Cerence, Inc. (CRNC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Pagaya Technologies Ltd.

Simulations Plus, Inc.

Open Lending Corp.

Amplitude, Inc.

Eventbrite, Inc.

Everbridge, Inc.

Cerence, Inc.

InnovAge Holding Corp.

Definitive Healthcare Corp.

NeoGames SA

Avantax, Inc.

Why is Cerence, Inc. ?

Poor long term growth as Net Sales has grown by an annual rate of -1.87% and Operating profit at 1.36% over the last 5 years

NET PROFIT(HY) At USD -4.54 MM has Grown at -138.06%
NET SALES(Q) At USD 64.19 MM has Fallen at -18.73%
PRE-TAX PROFIT(Q) At USD -2.71 MM has Fallen at -120.67%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -0.80%, its profits have risen by 1211% ; the PEG ratio of the company is 0

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 20.78% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -0.80% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Cerence, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Cerence, Inc.

-0.8%

2.25

88.50%

S&P 500

20.78%

1.56

13.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.87%

EBIT Growth (5y)

1.36%

EBIT to Interest (avg)

2.37

Debt to EBITDA (avg)

5.67

Net Debt to Equity (avg)

0.93

Sales to Capital Employed (avg)

0.63

Tax Ratio

11.20%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

4.21%

ROE (avg)

7.82%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.81

EV to EBIT

6.32

EV to EBITDA

5.34

EV to Capital Employed

1.53

EV to Sales

1.12

PEG Ratio

0.02

Dividend Yield

ROCE (Latest)

24.16%

ROE (Latest)

8.64%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 88.45 MM

NET SALES(HY)

At USD 179.27 MM has Grown at 39.07%

ROCE(HY)

Highest at -12.77%

NET PROFIT(Q)

At USD 1.94 MM has Grown at 65.91%

-18What is not working for the Company

NET PROFIT(HY)

At USD -4.54 MM has Grown at -138.06%

NET SALES(Q)

At USD 64.19 MM has Fallen at -18.73%

PRE-TAX PROFIT(Q)

At USD -2.71 MM has Fallen at -120.67%

CASH AND EQV(HY)

Lowest at USD 202.93 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 60.17 times

OPERATING PROFIT(Q)

Lowest at USD 0.47 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.74 %

Here's what is working for Cerence, Inc.

Operating Cash Flow

Highest at USD 88.45 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Profit

At USD 1.94 MM has Grown at 65.91%

over average net sales of the previous four periods of USD 1.17 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Depreciation

At USD 2.79 MM has Grown at 27.79%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (USD MM)

Here's what is not working for Cerence, Inc.

Net Sales

At USD 64.19 MM has Fallen at -18.73%

over average net sales of the previous four periods of USD 78.99 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (USD MM)

Pre-Tax Profit

At USD -2.71 MM has Fallen at -120.67%

over average net sales of the previous four periods of USD 13.13 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Operating Profit

Lowest at USD 0.47 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 0.74 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at USD 202.93 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 60.17 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio