AUDIOCODES LTD (AUDC) Fundamental Analysis & Valuation
NASDAQ:AUDC • IL0010829658
8.06 USD
+0.07 (+0.88%)
At close: Mar 6, 2026
8.06 USD
0 (0%)
After Hours: 3/6/2026, 8:01:31 PM
This AUDC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Overall AUDC gets a fundamental rating of 6 out of 10. We evaluated AUDC against 48 industry peers in the Communications Equipment industry. While AUDC has a great health rating, its profitability is only average at the moment. AUDC is valued quite cheap, but it does not seem to be growing. With these ratings, AUDC could be worth investigating further for value investing!.
1. AUDC Profitability Analysis
1.1 Basic Checks
- AUDC had positive earnings in the past year.
- AUDC had a positive operating cash flow in the past year.
- In the past 5 years AUDC has always been profitable.
- Each year in the past 5 years AUDC had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.77%, AUDC is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
- AUDC's Return On Equity of 5.23% is fine compared to the rest of the industry. AUDC outperforms 66.67% of its industry peers.
- AUDC's Return On Invested Capital of 3.83% is fine compared to the rest of the industry. AUDC outperforms 62.50% of its industry peers.
- AUDC had an Average Return On Invested Capital over the past 3 years of 4.11%. This is significantly below the industry average of 10.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 5.23% | ||
| ROIC | 3.83% |
ROA(3y)3.31%
ROA(5y)5.68%
ROE(3y)5.96%
ROE(5y)9.87%
ROIC(3y)4.11%
ROIC(5y)6.32%
1.3 Margins
- The Profit Margin of AUDC (3.65%) is better than 68.75% of its industry peers.
- In the last couple of years the Profit Margin of AUDC has declined.
- AUDC has a better Operating Margin (5.72%) than 66.67% of its industry peers.
- In the last couple of years the Operating Margin of AUDC has declined.
- AUDC has a better Gross Margin (65.00%) than 89.58% of its industry peers.
- In the last couple of years the Gross Margin of AUDC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.72% | ||
| PM (TTM) | 3.65% | ||
| GM | 65% |
OM growth 3Y-20.5%
OM growth 5Y-19.95%
PM growth 3Y-29.4%
PM growth 5Y-21.61%
GM growth 3Y0%
GM growth 5Y-0.85%
2. AUDC Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AUDC is destroying value.
- Compared to 1 year ago, AUDC has less shares outstanding
- AUDC has less shares outstanding than it did 5 years ago.
- AUDC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- There is no outstanding debt for AUDC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC0.45
WACC8.58%
2.3 Liquidity
- AUDC has a Current Ratio of 2.21. This indicates that AUDC is financially healthy and has no problem in meeting its short term obligations.
- AUDC has a Current ratio of 2.21. This is comparable to the rest of the industry: AUDC outperforms 54.17% of its industry peers.
- AUDC has a Quick Ratio of 1.94. This is a normal value and indicates that AUDC is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of AUDC (1.94) is better than 64.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.94 |
3. AUDC Growth Analysis
3.1 Past
- AUDC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -29.55%.
- Measured over the past years, AUDC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.91% on average per year.
- AUDC shows a small growth in Revenue. In the last year, the Revenue has grown by 1.42%.
- AUDC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.15% yearly.
EPS 1Y (TTM)-29.55%
EPS 3Y-22.85%
EPS 5Y-14.91%
EPS Q2Q%-56.76%
Revenue 1Y (TTM)1.42%
Revenue growth 3Y-3.71%
Revenue growth 5Y2.15%
Sales Q2Q%1.71%
3.2 Future
- Based on estimates for the next years, AUDC will show a small growth in Earnings Per Share. The EPS will grow by 6.08% on average per year.
- The Revenue is expected to grow by 2.42% on average over the next years.
EPS Next Y10.72%
EPS Next 2Y6.08%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.66%
Revenue Next 2Y2.42%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. AUDC Valuation Analysis
4.1 Price/Earnings Ratio
- AUDC is valuated correctly with a Price/Earnings ratio of 13.00.
- Based on the Price/Earnings ratio, AUDC is valued cheaper than 89.58% of the companies in the same industry.
- AUDC is valuated cheaply when we compare the Price/Earnings ratio to 26.29, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 11.74, the valuation of AUDC can be described as reasonable.
- AUDC's Price/Forward Earnings ratio is rather cheap when compared to the industry. AUDC is cheaper than 93.75% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.57, AUDC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13 | ||
| Fwd PE | 11.74 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AUDC is valued cheaper than 95.83% of the companies in the same industry.
- AUDC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AUDC is cheaper than 95.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.44 | ||
| EV/EBITDA | 6.25 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- AUDC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.21
PEG (5Y)N/A
EPS Next 2Y6.08%
EPS Next 3YN/A
5. AUDC Dividend Analysis
5.1 Amount
- AUDC has a Yearly Dividend Yield of 5.01%, which is a nice return.
- AUDC's Dividend Yield is rather good when compared to the industry average which is at 0.78. AUDC pays more dividend than 95.83% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, AUDC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.01% |
5.2 History
- The dividend of AUDC is nicely growing with an annual growth rate of 7.50%!
- AUDC has been paying a dividend for over 5 years, so it has already some track record.
- AUDC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)7.5%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- 122.10% of the earnings are spent on dividend by AUDC. This is not a sustainable payout ratio.
- AUDC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP122.1%
EPS Next 2Y6.08%
EPS Next 3YN/A
AUDC Fundamentals: All Metrics, Ratios and Statistics
8.06
+0.07 (+0.88%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-03 2026-02-03/bmo
Earnings (Next)05-04 2026-05-04
Inst Owners39.88%
Inst Owner Change-4.77%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap216.09M
Revenue(TTM)245.60M
Net Income(TTM)8.96M
Analysts82.86
Price Target12.75 (58.19%)
Short Float %1.11%
Short Ratio1.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.01% |
Yearly Dividend0.39
Dividend Growth(5Y)7.5%
DP122.1%
Div Incr Years0
Div Non Decr Years3
Ex-Date02-20 2026-02-20 (0.2)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)35.83%
Min EPS beat(2)-1.96%
Max EPS beat(2)73.61%
EPS beat(4)1
Avg EPS beat(4)10.55%
Min EPS beat(4)-18.3%
Max EPS beat(4)73.61%
EPS beat(8)2
Avg EPS beat(8)4.36%
EPS beat(12)5
Avg EPS beat(12)7.34%
EPS beat(16)5
Avg EPS beat(16)3.91%
Revenue beat(2)0
Avg Revenue beat(2)-0.94%
Min Revenue beat(2)-1.32%
Max Revenue beat(2)-0.55%
Revenue beat(4)0
Avg Revenue beat(4)-1.22%
Min Revenue beat(4)-2.09%
Max Revenue beat(4)-0.55%
Revenue beat(8)0
Avg Revenue beat(8)-2.23%
Revenue beat(12)0
Avg Revenue beat(12)-2.56%
Revenue beat(16)0
Avg Revenue beat(16)-2.63%
PT rev (1m)0%
PT rev (3m)16.28%
EPS NQ rev (1m)-5.39%
EPS NQ rev (3m)-6.23%
EPS NY rev (1m)0%
EPS NY rev (3m)42.28%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)-0.71%
Revenue NY rev (3m)1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13 | ||
| Fwd PE | 11.74 | ||
| P/S | 0.88 | ||
| P/FCF | 9.44 | ||
| P/OCF | 7.36 | ||
| P/B | 1.26 | ||
| P/tB | 1.62 | ||
| EV/EBITDA | 6.25 |
EPS(TTM)0.62
EY7.69%
EPS(NY)0.69
Fwd EY8.52%
FCF(TTM)0.85
FCFY10.59%
OCF(TTM)1.1
OCFY13.59%
SpS9.16
BVpS6.39
TBVpS4.99
PEG (NY)1.21
PEG (5Y)N/A
Graham Number9.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 5.23% | ||
| ROCE | 5.81% | ||
| ROIC | 3.83% | ||
| ROICexc | 5.48% | ||
| ROICexgc | 7.06% | ||
| OM | 5.72% | ||
| PM (TTM) | 3.65% | ||
| GM | 65% | ||
| FCFM | 9.32% |
ROA(3y)3.31%
ROA(5y)5.68%
ROE(3y)5.96%
ROE(5y)9.87%
ROIC(3y)4.11%
ROIC(5y)6.32%
ROICexc(3y)5.38%
ROICexc(5y)8.44%
ROICexgc(3y)6.73%
ROICexgc(5y)10.73%
ROCE(3y)6.23%
ROCE(5y)9.59%
ROICexgc growth 3Y-20.29%
ROICexgc growth 5Y-12.4%
ROICexc growth 3Y-20.74%
ROICexc growth 5Y-13.62%
OM growth 3Y-20.5%
OM growth 5Y-19.95%
PM growth 3Y-29.4%
PM growth 5Y-21.61%
GM growth 3Y0%
GM growth 5Y-0.85%
F-Score7
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 152.82% | ||
| Cap/Sales | 2.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 160.67% | ||
| Profit Quality | 255.6% | ||
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.94 | ||
| Altman-Z | N/A |
F-Score7
WACC8.58%
ROIC/WACC0.45
Cap/Depr(3y)335.96%
Cap/Depr(5y)221.21%
Cap/Sales(3y)5.03%
Cap/Sales(5y)3.22%
Profit Quality(3y)142.98%
Profit Quality(5y)117.87%
High Growth Momentum
Growth
EPS 1Y (TTM)-29.55%
EPS 3Y-22.85%
EPS 5Y-14.91%
EPS Q2Q%-56.76%
EPS Next Y10.72%
EPS Next 2Y6.08%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.42%
Revenue growth 3Y-3.71%
Revenue growth 5Y2.15%
Sales Q2Q%1.71%
Revenue Next Year2.66%
Revenue Next 2Y2.42%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-24.3%
EBIT growth 3Y-23.45%
EBIT growth 5Y-18.23%
EBIT Next Year2.9%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y108.59%
FCF growth 3Y49.94%
FCF growth 5Y-9.13%
OCF growth 1Y-16.71%
OCF growth 3Y52.49%
OCF growth 5Y-5.27%
AUDIOCODES LTD / AUDC FAQ
What is the ChartMill fundamental rating of AUDIOCODES LTD (AUDC) stock?
ChartMill assigns a fundamental rating of 6 / 10 to AUDC.
What is the valuation status of AUDIOCODES LTD (AUDC) stock?
ChartMill assigns a valuation rating of 8 / 10 to AUDIOCODES LTD (AUDC). This can be considered as Undervalued.
How profitable is AUDIOCODES LTD (AUDC) stock?
AUDIOCODES LTD (AUDC) has a profitability rating of 6 / 10.
What are the PE and PB ratios of AUDIOCODES LTD (AUDC) stock?
The Price/Earnings (PE) ratio for AUDIOCODES LTD (AUDC) is 13 and the Price/Book (PB) ratio is 1.26.
Is the dividend of AUDIOCODES LTD sustainable?
The dividend rating of AUDIOCODES LTD (AUDC) is 6 / 10 and the dividend payout ratio is 122.1%.