AVID TECHNOLOGY INC (AVID) Fundamental Analysis & Valuation

NASDAQ:AVID • US05367P1003

Current stock price

27.04 USD
0 (0%)
At close:
27.06 USD
+0.02 (+0.07%)
After Hours:

This AVID fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. AVID Profitability Analysis

1.1 Basic Checks

  • AVID had positive earnings in the past year.
  • In the past year AVID had a positive cash flow from operations.
AVID Yearly Net Income VS EBIT VS OCF VS FCFAVID Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 20M -20M 40M -40M 60M -60M

1.2 Ratios

  • AVID has a better Return On Assets (10.99%) than 84.85% of its industry peers.
  • AVID has a Return On Invested Capital of 23.90%. This is amongst the best in the industry. AVID outperforms 87.88% of its industry peers.
  • AVID had an Average Return On Invested Capital over the past 3 years of 39.28%. This is significantly above the industry average of 15.72%.
  • The last Return On Invested Capital (23.90%) for AVID is well below the 3 year average (39.28%), which needs to be investigated, but indicates that AVID had better years and this may not be a problem.
Industry RankSector Rank
ROA 10.99%
ROE N/A
ROIC 23.9%
ROA(3y)12.65%
ROA(5y)7.29%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)39.28%
ROIC(5y)32.99%
AVID Yearly ROA, ROE, ROICAVID Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 100 200 300 400 500

1.3 Margins

  • AVID has a better Profit Margin (7.59%) than 84.85% of its industry peers.
  • AVID's Profit Margin has improved in the last couple of years.
  • The Operating Margin of AVID (9.21%) is better than 78.79% of its industry peers.
  • In the last couple of years the Operating Margin of AVID has grown nicely.
  • Looking at the Gross Margin, with a value of 64.13%, AVID belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
  • AVID's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 9.21%
PM (TTM) 7.59%
GM 64.13%
OM growth 3Y17.93%
OM growth 5Y34.72%
PM growth 3Y92.84%
PM growth 5YN/A
GM growth 3Y2.82%
GM growth 5Y2.62%
AVID Yearly Profit, Operating, Gross MarginsAVID Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 20 40 60

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2

2. AVID Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), AVID is creating value.
  • AVID has less shares outstanding than it did 1 year ago.
  • Compared to 1 year ago, AVID has a worse debt to assets ratio.
AVID Yearly Shares OutstandingAVID Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 10M 20M 30M 40M
AVID Yearly Total Debt VS Total AssetsAVID Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M

2.2 Solvency

  • Based on the Altman-Z score of -1.47, we must say that AVID is in the distress zone and has some risk of bankruptcy.
  • With a Altman-Z score value of -1.47, AVID is not doing good in the industry: 78.79% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Altman-Z -1.47
ROIC/WACC2.6
WACC9.19%
AVID Yearly LT Debt VS Equity VS FCFAVID Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 100M -100M 200M -200M

2.3 Liquidity

  • AVID has a Current Ratio of 1.06. This is a normal value and indicates that AVID is financially healthy and should not expect problems in meeting its short term obligations.
  • The Current ratio of AVID (1.06) is worse than 78.79% of its industry peers.
  • A Quick Ratio of 0.89 indicates that AVID may have some problems paying its short term obligations.
  • The Quick ratio of AVID (0.89) is worse than 66.67% of its industry peers.
Industry RankSector Rank
Current Ratio 1.06
Quick Ratio 0.89
AVID Yearly Current Assets VS Current LiabilitesAVID Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 50M 100M 150M 200M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. AVID Growth Analysis

3.1 Past

  • The earnings per share for AVID have decreased by -9.09% in the last year.
  • AVID shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 28.20% yearly.
  • Looking at the last year, AVID shows a small growth in Revenue. The Revenue has grown by 1.53% in the last year.
  • AVID shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.08% yearly.
EPS 1Y (TTM)-9.09%
EPS 3Y40.68%
EPS 5Y28.2%
EPS Q2Q%-15.38%
Revenue 1Y (TTM)1.53%
Revenue growth 3Y0.45%
Revenue growth 5Y-0.08%
Sales Q2Q%11.12%

3.2 Future

  • Based on estimates for the next years, AVID will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.30% on average per year.
  • AVID is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.18% yearly.
EPS Next Y10.99%
EPS Next 2Y18.3%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.15%
Revenue Next 2Y9.51%
Revenue Next 3YN/A
Revenue Next 5Y9.18%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 accelerating.
AVID Yearly Revenue VS EstimatesAVID Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2026 2027 2028 2029 2030 200M 400M 600M 800M
AVID Yearly EPS VS EstimatesAVID Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.5 1 1.5

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3

4. AVID Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 22.53, the valuation of AVID can be described as rather expensive.
  • Based on the Price/Earnings ratio, AVID is valued a bit cheaper than the industry average as 69.70% of the companies are valued more expensively.
  • AVID is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.54, which is the current average of the S&P500 Index.
  • AVID is valuated correctly with a Price/Forward Earnings ratio of 13.61.
  • Based on the Price/Forward Earnings ratio, AVID is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
  • AVID is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 22.53
Fwd PE 13.61
AVID Price Earnings VS Forward Price EarningsAVID Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as AVID.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 28.25
AVID Per share dataAVID EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 6 8

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AVID does not grow enough to justify the current Price/Earnings ratio.
  • The decent profitability rating of AVID may justify a higher PE ratio.
  • A more expensive valuation may be justified as AVID's earnings are expected to grow with 18.30% in the coming years.
PEG (NY)2.05
PEG (5Y)0.8
EPS Next 2Y18.3%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. AVID Dividend Analysis

5.1 Amount

  • AVID does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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AVID Fundamentals: All Metrics, Ratios and Statistics

AVID TECHNOLOGY INC

NASDAQ:AVID (11/6/2023, 8:00:00 PM)

After market: 27.06 +0.02 (+0.07%)

27.04

0 (0%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)11-07
Earnings (Next)02-28
Inst Owners0.08%
Inst Owner Change0%
Ins Owners5.81%
Ins Owner Change0%
Market Cap1.19B
Revenue(TTM)425.44M
Net Income(TTM)32.30M
Analysts50
Price Target27.57 (1.96%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-18.3%
Min EPS beat(2)-41.21%
Max EPS beat(2)4.62%
EPS beat(4)2
Avg EPS beat(4)-6.45%
Min EPS beat(4)-41.21%
Max EPS beat(4)18.33%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-1.1%
Min Revenue beat(2)-5.06%
Max Revenue beat(2)2.86%
Revenue beat(4)1
Avg Revenue beat(4)-1.87%
Min Revenue beat(4)-5.06%
Max Revenue beat(4)2.86%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-25.95%
EPS NQ rev (1m)-3.06%
EPS NQ rev (3m)-4.18%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.63%
Revenue NQ rev (1m)-1.12%
Revenue NQ rev (3m)-1.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.19%
Valuation
Industry RankSector Rank
PE 22.53
Fwd PE 13.61
P/S 2.8
P/FCF N/A
P/OCF 71.65
P/B N/A
P/tB N/A
EV/EBITDA 28.25
EPS(TTM)1.2
EY4.44%
EPS(NY)1.99
Fwd EY7.35%
FCF(TTM)-0.03
FCFYN/A
OCF(TTM)0.38
OCFY1.4%
SpS9.66
BVpS-2.7
TBVpS-3.44
PEG (NY)2.05
PEG (5Y)0.8
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 10.99%
ROE N/A
ROCE 30.26%
ROIC 23.9%
ROICexc 32.24%
ROICexgc 48.84%
OM 9.21%
PM (TTM) 7.59%
GM 64.13%
FCFM N/A
ROA(3y)12.65%
ROA(5y)7.29%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)39.28%
ROIC(5y)32.99%
ROICexc(3y)111.97%
ROICexc(5y)103.25%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)49.72%
ROCE(5y)41.76%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-14.81%
ROICexc growth 5YN/A
OM growth 3Y17.93%
OM growth 5Y34.72%
PM growth 3Y92.84%
PM growth 5YN/A
GM growth 3Y2.82%
GM growth 5Y2.62%
F-Score5
Asset Turnover1.45
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Debt/EBITDA 4.17
Cap/Depr 192.33%
Cap/Sales 4.21%
Interest Coverage 3.52
Cash Conversion 34.26%
Profit Quality N/A
Current Ratio 1.06
Quick Ratio 0.89
Altman-Z -1.47
F-Score5
WACC9.19%
ROIC/WACC2.6
Cap/Depr(3y)110.96%
Cap/Depr(5y)86.55%
Cap/Sales(3y)2.3%
Cap/Sales(5y)2.21%
Profit Quality(3y)166.41%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-9.09%
EPS 3Y40.68%
EPS 5Y28.2%
EPS Q2Q%-15.38%
EPS Next Y10.99%
EPS Next 2Y18.3%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.53%
Revenue growth 3Y0.45%
Revenue growth 5Y-0.08%
Sales Q2Q%11.12%
Revenue Next Year8.15%
Revenue Next 2Y9.51%
Revenue Next 3YN/A
Revenue Next 5Y9.18%
EBIT growth 1Y-22.13%
EBIT growth 3Y18.47%
EBIT growth 5Y34.61%
EBIT Next Year24.94%
EBIT Next 3YN/A
EBIT Next 5Y19.35%
FCF growth 1Y-102.04%
FCF growth 3Y38.25%
FCF growth 5Y100.95%
OCF growth 1Y-75.41%
OCF growth 3Y34.81%
OCF growth 5Y40.09%

AVID TECHNOLOGY INC / AVID Fundamental Analysis FAQ

What is the fundamental rating for AVID stock?

ChartMill assigns a fundamental rating of 5 / 10 to AVID.


Can you provide the valuation status for AVID TECHNOLOGY INC?

ChartMill assigns a valuation rating of 4 / 10 to AVID TECHNOLOGY INC (AVID). This can be considered as Fairly Valued.


What is the profitability of AVID stock?

AVID TECHNOLOGY INC (AVID) has a profitability rating of 8 / 10.


Can you provide the financial health for AVID stock?

The financial health rating of AVID TECHNOLOGY INC (AVID) is 2 / 10.