Overview Dividends

(CRNC) Cerence - Ratings and Ratios

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US1567271093

AI Assistant, Edge, Cloud, Speech, NLP

CRNC EPS (Earnings per Share)

EPS Growth (3Y CAGR): -42.75%
EPS Trend (3Y Correlation): -5.6%

CRNC Revenue

Revenue Growth (3Y CAGR): 2.50%
Revenue Trend (3Y Correlation): -17.6%

Description: CRNC Cerence October 25, 2025

Cerence Inc. (NASDAQ:CRNC) develops AI-driven virtual assistants tailored for the mobility and transportation sector across North America, Europe, the Middle East, Africa, Japan, and the broader Asia-Pacific region. Its product stack includes edge-deployed software, cloud-connected services, and professional integration support, delivering conversational AI capabilities such as speech recognition, natural-language understanding, speech enhancement, text-to-speech, and acoustic modeling.

Key recent metrics (as of FY 2024) indicate the company generated approximately $210 million in revenue, reflecting a year-over-year growth rate of roughly 28 %-driven largely by expanding OEM contracts and the rollout of over-the-air updates for in-vehicle assistants. The broader automotive AI market is projected to expand at a compound annual growth rate (CAGR) of 23 % through 2030, underscoring a favorable macro-trend for Cerence’s technology. A strategic partnership with Arm’s Kleidi team aims to boost the performance of its CaLLM Edge platform, potentially reducing inference latency by up to 40 % on automotive-grade silicon.

If you want a data-rich, quantitative deep-dive into Cerence’s valuation and risk profile, consider exploring the analyst tools and model inputs available on ValueRay.

CRNC Stock Overview

Market Cap in USD	465m
Sub-Industry	Systems Software
IPO / Inception	2019-10-02

CRNC Stock Ratings

Growth Rating	-25.9%
Fundamental	40.7%
Dividend Rating	-
Return 12m vs S&P 500	154%
Analyst Rating	3.14 of 5

CRNC Dividends

Currently no dividends paid

CRNC Growth Ratios

Growth Correlation 3m	9.7%
Growth Correlation 12m	32.1%
Growth Correlation 5y	-90.2%
CAGR 5y	-20.20%
CAGR/Max DD 3y (Calmar Ratio)	-0.22
CAGR/Mean DD 3y (Pain Ratio)	-0.37
Sharpe Ratio 12m	-0.64
Alpha	154.80
Beta	2.834
Volatility	92.58%
Current Volume	1519.8k
Average Volume 20d	1508.4k
Stop Loss	8.6 (-7.3%)
Signal	-0.63

Piotroski VR‑10 (Strict, 0-10) 3.0

Net Income (-25.8m TTM) > 0 and > 6% of Revenue (6% = 14.8m TTM)

FCFTA 0.07 (>2.0%) and ΔFCFTA 4.06pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 33.56% (prev 15.75%; Δ 17.80pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.09 (>3.0%) and CFO 54.5m > Net Income -25.8m (YES >=105%, WARN >=100%)

NO Net Debt/EBITDA fails (EBITDA <= 0)

Current Ratio 1.77 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (43.3m) change vs 12m ago 3.51% (target <= -2.0% for YES)

Gross Margin 70.76% (prev 74.57%; Δ -3.81pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 37.53% (prev 53.04%; Δ -15.51pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio -1.04 (EBITDA TTM -1.02m / Interest Expense TTM 11.6m) >= 6 (WARN >= 3)

Altman Z'' -6.10

(A) 0.13 = (Total Current Assets 190.1m - Total Current Liabilities 107.6m) / Total Assets 636.8m

(B) -1.46 = Retained Earnings (Balance) -927.1m / Total Assets 636.8m

warn (B) unusual magnitude: -1.46 — check mapping/units

(D) -1.98 = Book Value of Equity -952.7m / Total Liabilities 481.1m

Total Rating: -6.10 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 40.71

1. Piotroski 3.0pt = -2.0

2. FCF Yield 6.93% = 3.46

3. FCF Margin 16.97% = 4.24

4. Debt/Equity 1.39 = 1.60

5. Debt/Ebitda data missing

6. ROIC - WACC (= -13.92)% = -12.50

7. RoE -18.19% = -2.50

8. Rev. Trend -17.60% = -1.32

9. EPS Trend -5.58% = -0.28

What is the price of CRNC shares?

As of November 09, 2025, the stock is trading at USD 9.28 with a total of 1,519,754 shares traded.
Over the past week, the price has changed by -13.51%, over one month by -24.06%, over three months by +1.75% and over the past year by +190.00%.

Is Cerence a good stock to buy?

No, based on ValueRay´s Fundamental Analyses, Cerence (NASDAQ:CRNC) is currently (November 2025) a stock to sell. It has a ValueRay Fundamental Rating of 40.71 and therefor a negative outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of CRNC is around 7.20 USD . This means that CRNC is currently overvalued and has a potential downside of -22.41%.

Is CRNC a buy, sell or hold?

Cerence has received a consensus analysts rating of 3.14. Therefor, it is recommend to hold CRNC.

Strong Buy: 0
Buy: 1
Hold: 6
Sell: 0
Strong Sell: 0

What are the forecasts/targets for the CRNC price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	11.8	26.6%
Analysts Target Price	11.8	26.6%
ValueRay Target Price	8.2	-11.3%

CRNC Fundamental Data Overview November 04, 2025

Market Cap USD = 464.8m (464.8m USD * 1.0 USD.USD)
P/E Forward = 44.2478
P/S = 1.8899
P/B = 3.701
Beta = 2.834
Revenue TTM = 245.9m USD
EBIT TTM = -12.1m USD
EBITDA TTM = -1.02m USD
Long Term Debt = 198.8m USD (from longTermDebt, last quarter)
Short Term Debt = 4.16m USD (from shortTermDebt, last quarter)
Debt = 216.8m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 143.2m USD (from netDebt column, last quarter)
Enterprise Value = 602.5m USD (464.8m + Debt 216.8m - CCE 79.1m)
Interest Coverage Ratio = -1.04 (Ebit TTM -12.1m / Interest Expense TTM 11.6m)
FCF Yield = 6.93% (FCF TTM 41.7m / Enterprise Value 602.5m)
FCF Margin = 16.97% (FCF TTM 41.7m / Revenue TTM 245.9m)
Net Margin = -10.48% (Net Income TTM -25.8m / Revenue TTM 245.9m)
Gross Margin = 70.76% ((Revenue TTM 245.9m - Cost of Revenue TTM 71.9m) / Revenue TTM)
Gross Margin QoQ = 73.73% (prev 77.15%)
Tobins Q-Ratio = 0.95 (Enterprise Value 602.5m / Total Assets 636.8m)
Interest Expense / Debt = 1.11% (Interest Expense 2.41m / Debt 216.8m)
Taxrate = -244.9% (out of range, set to none) (1.93m / -789.0k)
NOPAT = unknown (EBIT/Op.Income or Taxrate missing)
Current Ratio = 1.77 (Total Current Assets 190.1m / Total Current Liabilities 107.6m)
Debt / Equity = 1.39 (Debt 216.8m / totalStockholderEquity, last quarter 155.7m)
Debt / EBITDA = -139.9 (out of range, set to none) (Net Debt 143.2m / EBITDA -1.02m)
Debt / FCF = 3.43 (Net Debt 143.2m / FCF TTM 41.7m)
Total Stockholder Equity = 141.7m (last 4 quarters mean from totalStockholderEquity)
RoA = -4.05% (Net Income -25.8m / Total Assets 636.8m)
RoE = -18.19% (Net Income TTM -25.8m / Total Stockholder Equity 141.7m)
RoCE = -3.56% (EBIT -12.1m / Capital Employed (Equity 141.7m + L.T.Debt 198.8m))
RoIC = -2.69% (negative operating profit) (EBIT -12.1m / (Assets 636.8m - Curr.Liab 107.6m - Cash 79.1m))
WACC = 11.22% (E(464.8m)/V(681.6m) * Re(16.46%) + (debt cost/tax rate unavailable))
Discount Rate = 16.46% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -6.28%
[DCF Debug] Terminal Value 42.35% ; FCFE base≈31.8m ; Y1≈20.9m ; Y5≈9.54m
Fair Price DCF = 1.86 (DCF Value 80.5m / Shares Outstanding 43.3m; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: -5.58 | EPS CAGR: -42.75% | SUE: 1.83 | # QB: 8
Revenue Correlation: -17.60 | Revenue CAGR: 2.50% | SUE: 3.14 | # QB: 2

Additional Sources for CRNC Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
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Fund Manager Positions: Dataroma | Stockcircle