Company Analysis Cerence Inc.
1. Summary
Advantages
- Price (14.28 $) is less than fair price (27.32 $)
- The stock's return over the last year (-10.64%) is higher than the sector average (-33.27%).
Disadvantages
- Dividends (0%) are below the sector average (0.6669%).
- Current debt level 14.3% has increased over 5 years from 0%.
- The company's current efficiency (ROE=-140.69%) is lower than the sector average (ROE=16.8%)
Similar companies
2. Share price and performance
2.1. Share price
2.2. News
2.3. Market efficiency
| Cerence Inc. | Technology | Index | |
|---|---|---|---|
| 7 days | 12.1% | 0.2% | 0.6% |
| 90 days | 354.8% | -34.4% | 6.6% |
| 1 year | -10.6% | -33.3% | 26.2% |
CRNC vs Sector: Cerence Inc. has outperformed the "Technology" sector by 22.64% over the past year.
CRNC vs Market: Cerence Inc. has significantly underperformed the market by -36.8% over the past year.
Highly volatile price: CRNC is significantly more volatile than the rest of the market on "NASDAQ" over the last 3 months, with typical deviations of more than +/- 15% per week.
Long period: CRNC with weekly volatility of -0.2046% over the past year.
3. Summary of the report
4. Fundamental Analysis
4.1. Stock price and price forecast
Below fair price: The current price (14.28 $) is lower than the fair price (27.32 $).
Price significantly below the fair price: The current price (14.28 $) is 91.3% lower than the fair price.
4.2. P/E
P/E vs Sector: The company's P/E (31.84) is lower than that of the sector as a whole (76.39).
P/E vs Market: The company's P/E (31.84) is lower than that of the market as a whole (51.48).
4.2.1 P/E Similar companies
4.3. P/BV
P/BV vs Sector: The company's P/BV (0.9297) is lower than that of the sector as a whole (9.3).
P/BV vs Market: The company's P/BV (0.9297) is lower than that of the market as a whole (3.44).
4.3.1 P/BV Similar companies
4.4. P/S
P/S vs Sector: The company's P/S indicator (0.3957) is lower than that of the sector as a whole (8.3).
P/S vs Market: The company's P/S indicator (0.3957) is lower than that of the market as a whole (10.3).
4.4.1 P/S Similar companies
4.5. EV/Ebitda
EV/Ebitda vs Sector: The company's EV/Ebitda (-0.1961) is lower than that of the sector as a whole (121.82).
EV/Ebitda vs Market: The company's EV/Ebitda (-0.1961) is lower than that of the market as a whole (29.6).
5. Profitability
5.1. Profitability and revenue
5.2. Earnings per share - EPS
5.3. Past profitability Net Income
Yield Trend: Rising and has grown by 550.95% over the last 5 years.
Earnings Slowdown: The last year's return (0%) is below the 5-year average return (550.95%).
Profitability vs Sector: The return for the last year (0%) exceeds the return for the sector (-14.23%).
5.4. ROE
ROE vs Sector: The company's ROE (-140.69%) is lower than that of the sector as a whole (16.8%).
ROE vs Market: The company's ROE (-140.69%) is lower than that of the market as a whole (8.95%).
5.5. ROA
ROA vs Sector: The company's ROA (-58.81%) is lower than that of the sector as a whole (9.13%).
ROA vs Market: The company's ROA (-58.81%) is lower than that of the market as a whole (6.3%).
5.6. ROIC
ROIC vs Sector: The company's ROIC (3.23%) is lower than that of the sector as a whole (13.26%).
ROIC vs Market: The company's ROIC (3.23%) is lower than that of the market as a whole (10.79%).
7. Dividends
7.1. Dividend yield vs Market
Low yield: The dividend yield of the company 0% is below the average for the sector '0.6669%.
7.2. Stability and increase in payments
Unstable dividends: The company's dividend yield 0% has not been consistently paid over the past 7 years, DSI=0.
Weak dividend growth: The company's dividend yield 0% has been growing weakly or stagnant over the past 5 years. Growth over only 0 years.
7.3. Payout percentage
Dividend Coverage: Current payments from income (0%) are at an uncomfortable level.
8. Insider trades
8.1. Insider trading
Insider Buying Exceeds insider sales by 100% over the last 3 months.
8.2. Latest transactions
| Transaction date | Insider | Type | Price | Volume | Quantity |
|---|---|---|---|---|---|
| 02.01.2025 | THOMAS L. BEAUDOIN Director |
Purchase | 7.98 | 39 900 | 5 000 |
| 22.05.2024 | Ortmanns Stefan Chief Executive Officer |
Sale | 3.87 | 20 314 | 5 249 |
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