Cerence Inc. cash flow to debt ratio of 26.57% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

Cerence Inc.'s free cash flow has increased 283.75% from $12.20M last year to $46.82M, signaling increasing performance

Cerence Inc.'s debt to equity ratio is 1.12, which means that the company's assets are unhealthy financed, signaling financial risk.

Cerence Inc.'s debt has decreased relative to shareholder equity from 2.09 last year to 1.12 today, signaling strengthened financials

Cerence Inc. has a net debt to EBITDA ratio of 11.95x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Cerence Inc.'s interest coverage ratio of 5.65 indicates that earnings with good margin can cover interest payments on company debt

Cerence Inc.'s profit margin has increased (-97.20%) in the last year from -177.40% to -4.97%, signaling increasing performance

Cerence Inc.'s short-term assets of $186.28M exceed its short-term liabilities of $101.19M

Cerence Inc.'s return on assets of 0.00% is lower than the 5.00% threshold, indicating inefficient asset utilization

Cerence Inc.'s return on equity of -9.84%, is lower than 15.00%, indicating bad performance

Cerence Inc.'s operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Cerence Inc. had positive net income in only 1 out of 5 years, indicating unstable earnings

Cerence Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Cerence Inc. has a free cash flow yield of 11.64%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Cerence Inc.'s yearly earnings has increased -96.82% since last year from $-588.08M to $-18.71M, signaling increasing performance

Cerence Inc.'s yearly revenue has decreased 24.05% since last year from $331.50M to $251.78M, signaling decreasing performance

ROIC -4.52% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

Cerence Inc.'s 3-year revenue CAGR of -8.43% is negative, indicating declining revenue over the past 3 years

Cerence Inc. had revenue growth in only 2 out of 5 years, indicating inconsistent revenue performance

Cerence Inc. had positive ROE in only 1 out of 5 years, indicating inconsistent returns on equity

Cerence Inc. is undervalued relative to its fair value price of 15.22 based on Discounted Cash Flow model

Cerence Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Cerence Inc. is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model

Cerence Inc. has an EV/EBITDA ratio of 45.60x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Cerence Inc. is overvalued relative to its fair value price of 3.39 based on Earnings Fair Value model

Cerence Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

Cerence Inc. has a price-to-book ratio of 2.42x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Cerence Inc. has a price-to-sales ratio of 1.30x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue