Nuance Communications, Inc. [NASDAQ: NUAN] shares went lower by -1.17% from its previous closing of $19.62, now trading at the price of $19.39, also adding -0.23 points. Is NUAN stock a buy or should you stay away?

The stock had a rather active trading session with the latest closing, by far recording 2.14 million contracts. Compared to the average trading volume of NUAN shares, the company saw a far better performance. Moreover, the stock has a 281.42M float and a -1.72% run over in the last seven days. NUAN share price has been hovering between $20.19 and $12.98 lately, and is definitely worthy of attention.

Nuance Communications, Inc. [NASDAQ:NUAN]: Analyst Rating and Earnings

Its stock price has been found in the range of 12.98 to 20.19. This is compared to its latest closing price of $19.62.

Stay on the lookout for the next quarterly financial report – the company is expected to release the following results on Wed 5 Feb (In 9 Days).

Fundamental Analysis of Nuance Communications, Inc. [NUAN]

Now let’s turn to look at profitability: with a current Operating Margin for Nuance Communications, Inc. [NUAN] sitting at +12.18 and its Gross Margin at +53.56, this company’s Net Margin is now 11.70%. These measurements indicate that Nuance Communications, Inc. [NUAN] is generating considerably more profit, after expenses are accounted for, compared to its market peers.

This company’s Return on Total Capital is 5.54, and its Return on Invested Capital has reached 5.40%. Its Return on Equity is 5.91, and its Return on Assets is 2.14. These metrics suggest that this Nuance Communications, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.

Turning to investigate this organization’s capital structure, Nuance Communications, Inc. [NUAN] has generated a Total Debt to Total Equity ratio of 89.86. Similarly, its Total Debt to Total Capital is 47.33, while its Total Debt to Total Assets stands at 36.09. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 1.85, and its Long-Term Debt to Total Capital is 36.82.

What about valuation? This company’s Enterprise Value to EBITDA is 16.58 and its Total Debt to EBITDA Value is 5.08. The Enterprise Value to Sales for this firm is now 3.46, and its Total Debt to Enterprise Value stands at 0.33. Nuance Communications, Inc. [NUAN] has a Price to Book Ratio of 2.16, a Price to Cash Flow Ratio of 11.79 and P/E Ratio of 50.95. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.

Shifting the focus to workforce efficiency, Nuance Communications, Inc. [NUAN] earns $225,073 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 4.83 and its Total Asset Turnover is 0.34. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.65 and its Current Ratio is 0.65. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.

Nuance Communications, Inc. [NUAN] has 290.20M shares outstanding, amounting to a total market cap of $5.63B. Its stock price has been found in the range of 12.98 to 20.19. At its current price, it has moved down by -3.96% from its 52-week high, and it has moved up 49.37% from its 52-week low.

This stock’s Beta value is currently 0.96, which indicates that it is 2.54% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 60.96. This RSI score is good, suggesting this stock is neither overbought or oversold.

Conclusion: Is Nuance Communications, Inc. [NUAN] a Reliable Buy?

Shares of Nuance Communications, Inc. [NUAN], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.