9.08 USD
+0.02 (+0.22%)
8.75 USD
-0.33 (-3.63%)
Taking everything into account, AUDC scores 6 out of 10 in our fundamental rating. AUDC was compared to 48 industry peers in the Communications Equipment industry. AUDC scores excellent on profitability, but there are some minor concerns on its financial health. AUDC is valued quite cheap, but it does not seem to be growing. These ratings could make AUDC a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year AUDC was profitable.
AUDC had a positive operating cash flow in the past year.
AUDC had positive earnings in each of the past 5 years.
Each year in the past 5 years AUDC had a positive operating cash flow.
1.2 Ratios
AUDC's Return On Assets of 4.17% is fine compared to the rest of the industry. AUDC outperforms 75.00% of its industry peers.
AUDC has a Return On Equity of 7.96%. This is in the better half of the industry: AUDC outperforms 75.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.97%, AUDC is in the better half of the industry, outperforming 60.42% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AUDC is significantly below the industry average of 12.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.17% | ||
| ROE | 7.96% | ||
| ROIC | 3.97% |
ROA(3y)5.32%
ROA(5y)6.65%
ROE(3y)9.22%
ROE(5y)11.41%
ROIC(3y)5.4%
ROIC(5y)6.93%
1.3 Margins
The Profit Margin of AUDC (5.65%) is better than 68.75% of its industry peers.
In the last couple of years the Profit Margin of AUDC has grown nicely.
AUDC has a Operating Margin of 6.45%. This is in the better half of the industry: AUDC outperforms 68.75% of its industry peers.
In the last couple of years the Operating Margin of AUDC has declined.
Looking at the Gross Margin, with a value of 65.12%, AUDC belongs to the top of the industry, outperforming 89.58% of the companies in the same industry.
In the last couple of years the Gross Margin of AUDC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.45% | ||
| PM (TTM) | 5.65% | ||
| GM | 65.12% |
OM growth 3Y-21.56%
OM growth 5YN/A
PM growth 3Y-22.5%
PM growth 5Y25.92%
GM growth 3Y-1.66%
GM growth 5Y6.61%
2. Health
2.1 Basic Checks
AUDC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, AUDC has less shares outstanding
AUDC has more shares outstanding than it did 5 years ago.
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.
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/WACC0.46
WACC8.6%
2.3 Liquidity
A Current Ratio of 2.09 indicates that AUDC has no problem at all paying its short term obligations.
AUDC has a Current ratio of 2.09. This is comparable to the rest of the industry: AUDC outperforms 56.25% of its industry peers.
AUDC has a Quick Ratio of 1.82. This is a normal value and indicates that AUDC is financially healthy and should not expect problems in meeting its short term obligations.
AUDC has a better Quick ratio (1.82) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.06% over the past year.
AUDC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.45% yearly.
Looking at the last year, AUDC shows a small growth in Revenue. The Revenue has grown by 0.15% in the last year.
Measured over the past years, AUDC shows a small growth in Revenue. The Revenue has been growing by 3.87% on average per year.
EPS 1Y (TTM)5.06%
EPS 3Y-16.47%
EPS 5Y-0.45%
EPS Q2Q%6.25%
Revenue 1Y (TTM)0.15%
Revenue growth 3Y-0.91%
Revenue growth 5Y3.87%
Sales Q2Q%2.16%
3.2 Future
Based on estimates for the next years, AUDC will show a decrease in Earnings Per Share. The EPS will decrease by -7.45% on average per year.
Based on estimates for the next years, AUDC will show a small growth in Revenue. The Revenue will grow by 1.94% on average per year.
EPS Next Y-28.25%
EPS Next 2Y-11.68%
EPS Next 3Y-7.45%
EPS Next 5YN/A
Revenue Next Year0.98%
Revenue Next 2Y2.18%
Revenue Next 3Y1.94%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.94, which indicates a very decent valuation of AUDC.
Based on the Price/Earnings ratio, AUDC is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.92, AUDC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 13.23, the valuation of AUDC can be described as correct.
Based on the Price/Forward Earnings ratio, AUDC is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.57. AUDC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.94 | ||
| Fwd PE | 13.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AUDC is valued cheaper than 87.50% 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 97.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.74 | ||
| EV/EBITDA | 7.56 |
4.3 Compensation for Growth
The decent profitability rating of AUDC may justify a higher PE ratio.
AUDC's earnings are expected to decrease with -7.45% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-11.68%
EPS Next 3Y-7.45%
5. Dividend
5.1 Amount
AUDC has a Yearly Dividend Yield of 4.35%, which is a nice return.
Compared to an average industry Dividend Yield of 0.78, AUDC pays a better dividend. On top of this AUDC pays more dividend than 93.75% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, AUDC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
5.2 History
On average, the dividend of AUDC grows each year by 9.60%, which is quite nice.
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)9.6%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
79.07% of the earnings are spent on dividend by AUDC. This is not a sustainable payout ratio.
AUDC's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP79.07%
EPS Next 2Y-11.68%
EPS Next 3Y-7.45%
9.08
+0.02 (+0.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners37.71%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap249.43M
Revenue(TTM)244.55M
Net Income(TTM)13.83M
Analysts80
Price Target12.75 (40.42%)
Short Float %1.42%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
Yearly Dividend0.36
Dividend Growth(5Y)9.6%
DP79.07%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)31.22%
Min EPS beat(2)-11.16%
Max EPS beat(2)73.61%
EPS beat(4)2
Avg EPS beat(4)26.28%
Min EPS beat(4)-18.3%
Max EPS beat(4)73.61%
EPS beat(8)3
Avg EPS beat(8)6.69%
EPS beat(12)5
Avg EPS beat(12)7.2%
EPS beat(16)5
Avg EPS beat(16)3.99%
Revenue beat(2)0
Avg Revenue beat(2)-0.73%
Min Revenue beat(2)-0.92%
Max Revenue beat(2)-0.55%
Revenue beat(4)0
Avg Revenue beat(4)-1.36%
Min Revenue beat(4)-2.09%
Max Revenue beat(4)-0.55%
Revenue beat(8)0
Avg Revenue beat(8)-2.29%
Revenue beat(12)0
Avg Revenue beat(12)-2.8%
Revenue beat(16)0
Avg Revenue beat(16)-2.62%
PT rev (1m)16.28%
PT rev (3m)16.28%
EPS NQ rev (1m)14.29%
EPS NQ rev (3m)48.15%
EPS NY rev (1m)8.69%
EPS NY rev (3m)25.56%
Revenue NQ rev (1m)1.51%
Revenue NQ rev (3m)1.51%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.94 | ||
| Fwd PE | 13.23 | ||
| P/S | 1.02 | ||
| P/FCF | 7.74 | ||
| P/OCF | 6.15 | ||
| P/B | 1.44 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | 7.56 |
EPS(TTM)0.83
EY9.14%
EPS(NY)0.69
Fwd EY7.56%
FCF(TTM)1.17
FCFY12.91%
OCF(TTM)1.48
OCFY16.26%
SpS8.9
BVpS6.32
TBVpS4.95
PEG (NY)N/A
PEG (5Y)N/A
Graham Number10.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.17% | ||
| ROE | 7.96% | ||
| ROCE | 6.5% | ||
| ROIC | 3.97% | ||
| ROICexc | 5.7% | ||
| ROICexgc | 7.33% | ||
| OM | 6.45% | ||
| PM (TTM) | 5.65% | ||
| GM | 65.12% | ||
| FCFM | 13.17% |
ROA(3y)5.32%
ROA(5y)6.65%
ROE(3y)9.22%
ROE(5y)11.41%
ROIC(3y)5.4%
ROIC(5y)6.93%
ROICexc(3y)6.69%
ROICexc(5y)8.91%
ROICexgc(3y)8.35%
ROICexgc(5y)11.16%
ROCE(3y)8.84%
ROCE(5y)11.34%
ROICexgc growth 3Y-26.53%
ROICexgc growth 5YN/A
ROICexc growth 3Y-25.38%
ROICexc growth 5YN/A
OM growth 3Y-21.56%
OM growth 5YN/A
PM growth 3Y-22.5%
PM growth 5Y25.92%
GM growth 3Y-1.66%
GM growth 5Y6.61%
F-Score7
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 199.05% | ||
| Cap/Sales | 3.41% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 203.2% | ||
| Profit Quality | 232.88% | ||
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z | N/A |
F-Score7
WACC8.6%
ROIC/WACC0.46
Cap/Depr(3y)301.69%
Cap/Depr(5y)204.12%
Cap/Sales(3y)4.34%
Cap/Sales(5y)2.83%
Profit Quality(3y)65.72%
Profit Quality(5y)93.92%
High Growth Momentum
Growth
EPS 1Y (TTM)5.06%
EPS 3Y-16.47%
EPS 5Y-0.45%
EPS Q2Q%6.25%
EPS Next Y-28.25%
EPS Next 2Y-11.68%
EPS Next 3Y-7.45%
EPS Next 5YN/A
Revenue 1Y (TTM)0.15%
Revenue growth 3Y-0.91%
Revenue growth 5Y3.87%
Sales Q2Q%2.16%
Revenue Next Year0.98%
Revenue Next 2Y2.18%
Revenue Next 3Y1.94%
Revenue Next 5YN/A
EBIT growth 1Y-22.44%
EBIT growth 3Y-22.28%
EBIT growth 5YN/A
EBIT Next Year-21.96%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y8157.69%
FCF growth 3Y-38.06%
FCF growth 5Y-12.36%
OCF growth 1Y572.42%
OCF growth 3Y-9.36%
OCF growth 5Y8.76%
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 7 / 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 7 / 10.
What are the PE and PB ratios of AUDIOCODES LTD (AUDC) stock?
The Price/Earnings (PE) ratio for AUDIOCODES LTD (AUDC) is 10.94 and the Price/Book (PB) ratio is 1.44.
Is the dividend of AUDIOCODES LTD sustainable?
The dividend rating of AUDIOCODES LTD (AUDC) is 6 / 10 and the dividend payout ratio is 79.07%.