AUDIOCODES LTD (AUDC) Stock Fundamental Analysis
USA - NASDAQ:AUDC - IL0010829658 - Common Stock
10.37 USD
+0.23 (+2.27%)
Taking everything into account, AUDC scores 5 out of 10 in our fundamental rating. AUDC was compared to 48 industry peers in the Communications Equipment industry. While AUDC has a great profitability rating, there are some minor concerns on its financial health. AUDC is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
AUDC had positive earnings in the past year.
In the past year AUDC had a positive cash flow from operations.
In the past 5 years AUDC has always been profitable.
AUDC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AUDC's Return On Assets of 4.05% is fine compared to the rest of the industry. AUDC outperforms 68.75% of its industry peers.
AUDC has a better Return On Equity (7.32%) than 75.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.96%, AUDC is in the better half of the industry, outperforming 64.58% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AUDC is significantly below the industry average of 13.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.05% | ||
| ROE | 7.32% | ||
| ROIC | 3.96% |
ROA(3y)5.32%
ROA(5y)6.65%
ROE(3y)9.22%
ROE(5y)11.41%
ROIC(3y)5.4%
ROIC(5y)6.93%
1.3 Margins
Looking at the Profit Margin, with a value of 5.66%, AUDC is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
In the last couple of years the Profit Margin of AUDC has grown nicely.
AUDC's Operating Margin of 6.81% is fine compared to the rest of the industry. AUDC outperforms 70.83% of its industry peers.
AUDC's Operating Margin has declined in the last couple of years.
The Gross Margin of AUDC (65.07%) is better than 89.58% of its industry peers.
In the last couple of years the Gross Margin of AUDC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.81% | ||
| PM (TTM) | 5.66% | ||
| GM | 65.07% |
OM growth 3Y-21.56%
OM growth 5YN/A
PM growth 3Y-22.5%
PM growth 5Y25.92%
GM growth 3Y-1.66%
GM growth 5Y6.61%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AUDC is destroying value.
Compared to 1 year ago, AUDC has less shares outstanding
Compared to 5 years ago, AUDC has more shares outstanding
There is no outstanding debt for AUDC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
AUDC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC0.45
WACC8.81%
2.3 Liquidity
AUDC has a Current Ratio of 2.16. This indicates that AUDC is financially healthy and has no problem in meeting its short term obligations.
AUDC's Current ratio of 2.16 is in line compared to the rest of the industry. AUDC outperforms 58.33% of its industry peers.
A Quick Ratio of 1.85 indicates that AUDC should not have too much problems paying its short term obligations.
AUDC has a Quick ratio of 1.85. This is in the better half of the industry: AUDC outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.85 |
3. Growth
3.1 Past
AUDC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.82%.
AUDC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.45% yearly.
The Revenue has decreased by -0.93% in the past year.
The Revenue has been growing slightly by 3.87% on average over the past years.
EPS 1Y (TTM)-6.82%
EPS 3Y-16.47%
EPS 5Y-0.45%
EPS Q2Q%-22.22%
Revenue 1Y (TTM)-0.93%
Revenue growth 3Y-0.91%
Revenue growth 5Y3.87%
Sales Q2Q%1.29%
3.2 Future
AUDC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -7.45% yearly.
Based on estimates for the next years, AUDC will show a small growth in Revenue. The Revenue will grow by 1.94% on average per year.
EPS Next Y-42.86%
EPS Next 2Y-25.96%
EPS Next 3Y-7.45%
EPS Next 5YN/A
Revenue Next Year0.53%
Revenue Next 2Y1.13%
Revenue Next 3Y1.94%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.65 indicates a correct valuation of AUDC.
87.50% of the companies in the same industry are more expensive than AUDC, based on the Price/Earnings ratio.
AUDC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.38.
With a Price/Forward Earnings ratio of 21.49, AUDC is valued on the expensive side.
64.58% of the companies in the same industry are more expensive than AUDC, based on the Price/Forward Earnings ratio.
AUDC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.65 | ||
| Fwd PE | 21.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AUDC is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
AUDC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AUDC is cheaper than 89.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.67 | ||
| EV/EBITDA | 10.09 |
4.3 Compensation for Growth
The decent profitability rating of AUDC may justify a higher PE ratio.
A cheap valuation may be justified as AUDC's earnings are expected to decrease with -7.45% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-25.96%
EPS Next 3Y-7.45%
5. Dividend
5.1 Amount
AUDC has a Yearly Dividend Yield of 3.74%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.59, AUDC pays a better dividend. On top of this AUDC pays more dividend than 91.67% of the companies listed in the same industry.
AUDC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
5.2 History
The dividend of AUDC is nicely growing with an annual growth rate of 9.60%!
AUDC has been paying a dividend for over 5 years, so it has already some track record.
AUDC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)9.6%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
AUDC pays out 78.17% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of AUDC has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP78.17%
EPS Next 2Y-25.96%
EPS Next 3Y-7.45%
NASDAQ:AUDC (9/22/2025, 11:54:33 AM)
10.37
+0.23 (+2.27%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners45.86%
Inst Owner Change-7.94%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap309.96M
Analysts80
Price Target10.97 (5.79%)
Short Float %1.2%
Short Ratio1.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.74% |
Yearly Dividend0.36
Dividend Growth(5Y)9.6%
DP78.17%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-14.73%
Min EPS beat(2)-18.3%
Max EPS beat(2)-11.16%
EPS beat(4)1
Avg EPS beat(4)-0.38%
Min EPS beat(4)-33.06%
Max EPS beat(4)60.98%
EPS beat(8)3
Avg EPS beat(8)1.94%
EPS beat(12)4
Avg EPS beat(12)0.26%
EPS beat(16)4
Avg EPS beat(16)-0.74%
Revenue beat(2)0
Avg Revenue beat(2)-1.5%
Min Revenue beat(2)-2.09%
Max Revenue beat(2)-0.92%
Revenue beat(4)0
Avg Revenue beat(4)-2.1%
Min Revenue beat(4)-3.48%
Max Revenue beat(4)-0.92%
Revenue beat(8)0
Avg Revenue beat(8)-2.46%
Revenue beat(12)0
Avg Revenue beat(12)-3.02%
Revenue beat(16)0
Avg Revenue beat(16)-2.61%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-46.67%
EPS NY rev (1m)0%
EPS NY rev (3m)-29.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.65 | ||
| Fwd PE | 21.49 | ||
| P/S | 1.27 | ||
| P/FCF | 9.67 | ||
| P/OCF | 6.99 | ||
| P/B | 1.65 | ||
| P/tB | 2.06 | ||
| EV/EBITDA | 10.09 |
EPS(TTM)0.82
EY7.91%
EPS(NY)0.48
Fwd EY4.65%
FCF(TTM)1.07
FCFY10.35%
OCF(TTM)1.48
OCFY14.31%
SpS8.14
BVpS6.29
TBVpS5.03
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.05% | ||
| ROE | 7.32% | ||
| ROCE | 6.48% | ||
| ROIC | 3.96% | ||
| ROICexc | 5.72% | ||
| ROICexgc | 7.28% | ||
| OM | 6.81% | ||
| PM (TTM) | 5.66% | ||
| GM | 65.07% | ||
| FCFM | 13.18% |
ROA(3y)5.32%
ROA(5y)6.65%
ROE(3y)9.22%
ROE(5y)11.41%
ROIC(3y)5.4%
ROIC(5y)6.93%
ROICexc(3y)6.69%
ROICexc(5y)8.91%
ROICexgc(3y)8.35%
ROICexgc(5y)11.16%
ROCE(3y)8.84%
ROCE(5y)11.34%
ROICexcg growth 3Y-26.53%
ROICexcg growth 5YN/A
ROICexc growth 3Y-25.38%
ROICexc growth 5YN/A
OM growth 3Y-21.56%
OM growth 5YN/A
PM growth 3Y-22.5%
PM growth 5Y25.92%
GM growth 3Y-1.66%
GM growth 5Y6.61%
F-Score6
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 305.98% | ||
| Cap/Sales | 5.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 215.41% | ||
| Profit Quality | 232.79% | ||
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.85 | ||
| Altman-Z | N/A |
F-Score6
WACC8.81%
ROIC/WACC0.45
Cap/Depr(3y)301.69%
Cap/Depr(5y)204.12%
Cap/Sales(3y)4.34%
Cap/Sales(5y)2.83%
Profit Quality(3y)65.72%
Profit Quality(5y)93.92%
High Growth Momentum
Growth
EPS 1Y (TTM)-6.82%
EPS 3Y-16.47%
EPS 5Y-0.45%
EPS Q2Q%-22.22%
EPS Next Y-42.86%
EPS Next 2Y-25.96%
EPS Next 3Y-7.45%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.93%
Revenue growth 3Y-0.91%
Revenue growth 5Y3.87%
Sales Q2Q%1.29%
Revenue Next Year0.53%
Revenue Next 2Y1.13%
Revenue Next 3Y1.94%
Revenue Next 5YN/A
EBIT growth 1Y-21.93%
EBIT growth 3Y-22.28%
EBIT growth 5YN/A
EBIT Next Year-31.71%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y748.39%
FCF growth 3Y-38.06%
FCF growth 5Y-12.36%
OCF growth 1Y457.8%
OCF growth 3Y-9.36%
OCF growth 5Y8.76%