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AVID TECHNOLOGY INC (AVID) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:AVID - US05367P1003 - Common Stock

27.04 USD
0 (0%)
Last: 11/6/2023, 8:00:00 PM
27.06 USD
+0.02 (+0.07%)
After Hours: 11/6/2023, 8:00:00 PM
Fundamental Rating

5

Taking everything into account, AVID scores 5 out of 10 in our fundamental rating. AVID was compared to 35 industry peers in the Technology Hardware, Storage & Peripherals industry. While AVID has a great profitability rating, there are quite some concerns on its financial health. AVID has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

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 had positive earnings in 4 of the past 5 years.
Each year in the past 5 years AVID had a positive operating cash flow.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 20M -20M 40M -40M 60M -60M

1.2 Ratios

The Return On Assets of AVID (10.99%) is better than 84.85% of its industry peers.
AVID has a better Return On Invested Capital (23.90%) than 87.88% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AVID is significantly above the industry average of 15.32%.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 100 200 300 400 500

1.3 Margins

AVID's Profit Margin of 7.59% is amongst the best of the industry. AVID outperforms 84.85% of its industry peers.
In the last couple of years the Profit Margin of AVID has grown nicely.
With a decent Operating Margin value of 9.21%, AVID is doing good in the industry, outperforming 78.79% of the companies in the same industry.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 20 40 60

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2

2. Health

2.1 Basic Checks

AVID has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, AVID has less shares outstanding
Compared to 1 year ago, AVID has a worse debt to assets ratio.
AVID Yearly Shares OutstandingAVID Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M

2.2 Solvency

AVID has an Altman-Z score of -1.47. This is a bad value and indicates that AVID is not financially healthy and even has some risk of bankruptcy.
AVID has a worse Altman-Z score (-1.47) than 78.79% of its industry peers.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 100M -100M 200M -200M -300M

2.3 Liquidity

A Current Ratio of 1.06 indicates that AVID should not have too much problems paying its short term obligations.
With a Current ratio value of 1.06, AVID is not doing good in the industry: 78.79% of the companies in the same industry are doing better.
A Quick Ratio of 0.89 indicates that AVID may have some problems paying its short term obligations.
AVID has a Quick ratio of 0.89. This is in the lower half of the industry: AVID underperforms 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 2015 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M

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5

3. Growth

3.1 Past

AVID shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.09%.
AVID shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 28.20% yearly.
The Revenue has been growing slightly by 1.53% in the past year.
Measured over the past years, AVID shows a decrease in Revenue. The Revenue has been decreasing by -0.08% on average per year.
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

The Earnings Per Share is expected to grow by 18.30% on average over the next years. This is quite good.
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

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 2014 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.5 1 1.5

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4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 22.53, AVID is valued on the expensive side.
Based on the Price/Earnings ratio, AVID is valued a bit cheaper than 69.70% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.31. AVID is around the same levels.
AVID is valuated correctly with a Price/Forward Earnings ratio of 13.61.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AVID indicates a somewhat cheap valuation: AVID is cheaper than 63.64% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of AVID to the average of the S&P500 Index (36.56), we can say AVID is valued rather cheaply.
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 10 20 30

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AVID is on the same level as its industry peers.
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.
AVID has an outstanding profitability rating, which may justify a higher PE ratio.
AVID's earnings are expected to grow with 18.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.05
PEG (5Y)0.8
EPS Next 2Y18.3%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

No dividends for AVID!.
Industry RankSector Rank
Dividend Yield N/A

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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 2023-11-07/bmo
Earnings (Next)02-28 2024-02-28/amc
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 FAQ

What is the fundamental rating for AVID stock?

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


What is the valuation status for AVID stock?

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


How profitable is AVID TECHNOLOGY INC (AVID) stock?

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


What is the expected EPS growth for AVID TECHNOLOGY INC (AVID) stock?

The Earnings per Share (EPS) of AVID TECHNOLOGY INC (AVID) is expected to grow by 10.99% in the next year.