Overview
Nuance (NUAN) is a cash-flow compounder with strong fundamentals and moat in the healthcare and enterprise segments. At present, Nuance is a ~$2 billion-a-year business with a consistent double-digit FCF (free cash flow) margin. While growth has slowed down to a single digit in recent years, the turnaround that involved a spin-off of its automotive business Cerence (CRNC) has been successful. In recent times, growth has reaccelerated to a double-digit zone. Moreover, the company also has a $500 million share repurchase program with ~86% of it yet to be exercised.
Catalysts
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