Cerence Story

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CRNC -- USA Stock  

USD 106.71  5.55  4.94%

Cerence Earnings Before Interest Taxes and Depreciation Amortization EBITDA are projected to decrease significantly based on the last few years of reporting. The past year's Earnings Before Interest Taxes and Depreciation Amortization EBITDA were at 23.97 Million. The current year Average Equity is expected to grow to about 863 M, whereas Average Assets are forecasted to decline to about 1.8 B. While some baby boomers are getting worried about technology space, it is reasonable to go over Cerence. Why are we still confident in hope for a quick recovery. In this post, I will also go over some essential variables affecting Cerence's products, and show how it may impact Cerence outlook for active traders this year.
Published over two weeks ago
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Is Cerence (NASDAQ:CRNC) undervalued?
Cerence holds a performance score of 16 on a scale of zero to a hundred. The firm shows a Beta (market volatility) of 0.9011, which signifies possible diversification benefits within a given portfolio. Let's try to break down what Cerence's beta means in this case. Cerence returns are very sensitive to returns on the market. As the market goes up or down, Cerence is expected to follow. Although it is vital to follow Cerence historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. Our philosophy towards foreseeing future performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and technical indicators. To evaluate if Cerence expected return of 1.07 will be sustainable into the future, we have found twenty-eight different technical indicators, which can help you to check if the expected returns are sustainable. Use Cerence semi variance, rate of daily change, and the relationship between the value at risk and kurtosis to analyze future returns on Cerence.

How important is Cerence's Liquidity

Cerence financial leverage refers to using borrowed capital as a funding source to finance Cerence ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cerence financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Cerence's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Cerence, but it might be worth checking our own buy vs. sell analysis

What did Cerence file with SEC?

The SEC filings are financial statements or other formal documents of Cerence that are regularly submitted to the U.S. Securities and Exchange Commission (SEC). Public companies, certain insiders, and broker-dealers are required to make SEC filings and fintech professionals rely on these filings for information about companies they are evaluating for investment purposes. Please note, most SEC filings are available online through the SEC's EDGAR database.
Please check here for more information.
Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Cerence shareholders may or may not be submitted as SEC does not always require it.
16th of February 2021
Submission of Matters to a Vote of Security Holders
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12th of February 2021
Unclassified Corporate Event
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8th of February 2021
Financial Statements and Exhibits. Results of Operations and Financial Condition
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Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Cerence shareholders may or may not be submitted as SEC does not always require it.

Sale by Dhawan Sanjay of 9 shares of Cerence

Legal trades by Cerence insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Cerence insider trading alert for sale of common stock by Dhawan Sanjay, Chief Executive Officer, on 24th of February 2021. This event was filed by Cerence Inc with SEC on 2021-02-24. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking it down a bit more

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Cerence has an asset utilization ratio of 21.14 percent. This suggests that the company is making $0.21 for each dollar of assets. An increasing asset utilization means that Cerence is more efficient with each dollar of assets it utilizes for everyday operations.
 2018 2020 2021 (projected)
Book Value per Share29.3523.6624.07
Asset Turnover0.210.230.24

A growth case for Cerence

Current value at risk is at -4.99. Cerence shows above-average downside volatility for the selected time horizon. We advise investors to inspect Cerence further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Cerence future alpha.

Whereas some firms in the software?application industry are either recovering or due for a correction, Cerence may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 8th of February 2021, we see that Cerence almost mirrors the market. The company is overvalued with very low chance of financial distress within the next 24 months. However, our ongoing 30 days buy-hold-sell recommendation on the company is Strong Buy.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Cerence. Please refer to our Terms of Use for any information regarding our disclosure principles.

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