A Business at a Glance
0 of 1 daily views used (1 remaining). Sign up free for +5 more daily views (6 total), or try AAPL for a full preview.
Cerence Inc.
CRNC
$368M
Mkt Cap
$8.44
-4.14%
Cerence Inc. (CRNC) has a current P/E ratio of 422.2, compared to its historical median P/E of 46.6. The stock is currently considered Expensive based on its historical valuation range.
Cerence Inc. (CRNC) has a 5-year average return on invested capital (ROIC) of -23.8%. This is below average and may indicate limited pricing power.
Cerence Inc. (CRNC) has a market capitalization of $381M. It is classified as a small-cap stock.
Cerence Inc. (CRNC) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 2.04%.
Based on historical P/E analysis, Cerence Inc. (CRNC) appears expensive. The current P/E of 422.2 is 807% above its historical median of 46.6. The estimated fair value CAGR (P/E method) is -13.2%.
Cerence Inc. (CRNC) operates in the Services-Prepackaged Software industry, within the Technology sector.
Cerence Inc. (CRNC) reported annual revenue of $252 million in its most recent fiscal year, based on SEC EDGAR filings.
Cerence builds conversational and agentic AI solutions that make interaction with technology feel effortless. With decades of expertise in voice, AI, and edge-to-cloud engineering, we’re trusted by many of the world’s leading automakers, transportation OEMs, consumer brands, and technology companies to build voice powered-interfaces that shape the user experiences of today and tomorrow. While the majority of our business is in the automotive market, our solutions can be leveraged across other areas of transportation - two-wheeled vehicles, trucks, and more - as well as outside of automotive - televisions, smart watches, voice-powered kiosks, and more. Our automotive customers include nearly all major automobile original equipment manufacturers (OEMs) worldwide, including BMW, Mercedes-Benz, the Volkswagen Group (Volkswagen, Audi, Porsche, and other brands), Stellantis, Renault, Toyota, Ford, General Motors, BYD, Great Wall Motor, and NIO.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 302M | 252M | 332M | 294M | 328M | 387M |
| Net Income | -20M | -19M | -588M | -56M | -311M | 46M |
| EPS | $-0.45 | $-0.43 | $-14.12 | $-1.40 | $-7.93 | $1.17 |
| Free Cash Flow | 75M | 47M | 12M | 2.4M | -20M | 62M |
| ROIC | -10.2% | -1.0% | -90.0% | -5.8% | -27.4% | 5.2% |
| Gross Margin | 78.3% | 72.7% | 73.7% | 67.7% | 70.4% | 73.9% |
| Debt/Equity | 1.09 | 1.33 | 2.00 | 0.40 | 0.38 | 0.26 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 24M | -2.3M | -580M | -27M | -184M | 61M |
| Operating Margin | 8.0% | -0.9% | -174.9% | -9.2% | -56.2% | 15.7% |
| ROE | -12.4% | -12.8% | -140.7% | -8.0% | -35.6% | 4.6% |
| Shares Outstanding | 45M | 44M | 42M | 40M | 39M | 39M |
| Metric | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||
| Revenue | 277M | 303M | 331M | 387M | 328M | 294M | 332M | 252M | 302M |
| Gross Margin | 70.0% | 67.2% | 67.4% | 73.9% | 70.4% | 67.7% | 73.7% | 72.7% | 78.3% |
| R&D | 81M | 93M | 89M | 112M | 107M | 123M | 122M | 98M | 109M |
| SG&A | 20M | 26M | 49M | 57M | 43M | 58M | 52M | 49M | 70M |
| EBIT | 37M | 11M | 22M | 61M | -184M | -27M | -580M | -2.3M | 24M |
| Op. Margin | 13.3% | 3.6% | 6.8% | 15.7% | -56.2% | -9.2% | -174.9% | -0.9% | 8.0% |
| Net Income | 5.9M | 100M | -18M | 46M | -311M | -56M | -588M | -19M | -20M |
| Net Margin | 2.1% | 33.1% | -5.5% | 11.9% | -94.8% | -19.1% | -177.4% | -7.4% | -6.5% |
| Non-Recurring | 0 | 0 | 0 | 0 | 214M | 12M | 626M | 15M | 23M |
| Returns on Capital | |||||||||
| ROIC | N/A | 9.7% | 2.1% | 5.2% | -27.4% | -5.8% | -90.0% | -1.0% | -10.2% |
| ROE | N/A | 9.7% | -1.8% | 4.6% | -35.6% | -8.0% | -140.7% | -12.8% | -12.4% |
| ROA | N/A | 13.5% | -1.2% | 2.7% | -20.6% | -4.3% | -58.8% | -2.8% | -3.2% |
| Cash Flow | |||||||||
| Op. Cash Flow | 115M | 88M | 45M | 74M | -2.1M | 7.5M | 17M | 61M | 88M |
| Free Cash Flow | 109M | 84M | 26M | 62M | -20M | 2.4M | 12M | 47M | 75M |
| Owner Earnings | 67M | 30M | -33M | -16M | -54M | -49M | -17M | 23M | 53M |
| CapEx | 6.5M | 4.5M | 19M | 12M | 17M | 5.1M | 5.0M | 14M | 13M |
| Maint. CapEx | 26M | 29M | 30M | 30M | 24M | 16M | 11M | 11M | 9.7M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3.8M | 3.7M |
| D&A | 26M | 29M | 30M | 30M | 24M | 16M | 11M | 11M | 9.7M |
| CapEx/OCF | N/A | 5.1% | 42.4% | 16.2% | N/A | 68.3% | 29.1% | 23.5% | 15.1% |
| Capital Allocation | |||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 9.4M | 46M | 49M | 4.9M | 9.9M | 2.4M | 7.8M |
| Buyback Yield | 0.0% | N/A | 0.5% | 1.1% | 7.4% | 0.6% | 8.0% | 0.5% | 2.0% |
| Stock-Based Comp | 22M | 30M | 47M | 61M | 28M | 41M | 24M | 27M | 26M |
| Debt Repayment | 0 | 0 | 272M | 6.3M | 6.3M | 198M | 0 | 0 | 0 |
| Balance Sheet | |||||||||
| Net Debt | N/A | N/A | 125M | 112M | 155M | 166M | 155M | 112M | 64M |
| Cash & Equiv. | -29M | N/A | 136M | 128M | 95M | 101M | 121M | 84M | 108M |
| Long-Term Debt | N/A | N/A | 267M | 265M | 259M | 276M | 195M | 200M | 173M |
| Debt/Equity | N/A | 0.39 | 0.28 | 0.26 | 0.38 | 0.40 | 2.00 | 1.33 | 1.09 |
| Interest Coverage | N/A | N/A | 1.0 | 4.3 | -12.8 | -1.8 | -46.2 | -0.2 | -0.2 |
| Equity | N/A | 1.1B | 960M | 1.0B | 713M | 695M | 141M | 151M | 159M |
| Total Assets | N/A | 1.5B | 1.7B | 1.7B | 1.3B | 1.3B | 702M | 631M | 617M |
| Total Liabilities | N/A | 416M | 728M | 674M | 606M | 603M | 561M | 480M | 458M |
| Intangibles | N/A | 66M | 46M | 25M | 9.7M | 3.9M | 1.7M | 0 | 0 |
| Retained Earnings | N/A | N/A | -18M | 28M | -283M | -334M | -922M | -940M | -944M |
| Working Capital | N/A | -37M | 51M | 122M | 80M | 78M | 49M | 90M | 97M |
| Current Assets | N/A | 92M | 250M | 287M | 228M | 226M | 266M | 191M | 204M |
| Current Liabilities | N/A | 129M | 199M | 165M | 147M | 148M | 217M | 101M | 107M |
| Per Share Data | |||||||||
| EPS | 0.16 | 2.76 | -0.50 | 1.17 | -7.93 | -1.40 | -14.12 | -0.43 | -0.45 |
| Owner EPS | 1.84 | 0.81 | -0.89 | -0.40 | -1.38 | -1.23 | -0.41 | 0.53 | 1.17 |
| Book Value | N/A | 29.40 | 26.21 | 26.31 | 18.19 | 17.29 | 3.39 | 3.46 | 3.51 |
| Cash Flow/Share | 3.14 | 2.42 | 1.22 | 1.90 | -0.05 | 0.19 | 0.41 | 1.41 | -0.22 |
| Dividends/Share | 0.00 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 36.8M | 36.3M | 36.6M | 39.2M | 39.2M | 40.2M | 41.6M | 43.5M | 45.2M |
| Valuation | |||||||||
| P/E Ratio | N/A | 6.3 | N/A | 86.8 | N/A | N/A | N/A | N/A | -18.8 |
| P/FCF | N/A | 7.6 | 73.3 | 63.9 | N/A | 344.9 | 10.1 | 11.1 | 5.1 |
| EV/EBIT | N/A | N/A | 96.4 | 70.2 | N/A | N/A | N/A | N/A | 18.5 |
| Price/Book | N/A | 0.6 | 2.0 | 3.9 | 0.9 | 1.2 | 0.9 | 3.4 | 2.4 |
| Price/Sales | N/A | 2.3 | 3.2 | 9.9 | 5.7 | 3.3 | 1.4 | 1.6 | 1.3 |
| FCF Yield | N/A | 13.1% | 1.4% | 1.6% | -3.0% | 0.3% | 9.9% | 9.0% | 19.7% |
| Market Cap | 0 | 636M | 1.9B | 4.0B | 663M | 819M | 123M | 519M | 381M |
| Avg. Price | 0.00 | 19.23 | 28.61 | 97.91 | 47.57 | 23.82 | 11.01 | 9.04 | 8.44 |
| Year-End Price | 0.00 | 17.50 | 51.60 | 101.51 | 16.91 | 20.38 | 2.95 | 11.92 | 8.44 |
Cerence Inc. passes 4 of 9 quality checks, suggesting mixed fundamentals.
Cerence Inc. trades at 422.2x trailing earnings, compared to its 15-year median P/E of 46.6x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 5.1x vs a median of 11.1x. The company's 5-year average gross margin is 71.7%. Total shareholder yield (buybacks) is 2.0%. At current prices, the estimated annualized return to fair value is -20.5%.
Cerence Inc. (CRNC) has a net profit margin of -7.4%. The company is currently unprofitable.
Cerence Inc. (CRNC) generated $47 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Cerence Inc. (CRNC) has a debt-to-equity ratio of 1.33. This indicates moderate leverage.
Cerence Inc. (CRNC) reported earnings per share (EPS) of $-0.43 in its most recent fiscal year.
Cerence Inc. (CRNC) has a return on equity (ROE) of -12.8%. A negative ROE may indicate losses or negative equity.
Cerence Inc. (CRNC) has a 5-year average gross margin of 71.7%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 8 years of financial data for Cerence Inc. (CRNC), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Cerence Inc. (CRNC) has a book value per share of $3.46, based on its most recent annual SEC filing.