AUDIOCODES LTD (AUDC) Stock Fundamental Analysis
NASDAQ:AUDC • IL0010829658
7.11 USD
-0.13 (-1.8%)
Last: Feb 23, 2026, 08:00 PM
We assign a fundamental rating of 6 out of 10 to AUDC. AUDC was compared to 48 industry peers in the Communications Equipment industry. AUDC has an excellent financial health rating, but there are some minor concerns on its profitability. AUDC is valued quite cheap, but it does not seem to be growing. This makes AUDC very considerable for value investing!
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.
- AUDC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.77%, AUDC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- AUDC has a Return On Equity of 5.23%. This is in the better half of the industry: AUDC outperforms 64.58% of its industry peers.
- AUDC has a Return On Invested Capital of 3.83%. This is in the better half of the industry: AUDC outperforms 60.42% of its industry peers.
- AUDC had an Average Return On Invested Capital over the past 3 years of 4.11%. This is significantly below the industry average of 11.26%.
| 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
- With a decent Profit Margin value of 3.65%, AUDC is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- AUDC's Profit Margin has declined in the last couple of years.
- AUDC's Operating Margin of 5.72% is fine compared to the rest of the industry. AUDC outperforms 64.58% 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. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AUDC is destroying value.
- The number of shares outstanding for AUDC has been reduced compared to 1 year ago.
- The number of shares outstanding for AUDC has been reduced compared to 5 years ago.
- 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
WACC8.58%
2.3 Liquidity
- A Current Ratio of 2.21 indicates that AUDC has no problem at all paying its short term obligations.
- AUDC's Current ratio of 2.21 is in line compared to the rest of the industry. AUDC outperforms 58.33% of its industry peers.
- A Quick Ratio of 1.94 indicates that AUDC should not have too much problems paying its short term obligations.
- AUDC has a better Quick ratio (1.94) than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 1.94 |
3. Growth
3.1 Past
- The earnings per share for AUDC have decreased strongly by -29.55% in the last year.
- The earnings per share for AUDC have been decreasing by -14.91% on average. This is quite bad
- The Revenue has been growing slightly by 1.42% in the past year.
- Measured over the past years, AUDC shows a small growth in Revenue. The Revenue has been growing by 2.15% on average per year.
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
- The Earnings Per Share is expected to grow by 6.08% on average over the next years.
- Based on estimates for the next years, AUDC will show a small growth in Revenue. The Revenue will grow by 2.42% on average per year.
EPS Next Y10.72%
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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- AUDC is valuated reasonably with a Price/Earnings ratio of 11.47.
- Based on the Price/Earnings ratio, AUDC is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 26.64, AUDC is valued rather cheaply.
- The Price/Forward Earnings ratio is 10.36, which indicates a very decent valuation of AUDC.
- 95.83% 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 27.75, AUDC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.47 | ||
| Fwd PE | 10.36 |
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 95.83% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.33 | ||
| EV/EBITDA | 5.15 |
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)1.07
PEG (5Y)N/A
EPS Next 2Y6.08%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.49%, AUDC is a good candidate for dividend investing.
- The stock price of AUDC dropped by -21.00% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- AUDC's Dividend Yield is rather good when compared to the industry average which is at 0.76. AUDC pays more dividend than 95.83% of the companies in the same industry.
- AUDC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.49% |
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
NASDAQ:AUDC (2/23/2026, 8:00:02 PM)
7.11
-0.13 (-1.8%)
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 Owners37.71%
Inst Owner Change-4.77%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap190.62M
Revenue(TTM)245.60M
Net Income(TTM)8.96M
Analysts82.86
Price Target12.75 (79.32%)
Short Float %2%
Short Ratio3.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.49% |
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)-5.39%
EPS NQ rev (3m)-6.23%
EPS NY rev (1m)0%
EPS NY rev (3m)42.28%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)-0.71%
Revenue NY rev (3m)1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.47 | ||
| Fwd PE | 10.36 | ||
| P/S | 0.78 | ||
| P/FCF | 8.33 | ||
| P/OCF | 6.49 | ||
| P/B | 1.11 | ||
| P/tB | 1.43 | ||
| EV/EBITDA | 5.15 |
EPS(TTM)0.62
EY8.72%
EPS(NY)0.69
Fwd EY9.65%
FCF(TTM)0.85
FCFY12.01%
OCF(TTM)1.1
OCFY15.4%
SpS9.16
BVpS6.39
TBVpS4.99
PEG (NY)1.07
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
WACC8.58%
ROIC/WACC0.45
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 Y10.72%
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 Year9.18%
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 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 8 / 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 6 / 10.
What are the PE and PB ratios of AUDIOCODES LTD (AUDC) stock?
The Price/Earnings (PE) ratio for AUDIOCODES LTD (AUDC) is 11.47 and the Price/Book (PB) ratio is 1.11.
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%.