AUDIOCODES LTD (AUDC) Fundamental Analysis & Valuation
NASDAQ:AUDC • IL0010829658
Current stock price
8.45 USD
+0.24 (+2.92%)
Last:
This AUDC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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
- AUDC's Return On Assets of 2.77% is fine compared to the rest of the industry. AUDC outperforms 66.67% of its industry peers.
- Looking at the Return On Equity, with a value of 5.23%, AUDC is in the better half of the industry, outperforming 64.58% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 3.83%, AUDC is in the better half of the industry, outperforming 64.58% 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 10.40%.
| 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
- AUDC has a better Profit Margin (3.65%) than 66.67% of its industry peers.
- AUDC's Profit Margin has declined in the last couple of years.
- AUDC has a Operating Margin of 5.72%. This is in the better half of the industry: AUDC outperforms 68.75% of its industry peers.
- AUDC's Operating Margin has declined in the last couple of years.
- With an excellent Gross Margin value of 65.00%, AUDC belongs to the best 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 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AUDC is destroying value.
- Compared to 1 year ago, AUDC has less shares outstanding
- Compared to 5 years ago, AUDC has less shares outstanding
- 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/WACC0.44
WACC8.68%
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 (2.21) which is in line with 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
- The earnings per share for AUDC have decreased strongly by -29.55% in the last year.
- 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.
- The Revenue has been growing slightly by 1.42% in the past year.
- 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.
- AUDC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.42% yearly.
EPS Next Y8.75%
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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. AUDC Valuation Analysis
4.1 Price/Earnings Ratio
- AUDC is valuated correctly with a Price/Earnings ratio of 13.63.
- Compared to the rest of the industry, the Price/Earnings ratio of AUDC indicates a rather cheap valuation: AUDC is cheaper than 87.50% of the companies listed in the same industry.
- AUDC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.71.
- Based on the Price/Forward Earnings ratio of 12.53, the valuation of AUDC can be described as correct.
- 93.75% of the companies in the same industry are more expensive than AUDC, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.83, AUDC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.63 | ||
| Fwd PE | 12.53 |
4.2 Price Multiples
- 95.83% of the companies in the same industry are more expensive than AUDC, based on the Enterprise Value to EBITDA ratio.
- 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 | 9.9 | ||
| EV/EBITDA | 6.57 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of AUDC may justify a higher PE ratio.
PEG (NY)1.56
PEG (5Y)N/A
EPS Next 2Y6.08%
EPS Next 3YN/A
5. AUDC Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 4.89%, AUDC is a good candidate for dividend investing.
- AUDC's Dividend Yield is rather good when compared to the industry average which is at 0.77. AUDC pays more dividend than 93.75% of the companies in the same industry.
- AUDC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
5.2 History
- On average, the dividend of AUDC grows each year by 7.50%, 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)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.
- The dividend of AUDC is growing, but the earnings are growing slower. 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
NASDAQ:AUDC (3/16/2026, 11:12:49 AM)
8.45
+0.24 (+2.92%)
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 Change0%
Market Cap226.54M
Revenue(TTM)245.60M
Net Income(TTM)8.96M
Analysts82.86
Price Target12.75 (50.89%)
Short Float %0.69%
Short Ratio0.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
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)0%
EPS NQ rev (3m)-6.23%
EPS NY rev (1m)-1.78%
EPS NY rev (3m)5.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)-0.71%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.63 | ||
| Fwd PE | 12.53 | ||
| P/S | 0.92 | ||
| P/FCF | 9.9 | ||
| P/OCF | 7.72 | ||
| P/B | 1.32 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 6.57 |
EPS(TTM)0.62
EY7.34%
EPS(NY)0.67
Fwd EY7.98%
FCF(TTM)0.85
FCFY10.1%
OCF(TTM)1.1
OCFY12.96%
SpS9.16
BVpS6.39
TBVpS4.99
PEG (NY)1.56
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
WACC8.68%
ROIC/WACC0.44
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 Y8.75%
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 Fundamental Analysis 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 6 / 10 to AUDIOCODES LTD (AUDC). This can be considered as Fairly Valued.
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 13.63 and the Price/Book (PB) ratio is 1.32.
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%.