Cerence (BSP:C2RN34) Moat Score: 5/10 (As of Jul. 31, 2026)

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Director of Data and Quant Analytics at GuruFocus
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BSP:C2RN34 Cerence Inc BSP:C2RN34
42 GF Score
Price R$12.68
GF Value R$18.02
Valuation Possible Value Trap
! 2 Warning Signs
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What is Cerence Moat Score?

Cerence BSP:C2RN34 -2.08% 42 Moat Score is 5 as of Jul. 31, 2026. GuruFocus rates BSP:C2RN34 with a GF Score™ of 42/100 and a GF Value™ of R$18.02 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 2,837 Software companies, Cerence ranks better than 94.78% on this metric.

Cerence has the Moat Score of 5, which implies that the company might have Narrow Moat - Solid narrow moat.

Cerence has Narrow Moat: Cerence has a solid position in automotive AI with valuable intellectual property and some customer switching costs. However, the market is competitive, and while it has a strong brand in its niche, it lacks the scale or regulatory barriers to be considered a wide moat.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Cerence might have Narrow Moat - Solid narrow moat.

Cerence  (BSP:C2RN34) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Cerence Moat Score Related Terms

BSP:C2RN34 vs XPER, CURR, RMNI: Moat Score Comparison

For the Software - Application subindustry, Cerence's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Cerence Moat Score vs Software Industry

For the Software industry and Technology sector, Cerence's Moat Score distribution charts can be found below:

* The bar in red indicates where Cerence's Moat Score falls into.


BSP:C2RN34
42GF Score
Cerence Inc BSP:C2RN34
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 5 mean?
Cerence (BSP:C2RN34) has a Moat Score of 5 as of Jul. 31, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Cerence ranks #148 out of 2837 companies in the Software industry, placing it in the top 5.2%.
Is Cerence's Moat Score too high?
Cerence's current Moat Score is 5. Based on the distribution chart, Cerence ranks #148 out of 2837 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Cerence has a GF Score™ of 42/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Cerence's Moat Score compare to XPER and CURR?
According to the Software industry distribution chart, Cerence ranks #148 out of 2837 companies for Moat Score. This places Cerence in the top 5% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Software company?
A good Moat Score depends on the Software industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Cerence's current Moat Score is 5. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cerence stock overvalued right now?
Based on GuruFocus' analysis, Cerence (BSP:C2RN34) is currently considered Possible Value Trap. The stock's GF Value™ is R$18.02, compared to a current price of R$12.68 — trading 29.6% below its estimated fair value. The current Moat Score is 5. Cerence's overall GF Score™ is 42/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Cerence (BSP:C2RN34), the current Moat Score is 5 as of Jul. 31, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Cerence (BSP:C2RN34) Overvalued in 2026?

Based on GuruFocus' analysis, Cerence stock appears to be undervalued. The current stock price of R$12.68 is trading 29.6% below its estimated GF Value™ of R$18.02. GuruFocus considers Cerence to be Possible Value Trap.

Key valuation signals for BSP:C2RN34:

  • Moat Score: 5
  • GF Value™: R$18.02 vs. price of R$12.68 (29.6% below fair value)
  • GF Score™: 42/100 with 2 warning signs

No single metric tells the full story. See the BSP:C2RN34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Cerence Business Description

Address 25 Mall Road, Suite 416, Burlington, MA, USA, 01803
Cerence Inc is a United States-based software company. It is involved in developing mobility-based solutions for drivers and their cars. The customers include all automobile original equipment manufacturers, or OEMs, or their tier 1 suppliers. The company's revenue is generated by selling software licenses and cloud-connected services. Geographically, it derives a majority of its revenue from the United States and also has a presence in Other Americas; Germany; Other Europe, the Middle East, Africa; Japan, and Other Asia-Pacific.
42GF Score

Get the complete analysis for BSP:C2RN34

Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

R$12.68
Price
R$18.02
GF Value