AVAYA HOLDINGS CORP (AVYA)
US05351X1019 - Common Stock
Overall AVYA gets a fundamental rating of 2 out of 10. We evaluated AVYA against 280 industry peers in the Software industry. Both the profitability and financial health of AVYA have multiple concerns. AVYA has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
AVYA had positive earnings in the past year.
AVYA had a negative operating cash flow in the past year.
1.2 Ratios
AVYA has negative profitability rations, so we won't be analyzing them here.
AVYA has a better Return On Invested Capital (0.23%) than 73.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AVYA is significantly above the industry average of 12.15%.
The 3 year average ROIC (76.09%) for AVYA is well above the current ROIC(0.23%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROIC | 0.23% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)76.09%
ROIC(5y)N/A
1.3 Margins
Looking at the Operating Margin, with a value of 0.33%, AVYA is in the better half of the industry, outperforming 73.00% of the companies in the same industry.
In the last couple of years the Operating Margin of AVYA has declined.
AVYA has a Gross Margin of 51.12%. This is in the lower half of the industry: AVYA underperforms 67.67% of its industry peers.
AVYA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.33% | ||
| PM (TTM) | N/A | ||
| GM | 51.12% |
OM growth 3Y222.57%
OM growth 5Y-4.6%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.68%
GM growth 5Y-1.76%
2. Health
2.1 Basic Checks
AVYA 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 AVYA has been increased compared to 1 year ago.
The debt/assets ratio for AVYA is higher compared to a year ago.
2.2 Solvency
AVYA has an Altman-Z score of -0.09. This is a bad value and indicates that AVYA is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of AVYA (-0.09) is worse than 71.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.09 |
ROIC/WACC0.04
WACC5.23%
2.3 Liquidity
AVYA has a Current Ratio of 1.18. This is a normal value and indicates that AVYA is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.18, AVYA is doing worse than 72.00% of the companies in the same industry.
A Quick Ratio of 1.14 indicates that AVYA should not have too much problems paying its short term obligations.
AVYA has a worse Quick ratio (1.14) than 72.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
AVYA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -59.78%.
The earnings per share for AVYA have been decreasing by -14.24% on average. This is quite bad
The Revenue has decreased by -6.81% in the past year.
AVYA shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.29% yearly.
EPS 1Y (TTM)-59.78%
EPS 3Y-14.24%
EPS 5YN/A
EPS Q2Q%-132%
Revenue 1Y (TTM)-6.81%
Revenue growth 3Y1.41%
Revenue growth 5Y-4.29%
Sales Q2Q%-21.17%
3.2 Future
The Earnings Per Share is expected to decrease by -43.37% on average over the next years. This is quite bad
Based on estimates for the next years, AVYA will show a decrease in Revenue. The Revenue will decrease by -5.09% on average per year.
EPS Next Y-85.74%
EPS Next 2Y-42.17%
EPS Next 3Y-43.37%
EPS Next 5YN/A
Revenue Next Year-11.4%
Revenue Next 2Y-7.96%
Revenue Next 3Y-5.09%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 0.19 indicates a rather cheap valuation of AVYA.
Based on the Price/Earnings ratio, AVYA is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
AVYA is valuated cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
AVYA is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.19 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AVYA is valued cheaply inside the industry as 96.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.09 |
4.3 Compensation for Growth
AVYA's earnings are expected to decrease with -43.37% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-42.17%
EPS Next 3Y-43.37%
5. Dividend
5.1 Amount
No dividends for AVYA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AVAYA HOLDINGS CORP
NYSE:AVYA (2/13/2023, 8:08:44 PM)
Premarket: 0.29 +0.01 (+5.34%)0.2753
-0.03 (-10.73%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins Owners12.25%
Ins Owner Change0%
Market Cap23.91M
Analysts44.44
Price Target0.65 (136.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DP-0.07%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-276.28%
Min EPS beat(2)-537.11%
Max EPS beat(2)-15.45%
EPS beat(4)1
Avg EPS beat(4)-146.72%
Min EPS beat(4)-537.11%
Max EPS beat(4)5.5%
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)0
Avg Revenue beat(2)-6.95%
Min Revenue beat(2)-9.02%
Max Revenue beat(2)-4.88%
Revenue beat(4)1
Avg Revenue beat(4)-4.51%
Min Revenue beat(4)-9.02%
Max Revenue beat(4)0.9%
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)-35.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.19 | ||
| Fwd PE | N/A | ||
| P/S | 0.01 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.09 |
EPS(TTM)1.48
EY537.6%
EPS(NY)-0.07
Fwd EYN/A
FCF(TTM)-2.74
FCFYN/A
OCF(TTM)-2.34
OCFYN/A
SpS31.85
BVpS-9.17
TBVpS-34.49
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROCE | N/A | ||
| ROIC | 0.23% | ||
| ROICexc | 0.25% | ||
| ROICexgc | 1.01% | ||
| OM | 0.33% | ||
| PM (TTM) | N/A | ||
| GM | 51.12% | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)76.09%
ROIC(5y)N/A
ROICexc(3y)3.53%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y260.08%
ROICexc growth 5YN/A
OM growth 3Y222.57%
OM growth 5Y-4.6%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.68%
GM growth 5Y-1.76%
F-Score2
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.53 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | -0.09 |
F-Score2
WACC5.23%
ROIC/WACC0.04
Cap/Depr(3y)25.09%
Cap/Depr(5y)22.24%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-59.78%
EPS 3Y-14.24%
EPS 5YN/A
EPS Q2Q%-132%
EPS Next Y-85.74%
EPS Next 2Y-42.17%
EPS Next 3Y-43.37%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.81%
Revenue growth 3Y1.41%
Revenue growth 5Y-4.29%
Sales Q2Q%-21.17%
Revenue Next Year-11.4%
Revenue Next 2Y-7.96%
Revenue Next 3Y-5.09%
Revenue Next 5YN/A
EBIT growth 1Y-96.27%
EBIT growth 3Y227.11%
EBIT growth 5Y-8.7%
EBIT Next Year-32.7%
EBIT Next 3Y-6.79%
EBIT Next 5YN/A
FCF growth 1Y-666.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-241.96%
OCF growth 3YN/A
OCF growth 5Y-23.3%