Cerence Inc

Cerence Inc (CRNC) Stock Analysis

$8.340

-0.299 (-3.58%)At close

Loading chart…
High
8.565
Open
8.540
VWAP
8.40
Volume
489.57K
Mkt Cap
114.89M
Low
8.282
Amount
4.11M
EV/EBITDA, TTM
20.29

Cerence Inc. is a provider of artificial intelligence (AI)-powered assistants for connected and autonomous vehicles. The Company builds AI-powered virtual assistants for the mobility/transportation market. Its software platform is used to build virtual assistants that can communicate, find information and take action across an expanding variety of categories. Its software platform has hybrid architecture combining edge software components with cloud-connected components. Its Edge software components are installed on a vehicle’s head unit and can operate without access to external networks and information. Its Cloud-connected components comprise certain speech and natural language understanding-related technologies, AI-enabled personalization and context-based response frameworks, and a content integration platform. It also offers a solution portfolio that includes conversational and generative AI as well as audio and communications AI.

AI analysis of Cerence Inc (CRNC)

Buy

Cerence Inc (CRNC) appears to be a good buy right now due to its current price of $8.93 being significantly below the analyst price target of $9, suggesting potential upside. Additionally, the company's gross margin has improved to 86.33% in Q1 2026, indicating strong profitability. However, the main risk is its forward P/E ratio of 44.25, which indicates high expectations for future earnings growth that may not materialize.

Valuation Metrics

The current forward P/E ratio for Cerence Inc (CRNC) is 44.25, compared to its 5-year average forward P/E of 17.34.

Forward P/E

Fair
5Y Average P/E
17.34
Current P/E
44.25
Overvalued
126.20
Undervalued
-91.51

Forward EV/EBITDA

Fair
5Y Average EV/EBITDA
-21.87
Current EV/EBITDA
20.29
Overvalued
131.67
Undervalued
-175.41

Forward P/S

Fair
5Y Average P/S
2.53
Current P/S
1.40
Overvalued
4.51
Undervalued
0.56

Alphio AI Price Scenarios for CRNC

Scenario prices are the last monthly forecast band of the current year. Probabilities are fixed model weights (25 / 50 / 25), not guarantees.

B

Bull

Bull · 25%CRNC

$10.31

Scenario price

B

Base

Base · 50%CRNC

$8.02

Scenario price

B

Bear

Bear · 25%CRNC

$7.67

Scenario price

Whales holding CRNC

P

Paradigm Capital Management, Inc.

+ HoldingCRNC

-20.90%

3M Return

Events Timeline

2026-10-15 (ET)

05:30:00

Cerence Expands Collaboration with Geely into Robotics

2026-08-26 (ET)

08:30:00

Cerence Repurchases $10 Million of Convertible Notes

2026-05-07 (ET)

17:50:00

Sees Q3 Revenue of $68M-$72M

17:50:00

Cerence AI Reports Q2 Revenue of $64.2M

17:50:00

Company Raises FY26 Revenue Outlook to $305M-$320M

News

CRNC FAQ — answered by Alphio AI

Cerence Inc. is a provider of artificial intelligence (AI)-powered assistants for connected and autonomous vehicles. The Company builds AI-powered virtual assistants for the mobility/transportation market. Its software platform is used to build virtual assistants that can communicate, find information and take action across an expanding variety of categories. Its software platform has hybrid architecture combining edge software components with cloud-connected components. Its Edge software components are installed on a vehicle’s head unit and can operate without access to external networks and information. Its Cloud-connected components comprise certain speech and natural language understanding-related technologies, AI-enabled personalization and context-based response frameworks, and a content integration platform. It also offers a solution portfolio that includes conversational and generative AI as well as audio and communications AI. It operates in the Technology sector (SERVICES-PREPACKAGED SOFTWARE industry).

Cerence Inc (CRNC) appears to be a good buy right now due to its current price of $8.93 being significantly below the analyst price target of $9, suggesting potential upside. Additionally, the company's gross margin has improved to 86.33% in Q1 2026, indicating strong profitability. However, the main risk is its forward P/E ratio of 44.25, which indicates high expectations for future earnings growth that may not materialize.

Community

More ↗

No posts yet

Sign up or log in to join the discussion

This page is for research only and is not investment advice. Models can be wrong. Past performance does not guarantee future results.

Start trading