AUDIOCODES LTD (AUDC) Stock Fundamental Analysis
USA - NASDAQ:AUDC - IL0010829658 - Common Stock
10.18 USD
-0.04 (-0.39%)
10.18 USD
0 (0%)
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 has a great profitability rating, there are some minor concerns on its financial health. AUDC has a valuation in line with the averages, but it does not seem to be growing.
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.
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
The Return On Assets of AUDC (4.05%) is better than 68.75% of its industry peers.
AUDC's Return On Equity of 7.32% is fine compared to the rest of the industry. AUDC outperforms 75.00% of its industry peers.
The Return On Invested Capital of AUDC (3.96%) is better than 64.58% 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 13.71%.
| 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
AUDC's Profit Margin of 5.66% is fine compared to the rest of the industry. AUDC outperforms 68.75% of its industry peers.
AUDC's Profit Margin has improved in the last couple of years.
AUDC's Operating Margin of 6.81% is fine compared to the rest of the industry. AUDC outperforms 70.83% of its industry peers.
In the last couple of years the Operating Margin of AUDC has declined.
AUDC has a Gross Margin of 65.07%. This is amongst the best in the industry. AUDC outperforms 89.58% of its industry peers.
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.
Compared to 1 year ago, AUDC has less shares outstanding
The number of shares outstanding for AUDC has been increased compared to 5 years ago.
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/WACC0.45
WACC8.82%
2.3 Liquidity
A Current Ratio of 2.16 indicates that AUDC has no problem at all paying its short term obligations.
AUDC has a Current ratio (2.16) which is comparable to the rest of the industry.
A Quick Ratio of 1.85 indicates that AUDC should not have too much problems paying its short term obligations.
AUDC's Quick ratio of 1.85 is fine compared to the rest of the industry. AUDC outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.85 |
3. Growth
3.1 Past
The earnings per share for AUDC have decreased by -6.82% in the last year.
The Earnings Per Share has been decreasing by -0.45% on average over the past years.
AUDC shows a decrease in Revenue. In the last year, the revenue decreased by -0.93%.
AUDC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.87% yearly.
EPS 1Y (TTM)-6.82%
EPS 3Y-16.47%
EPS 5Y-0.45%
EPS Q2Q%-22.22%
Revenue 1Y (TTM)-0.93%
Revenue growth 3Y-0.91%
Revenue growth 5Y3.87%
Sales Q2Q%1.29%
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.
AUDC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.94% yearly.
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.
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
The Price/Earnings ratio is 12.41, which indicates a correct valuation of AUDC.
Compared to the rest of the industry, the Price/Earnings ratio of AUDC indicates a rather cheap valuation: AUDC is cheaper than 87.50% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AUDC to the average of the S&P500 Index (27.20), we can say AUDC is valued rather cheaply.
With a Price/Forward Earnings ratio of 21.10, AUDC is valued on the expensive side.
64.58% of the companies in the same industry are more expensive than AUDC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of AUDC to the average of the S&P500 Index (22.71), we can say AUDC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.41 | ||
| Fwd PE | 21.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AUDC is valued a bit cheaper than the industry average as 79.17% of the companies are valued more expensively.
AUDC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AUDC is cheaper than 89.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.49 | ||
| EV/EBITDA | 10.15 |
4.3 Compensation for Growth
The decent profitability rating of AUDC 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-25.96%
EPS Next 3Y-7.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.64%, 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 3.64. AUDC pays more dividend than 91.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, AUDC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.64% |
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
78.17% of the earnings are spent on dividend by AUDC. 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%
10.18
-0.04 (-0.39%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners45.86%
Inst Owner Change-7.94%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap304.28M
Analysts80
Price Target10.97 (7.76%)
Short Float %1.2%
Short Ratio1.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.64% |
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)-46.67%
EPS NY rev (1m)-29.42%
EPS NY rev (3m)-31.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.26%
Revenue NY rev (1m)0.97%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.41 | ||
| Fwd PE | 21.1 | ||
| P/S | 1.25 | ||
| P/FCF | 9.49 | ||
| P/OCF | 6.86 | ||
| P/B | 1.62 | ||
| P/tB | 2.02 | ||
| EV/EBITDA | 10.15 |
EPS(TTM)0.82
EY8.06%
EPS(NY)0.48
Fwd EY4.74%
FCF(TTM)1.07
FCFY10.54%
OCF(TTM)1.48
OCFY14.57%
SpS8.14
BVpS6.29
TBVpS5.03
PEG (NY)N/A
PEG (5Y)N/A
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%
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-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
WACC8.82%
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)-6.82%
EPS 3Y-16.47%
EPS 5Y-0.45%
EPS Q2Q%-22.22%
EPS Next Y-42.86%
EPS Next 2Y-25.96%
EPS Next 3Y-7.45%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.93%
Revenue growth 3Y-0.91%
Revenue growth 5Y3.87%
Sales Q2Q%1.29%
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%