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 50 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 correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year AUDC was profitable.
In the past year AUDC had a positive cash flow from operations.
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
With a decent Return On Assets value of 5.22%, AUDC is doing good in the industry, outperforming 76.00% of the companies in the same industry.
With a decent Return On Equity value of 9.28%, AUDC is doing good in the industry, outperforming 80.00% of the companies in the same industry.
AUDC has a better Return On Invested Capital (4.62%) than 72.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AUDC is significantly below the industry average of 13.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.22% | ||
| ROE | 9.28% | ||
| ROIC | 4.62% |
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 has a better Profit Margin (7.11%) than 80.00% of its industry peers.
In the last couple of years the Profit Margin of AUDC has grown nicely.
AUDC has a better Operating Margin (7.80%) than 68.00% of its industry peers.
AUDC's Operating Margin has declined in the last couple of years.
AUDC has a better Gross Margin (65.42%) than 92.00% of its industry peers.
In the last couple of years the Gross Margin of AUDC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.8% | ||
| PM (TTM) | 7.11% | ||
| GM | 65.42% |
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.
The number of shares outstanding for AUDC has been reduced compared to 1 year ago.
Compared to 5 years ago, AUDC has more shares outstanding
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
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/WACC0.51
WACC9.07%
2.3 Liquidity
A Current Ratio of 2.01 indicates that AUDC has no problem at all paying its short term obligations.
AUDC has a Current ratio (2.01) which is in line with its industry peers.
A Quick Ratio of 1.66 indicates that AUDC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.66, AUDC is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.66 |
3. Growth
3.1 Past
The earnings per share for AUDC have decreased by 0.00% in the last 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 decrease in Revenue. The Revenue has decreased by -1.13% in the last year.
The Revenue has been growing slightly by 3.87% on average over the past years.
EPS 1Y (TTM)0%
EPS 3Y-16.47%
EPS 5Y-0.45%
EPS Q2Q%-11.76%
Revenue 1Y (TTM)-1.13%
Revenue growth 3Y-0.91%
Revenue growth 5Y3.87%
Sales Q2Q%0.5%
3.2 Future
The Earnings Per Share is expected to grow by 3.12% 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 1.73% yearly.
EPS Next Y-19.04%
EPS Next 2Y-5.56%
EPS Next 3Y3.12%
EPS Next 5YN/A
Revenue Next Year-0.44%
Revenue Next 2Y0.48%
Revenue Next 3Y1.73%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
AUDC is valuated reasonably with a Price/Earnings ratio of 11.21.
AUDC's Price/Earnings ratio is rather cheap when compared to the industry. AUDC is cheaper than 90.00% of the companies in the same industry.
AUDC is valuated cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
AUDC is valuated correctly with a Price/Forward Earnings ratio of 12.28.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AUDC indicates a somewhat cheap valuation: AUDC is cheaper than 80.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, AUDC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.21 | ||
| Fwd PE | 12.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AUDC is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AUDC indicates a somewhat cheap valuation: AUDC is cheaper than 72.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.38 | ||
| EV/EBITDA | 9.33 |
4.3 Compensation for Growth
The decent profitability rating of AUDC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.56%
EPS Next 3Y3.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.70%, AUDC has a reasonable but not impressive dividend return.
AUDC's Dividend Yield is rather good when compared to the industry average which is at 3.49. AUDC pays more dividend than 94.00% of the companies in the same industry.
AUDC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
5.2 History
The dividend of AUDC is nicely growing with an annual growth rate of 9.60%!
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
62.45% 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.
DP62.45%
EPS Next 2Y-5.56%
EPS Next 3Y3.12%
NASDAQ:AUDC (7/3/2025, 7:03:18 PM)
9.64
-0.12 (-1.23%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners45.77%
Inst Owner Change-6.87%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap286.12M
Analysts80
Price Target10.97 (13.8%)
Short Float %0.97%
Short Ratio3.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
Yearly Dividend0.36
Dividend Growth(5Y)9.6%
DP62.45%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)21.34%
Min EPS beat(2)-18.3%
Max EPS beat(2)60.98%
EPS beat(4)1
Avg EPS beat(4)0.59%
Min EPS beat(4)-33.06%
Max EPS beat(4)60.98%
EPS beat(8)4
Avg EPS beat(8)10.25%
EPS beat(12)4
Avg EPS beat(12)1.09%
EPS beat(16)5
Avg EPS beat(16)-0.04%
Revenue beat(2)0
Avg Revenue beat(2)-1.99%
Min Revenue beat(2)-2.09%
Max Revenue beat(2)-1.89%
Revenue beat(4)0
Avg Revenue beat(4)-2.33%
Min Revenue beat(4)-3.48%
Max Revenue beat(4)-1.86%
Revenue beat(8)0
Avg Revenue beat(8)-2.66%
Revenue beat(12)0
Avg Revenue beat(12)-3.1%
Revenue beat(16)0
Avg Revenue beat(16)-2.63%
PT rev (1m)-8.51%
PT rev (3m)-3.73%
EPS NQ rev (1m)-8.85%
EPS NQ rev (3m)-12.5%
EPS NY rev (1m)-2.92%
EPS NY rev (3m)-12.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.21 | ||
| Fwd PE | 12.28 | ||
| P/S | 1.18 | ||
| P/FCF | 19.38 | ||
| P/OCF | 8.48 | ||
| P/B | 1.54 | ||
| P/tB | 1.93 | ||
| EV/EBITDA | 9.33 |
EPS(TTM)0.86
EY8.92%
EPS(NY)0.78
Fwd EY8.14%
FCF(TTM)0.5
FCFY5.16%
OCF(TTM)1.14
OCFY11.79%
SpS8.17
BVpS6.26
TBVpS4.99
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.22% | ||
| ROE | 9.28% | ||
| ROCE | 7.56% | ||
| ROIC | 4.62% | ||
| ROICexc | 6.29% | ||
| ROICexgc | 7.92% | ||
| OM | 7.8% | ||
| PM (TTM) | 7.11% | ||
| GM | 65.42% | ||
| FCFM | 6.09% |
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 Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 439.71% | ||
| Cap/Sales | 7.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 145.23% | ||
| Profit Quality | 85.6% | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.66 | ||
| Altman-Z | N/A |
F-Score8
WACC9.07%
ROIC/WACC0.51
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)0%
EPS 3Y-16.47%
EPS 5Y-0.45%
EPS Q2Q%-11.76%
EPS Next Y-19.04%
EPS Next 2Y-5.56%
EPS Next 3Y3.12%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.13%
Revenue growth 3Y-0.91%
Revenue growth 5Y3.87%
Sales Q2Q%0.5%
Revenue Next Year-0.44%
Revenue Next 2Y0.48%
Revenue Next 3Y1.73%
Revenue Next 5YN/A
EBIT growth 1Y1.91%
EBIT growth 3Y-22.28%
EBIT growth 5YN/A
EBIT Next Year-9.85%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y83.35%
FCF growth 3Y-38.06%
FCF growth 5Y-12.36%
OCF growth 1Y219.1%
OCF growth 3Y-9.36%
OCF growth 5Y8.76%