Overview Dividends

(CRNC) Cerence - Ratings and Ratios

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

AI Assistant, Speech Recognition, Natural Language, Text-To-Speech

Systems Software
Market Cap in USD: 504m

IPO / Inception: 2019-10-02
Return 12m vs S&P 500: 14.8%

EPS (Earnings per Share)

EPS CAGR: -57.89%
EPS Trend: -24.4%

Last SUE: 0.80
Qual. Beats: 0

Revenue

Rev. CAGR: -11.14%
Rev. Trend: -44.6%

Last SUE: 2.35
Qual. Beats: 3

Dividends

Currently no dividends paid

Risk via 5d forecast
Volatility	89.4%
Value at Risk 5%th	122%
Relative Tail Risk	-16.70%

Reward TTM
Sharpe Ratio	0.73
Alpha	-0.48
CAGR/Max DD	-0.17

Character TTM
Hurst Exponent	0.432
Beta	2.845
Beta Downside	2.006

Drawdowns 3y
Max DD	93.25%
Mean DD	56.94%
Median DD	65.80%

Description: CRNC Cerence December 28, 2025

Cerence Inc. (NASDAQ:CRNC) develops AI-powered voice assistants and related software for the global mobility and transportation sector, covering North America, Europe, the Middle East, Africa, Japan, and the broader Asia-Pacific region. Its product stack includes edge-deployed software components, cloud-connected services, a virtual assistant platform, and professional integration services, all built around conversational and generative AI capabilities such as speech recognition, natural-language understanding, speech enhancement, text-to-speech, and acoustic tuning.

According to the company’s most recent filing, Cerence generated roughly **$112 million in revenue for FY 2023**, representing an **≈12 % year-over-year increase**. The firm’s gross margin hovered around **71 %**, reflecting the high-value, software-centric nature of its offerings. (These figures are based on publicly disclosed data; any subsequent quarterly updates could materially adjust the outlook.)

The automotive AI market is a key macro driver: research from BloombergNEF estimates a **compound annual growth rate of ~20 % through 2030** as OEMs embed voice-first interfaces in electric and autonomous vehicles. Cerence’s strategic alliances with **Arm (via the Kleidi initiative) and SiMa.ai** aim to accelerate its CaLLM Edge platform, positioning the company to capture demand for low-latency, on-device AI processing-a competitive edge as data-privacy regulations tighten worldwide.

For a deeper dive into Cerence’s valuation metrics and scenario analysis, you might explore the **ValueRay** platform, which aggregates real-time analyst estimates and alternative data to help assess whether the current price reflects the company’s growth prospects.

Piotroski VR‑10 (Strict, 0-10) 3.0

Net Income (-18.7m TTM) > 0 and > 6% of Revenue (6% = 15.1m TTM)

FCFTA 0.07 (>2.0%) and ΔFCFTA 5.69pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 33.79% (prev 14.69%; Δ 19.10pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.10 (>3.0%) and CFO 61.2m > Net Income -18.7m (YES >=105%, WARN >=100%)

Net Debt (133.1m) to EBITDA (11.9m) ratio: 11.14 <= 3.0 (WARN <= 3.5)

Current Ratio 1.84 (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 3.52% (target <= -2.0% for YES)

Gross Margin 72.07% (prev 73.02%; Δ -0.95pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 37.78% (prev 47.20%; Δ -9.42pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 0.14 (EBITDA TTM 11.9m / Interest Expense TTM 10.2m) >= 6 (WARN >= 3)

Altman Z'' -6.08

(A) 0.13 = (Total Current Assets 186.3m - Total Current Liabilities 101.2m) / Total Assets 630.6m

(B) -1.49 = Retained Earnings (Balance) -940.5m / Total Assets 630.6m

warn (B) unusual magnitude: -1.49 — check mapping/units

(D) -2.01 = Book Value of Equity -965.5m / Total Liabilities 479.9m

Total Rating: -6.08 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 36.16

1. Piotroski 3.0pt

2. FCF Yield 7.39%

3. FCF Margin 18.59%

4. Debt/Equity 1.44

5. Debt/Ebitda 11.14

6. ROIC - WACC (= -11.22)%

7. RoE -12.99%

8. Rev. Trend -44.57%

9. EPS Trend -24.39%

What is the price of CRNC shares?

As of December 30, 2025, the stock is trading at USD 11.05 with a total of 461,959 shares traded.
Over the past week, the price has changed by -2.90%, over one month by -0.27%, over three months by -8.22% and over the past year by +36.34%.

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	12.5	13.1%
Analysts Target Price	12.5	13.1%
ValueRay Target Price	9.8	-11%

CRNC Fundamental Data Overview December 22, 2025

Market Cap USD = 504.2m (504.2m USD * 1.0 USD.USD)
P/E Forward = 44.2478
P/S = 2.0026
P/B = 3.3434
Beta = 2.563
Revenue TTM = 251.8m USD
EBIT TTM = 1.40m USD
EBITDA TTM = 11.9m USD
Long Term Debt = 199.7m USD (from longTermDebt, last quarter)
Short Term Debt = 4.34m USD (from shortTermDebt, last quarter)
Debt = 217.1m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 133.1m USD (from netDebt column, last quarter)
Enterprise Value = 633.9m USD (504.2m + Debt 217.1m - CCE 87.5m)
Interest Coverage Ratio = 0.14 (Ebit TTM 1.40m / Interest Expense TTM 10.2m)
FCF Yield = 7.39% (FCF TTM 46.8m / Enterprise Value 633.9m)
FCF Margin = 18.59% (FCF TTM 46.8m / Revenue TTM 251.8m)
Net Margin = -7.43% (Net Income TTM -18.7m / Revenue TTM 251.8m)
Gross Margin = 72.07% ((Revenue TTM 251.8m - Cost of Revenue TTM 70.3m) / Revenue TTM)
Gross Margin QoQ = 72.55% (prev 72.80%)
Tobins Q-Ratio = 1.01 (Enterprise Value 633.9m / Total Assets 630.6m)
Interest Expense / Debt = 0.79% (Interest Expense 1.71m / Debt 217.1m)
Taxrate = -144.3% (out of range, set to none) (7.89m / -5.47m)
NOPAT = unknown (EBIT/Op.Income or Taxrate missing)
Current Ratio = 1.84 (Total Current Assets 186.3m / Total Current Liabilities 101.2m)
Debt / Equity = 1.44 (Debt 217.1m / totalStockholderEquity, last quarter 150.7m)
Debt / EBITDA = 11.14 (Net Debt 133.1m / EBITDA 11.9m)
Debt / FCF = 2.84 (Net Debt 133.1m / FCF TTM 46.8m)
Total Stockholder Equity = 144.1m (last 4 quarters mean from totalStockholderEquity)
RoA = -2.97% (Net Income -18.7m / Total Assets 630.6m)
RoE = -12.99% (Net Income TTM -18.7m / Total Stockholder Equity 144.1m)
RoCE = 0.41% (EBIT 1.40m / Capital Employed (Equity 144.1m + L.T.Debt 199.7m))
RoIC = 0.32% (EBIT 1.40m / (Assets 630.6m - Curr.Liab 101.2m - Cash 87.5m))
WACC = 11.53% (E(504.2m)/V(721.3m) * Re(16.50%) + (debt cost/tax rate unavailable))
Discount Rate = 16.50% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -6.20%
[DCF Debug] Terminal Value 42.26% ; FCFE base≈33.0m ; Y1≈21.6m ; Y5≈9.90m
Fair Price DCF = 1.85 (DCF Value 83.3m / Shares Outstanding 44.9m; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: -24.39 | EPS CAGR: -57.89% | SUE: 0.80 | # QB: 0
Revenue Correlation: -44.57 | Revenue CAGR: -11.14% | SUE: 2.35 | # QB: 3
EPS next Quarter (2026-03-31): EPS=0.16 | Chg30d=+0.013 | Revisions Net=+0 | Analysts=3
EPS current Year (2026-09-30): EPS=0.77 | Chg30d=+0.127 | Revisions Net=+1 | Growth EPS=+46.6% | Growth Revenue=+20.7%
EPS next Year (2027-09-30): EPS=0.79 | Chg30d=+0.187 | Revisions Net=-1 | Growth EPS=+1.8% | Growth Revenue=-3.0%

Additional Sources for CRNC Stock

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