Cerence Inc Stock Fair Value – CERENCE INC Reports Third Quarter FY2023 Earnings Results on June 30, 2023
August 27, 2023
🌥️Earnings Overview
CERENCE INC ($NASDAQ:CRNC) reported its earnings results for the fiscal third quarter of 2023 on June 30, showing that total revenue had decreased by 30.8% year over year to USD 61.7 million. Net income had improved from -99.3 million in the prior year to -16.4 million.
Stock Price
At the open of trading, the company’s stock opened at $25.3 and closed at $26.8, an increase of 4.0% from the prior closing price of 25.8. Investors responded favorably to CERENCE INC‘s strong quarterly performance in terms of revenue, net income, and EPS. Overall, CERENCE INC’s third quarter fiscal year 2023 earnings results showed strong financial performance for the company.
Investors responded positively to the news, sending the stock up by 4% on Tuesday. Looking ahead, analysts remain bullish on the company’s prospects for the coming quarter and beyond. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cerence Inc. More…
| Total Revenues | Net Income | Net Margin |
| 271.86 | -274.83 | -51.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cerence Inc. More…
| Operations | Investing | Financing |
| -8.71 | -9.59 | -2.64 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cerence Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.31k | 609.36 | 17.43 |
Key Ratios Snapshot
Some of the financial key ratios for Cerence Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -5.5% | 1.9% | -93.5% |
| FCF Margin | ROE | ROA |
| -5.6% | -22.5% | -12.1% |
Analysis – Cerence Inc Stock Fair Value
At GoodWhale, we have gone through an extensive analysis of CERENCE INC‘s financials and our proprietary Valuation Line suggests that the fair value of CERENCE INC share is around $40.3. Currently, CERENCE INC stock is traded at $26.8, which means that it is undervalued by 33.5%. This could be an excellent opportunity for investors to take advantage of the discounted price and take a position in this stock. We believe that CERENCE INC is a steady company with good long-term prospects, and our analysis has confirmed this. More…
Peers
Cerence Inc. is a leading provider of artificial intelligence software for the automotive industry. The company has been working on developing this technology for many years and is now in a strong position to compete against its rivals. The main competitors for Cerence Inc. are Fastbase Inc, Pros Holdings Inc, and Smartsheet Inc. All of these companies are working on developing similar software that can be used by automotive manufacturers to provide better customer service and improve safety.
– Fastbase Inc ($OTCPK:FBSE)
Fastbase Inc is a publicly traded company with a market capitalization of 905.27k as of 2022. The company has a negative return on equity of -376.49%. Fastbase is a provider of web-based lead generation and business intelligence tools. The company’s products are used by businesses of all sizes to generate leads, track website visitors, and understand customer behavior. Fastbase is headquartered in San Francisco, California.
– Pros Holdings Inc ($NYSE:PRO)
Macy’s is an American department store chain founded in 1858. It is one of the largest department store chains in the United States, with around 976 stores in 45 states. Macy’s has a market cap of $1.14B as of early 2022 and a return on equity of 284.8%. The company is known for its flagship store in Herald Square, New York City. Macy’s is a leading retailer of apparel, accessories, cosmetics, and home furnishings.
– Smartsheet Inc ($NYSE:SMAR)
Smartsheet Inc is a publicly traded company with a market cap of 4.29B as of 2022. The company has a Return on Equity of -29.14%. Smartsheet Inc is a provider of cloud-based work management and collaboration software. The company’s software is used by organizations of all sizes to plan, track, automate, and report on work.
Summary
CERENCE INC has reported its third quarter Fiscal Year 2023 earnings results, showing a 30.8% decline in total revenue from the same period a year ago to USD 61.7 million. Despite this drop, the company saw an improvement in net income from -99.3 million to -16.4 million. This news caused the stock price to move up the same day. For investors looking to evaluate CERENCE INC, this could be an opportunity to make a wise decision on investing in the company.
Although revenue has dropped, income improvement is an encouraging sign that the company is taking steps to become profitable. Long term investing in CERENCE INC could be a great option for those looking to benefit from potential further improvements.
Related Posts
Recent Posts
