Cerence Inc (CRNC) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Cerence Inc stock (CRNC) is currently trading at $6.66. Cerence Inc PE ratio is 342.00. Cerence Inc PS ratio (Price-to-Sales) is 0.97. Analyst consensus price target for CRNC is $10.00. WallStSmart rates CRNC as Underperform.
- CRNC PE ratio analysis and historical PE chart
- CRNC PS ratio (Price-to-Sales) history and trend
- CRNC intrinsic value — DCF, Graham Number, EPV models
- CRNC stock price prediction 2025 2026 2027 2028 2029 2030
- CRNC fair value vs current price
- CRNC insider transactions and insider buying
- Is CRNC undervalued or overvalued?
- Cerence Inc financial analysis — revenue, earnings, cash flow
- CRNC Piotroski F-Score and Altman Z-Score
- CRNC analyst price target and Smart Rating
Cerence Inc
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CRNC Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Cerence Inc (CRNC)
CRNC trades 5686% above its Graham fair value of $0.14, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Cerence Inc (CRNC) · 9 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in operating margin, price/sales, revenue growth. Concerns around return on equity and eps growth. Fundamentals are solid but monitor weak areas for improvement.
Cerence Inc (CRNC) Key Strengths (4)
Keeps $32 of every $100 in revenue after operating costs
Paying less than $1 for every $1 of annual revenue
Revenue surging 126.10% year-over-year
80.12% of shares held by major funds and institutions
Supporting Valuation Data
Cerence Inc (CRNC) Areas to Watch (5)
Earnings declining -10.10%, profits shrinking
Very low returns on shareholder equity
Very thin margins, barely profitable
Small-cap company with higher risk but more growth potential
Fairly priced relative to book value
Supporting Valuation Data
Cerence Inc (CRNC) Detailed Analysis Report
Overall Assessment
This company scores 54/100 in our Smart Analysis, earning a C- grade. Out of 9 metrics analyzed, 4 register as strengths (avg 10.0/10) while 5 fall into concern territory (avg 2.8/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Operating Margin, Price/Sales, Revenue Growth. Valuation metrics including Price/Sales (0.97) suggest the stock is attractively priced. Profitability is solid with Operating Margin at 32.20%. Growth metrics are encouraging with Revenue Growth at 126.10%.
The Bear Case
The primary concerns are EPS Growth, Return on Equity, Profit Margin. Some valuation metrics including Price/Book (2.05) suggest expensive pricing. Growth concerns include EPS Growth at -10.10%, which may limit upside. Profitability pressure is visible in Return on Equity at 0.25%, Profit Margin at 0.11%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether EPS Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 0.25% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 126.10% strong but requiring continuation.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Operating Margin, Price/Sales) and negatives (EPS Growth, Return on Equity). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
CRNC Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
CRNC's Price-to-Sales ratio of 0.97x trades at a deep discount to its historical average of 4.34x (7th percentile). The current valuation is 94% below its historical high of 15.38x set in Aug 2021, and 144% above its historical low of 0.4x in Oct 2024.
Compare CRNC with Competitors
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Data-driven financial summary for Cerence Inc (CRNC) · TECHNOLOGY › SOFTWARE - APPLICATION
The Big Picture
Cerence Inc is a strong growth company balancing expansion with improving profitability. Revenue reached 316M with 126% growth year-over-year. Profit margins of 11.0% are healthy, with room for further expansion as the business scales.
Key Findings
Revenue growing at 126% YoY, reaching 316M. This pace significantly outperforms most SOFTWARE - APPLICATION peers.
ROE of 25.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
What to Watch Next
Margin expansion: can Cerence Inc push profit margins above 15% as the business scales?
Growth sustainability: can Cerence Inc maintain 126%+ revenue growth, or will competition slow it down?
Valuation compression risk at a P/E of 342.0x. Any growth miss could trigger a sharp correction.
Volatility is elevated with a beta of 2.71, so expect amplified moves relative to the broader market.
Bottom Line
Cerence Inc offers an attractive blend of growth (126% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(10 last 3 months)
Data sourced from SEC Form 4 filings
Last updated: 8:27:50 AM
About Cerence Inc(CRNC)
NASDAQ
TECHNOLOGY
SOFTWARE - APPLICATION
USA
Cerence Inc. provides assistants and innovations with artificial intelligence technology for connected and autonomous vehicles. Offers state-of-the-art software components; components connected to the cloud; tool kits; Applications; and virtual assistant for coexistence and professional services. The company is headquartered in Burlington, Massachusetts.