AUDIOCODES LTD (AUDC) Stock Fundamental Analysis
USA - NASDAQ:AUDC - IL0010829658 - Common Stock
9.28 USD
+0.05 (+0.54%)
9.3612 USD
+0.08 (+0.88%)
Overall AUDC gets a fundamental rating of 5 out of 10. We evaluated AUDC against 48 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 valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year AUDC was profitable.
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 4.05% is fine compared to the rest of the industry. AUDC outperforms 70.83% of its industry peers.
Looking at the Return On Equity, with a value of 7.32%, AUDC is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
AUDC has a better Return On Invested Capital (3.96%) than 62.50% of its industry peers.
AUDC had an Average Return On Invested Capital over the past 3 years of 5.40%. This is significantly below the industry average of 13.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.05% | ||
| ROE | 7.32% | ||
| ROIC | 3.96% |
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
With a decent Profit Margin value of 5.66%, AUDC is doing good in the industry, outperforming 70.83% of the companies in the same industry.
In the last couple of years the Profit Margin of AUDC has grown nicely.
Looking at the Operating Margin, with a value of 6.81%, AUDC is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
In the last couple of years the Operating Margin of AUDC has declined.
Looking at the Gross Margin, with a value of 65.07%, AUDC belongs to the top of the industry, outperforming 91.67% 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 | 6.81% | ||
| PM (TTM) | 5.66% | ||
| GM | 65.07% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AUDC is destroying value.
AUDC has less shares outstanding than it did 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/WACC0.45
WACC8.79%
2.3 Liquidity
AUDC has a Current Ratio of 2.16. This indicates that AUDC is financially healthy and has no problem in meeting its short term obligations.
AUDC's Current ratio of 2.16 is in line compared to the rest of the industry. AUDC outperforms 56.25% of its industry peers.
A Quick Ratio of 1.85 indicates that AUDC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.85, AUDC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.85 |
3. Growth
3.1 Past
AUDC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.06%.
AUDC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.45% yearly.
AUDC shows a decrease in Revenue. In the last year, the revenue decreased by -0.90%.
AUDC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.87% yearly.
EPS 1Y (TTM)5.06%
EPS 3Y-16.47%
EPS 5Y-0.45%
EPS Q2Q%6.25%
Revenue 1Y (TTM)-0.9%
Revenue growth 3Y-0.91%
Revenue growth 5Y3.87%
Sales Q2Q%2.17%
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-42.86%
EPS Next 2Y-25.96%
EPS Next 3Y-7.45%
EPS Next 5YN/A
Revenue Next Year0.53%
Revenue Next 2Y1.13%
Revenue Next 3Y1.94%
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 decreasing.
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
A Price/Earnings ratio of 11.18 indicates a reasonable valuation of AUDC.
89.58% of the companies in the same industry are more expensive than AUDC, based on the Price/Earnings ratio.
AUDC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
The Price/Forward Earnings ratio is 19.23, which indicates a rather expensive current valuation of AUDC.
64.58% of the companies in the same industry are more expensive than AUDC, based on the Price/Forward Earnings ratio.
AUDC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 32.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.18 | ||
| Fwd PE | 19.23 |
4.2 Price Multiples
AUDC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AUDC is cheaper than 89.58% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AUDC indicates a rather cheap valuation: AUDC is cheaper than 97.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.21 | ||
| EV/EBITDA | 8.09 |
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-25.96%
EPS Next 3Y-7.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.12%, AUDC is a good candidate for dividend investing.
AUDC's Dividend Yield is rather good when compared to the industry average which is at 3.24. 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 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.12% |
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
AUDC pays out 78.17% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of AUDC has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP78.17%
EPS Next 2Y-25.96%
EPS Next 3Y-7.45%
9.28
+0.05 (+0.54%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners43.97%
Inst Owner Change-0.17%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap263.27M
Revenue(TTM)242.18M
Net Income(TTM)13.78M
Analysts80
Price Target10.97 (18.21%)
Short Float %1.71%
Short Ratio4.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.12% |
Yearly Dividend0.36
Dividend Growth(5Y)9.6%
DP78.17%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-14.73%
Min EPS beat(2)-18.3%
Max EPS beat(2)-11.16%
EPS beat(4)1
Avg EPS beat(4)-0.38%
Min EPS beat(4)-33.06%
Max EPS beat(4)60.98%
EPS beat(8)3
Avg EPS beat(8)1.94%
EPS beat(12)4
Avg EPS beat(12)0.26%
EPS beat(16)4
Avg EPS beat(16)-0.74%
Revenue beat(2)0
Avg Revenue beat(2)-1.5%
Min Revenue beat(2)-2.09%
Max Revenue beat(2)-0.92%
Revenue beat(4)0
Avg Revenue beat(4)-2.1%
Min Revenue beat(4)-3.48%
Max Revenue beat(4)-0.92%
Revenue beat(8)0
Avg Revenue beat(8)-2.46%
Revenue beat(12)0
Avg Revenue beat(12)-3.02%
Revenue beat(16)0
Avg Revenue beat(16)-2.61%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-32.87%
EPS NY rev (1m)0%
EPS NY rev (3m)-29.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.18 | ||
| Fwd PE | 19.23 | ||
| P/S | 1.08 | ||
| P/FCF | 8.21 | ||
| P/OCF | 5.94 | ||
| P/B | 1.4 | ||
| P/tB | 1.75 | ||
| EV/EBITDA | 8.09 |
EPS(TTM)0.83
EY8.94%
EPS(NY)0.48
Fwd EY5.2%
FCF(TTM)1.13
FCFY12.18%
OCF(TTM)1.56
OCFY16.84%
SpS8.57
BVpS6.63
TBVpS5.3
PEG (NY)N/A
PEG (5Y)N/A
Graham Number11.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.05% | ||
| ROE | 7.32% | ||
| ROCE | 6.48% | ||
| ROIC | 3.96% | ||
| ROICexc | 5.72% | ||
| ROICexgc | 7.28% | ||
| OM | 6.81% | ||
| PM (TTM) | 5.66% | ||
| GM | 65.07% | ||
| FCFM | 13.18% |
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-Score6
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 305.98% | ||
| Cap/Sales | 5.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 215.41% | ||
| Profit Quality | 232.79% | ||
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.85 | ||
| Altman-Z | N/A |
F-Score6
WACC8.79%
ROIC/WACC0.45
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-42.86%
EPS Next 2Y-25.96%
EPS Next 3Y-7.45%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.9%
Revenue growth 3Y-0.91%
Revenue growth 5Y3.87%
Sales Q2Q%2.17%
Revenue Next Year0.53%
Revenue Next 2Y1.13%
Revenue Next 3Y1.94%
Revenue Next 5YN/A
EBIT growth 1Y-21.93%
EBIT growth 3Y-22.28%
EBIT growth 5YN/A
EBIT Next Year-31.71%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y748.39%
FCF growth 3Y-38.06%
FCF growth 5Y-12.36%
OCF growth 1Y457.8%
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 5 / 10 to AUDC.
Can you provide the valuation status for AUDIOCODES LTD?
ChartMill assigns a valuation rating of 6 / 10 to AUDIOCODES LTD (AUDC). This can be considered as Fairly Valued.
Can you provide the profitability details for AUDIOCODES LTD?
AUDIOCODES LTD (AUDC) has a profitability rating of 7 / 10.
How financially healthy is AUDIOCODES LTD?
The financial health rating of AUDIOCODES LTD (AUDC) is 6 / 10.
What is the expected EPS growth for AUDIOCODES LTD (AUDC) stock?
The Earnings per Share (EPS) of AUDIOCODES LTD (AUDC) is expected to decline by -42.86% in the next year.