ScoreWhy is Cerence, Inc. ?
1
Poor long term growth as Net Sales has grown by an annual rate of -5.23% and Operating profit at -29.69% over the last 5 years
2
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 45.33%, its profits have risen by 327.9% ; the PEG ratio of the company is 0
Real-Time Research ReportHow 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.
80.36%
1.20
175.33%
S&P 500
13.22%
0.61
20.17%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-5.23%
EBIT Growth (5y)
-29.69%
EBIT to Interest (avg)
2.37
Debt to EBITDA (avg)
5.67
Net Debt to Equity (avg)
0.93
Sales to Capital Employed (avg)
0.52
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
9
Industry P/E
Price to Book Value
2.95
EV to EBIT
63.84
EV to EBITDA
28.81
EV to Capital Employed
2.01
EV to Sales
2.28
PEG Ratio
0.03
Dividend Yield
NA
ROCE (Latest)
3.15%
ROE (Latest)
31.77%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 54.54 MM
NET PROFIT(HY)
Higher at USD 23.94 MM
RAW MATERIAL COST(Y)
Fallen by -2.98% (YoY
-16What is not working for the Company
NET SALES(9M)
At USD 191.14 MM has Grown at -30.92%
PRE-TAX PROFIT(Q)
At USD 0.49 MM has Fallen at -60.44%
NET PROFIT(Q)
At USD -1.44 MM has Fallen at -112.14%
CASH AND EQV(HY)
Lowest at USD 201.91 MM
Here's what is working for Cerence, Inc.
Operating Cash Flow
Highest at USD 54.54 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)
Raw Material Cost
Fallen by -2.98% (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 Sales
At USD 191.14 MM has Grown at -30.92%
Year on Year (YoY)MOJO Watch
Near term sales trend is very negative
Net Sales (USD MM)
Pre-Tax Profit
At USD 0.49 MM has Fallen at -60.44%
over average net sales of the previous four periods of USD 1.24 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Net Profit
At USD -1.44 MM has Fallen at -112.14%
over average net sales of the previous four periods of USD 11.86 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Cash and Eqv
Lowest at USD 201.91 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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