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Cerence

BST:0S6
Snowflake Description

Undervalued with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
0S6
BST
$828M
Market Cap
  1. Home
  2. DE
  3. Software
Company description

Cerence Inc. provides A.I. powered assistants and innovations for connected and autonomous vehicles. The last earnings update was 36 days ago. More info.


Add to Portfolio Compare Print
  • Cerence has significant price volatility in the past 3 months.
0S6 Share Price and Events
7 Day Returns
3.6%
BST:0S6
1%
DE Software
-0.3%
DE Market
1 Year Returns
-
BST:0S6
34.6%
DE Software
14%
DE Market
0S6 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Cerence (0S6) 3.6% 5.8% - - - -
DE Software 1% 2.8% 5.4% 34.6% 50.4% 122%
DE Market -0.3% 0.5% 4.5% 14% 4.2% 8.9%
1 Year Return vs Industry and Market
  • No trading data on 0S6.
  • No trading data on 0S6.
Price Volatility
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Cerence undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Cerence to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Cerence.

BST:0S6 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 5.5%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BST:0S6
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Software Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.136 (1 + (1- 21%) (0%))
1.091
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.09
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.091 * 5.44%)
5.55%

Discounted Cash Flow Calculation for BST:0S6 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Cerence is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

BST:0S6 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 5.55%)
2020 39.00 Analyst x1 36.95
2021 67.80 Analyst x1 60.86
2022 93.50 Analyst x1 79.52
2023 120.30 Analyst x1 96.94
2024 131.90 Analyst x1 100.70
2025 139.54 Est @ 5.79% 100.94
2026 145.04 Est @ 3.94% 99.40
2027 148.87 Est @ 2.64% 96.67
2028 151.45 Est @ 1.73% 93.18
2029 153.11 Est @ 1.09% 89.25
Present value of next 10 years cash flows $854.00
BST:0S6 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $153.11 × (1 + -0.39%) ÷ (5.55% – -0.39%)
$2,569.38
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,569.38 ÷ (1 + 5.55%)10
$1,497.71
BST:0S6 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $854.00 + $1,497.71
$2,351.71
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,351.71 / 36.40
$64.61
BST:0S6 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in BST:0S6 represents 0.8946x of NasdaqGS:CRNC
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.8946x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 64.61 x 0.8946
€57.80
Value per share (EUR) From above. €57.80
Current discount Discount to share price of €20.20
= -1 x (€20.20 - €57.80) / €57.80
65.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Cerence is available for.
Intrinsic value
>50%
Share price is €20.2 vs Future cash flow value of €57.8
Current Discount Checks
For Cerence to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Cerence's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Cerence's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Cerence's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Cerence's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BST:0S6 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $2.76
NasdaqGS:CRNC Share Price ** NasdaqGS (2020-01-24) in USD $22.58
Germany Software Industry PE Ratio Median Figure of 22 Publicly-Listed Software Companies 42.16x
Germany Market PE Ratio Median Figure of 403 Publicly-Listed Companies 20.59x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Cerence.

BST:0S6 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:CRNC Share Price ÷ EPS (both in USD)

= 22.58 ÷ 2.76

8.2x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cerence is good value based on earnings compared to the DE Software industry average.
  • Cerence is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Cerence's expected growth come at a high price?
Raw Data
BST:0S6 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.2x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
-108%per year
Germany Software Industry PEG Ratio Median Figure of 15 Publicly-Listed Software Companies 1.79x
Germany Market PEG Ratio Median Figure of 263 Publicly-Listed Companies 1.5x

*Line of best fit is calculated by linear regression .

BST:0S6 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.2x ÷ -108%

-0.08x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cerence earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Cerence's assets?
Raw Data
BST:0S6 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $29.35
NasdaqGS:CRNC Share Price * NasdaqGS (2020-01-24) in USD $22.58
Germany Software Industry PB Ratio Median Figure of 36 Publicly-Listed Software Companies 3.1x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.92x
BST:0S6 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:CRNC Share Price ÷ Book Value per Share (both in USD)

= 22.58 ÷ 29.35

0.77x

* Primary Listing of Cerence.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cerence is good value based on assets compared to the DE Software industry average.
X
Value checks
We assess Cerence's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Cerence has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Cerence expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-108%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Cerence expected to grow at an attractive rate?
  • Cerence's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Cerence's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.
  • Cerence's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
BST:0S6 Future Growth Rates Data Sources
Data Point Source Value (per year)
BST:0S6 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts -108%
BST:0S6 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 9.3%
Germany Software Industry Earnings Growth Rate Market Cap Weighted Average 26.4%
Germany Software Industry Revenue Growth Rate Market Cap Weighted Average 7.6%
Germany Market Earnings Growth Rate Market Cap Weighted Average 13.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BST:0S6 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BST:0S6 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-09-30 489 141 1
2023-09-30 446 129 1
2022-09-30 395 102 2
2021-09-30 357 72 -13 4
2020-09-30 329 46 -19 5
2020-01-24
BST:0S6 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 303 88 100
2019-06-30 296 117 13
2019-03-31 290 109 18
2018-12-31 288 107 25
2018-09-30 277 115 6
2017-09-30 245 97 47

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Cerence's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Cerence's revenue is expected to grow by 9.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BST:0S6 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Cerence Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BST:0S6 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-09-30
2023-09-30
2022-09-30
2021-09-30 -0.33 0.02 -0.68 2.00
2020-09-30 -0.47 -0.36 -0.68 3.00
2020-01-24
BST:0S6 Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 2.76
2019-06-30
2019-03-31
2018-12-31
2018-09-30 0.16
2017-09-30 1.30

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Cerence will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Cerence's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Cerence has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Cerence performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Cerence's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Insufficient data to establish if Cerence's year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Cerence's 1-year earnings growth to the 5-year average due to insufficient past data.
  • Cerence's earnings growth has exceeded the DE Software industry average in the past year (1604.9% vs 14.6%).
Earnings and Revenue History
Cerence's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Cerence Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BST:0S6 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 303.32 100.27 62.19 93.06
2019-06-30 295.71 13.11 58.39 92.09
2019-03-31 290.32 17.87 56.45 91.23
2018-12-31 287.57 24.69 51.89 87.59
2018-09-30 276.98 5.88 50.43 80.96
2017-09-30 244.73 47.28 47.39 56.76

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Cerence has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Cerence used its assets more efficiently than the DE Software industry average last year based on Return on Assets.
  • Unable to establish if Cerence improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Cerence's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Cerence has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Cerence's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Cerence's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Cerence's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Cerence's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Cerence's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Cerence has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Cerence Company Filings, last reported 3 months ago.

BST:0S6 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 1,068.13 0.00
2019-06-30 964.88 0.00
2019-03-31 983.19 0.00
2018-12-31 996.92 0.00
2018-09-30 993.32 0.00
2017-09-30 997.18 0.00
  • Cerence has no debt.
  • Cerence has not taken on any debt in the past 5 years.
  • Cerence has no debt, it does not need to be covered by operating cash flow.
  • Cerence has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Cerence's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Cerence has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Cerence's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Cerence dividends. Estimated to be 0% next year.
If you bought €2,000 of Cerence shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Cerence's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Cerence's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BST:0S6 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Germany Software Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 1.2%
Germany Market Average Dividend Yield Market Cap Weighted Average of 335 Stocks 2.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.7%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BST:0S6 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-09-30
2023-09-30
2022-09-30 0.00 1.00
2021-09-30 0.00 1.00
2020-09-30 0.00 1.00
2020-01-24

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Cerence has not reported any payouts.
  • Unable to verify if Cerence's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Cerence's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Cerence has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Cerence's dividends in 3 years as they are not expected to pay a notable one for Germany.
X
Income/ dividend checks
We assess Cerence's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Cerence afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Cerence has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Cerence's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Sanjay Dhawan
AGE 55
TENURE AS CEO 0.3 years
CEO Bio

Mr. Sanjay Dhawan is the Chief Executive Officer at Cerence Inc. since October 1, 2019. He is also the Director at Cerence Inc. He has been the President of Connected Services Division and Executive Vice President at Harman International Industries, Incorporated since April 8, 2015. Mr. Dhawan is responsible for the day-to-day operations of Harman Connected Services business as well as its overall financial performance. From 2015 to 2019, Mr. Dhawan served as President of the Connected Services Division and Chief Technology Officer of Harman Industries International. Prior to joining Harman, he served as President and Chief Executive Officer of Symphony Teleca Corporation since 2010. He has been the Chief Executive Officer and President of HARMAN Connected Services Corporation since 2010. He is a Technology Veteran and Serial Entrepreneur and has a rich experience of managing a combination of large and small corporations. He has more than 23 years of executive management experience in the data communications and telecommunications industry. Mr. Dhawan served as an Executive Vice President of services at Harman International Industries, Incorporated until February 16, 2016. Before joining HARMAN Connected Services, he served as the Chief Operating Officer and President of Communications Systems at Aricent Inc. since November 2007. At Aricent, he was responsible for company strategy, sales, marketing and the management and oversight of several high-growth business units and various functional units. He served as the Chief Strategy Officer and Executive Vice President of Aricent Inc. until November 2007, where he oversaw several business units and delivered record-breaking financial results. Prior to Aricent, he co-founded Inkra Networks Corporation in May 2000 and served as its Chairman, Chief Executive Officer and President and helped Inkra Networks to define the virtual networking market segment through its line of virtual data center technologies. He served as Vice President of Business Development of Netopia, Inc. At Netopia, Mr. Dhawan was instrumental in growing the DSL business for Netopia in the European and Asian markets by driving new initiatives with new and emerging CLECs in overseas markets. He co-founded StarNet Technologies, Inc., and served as its President and Chief Executive Officer, where he was responsible for all aspects of company operations including hiring, raising capital, and general administration. He worked at Advanced Micro Devices (AMD) in Sunnyvale, California, as Business Unit Director for the Systems Engineering Business Unit. He was responsible for starting the Systems Engineering Business Unit at AMD. He also held chief strategy, development, sales and management roles at Netopia, StarNet and Advanced Micro Devices (AMD). He worked at The Networking Center (TNC), Great Britain, as Product Manager of Networking Products, where he was responsible for marketing and sales of VME-bus-based networking products. He also served as Consultant of 3COM UK (formerly BICC Data Networks). He serves as a Director of HARMAN Connected Services and Next Gen Paper Solutions Pvt. Ltd. He served as a Director of Inkra Networks Corporation. He has led several industry consortiums and has chaired IEEE 802 and ANSI X3T9 standards sub-groups. He has authored several networking-related publications, including two books on data networking. Mr. Dhawan has an M.S. degree in Electrical Engineering from Brunel University, England, and a B.S. degree in Electronics and Communications from Regional Engineering College, Kurukshetra.

CEO Compensation
  • Insufficient data for Sanjay to compare compensation growth.
  • Insufficient data for Sanjay to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Cerence management team in years:

0.3
Average Tenure
55
Average Age
  • The average tenure for the Cerence management team is less than 2 years, this suggests a new team.
Management Team

Stefan Ortmanns

TITLE
Executive Vice President
COMPENSATION
$2M
AGE
56
TENURE
0.3 yrs

Sanjay Dhawan

TITLE
CEO & Director
AGE
55
TENURE
0.3 yrs

Mark Gallenberger

TITLE
Chief Financial Officer
AGE
55
TENURE
0.3 yrs

Prateek Kathpal

TITLE
Chief Technology Officer
TENURE
0.2 yrs

Bridget Collins

TITLE
Chief Information Officer

Rich Yerganian

TITLE
Vice President of Investor Relations

Leanne Fitzgerald

TITLE
General Counsel & Secretary
AGE
54
TENURE
0.3 yrs

Richard Mack

TITLE
Chief Marketing & Communications Officer

Egon Jungheim

TITLE
Senior Vice President Global Sales

Sachin Sahney

TITLE
Chief Human Resources Officer
Board of Directors

Arun Sarin

TITLE
Chairman of the Board
AGE
64

Sanjay Dhawan

TITLE
CEO & Director
AGE
55

Sanjay Jha

TITLE
Independent Director
AGE
55

Kristi Matus

TITLE
Independent Director
AGE
51

Al Nietzel

TITLE
Independent Director
AGE
57

Tom Beaudoin

TITLE
Director
AGE
66

Marianne Budnik

TITLE
Independent Director
AGE
51
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
02. Oct 19 Sell Nuance Communications, Inc. Company 30. Sep 19 30. Sep 19 -650,736 €15.59 €-10,145,430
X
Management checks
We assess Cerence's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Cerence has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Cerence Inc. provides A.I. powered assistants and innovations for connected and autonomous vehicles. It offers edge software components; cloud connected components; toolkits; applications; and virtual assistant coexistence and professional services. The company also provides conversational artificial intelligence, including voice recognition, natural language understanding, and artificial intelligence services. The company is headquartered in Burlington, Massachusetts.

Details
Name: Cerence Inc.
0S6
Exchange: BST
Founded:
$750,969,826
36,398,349
Website: http://www.cerence.com
Address: Cerence Inc.
15 Wayside Road,
Burlington,
Massachusetts, 01803,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS CRNC Common Stock Nasdaq Global Select US USD 02. Oct 2019
BST 0S6 Common Stock Boerse-Stuttgart DE EUR 02. Oct 2019
Number of employees
Current staff
Staff numbers
1,400
Cerence employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/01/24 23:13
End of day share price update: 2020/01/24 00:00
Last estimates confirmation: 2020/01/07
Last earnings filing: 2019/12/19
Last earnings reported: 2019/09/30
Last annual earnings reported: 2019/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.