AVID TECHNOLOGY INC (AVID) Stock Fundamental Analysis
USA - NASDAQ:AVID - US05367P1003 - Common Stock
27.04 USD
0 (0%)
27.06 USD
+0.02 (+0.07%)
Taking everything into account, AVID scores 5 out of 10 in our fundamental rating. AVID was compared to 34 industry peers in the Technology Hardware, Storage & Peripherals industry. While AVID belongs to the best of the industry regarding profitability, there are concerns on its financial health. AVID has a decent growth rate and is not valued too expensively.
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.
In the past 5 years AVID always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 10.99%, AVID belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
The Return On Invested Capital of AVID (23.90%) is better than 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 15.67%.
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 Rank | Sector 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%
1.3 Margins
AVID has a Profit Margin of 7.59%. This is amongst the best in the industry. AVID outperforms 84.85% of its industry peers.
In the last couple of years the Profit Margin of AVID has grown nicely.
Looking at the Operating Margin, with a value of 9.21%, AVID is in the better half of the industry, outperforming 78.79% of the companies in the same industry.
AVID's Operating Margin has improved in the last couple of years.
The Gross Margin of AVID (64.13%) is better than 84.85% of its industry peers.
In the last couple of years the Gross Margin of AVID has grown nicely.
| Industry Rank | Sector 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%
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.
AVID has less shares outstanding than it did 1 year ago.
Compared to 1 year ago, AVID has a worse debt to assets ratio.
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.
The Altman-Z score of AVID (-1.47) is worse than 78.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | -1.47 |
ROIC/WACC2.6
WACC9.19%
2.3 Liquidity
A Current Ratio of 1.06 indicates that AVID should not have too much problems paying its short term obligations.
AVID has a worse Current ratio (1.06) than 78.79% of its industry peers.
AVID has a Quick Ratio of 1.06. This is a bad value and indicates that AVID is not financially healthy enough and could expect problems in meeting its short term obligations.
AVID has a worse Quick ratio (0.89) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
The earnings per share for AVID have decreased by -9.09% in the last year.
The Earnings Per Share has been growing by 28.20% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 1.53% in the past year.
The Revenue has been decreasing by -0.08% on average over the past years.
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
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.53, which indicates a rather expensive current valuation of AVID.
Compared to the rest of the industry, the Price/Earnings ratio of AVID indicates a somewhat cheap valuation: AVID is cheaper than 69.70% of the companies listed in the same industry.
AVID's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.19.
With a Price/Forward Earnings ratio of 13.61, AVID is valued correctly.
AVID's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AVID is cheaper than 63.64% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.50, AVID is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.53 | ||
| Fwd PE | 13.61 |
4.2 Price Multiples
AVID's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 28.25 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of AVID 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
5. Dividend
5.1 Amount
No dividends for AVID!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
27.04
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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.