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Flags

Financial distress

Cerence

NSQ:CRNC · US1567271093
SoftwareSmall

360

58
EV / EBIT35
Price / Owner Earnings89
Owner Earnings Yield1
Dividend Yield1
Price/Sales74
EV / Gross Profit78
Price/Book50
Return on Capital61
Cash Return on Capital25
Return on Equity30
EBIT Margin63
Gross Profitability51
Accruals87
Owner Earnings Margin27
Sales growth84
Profit Growth25
Long-Term EPS Growth76
Reinvestment4
Price momentum73
Debt load27
Refinancing55
Debt Payback1
Liquidity68
Analyst ratings9
Opinion Changes50
Price Target Upside1
Market mood10
Value Creation4/20not creating value
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

Cerence doesn't consistently earn more than its cost of capital, so it isn't yet creating shareholder value.

Profile

CountryUSA
IndustrySoftware
SizeSmall
TypePublic Company
ExchangeNASDAQGS
Founded2020
Employees1,051
Websitecerence.com
ISINUS1567271093
Last UpdateApr 2, 2026
Indices
NASDAQ (USA)
Themes
Speech RecognitionCloud InfrastructureArtificial IntelligenceEdge ComputingChatbotNatural Language ProcessingText AnalyticsAutomotiveIndustrialIndustrial Automation

Description

Cerence Inc. (Cerence) builds AI powered virtual assistants for the mobility/transportation market. The company’s primary target is the automobile market, but the company’s solutions can apply to all forms of transportation, including but not limite…

Analysis

Middle-of-the-road

Cerence Inc. is a middle-of-the-road business: neither the economics nor the price stand out from the peer group.

Valuation data is not available for this company.

The trajectory is solid and the balance sheet is stretched. The company scores 4/20 on our value-creation score: not creating value.

What to watch: A large part of the company's book value is the price paid for past acquisitions. As always: this describes the company's numbers; it is not a recommendation.

360° rank · history

1007550250
25
2023202420252026

All-time high

58

Jan 2024

All-time low

16

Jan 2025

Average rank

36

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
74
81
84
60
Price/Earnings
65
16
83
56
Price/Book
50
63
89
78
Dividend Yield
1
1
1
1
Value (overall)
63
45
79
65

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

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Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →