NUAN - Embedded Expectations Analysis - 2020 03 11
ï€ Nuance Communications, Inc. (NUAN:USA) currently trades above historical averages relative to UAFRS-based (Uniform) Earnings, with a 25.2x Uniform P/E, implying bullish expectations for the firm. However, management may be concerned about their positioning, performance, and Dragon Medicalï€ Specifically, may be exaggerating the strength of their market positioning in healthcare and enterprise AI, their focus on driving growth and recurring revenue, and the benefits of their partnership with Microsoft. Moreover, they may be concerned about their business investments and the sustainability of their Q4 performance. Finally, management may be exaggerating the ability of their omni channel cloud platform expansion to allow smaller organizations to access their technology, and they may lack confidence in their ability to sustain Dragon Medical conversion performance
Nuance Communications provides conversational artificial intelligence (AI). The company provides its customers automated speech recognition, natural language understanding capabilities, dialog and information management, biometric speaker authentication, text-to-speech, and domain knowledge, along with services and implementation support. The company's segments are: healthcare, which provides intelligent systems that support approach to clinical documentation; enterprise, which provides AI-powered intelligent customer engagement solutions and services; automotive, which provides assistants and connected services for cars; and other, which includes the company's Subscriber Revenue Services and Devices businesses.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.