AUDIOCODES LTD (AUDC) Stock Fundamental Analysis
NASDAQ:AUDC - Nasdaq - IL0010829658 - Common Stock - Currency: USD
AUDC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 49 industry peers in the Communications Equipment industry. While AUDC belongs to the best of the industry regarding profitability, 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.
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 has a better Return On Assets (4.56%) than 77.55% of its industry peers.
With a decent Return On Equity value of 7.98%, AUDC is doing good in the industry, outperforming 77.55% of the companies in the same industry.
AUDC has a Return On Invested Capital of 4.39%. This is in the better half of the industry: AUDC outperforms 69.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AUDC is significantly below the industry average of 11.12%.
| 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
AUDC's Profit Margin of 6.32% is fine compared to the rest of the industry. AUDC outperforms 79.59% of its industry peers.
In the last couple of years the Profit Margin of AUDC has grown nicely.
AUDC has a better Operating Margin (7.66%) than 71.43% of its industry peers.
AUDC's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 65.31%, AUDC belongs to the best of the industry, outperforming 89.80% of the companies in the same industry.
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
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
Compared to 5 years ago, AUDC has more 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
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/WACC0.49
WACC9.03%
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 (2.09) which is in line with its industry peers.
AUDC has a Quick Ratio of 1.69. 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 Quick ratio of 1.69. This is in the better half of the industry: AUDC outperforms 61.22% 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.
AUDC shows a decrease in Revenue. In the last year, the revenue decreased by -0.90%.
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
The Earnings Per Share is expected to grow by 3.45% on average over the next years.
AUDC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.44% yearly.
EPS Next Y-7.27%
EPS Next 2Y3.45%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.07%
Revenue Next 2Y3.44%
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. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.75, the valuation of AUDC can be described as very reasonable.
AUDC's Price/Earnings ratio is rather cheap when compared to the industry. AUDC is cheaper than 89.80% of the companies in the same industry.
When comparing the Price/Earnings ratio of AUDC to the average of the S&P500 Index (28.79), we can say AUDC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.59, the valuation of AUDC can be described as reasonable.
Based on the Price/Forward Earnings ratio, AUDC is valued cheaper than 87.76% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.38. AUDC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.75 | ||
| Fwd PE | 11.59 |
4.2 Price Multiples
AUDC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AUDC is cheaper than 81.63% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as AUDC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.59 | ||
| EV/EBITDA | 9.65 |
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 2Y3.45%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.02%, AUDC is a good candidate for dividend investing.
AUDC's Dividend Yield is rather good when compared to the industry average which is at 3.72. AUDC pays more dividend than 93.88% of the companies in the same industry.
AUDC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
5.2 History
On average, the dividend of AUDC grows each year by 9.50%, 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)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.
AUDC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP71.16%
EPS Next 2Y3.45%
EPS Next 3YN/A
NASDAQ:AUDC (4/25/2025, 8:00:00 PM)
9.46
-0.04 (-0.42%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners49.45%
Inst Owner Change-0.58%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap280.77M
Analysts47.5
Price Target11.39 (20.4%)
Short Float %0.71%
Short Ratio1.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
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)0%
PT rev (3m)15.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)1.91%
EPS NY rev (3m)-2.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.75 | ||
| Fwd PE | 11.59 | ||
| P/S | 1.16 | ||
| P/FCF | 25.59 | ||
| P/OCF | 7.96 | ||
| P/B | 1.46 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | 9.65 |
EPS(TTM)0.88
EY9.3%
EPS(NY)0.82
Fwd EY8.63%
FCF(TTM)0.37
FCFY3.91%
OCF(TTM)1.19
OCFY12.56%
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
WACC9.03%
ROIC/WACC0.49
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-7.27%
EPS Next 2Y3.45%
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 2Y3.44%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y28.49%
EBIT growth 3Y-22.28%
EBIT growth 5YN/A
EBIT Next Year20.6%
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%