ScoreWhy is Cerence, Inc. ?
1
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
- OPERATING CASH FLOW(Y) Highest at USD 89.81 MM
- ROCE(HY) Highest at 0.25%
- RAW MATERIAL COST(Y) Fallen by -35.68% (YoY)
2
With ROE of 8.64%, it has a attractive valuation with a 2.14 Price to Book Value
- Over the past year, while the stock has generated a return of -28.79%, its profits have risen by 1211% ; the PEG ratio of the company is 0
3
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -28.79% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Cerence, Inc. should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Cerence, Inc. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Cerence, Inc.
12.41%
0.90
92.69%
S&P 500
30.63%
0.62
19.30%
Quality
Management Risk
Growth
Capital StructureQuality 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
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
4.21%
ROE (avg)
7.82%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
25
Industry P/E
Price to Book Value
2.14
EV to EBIT
7.19
EV to EBITDA
6.07
EV to Capital Employed
1.74
EV to Sales
1.28
PEG Ratio
0.02
Dividend Yield
NA
ROCE (Latest)
24.16%
ROE (Latest)
8.64%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
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 
Financial Trend22What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 89.81 MM
ROCE(HY)
Highest at 0.25%
RAW MATERIAL COST(Y)
Fallen by -35.68% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 6.39 times
NET SALES(Q)
Highest at USD 115.08 MM
OPERATING PROFIT(Q)
Highest at USD 39.29 MM
OPERATING PROFIT MARGIN(Q)
Highest at 34.14 %
PRE-TAX PROFIT(Q)
Highest at USD 37.16 MM
-8What is not working for the Company
NET PROFIT(Q)
At USD -6.48 MM has Fallen at -1,024.77%
CASH AND EQV(HY)
Lowest at USD 182.12 MM
Here's what is working for Cerence, Inc.
Net Sales
At USD 115.08 MM has Grown at 82.82%
over average net sales of the previous four periods of USD 62.95 MMMOJO Watch
Near term sales trend is extremely positive
Net Sales (USD MM)
Pre-Tax Profit
At USD 37.16 MM has Grown at 1,858.26%
over average net sales of the previous four periods of USD 1.9 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Operating Cash Flow
Highest at USD 89.81 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 115.08 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 39.29 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 34.14 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 37.16 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Debtors Turnover Ratio
Highest at 6.39 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -35.68% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Cerence, Inc.
Net Profit
At USD -6.48 MM has Fallen at -1,024.77%
over average net sales of the previous four periods of USD -0.58 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Cash and Eqv
Lowest at USD 182.12 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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