josen626

Fundamental Analysis CRNC Earnings Cerence

NASDAQ:CRNC   Cerence Inc
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For my latest stock, I took a look at Cerence Earnings $CRNC Stock. Darth Bear got 1Pts, while Bull Solo got 6Pts! CRNC is a new publicly-traded company, so there are many things to keep an eye out.

CRNC is a software company the creates solutions to make your car "smart" Take a look if you want to invest in Software, Artificial Intelligence company.

Darth Bear Points

1)Since this is a brand new company, there is no shareholder return. It is highly likely the debt or dilution of shares will be done in the future for funding reasons.

*Notable mentions: This is the first quarter as a public traded company, so the 10Q and 10K reports don't have much "audited information."

Bull Solo Points

1) CRNC beat earnings and revenue!

2) Comparable sales for their three revenue segments have increased compared to the previous year.

3) Future plans can be seen from their R&D expenses, which is their highest operating expense. They are hiring more engineers and innovation personal!

4) Balance Sheet is looking good! 85% of total liabilities are made up of deferred revenue, meaning this company has a backlog of work! Total assets, unfortunately, have a massive percentage of Goodwill and Intangible assets.

5) The company sees revenue growth for 2020 of about 8%.

6) Analyst Estimate Future EPS and revenue is growing for the next two years. Giving Forward P/E ratio of about ~16.8, which is kind of high for my taste but not too horrible.

ETF's holding this company are:
$QTUM $XSW $RYJ