months by -41.70% and over the past year by -26.98%.
Is CRNC a buy, sell or hold?
Cerence has received a consensus analysts rating of 3.14.
Therefor, it is recommend to hold CRNC.
- StrongBuy: 0
- Buy: 1
- Hold: 6
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the CRNC price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 10 | 32.5% |
| Analysts Target Price | 10 | 32.5% |
CRNC Fundamental Data Overview March 05, 2026
P/E Trailing = 376.0
P/E Forward = 43.1034
P/S = 1.0714
P/B = 2.3191
Revenue TTM = 316.0m USD
EBIT TTM = 48.4m USD
EBITDA TTM = 58.6m USD
Long Term Debt = 171.9m USD (from longTermDebt, last quarter)
Short Term Debt = 4.53m USD (from shortTermDebt, last quarter)
Debt = 200.4m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 108.3m USD (from netDebt column, last quarter)
Enterprise Value = 444.3m USD (338.5m + Debt 200.4m - CCE 94.7m)
Interest Coverage Ratio = 5.69 (Ebit TTM 48.4m / Interest Expense TTM 8.49m)
EV/FCF = 5.96x (Enterprise Value 444.3m / FCF TTM 74.6m)
FCF Yield = 16.78% (FCF TTM 74.6m / Enterprise Value 444.3m)
FCF Margin = 23.60% (FCF TTM 74.6m / Revenue TTM 316.0m)
Net Margin = 0.11% (Net Income TTM 335.0k / Revenue TTM 316.0m)
Gross Margin = 78.59% ((Revenue TTM 316.0m - Cost of Revenue TTM 67.7m) / Revenue TTM)
Gross Margin QoQ = 86.33% (prev 72.55%)
Tobins Q-Ratio = 0.74 (Enterprise Value 444.3m / Total Assets 602.0m)
Interest Expense / Debt = 0.83% (Interest Expense 1.67m / Debt 200.4m)
Taxrate = 21.0% (US default 21%)
NOPAT = 38.2m (EBIT 48.4m * (1 - 21.00%))
Current Ratio = 1.88 (Total Current Assets 186.1m / Total Current Liabilities 99.2m)
Debt / Equity = 1.33 (Debt 200.4m / totalStockholderEquity, last quarter 150.4m)
Debt / EBITDA = 1.85 (Net Debt 108.3m / EBITDA 58.6m)
Debt / FCF = 1.45 (Net Debt 108.3m / FCF TTM 74.6m)
Total Stockholder Equity = 151.5m (last 4 quarters mean from totalStockholderEquity)
RoA = 0.05% (Net Income 335.0k / Total Assets 602.0m)
RoE = 0.22% (Net Income TTM 335.0k / Total Stockholder Equity 151.5m)
RoCE = 14.95% (EBIT 48.4m / Capital Employed (Equity 151.5m + L.T.Debt 171.9m))
RoIC = 10.65% (NOPAT 38.2m / Invested Capital 358.5m)
WACC = 9.16% (E(338.5m)/V(538.9m) * Re(14.19%) + D(200.4m)/V(538.9m) * Rd(0.83%) * (1-Tc(0.21)))
Discount Rate = 14.19% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -4.47%
[DCF] Terminal Value 65.16% ; FCFF base≈54.3m ; Y1≈35.6m ; Y5≈16.3m
[DCF] Fair Price = 3.48 (EV 264.7m - Net Debt 108.3m = Equity 156.5m / Shares 45.0m; r=9.16% [WACC]; 5y FCF grow -40.0% → 2.90% )
EPS Correlation: -18.00 | EPS CAGR: -27.79% | SUE: -4.0 | # QB: 0
Revenue Correlation: -12.48 | Revenue CAGR: 7.98% | SUE: 0.26 | # QB: 0
EPS next Quarter (2026-06-30): EPS=0.20 | Chg7d=+0.033 | Chg30d=+0.033 | Revisions Net=+1 | Analysts=4
EPS current Year (2026-09-30): EPS=0.68 | Chg7d=-0.092 | Chg30d=-0.092 | Revisions Net=-1 | Growth EPS=+29.0% | Growth Revenue=+24.7%
EPS next Year (2027-09-30): EPS=0.68 | Chg7d=-0.153 | Chg30d=-0.153 | Revisions Net=-1 | Growth EPS=-0.5% | Growth Revenue=-8.8%
[Analyst] Revisions Ratio: +0.33 (2 Up / 1 Down within 30d for Next Quarter)
[Growth] Implied Growth Rate = 13.9% (Discount Rate 14.2% - Earnings Yield 0.3%)
[Growth] Growth Spread = -4.2% (Analyst 9.7% - Implied 13.9%)
P/E Forward = 43.1034
P/S = 1.0714
P/B = 2.3191
Revenue TTM = 316.0m USD
EBIT TTM = 48.4m USD
EBITDA TTM = 58.6m USD
Long Term Debt = 171.9m USD (from longTermDebt, last quarter)
Short Term Debt = 4.53m USD (from shortTermDebt, last quarter)
Debt = 200.4m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 108.3m USD (from netDebt column, last quarter)
Enterprise Value = 444.3m USD (338.5m + Debt 200.4m - CCE 94.7m)
Interest Coverage Ratio = 5.69 (Ebit TTM 48.4m / Interest Expense TTM 8.49m)
EV/FCF = 5.96x (Enterprise Value 444.3m / FCF TTM 74.6m)
FCF Yield = 16.78% (FCF TTM 74.6m / Enterprise Value 444.3m)
FCF Margin = 23.60% (FCF TTM 74.6m / Revenue TTM 316.0m)
Net Margin = 0.11% (Net Income TTM 335.0k / Revenue TTM 316.0m)
Gross Margin = 78.59% ((Revenue TTM 316.0m - Cost of Revenue TTM 67.7m) / Revenue TTM)
Gross Margin QoQ = 86.33% (prev 72.55%)
Tobins Q-Ratio = 0.74 (Enterprise Value 444.3m / Total Assets 602.0m)
Interest Expense / Debt = 0.83% (Interest Expense 1.67m / Debt 200.4m)
Taxrate = 21.0% (US default 21%)
NOPAT = 38.2m (EBIT 48.4m * (1 - 21.00%))
Current Ratio = 1.88 (Total Current Assets 186.1m / Total Current Liabilities 99.2m)
Debt / Equity = 1.33 (Debt 200.4m / totalStockholderEquity, last quarter 150.4m)
Debt / EBITDA = 1.85 (Net Debt 108.3m / EBITDA 58.6m)
Debt / FCF = 1.45 (Net Debt 108.3m / FCF TTM 74.6m)
Total Stockholder Equity = 151.5m (last 4 quarters mean from totalStockholderEquity)
RoA = 0.05% (Net Income 335.0k / Total Assets 602.0m)
RoE = 0.22% (Net Income TTM 335.0k / Total Stockholder Equity 151.5m)
RoCE = 14.95% (EBIT 48.4m / Capital Employed (Equity 151.5m + L.T.Debt 171.9m))
RoIC = 10.65% (NOPAT 38.2m / Invested Capital 358.5m)
WACC = 9.16% (E(338.5m)/V(538.9m) * Re(14.19%) + D(200.4m)/V(538.9m) * Rd(0.83%) * (1-Tc(0.21)))
Discount Rate = 14.19% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -4.47%
[DCF] Terminal Value 65.16% ; FCFF base≈54.3m ; Y1≈35.6m ; Y5≈16.3m
[DCF] Fair Price = 3.48 (EV 264.7m - Net Debt 108.3m = Equity 156.5m / Shares 45.0m; r=9.16% [WACC]; 5y FCF grow -40.0% → 2.90% )
EPS Correlation: -18.00 | EPS CAGR: -27.79% | SUE: -4.0 | # QB: 0
Revenue Correlation: -12.48 | Revenue CAGR: 7.98% | SUE: 0.26 | # QB: 0
EPS next Quarter (2026-06-30): EPS=0.20 | Chg7d=+0.033 | Chg30d=+0.033 | Revisions Net=+1 | Analysts=4
EPS current Year (2026-09-30): EPS=0.68 | Chg7d=-0.092 | Chg30d=-0.092 | Revisions Net=-1 | Growth EPS=+29.0% | Growth Revenue=+24.7%
EPS next Year (2027-09-30): EPS=0.68 | Chg7d=-0.153 | Chg30d=-0.153 | Revisions Net=-1 | Growth EPS=-0.5% | Growth Revenue=-8.8%
[Analyst] Revisions Ratio: +0.33 (2 Up / 1 Down within 30d for Next Quarter)
[Growth] Implied Growth Rate = 13.9% (Discount Rate 14.2% - Earnings Yield 0.3%)
[Growth] Growth Spread = -4.2% (Analyst 9.7% - Implied 13.9%)