AUDIOCODES LTD (AUDC) Stock Fundamental Analysis
NASDAQ:AUDC - Nasdaq - IL0010829658 - Common Stock - Currency: USD
Taking everything into account, AUDC scores 6 out of 10 in our fundamental rating. AUDC was compared to 49 industry peers in the Communications Equipment industry. AUDC has an excellent profitability rating, but there are some minor concerns on its financial health. AUDC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
AUDC had positive earnings in the past year.
In the past year AUDC had a positive cash flow from operations.
Each year in the past 5 years AUDC has been profitable.
Each year in the past 5 years AUDC had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.56%, AUDC is doing good in the industry, outperforming 78.43% of the companies in the same industry.
The Return On Equity of AUDC (7.98%) is better than 78.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.39%, AUDC is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AUDC is significantly below the industry average of 10.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.56% | ||
| ROE | 7.98% | ||
| ROIC | 4.39% |
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
Looking at the Profit Margin, with a value of 6.32%, AUDC belongs to the top of the industry, outperforming 80.39% of the companies in the same industry.
AUDC's Profit Margin has improved in the last couple of years.
AUDC has a Operating Margin of 7.66%. This is in the better half of the industry: AUDC outperforms 72.55% of its industry peers.
In the last couple of years the Operating Margin of AUDC has declined.
AUDC has a better Gross Margin (65.31%) than 92.16% of its industry peers.
AUDC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.66% | ||
| PM (TTM) | 6.32% | ||
| GM | 65.31% |
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.
AUDC has less shares outstanding than it did 1 year ago.
AUDC has more 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
AUDC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC0.48
WACC9.11%
2.3 Liquidity
AUDC has a Current Ratio of 2.09. This indicates that AUDC is financially healthy and has no problem in meeting its short term obligations.
AUDC has a Current ratio of 2.09. This is comparable to the rest of the industry: AUDC outperforms 52.94% of its industry peers.
A Quick Ratio of 1.69 indicates that AUDC should not have too much problems paying its short term obligations.
AUDC has a better Quick ratio (1.69) than 62.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
AUDC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.29%, which is quite good.
Measured over the past years, AUDC shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.45% on average per year.
The Revenue has decreased by -0.90% in the past year.
The Revenue has been growing slightly by 3.87% on average over the past years.
EPS 1Y (TTM)14.29%
EPS 3Y-16.47%
EPS 5Y-0.45%
EPS Q2Q%32.14%
Revenue 1Y (TTM)-0.9%
Revenue growth 3Y-0.91%
Revenue growth 5Y3.87%
Sales Q2Q%-3.15%
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 2.70% on average per year.
AUDC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.43% yearly.
EPS Next Y-9.01%
EPS Next 2Y2.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.07%
Revenue Next 2Y3.43%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.95, the valuation of AUDC can be described as reasonable.
Based on the Price/Earnings ratio, AUDC is valued cheaper than 92.16% of the companies in the same industry.
AUDC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.35.
A Price/Forward Earnings ratio of 13.14 indicates a correct valuation of AUDC.
Based on the Price/Forward Earnings ratio, AUDC is valued cheaper than 82.35% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. AUDC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.95 | ||
| Fwd PE | 13.14 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AUDC indicates a rather cheap valuation: AUDC is cheaper than 80.39% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AUDC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.45 | ||
| EV/EBITDA | 11 |
4.3 Compensation for Growth
AUDC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.7%
EPS Next 3YN/A
5. Dividend
5.1 Amount
AUDC has a Yearly Dividend Yield of 3.41%.
AUDC's Dividend Yield is rather good when compared to the industry average which is at 8.80. AUDC pays more dividend than 92.16% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, AUDC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
5.2 History
The dividend of AUDC is nicely growing with an annual growth rate of 9.50%!
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)9.5%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
AUDC pays out 71.16% of its income as dividend. This is not a sustainable payout ratio.
The dividend of AUDC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP71.16%
EPS Next 2Y2.7%
EPS Next 3YN/A
10.52
-0.04 (-0.38%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners49.45%
Inst Owner Change8.48%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap312.23M
Analysts47.5
Price Target11.39 (8.27%)
Short Float %0.67%
Short Ratio1.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
Yearly Dividend0.36
Dividend Growth(5Y)9.5%
DP71.16%
Div Incr Years2
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)13.96%
Min EPS beat(2)-33.06%
Max EPS beat(2)60.98%
EPS beat(4)1
Avg EPS beat(4)-1.83%
Min EPS beat(4)-33.06%
Max EPS beat(4)60.98%
EPS beat(8)4
Avg EPS beat(8)5.74%
EPS beat(12)4
Avg EPS beat(12)1.7%
EPS beat(16)6
Avg EPS beat(16)1.8%
Revenue beat(2)0
Avg Revenue beat(2)-2.69%
Min Revenue beat(2)-3.48%
Max Revenue beat(2)-1.89%
Revenue beat(4)0
Avg Revenue beat(4)-3.23%
Min Revenue beat(4)-5.69%
Max Revenue beat(4)-1.86%
Revenue beat(8)0
Avg Revenue beat(8)-3.23%
Revenue beat(12)0
Avg Revenue beat(12)-3.1%
Revenue beat(16)0
Avg Revenue beat(16)-2.53%
PT rev (1m)15.52%
PT rev (3m)15.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-3.88%
EPS NY rev (3m)-3.88%
Revenue NQ rev (1m)-0.86%
Revenue NQ rev (3m)-0.86%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.95 | ||
| Fwd PE | 13.14 | ||
| P/S | 1.29 | ||
| P/FCF | 28.45 | ||
| P/OCF | 8.86 | ||
| P/B | 1.63 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | 11 |
EPS(TTM)0.88
EY8.37%
EPS(NY)0.8
Fwd EY7.61%
FCF(TTM)0.37
FCFY3.51%
OCF(TTM)1.19
OCFY11.29%
SpS8.16
BVpS6.46
TBVpS5.18
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.56% | ||
| ROE | 7.98% | ||
| ROCE | 7.18% | ||
| ROIC | 4.39% | ||
| ROICexc | 5.78% | ||
| ROICexgc | 7.17% | ||
| OM | 7.66% | ||
| PM (TTM) | 6.32% | ||
| GM | 65.31% | ||
| FCFM | 4.53% |
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%
ROICexcg growth 3Y-26.53%
ROICexcg 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-Score8
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 625.29% | ||
| Cap/Sales | 10.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 157.18% | ||
| Profit Quality | 71.67% | ||
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.69 | ||
| Altman-Z | N/A |
F-Score8
WACC9.11%
ROIC/WACC0.48
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)14.29%
EPS 3Y-16.47%
EPS 5Y-0.45%
EPS Q2Q%32.14%
EPS Next Y-9.01%
EPS Next 2Y2.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.9%
Revenue growth 3Y-0.91%
Revenue growth 5Y3.87%
Sales Q2Q%-3.15%
Revenue Next Year3.07%
Revenue Next 2Y3.43%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y28.49%
EBIT growth 3Y-22.28%
EBIT growth 5YN/A
EBIT Next Year22.61%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y22.93%
FCF growth 3Y-38.06%
FCF growth 5Y-12.36%
OCF growth 1Y136.74%
OCF growth 3Y-9.36%
OCF growth 5Y8.76%