Cerence Inc. (CRNC) Financial Ratios
10 years of historical data (2016–2025) · Technology · Software - Application
EV/EBITDA
↓
25.55
↓-91% vs avg
5yr avg: 284.21
30Y Low5.4·High41.3
P/FCF
↓
9.80
↓-91% vs avg
5yr avg: 106.97
30Y Low7.5·High69.1
P/B Ratio
↓
2.92
↑+43% vs avg
5yr avg: 2.04
30Y Low0.6·High3.7
ROE
↓
-12.8%
↓+67% vs avg
5yr avg: -38.5%
30Y Low-141%·High10%
Debt/EBITDA
↑
9.73
↓-88% vs avg
5yr avg: 81.05
30Y Low3.0·High9.7
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
CRNC Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Cerence Inc. currently has a negative P/E ratio, indicating the company is operating at a loss on a trailing-twelve-month basis. On a free-cash-flow basis, the stock trades at 9.8x P/FCF, 91% below the 5-year average of 107.0x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $459M | $538M | $131M | $819M | $617M | $3.8B | $1.8B | $628M | — | — | — |
| Enterprise Value | $605M | $684M | $305M | $1.0B | $809M | $3.9B | $1.9B | $628M | — | — | — |
| P/E Ratio → | -23.70 | — | — | — | — | 82.15 | — | 6.27 | — | — | — |
| P/S Ratio | 1.82 | 2.14 | 0.40 | 2.78 | 1.88 | 9.75 | 5.38 | 2.07 | — | — | — |
| P/B Ratio | 2.92 | 3.57 | 0.93 | 1.18 | 0.87 | 3.66 | 1.86 | 0.59 | — | — | — |
| P/FCF | 9.80 | 11.49 | 10.75 | 345.06 | — | 60.57 | 69.06 | 7.51 | — | — | — |
| P/OCF | 7.50 | 8.80 | 7.63 | 109.25 | — | 50.76 | 39.75 | 7.13 | — | — | — |
P/E links to full P/E history page with 30-year chart
CRNC EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Cerence Inc.'s enterprise value stands at 25.6x EBITDA, 91% below its 5-year average of 284.2x. The Technology sector median is 17.4x, placing the stock at a 47% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.72 | 0.92 | 3.42 | 2.47 | 10.17 | 5.86 | 2.07 | — | — | — |
| EV / EBITDA | 25.55 | 28.90 | 5.35 | 1332.48 | 12.99 | 41.30 | 28.16 | 9.65 | — | — | — |
| EV / EBIT | 46.09 | 488.06 | — | — | — | 63.24 | — | 56.14 | — | — | — |
| EV / FCF | — | 14.62 | 24.99 | 424.33 | — | 63.16 | 75.29 | 7.51 | — | — | — |
CRNC Profitability
Margins and return-on-capital ratios measuring operating efficiency
Cerence Inc. earns an operating margin of 5.2%. Operating margins have expanded from -5.2% to 5.2% over the past 3 years, signaling improving operational efficiency. A negative ROE of -12.8% indicates the company is currently destroying shareholder equity. ROIC of 3.2% represents below-average returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 72.1% | 72.1% | 73.0% | 65.7% | 66.9% | 70.6% | 63.6% | 62.6% | 66.3% | 68.8% | 67.6% |
| Operating Margin | 5.2% | 5.2% | 14.0% | -5.2% | 11.7% | 17.0% | 11.8% | 11.9% | 19.4% | 27.1% | 23.5% |
| Net Profit Margin | -7.4% | -7.4% | -177.4% | -19.1% | -94.8% | 11.9% | -5.5% | 33.1% | 2.1% | 19.3% | 16.5% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -12.8% | -12.8% | -140.7% | -8.0% | -35.6% | 4.6% | -1.8% | 9.7% | 0.6% | 4.7% | 3.5% |
| ROA | -2.8% | -2.8% | -58.8% | -4.3% | -20.6% | 2.7% | -1.2% | 7.0% | 0.4% | 3.6% | 2.7% |
| ROIC | 3.2% | 3.2% | 5.8% | -1.3% | 2.7% | 4.3% | 2.7% | 2.6% | 4.1% | 5.0% | 3.7% |
| ROCE | 2.6% | 2.6% | 5.7% | -1.3% | 2.8% | 4.3% | 2.7% | 2.8% | 4.3% | 5.4% | 4.1% |
CRNC Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Cerence Inc. carries a Debt/EBITDA ratio of 9.7x, which is highly leveraged (239% above the sector average of 2.9x). Net debt stands at $146M ($230M total debt minus $84M cash). Interest coverage of just 0.1x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.53 | 1.53 | 2.09 | 0.42 | 0.40 | 0.28 | 0.31 | — | — | — | — |
| Debt / EBITDA | 9.73 | 9.73 | 5.18 | 382.71 | 4.61 | 3.04 | 4.30 | — | — | — | — |
| Net Debt / Equity | — | 0.97 | 1.23 | 0.27 | 0.27 | 0.16 | 0.17 | 0.00 | 0.00 | 0.00 | 0.00 |
| Net Debt / EBITDA | 6.18 | 6.18 | 3.05 | 248.91 | 3.08 | 1.69 | 2.33 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt / FCF | — | 3.12 | 14.24 | 79.27 | — | 2.59 | 6.23 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest Coverage | 0.14 | 0.14 | -45.57 | -1.46 | -12.81 | 4.45 | -0.01 | — | — | — | — |
CRNC Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.84x means Cerence Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The current ratio has improved from 1.52x to 1.84x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.84 | 1.84 | 1.22 | 1.52 | 1.55 | 1.74 | 1.25 | 0.72 | 0.68 | 0.86 | 0.74 |
| Quick Ratio | 1.84 | 1.84 | 1.22 | 1.48 | 1.55 | 1.74 | 1.25 | 0.72 | 0.68 | 0.86 | 0.74 |
| Cash Ratio | 0.86 | 0.86 | 0.59 | 0.75 | 0.78 | 0.96 | 0.74 | — | — | — | — |
| Asset Turnover | — | 0.40 | 0.47 | 0.23 | 0.25 | 0.23 | 0.20 | 0.20 | 0.20 | 0.18 | 0.16 |
| Inventory Turnover | — | — | — | 14.57 | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 85.44 | 69.10 | 75.94 | 50.17 | 42.95 | 55.08 | 79.17 | 94.99 | 110.40 | 95.36 |
CRNC Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Cerence Inc. does not currently pay a dividend and has no material buyback yield, reinvesting earnings back into the business.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | 8.6% | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | 1.2% | — | 15.9% | — | — | — |
| FCF Yield | 10.2% | 8.7% | 9.3% | 0.3% | — | 1.7% | 1.4% | 13.3% | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 8.6% | 0.0% | — | — | — |
| Shares Outstanding | — | $43M | $42M | $40M | $39M | $39M | $36M | $36M | $36M | $36M | $36M |
Peer Comparison
Compare CRNC with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 CRNCYou | $459M | -23.7 | 25.6 | 9.8 | 72.1% | 5.2% | -12.8% | 3.2% | 9.7 |
 SOUN | $3B | -33.5 | — | — | 42.4% | -13.8% | -4.3% | -16.8% | — |
 LSCC | $17B | 5613.9 | 296.9 | 129.4 | 68.2% | 2.9% | 0.4% | 1.8% | 1.4 |
 VNET | $3B | 92.9 | 15.4 | — | 22.2% | 8.1% | 2.7% | 2.4% | 8.3 |
 AIXI | $8M | -0.5 | — | — | 68.3% | -18.3% | — | -34.4% | — |
 MSFT | $3.1T | 30.3 | 19.4 | 42.9 | 68.8% | 45.6% | 33.3% | 24.9% | 0.7 |
 GOOGL | $4.8T | 36.8 | 32.2 | 65.7 | 59.7% | 32.1% | 35.7% | 25.1% | 0.4 |
 AMZN | $3.0T | 38.3 | 20.7 | 384.3 | 50.3% | 11.2% | 22.3% | 14.7% | 1.0 |
 AAPL | $4.2T | 38.5 | 29.7 | 42.7 | 46.9% | 32.0% | 171.4% | 67.4% | 0.8 |
 BBAI | $21B | -5.3 | — | — | 22.3% | -65.3% | -96.7% | -19.5% | — |
 TM | $254B | 8.5 | 9.9 | — | 19.9% | 10.0% | 13.2% | 5.6% | 5.5 |
| Technology Median | — | 27.4 | 17.4 | 19.8 | 48.6% | -0.5% | 2.4% | 2.9% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonCRNC — Frequently Asked Questions
Quick answers to the most common questions about buying CRNC stock.
What is Cerence Inc.'s P/E ratio?
Cerence Inc.'s current P/E ratio is -23.7x. The historical average is 44.2x.
What is Cerence Inc.'s EV/EBITDA?
Cerence Inc.'s current EV/EBITDA is 25.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 21.1x.
What is Cerence Inc.'s ROE?
Cerence Inc.'s return on equity (ROE) is -12.8%. The historical average is -17.6%.
Is CRNC stock overvalued?
Based on historical data, Cerence Inc. is trading at a P/E of -23.7x. Compare with industry peers and growth rates for a complete picture.
What are Cerence Inc.'s profit margins?
Cerence Inc. has 72.1% gross margin and 5.2% operating margin.
How much debt does Cerence Inc. have?
Cerence Inc.'s Debt/EBITDA ratio is 9.7x, indicating high leverage. A ratio above 4x may signal elevated financial risk.