(CRNC) Cerence - Ratings and Ratios
Virtual Assistants, AI Software, Speech Recognition, Natural Language
CRNC EPS (Earnings per Share)
CRNC Revenue
Description: CRNC Cerence
Cerence Inc. is a leading provider of AI-powered virtual assistants for the mobility and transportation market, serving various regions globally. The companys solutions enable conversational artificial intelligence, leveraging technologies such as speech recognition, natural language understanding, and text-to-speech. This positions Cerence as a key player in the automotive and transportation sectors, where voice assistants are increasingly crucial for driver safety and in-car experience.
To assess Cerences performance, we can examine key performance indicators (KPIs) such as revenue growth, customer acquisition, and partnership expansion. Notably, Cerence has established a strategic partnership with Arm Kleidi to enhance its CaLLM Edge capabilities, indicating a focus on innovation and staying competitive in the AI landscape. The companys edge software components and cloud-connected solutions also suggest a commitment to providing comprehensive and adaptable AI-powered virtual assistants.
From a financial perspective, Cerences market capitalization stands at approximately $475.84 million, with a forward P/E ratio of 36.63. While the companys return on equity (RoE) is negative, this is not uncommon for growth-oriented technology firms that may prioritize investment in research and development over short-term profitability. To gauge Cerences potential, we should monitor its revenue growth, gross margin expansion, and operating expense management, as these will be crucial in determining the companys ability to achieve and sustain profitability.
Given the competitive landscape of AI-powered virtual assistants, Cerences success will depend on its ability to innovate, form strategic partnerships, and effectively penetrate the market. The companys focus on the mobility and transportation sector presents opportunities for growth, particularly as the demand for voice assistants and AI-driven solutions continues to rise in the automotive industry. Monitoring Cerences progress in these areas will be essential to understanding its potential for long-term success.
CRNC Stock Overview
| Market Cap in USD | 425m |
| Sub-Industry | Systems Software |
| IPO / Inception | 2019-10-02 |
CRNC Stock Ratings
| Growth Rating | -9.90% |
| Fundamental | 42.3% |
| Dividend Rating | - |
| Return 12m vs S&P 500 | 277% |
| Analyst Rating | 3.14 of 5 |
CRNC Dividends
Currently no dividends paidCRNC Growth Ratios
| Growth Correlation 3m | 35.4% |
| Growth Correlation 12m | 52% |
| Growth Correlation 5y | -90.5% |
| CAGR 5y | -12.84% |
| CAGR/Max DD 3y | -0.14 |
| CAGR/Mean DD 3y | -0.22 |
| Sharpe Ratio 12m | -0.26 |
| Alpha | 0.00 |
| Beta | 0.985 |
| Volatility | 94.24% |
| Current Volume | 4541.4k |
| Average Volume 20d | 1575.6k |
| Stop Loss | 10.7 (-5.8%) |
| Signal | 1.52 |
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 |
| (C) -0.02 = EBIT TTM -12.1m / Avg Total Assets 655.4m |
| (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) 42.31
| 1. Piotroski 3.0pt = -2.0 |
| 2. FCF Yield 7.61% = 3.81 |
| 3. FCF Margin 16.97% = 4.24 |
| 4. Debt/Equity 1.30 = 1.71 |
| 5. Debt/Ebitda data missing |
| 6. ROIC - WACC (= -9.94)% = -12.42 |
| 7. RoE -18.19% = -2.50 |
| 8. Rev. Trend -17.60% = -1.32 |
| 9. EPS Trend 16.00% = 0.80 |
What is the price of CRNC shares?
Over the past week, the price has changed by +17.84%, over one month by -1.43%, over three months by +33.18% and over the past year by +347.24%.
Is Cerence a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of CRNC is around 9.92 USD . This means that CRNC is currently overvalued and has a potential downside of -12.68%.
Is CRNC a buy, sell or hold?
- 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 | 3.4% |
| Analysts Target Price | 11.8 | 3.4% |
| ValueRay Target Price | 10.9 | -4% |
Last update: 2025-09-04 04:35
CRNC Fundamental Data Overview
CCE Cash And Equivalents = 79.1m USD (Cash And Short Term Investments, last quarter)
P/E Forward = 35.0877
P/S = 1.7261
P/B = 2.9302
Beta = 2.858
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 = 203.0m USD (Calculated: Short Term 4.16m + Long Term 198.8m)
Net Debt = 143.2m USD (from netDebt column, last quarter)
Enterprise Value = 548.4m USD (424.5m + Debt 203.0m - CCE 79.1m)
Interest Coverage Ratio = -1.04 (Ebit TTM -12.1m / Interest Expense TTM 11.6m)
FCF Yield = 7.61% (FCF TTM 41.7m / Enterprise Value 548.4m)
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)
Tobins Q-Ratio = -0.58 (set to none) (Enterprise Value 548.4m / Book Value Of Equity -952.7m)
Interest Expense / Debt = 1.19% (Interest Expense 2.41m / Debt 203.0m)
Taxrate = 21.0% (US default)
NOPAT = -12.1m (EBIT -12.1m, no tax applied on loss)
Current Ratio = 1.77 (Total Current Assets 190.1m / Total Current Liabilities 107.6m)
Debt / Equity = 1.30 (Debt 203.0m / last Quarter total Stockholder Equity 155.7m)
Debt / EBITDA = -198.4 (Net Debt 143.2m / EBITDA -1.02m)
Debt / EBITDA = -198.4 --> set to None
Debt / FCF = 4.86 (Debt 203.0m / FCF TTM 41.7m)
Total Stockholder Equity = 141.7m (last 4 quarters mean)
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 / (Equity 141.7m + L.T.Debt 198.8m))
RoIC = -3.10% (NOPAT -12.1m / Invested Capital 390.3m)
WACC = 6.83% (E(424.5m)/V(627.5m) * Re(9.65%)) + (D(203.0m)/V(627.5m) * Rd(1.19%) * (1-Tc(0.21)))
Shares Correlation 3-Years: 81.82 | Cagr: 0.85%
Discount Rate = 9.65% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 63.55% ; FCFE base≈31.8m ; Y1≈20.9m ; Y5≈9.54m
Fair Price DCF = 3.39 (DCF Value 146.7m / Shares Outstanding 43.3m; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: 16.00 | EPS CAGR: 225.9% | SUE: 1.70 | # QB: 7
Revenue Correlation: -17.60 | Revenue CAGR: 2.50% | SUE: N/A | # QB: None
Additional Sources for CRNC Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle