8.35 USD
+0.14 (+1.71%)
We assign a fundamental rating of 6 out of 10 to AUDC. AUDC was compared to 48 industry peers in the Communications Equipment industry. While AUDC has a great profitability rating, there are some minor concerns on its financial health. AUDC has a bad growth rate and is valued cheaply. This makes AUDC very considerable for value investing!
1. Profitability
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.
- AUDC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- AUDC has a better Return On Assets (4.17%) than 75.00% of its industry peers.
- AUDC has a Return On Equity of 7.96%. This is in the better half of the industry: AUDC outperforms 75.00% of its industry peers.
- With a decent Return On Invested Capital value of 3.97%, AUDC is doing good in the industry, outperforming 60.42% 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 12.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.17% | ||
| ROE | 7.96% | ||
| ROIC | 3.97% |
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 5.65%, AUDC is doing good in the industry, outperforming 68.75% of the companies in the same industry.
- AUDC's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 6.45%, AUDC is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
- AUDC's Operating Margin has declined in the last couple of years.
- With an excellent Gross Margin value of 65.12%, AUDC belongs to the best of the industry, outperforming 89.58% of the companies in the same industry.
- AUDC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.45% | ||
| PM (TTM) | 5.65% | ||
| GM | 65.12% |
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.
- 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
- 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
WACC9%
2.3 Liquidity
- A Current Ratio of 2.09 indicates that AUDC has no problem at all paying its short term obligations.
- With a Current ratio value of 2.09, AUDC perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
- A Quick Ratio of 1.82 indicates that AUDC should not have too much problems paying its short term obligations.
- AUDC has a Quick ratio of 1.82. This is in the better half of the industry: AUDC outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 5.06% over the past year.
- 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 been growing slightly by 0.15% in the past year.
- The Revenue has been growing slightly by 3.87% on average over the past years.
EPS 1Y (TTM)5.06%
EPS 3Y-16.47%
EPS 5Y-0.45%
EPS Q2Q%6.25%
Revenue 1Y (TTM)0.15%
Revenue growth 3Y-0.91%
Revenue growth 5Y3.87%
Sales Q2Q%2.16%
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.
- The Revenue is expected to grow by 1.94% on average over the next years.
EPS Next Y-28.25%
EPS Next 2Y-11.68%
EPS Next 3Y-7.45%
EPS Next 5YN/A
Revenue Next Year0.98%
Revenue Next 2Y2.18%
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
- AUDC is valuated reasonably with a Price/Earnings ratio of 10.06.
- Based on the Price/Earnings ratio, AUDC is valued cheaply inside the industry as 95.83% of the companies are valued more expensively.
- AUDC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.32.
- AUDC is valuated correctly with a Price/Forward Earnings ratio of 12.16.
- AUDC's Price/Forward Earnings ratio is rather cheap when compared to the industry. AUDC is cheaper than 91.67% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of AUDC to the average of the S&P500 Index (24.30), we can say AUDC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.06 | ||
| Fwd PE | 12.16 |
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.
- Based on the Price/Free Cash Flow ratio, AUDC is valued cheaply inside the industry as 97.92% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.12 | ||
| EV/EBITDA | 6.36 |
4.3 Compensation for Growth
- AUDC has a very decent profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as AUDC's earnings are expected to decrease with -7.45% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-11.68%
EPS Next 3Y-7.45%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.39%, 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 1.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
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
- 79.07% of the earnings are spent on dividend by AUDC. This is not a sustainable payout ratio.
- AUDC's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP79.07%
EPS Next 2Y-11.68%
EPS Next 3Y-7.45%
NASDAQ:AUDC (1/22/2026, 3:41:31 PM)
8.35
+0.14 (+1.71%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)11-04 2025-11-04/bmo
Earnings (Next)02-03 2026-02-03/bmo
Inst Owners37.71%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap229.37M
Revenue(TTM)244.55M
Net Income(TTM)13.83M
Analysts82.86
Price Target12.75 (52.69%)
Short Float %1.7%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
Yearly Dividend0.36
Dividend Growth(5Y)9.6%
DP79.07%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)31.22%
Min EPS beat(2)-11.16%
Max EPS beat(2)73.61%
EPS beat(4)2
Avg EPS beat(4)26.28%
Min EPS beat(4)-18.3%
Max EPS beat(4)73.61%
EPS beat(8)3
Avg EPS beat(8)6.69%
EPS beat(12)5
Avg EPS beat(12)7.2%
EPS beat(16)5
Avg EPS beat(16)3.99%
Revenue beat(2)0
Avg Revenue beat(2)-0.73%
Min Revenue beat(2)-0.92%
Max Revenue beat(2)-0.55%
Revenue beat(4)0
Avg Revenue beat(4)-1.36%
Min Revenue beat(4)-2.09%
Max Revenue beat(4)-0.55%
Revenue beat(8)0
Avg Revenue beat(8)-2.29%
Revenue beat(12)0
Avg Revenue beat(12)-2.8%
Revenue beat(16)0
Avg Revenue beat(16)-2.62%
PT rev (1m)16.28%
PT rev (3m)16.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)48.15%
EPS NY rev (1m)8.69%
EPS NY rev (3m)25.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.51%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.06 | ||
| Fwd PE | 12.16 | ||
| P/S | 0.94 | ||
| P/FCF | 7.12 | ||
| P/OCF | 5.66 | ||
| P/B | 1.32 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 6.36 |
EPS(TTM)0.83
EY9.94%
EPS(NY)0.69
Fwd EY8.22%
FCF(TTM)1.17
FCFY14.04%
OCF(TTM)1.48
OCFY17.68%
SpS8.9
BVpS6.32
TBVpS4.95
PEG (NY)N/A
PEG (5Y)N/A
Graham Number10.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.17% | ||
| ROE | 7.96% | ||
| ROCE | 6.5% | ||
| ROIC | 3.97% | ||
| ROICexc | 5.7% | ||
| ROICexgc | 7.33% | ||
| OM | 6.45% | ||
| PM (TTM) | 5.65% | ||
| GM | 65.12% | ||
| FCFM | 13.17% |
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-Score7
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 199.05% | ||
| Cap/Sales | 3.41% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 203.2% | ||
| Profit Quality | 232.88% | ||
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z | N/A |
F-Score7
WACC9%
ROIC/WACC0.44
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-28.25%
EPS Next 2Y-11.68%
EPS Next 3Y-7.45%
EPS Next 5YN/A
Revenue 1Y (TTM)0.15%
Revenue growth 3Y-0.91%
Revenue growth 5Y3.87%
Sales Q2Q%2.16%
Revenue Next Year0.98%
Revenue Next 2Y2.18%
Revenue Next 3Y1.94%
Revenue Next 5YN/A
EBIT growth 1Y-22.44%
EBIT growth 3Y-22.28%
EBIT growth 5YN/A
EBIT Next Year-21.96%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y8157.69%
FCF growth 3Y-38.06%
FCF growth 5Y-12.36%
OCF growth 1Y572.42%
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 6 / 10 to AUDC.
What is the valuation status of AUDIOCODES LTD (AUDC) stock?
ChartMill assigns a valuation rating of 7 / 10 to AUDIOCODES LTD (AUDC). This can be considered as Undervalued.
How profitable is AUDIOCODES LTD (AUDC) stock?
AUDIOCODES LTD (AUDC) has a profitability rating of 7 / 10.
What are the PE and PB ratios of AUDIOCODES LTD (AUDC) stock?
The Price/Earnings (PE) ratio for AUDIOCODES LTD (AUDC) is 10.06 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 79.07%.