Cerence Inc.

  • Earnings Score
  • Moat Score
  • Safety Score
  • Market Cap $429.40M
  • PE -1
  • Debt $330.08M
  • Cash $104.10M
  • EV $655.37M
  • FCF $23.84M

Earnings

loading chart...

Sales & Net Margins

loading chart...
Earnings-$636.22M
EBIT-$655.45M
ROE-527%
ROA-106%
FCF$23.84M
Equity$120.70M
Growth Stability-743%
PE-0.67
PEG0.82
PB3.56
P/FCF18.01
P/S1.76
Price/Cash0.24
Debt/Equity2.73
Debt/FCF13.85
Net Margins-48%
Gross Margins68%
Op. Margins-269%
Earnings CAGR-1%
Sales Growth YoY-63%
Sales Growth QoQ-7%
Sales CAGR-2%
FCF CAGR-15%
Equity CAGR-21%
Earnings Stability-0.47
Earnings Growth YoY-202%
Earnings Growth QoQ19%
Earnings CAGR 5Y-1%
Sales CAGR 5Y-3%
FCF CAGR 5Y-18%
Equity CAGR 5Y-31%
Earnings CAGR 3Y-6%
Sales CAGR 3Y-6%
FCF CAGR 3Y-4%
Equity CAGR 3Y-53%
Market Cap$429.40M
Revenue$244.07M
Assets$617.53M
Total Debt$330.08M
Cash$104.10M
Shares Outstanding42.9M
EV655.37M
Earnings Score6%
Moat Score1%
Safety Score36%
Final Score14%
Working Capital48.09M
Current Ratio1.32
Gross Profit$165.34M
Shares Growth 3y3%
Equity Growth QoQ-14%
Equity Growth YoY-83%

Assets & ROA

loading chart...

Stockholders Equity & ROE

loading chart...
Cerence Inc is a United States-based software company. It is involved in developing mobility-based solutions for drivers and their cars. The customers include all major automobile original equipment manufacturers, or OEMs, or their tier 1 suppliers. The company's revenue is generated by selling software licenses and cloud-connected services. Geographically, it derives a majority of revenue from the United States and also has a presence in Other Americas; Germany; Other Europe, Middle East and Africa; Japan and Other Asia-Pacific.

SEC Filings

Direct access to Cerence Inc. (CRNC) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

  • 2024
    • 10-Q Dec 31
    • 10-K Sep 30
    • 10-Q Jun 30
    • 10-Q Mar 31
  • 2023
    • 10-Q Dec 31
    • 10-K Sep 30
    • 10-Q Jun 30
    • 10-Q Mar 31
  • 2022
    • 10-Q Dec 31
    • 10-K Sep 30
    • 10-Q Jun 30
    • 10-Q Mar 31

Sector Comparison

How does Cerence Inc. compare to its competitors?

Loading chart...

Peter Lynch's Chart

This chart shows the current pricing of Cerence Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -1%
Stability -47%
loading chart...

Cerence Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Cerence Inc..

= $95M
012345678910TV
fcf$24M$20M$17M$15M$13M$11M$9.2M$7.9M$6.7M$5.8M$4.9M$49M
DCF$19M$14M$11M$8.7M$6.7M$5.2M$4.1M$3.1M$2.4M$1.9M$19M
Value$95M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years09/201809/201909/202009/202109/202209/202309/2024TTM
Net Margins2%33%-6%12%-95%-19%-177%-48%
ROA-1%1%4%-14%-2%-83%-106%
ROE-9%-2%4%-44%-8%-417%-527%

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years09/201809/201909/202009/202109/202209/202309/2024TTM
Debt over FCF--11.824.79-15.16125.3231.5213.85
Debt over Equity--0.320.290.420.432.732.73
Growth Stability---100%-743%---743%

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years09/201809/201909/202009/202109/202209/202309/2024CAGR 5Y
Revenue YoY growth-10%9%17%-15%-10%13%-3%
Earnings YoY growth-2K%-121%-322%-777%-82%945%-1%
Equity YoY growth-8%-10%8%-31%-3%-80%-31%
FCF YoY growth--23%-69%142%-131%-112%414%-18%