# Cerence Inc. (CRNC) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Technology / Software. Price $8.53, market value $386 million.

## Valuation
- **P/E (trailing): n/a** (negative earnings). Cerence Inc. reported negative earnings over the last twelve months, so the P/E is not meaningful; use price-to-sales, EV/EBITDA and free-cash-flow yield instead.
- **PEG: 0.11**. A PEG of 0.11 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 1.2×**. Each dollar of revenue is priced at 1.2×.
- **Price / book: 2.3×**. The shares trade at 2.3× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 15.9×**. Enterprise value is 15.9× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 20.4%** (5-yr avg 3.4%). Free cash flow equals 20.4% of the market value, above its five-year average of 3.4%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.

## Profitability
- **Gross margin: 78.7%**. Cerence Inc. keeps 78.7% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 8.7%**. 8.7% of revenue is left after running the business.
- **Net margin: -7.4%**. The company reported a net loss over the last twelve months.
- **Return on equity: -12.4%**. Return on equity is negative because earnings are negative.
- **Return on invested capital: 6.1%**. Return on all capital, debt included, is 6.1%.
- **Return on assets: -2.4%**. Each dollar of assets produces -2.4% of profit.

## Growth
- **Revenue growth (1 yr): -24.0%** (3-yr -8.4%/yr, 5-yr -5.3%/yr). Revenue fell 24.0% over the last year, against -5.3% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 97.0%**. Earnings per share rose 97.0%, faster than revenue, so margins expanded or the share count shrank.

## Financial health
- **Debt to equity: 1.33**. Debt is 1.33 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Current ratio: 1.89** (quick 1.89). Current assets cover the next year's liabilities 1.89 times.
- **Altman Z-score: 1.37**. A Z-score of 1.37 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. Cerence Inc. does not currently pay a dividend.

## Price and momentum
- **Total return (1 yr): -14.7%** (YTD -20.2%, 3-mo -19.6%). The shares are down 14.7% over twelve months including dividends.
- **From 52-week high: -37.9%** (45.8% above the low). Trading 38% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 49**. An RSI of 49 is neutral.
- **Beta (1 yr): 2.94** (volatility 81%). Beta of 2.94 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=CRNC · Page: https://foliofundamentals.com/stocks/crnc

Not investment advice.