We assign a fundamental rating of 4 out of 10 to AVID. AVID was compared to 35 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 is quite expensive at the moment. It does show a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year AVID was profitable.
AVID had a positive operating cash flow in the past year.

1.2 Ratios

The Return On Assets of AVID (10.99%) is better than 84.85% of its industry peers.
Looking at the Return On Invested Capital, with a value of 23.90%, AVID belongs to the top of the industry, outperforming 87.88% of the companies in the same industry.
AVID had an Average Return On Invested Capital over the past 3 years of 39.28%. This is significantly above the industry average of 16.06%.
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'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.
The Operating Margin of AVID (9.21%) is better than 78.79% of its industry peers.
AVID's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 64.13%, AVID belongs to the best 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 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
The number of shares outstanding for AVID has been reduced compared to 1 year ago.
AVID has a worse debt/assets ratio than last year.

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.
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 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's Current ratio of 1.06 is on the low side compared to the rest of the industry. AVID is outperformed by 78.79% of its industry peers.
A Quick Ratio of 0.89 indicates that AVID may have some problems paying its short term obligations.
AVID's Quick ratio of 0.89 is on the low side compared to the rest of the industry. AVID is outperformed by 66.67% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.06
Quick Ratio	0.89

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

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.
AVID shows a small growth in Revenue. In the last year, the Revenue has grown by 1.53%.
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

The Earnings Per Share is expected to grow by 18.30% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.18% on average over the next years. This is quite good.

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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 22.53, the valuation of AVID can be described as rather expensive.
AVID's Price/Earnings ratio is a bit cheaper when compared to the industry. AVID is cheaper than 69.70% of the companies in the same industry.
AVID's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
AVID is valuated correctly with a Price/Forward Earnings ratio of 13.61.
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.
When comparing the Price/Forward Earnings ratio of AVID to the average of the S&P500 Index (24.26), we can say AVID is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	22.53
Fwd PE	13.61

4.2 Price Multiples

AVID's Enterprise Value to EBITDA ratio is in line with 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.
AVID has a very decent profitability rating, which 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.