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AUDIOCODES LTD (AUDC) Stock Fundamental Analysis

USA - NASDAQ:AUDC - IL0010829658 - Common Stock

8.93 USD
-0.16 (-1.76%)
Last: 10/22/2025, 8:16:40 PM
8.93 USD
0 (0%)
Pre-Market: 10/23/2025, 5:28:32 AM
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to AUDC. 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 has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

In the past year AUDC was profitable.
In the past year AUDC had a positive cash flow from operations.
Each year in the past 5 years AUDC has been profitable.
Each year in the past 5 years AUDC had a positive operating cash flow.
AUDC Yearly Net Income VS EBIT VS OCF VS FCFAUDC 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 2023 2024 0 10M 20M 30M 40M

1.2 Ratios

Looking at the Return On Assets, with a value of 4.05%, AUDC is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
AUDC's Return On Equity of 7.32% is fine compared to the rest of the industry. AUDC outperforms 75.00% of its industry peers.
AUDC has a Return On Invested Capital of 3.96%. This is in the better half of the industry: AUDC outperforms 64.58% of its industry peers.
AUDC had an Average Return On Invested Capital over the past 3 years of 5.40%. This is significantly below the industry average of 13.08%.
Industry RankSector 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%
AUDC Yearly ROA, ROE, ROICAUDC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10 15

1.3 Margins

AUDC has a Profit Margin of 5.66%. This is in the better half of the industry: AUDC outperforms 68.75% of its industry peers.
AUDC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 6.81%, AUDC is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
AUDC's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 65.07%, AUDC belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
AUDC's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
AUDC Yearly Profit, Operating, Gross MarginsAUDC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60

6

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
AUDC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
AUDC Yearly Shares OutstandingAUDC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M
AUDC Yearly Total Debt VS Total AssetsAUDC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

2.2 Solvency

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.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z N/A
ROIC/WACC0.45
WACC8.79%
AUDC Yearly LT Debt VS Equity VS FCFAUDC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M

2.3 Liquidity

A Current Ratio of 2.16 indicates that AUDC has no problem at all paying its short term obligations.
The Current ratio of AUDC (2.16) is comparable to the rest of the industry.
AUDC has a Quick Ratio of 1.85. This is a normal value and indicates that AUDC is financially healthy and should not expect problems in meeting 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 RankSector Rank
Current Ratio 2.16
Quick Ratio 1.85
AUDC Yearly Current Assets VS Current LiabilitesAUDC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M

1

3. Growth

3.1 Past

The earnings per share for AUDC have decreased by -6.82% in the last year.
Measured over the past years, AUDC shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.45% on average per year.
AUDC shows a decrease in Revenue. In the last year, the revenue decreased by -0.93%.
AUDC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.87% yearly.
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

Based on estimates for the next years, AUDC will show a decrease in Earnings Per Share. The EPS will decrease by -7.45% on average per year.
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.
AUDC Yearly Revenue VS EstimatesAUDC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 50M 100M 150M 200M 250M
AUDC Yearly EPS VS EstimatesAUDC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5

6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 10.89 indicates a reasonable valuation of AUDC.
93.75% 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 27.57.
AUDC is valuated rather expensively with a Price/Forward Earnings ratio of 18.51.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AUDC indicates a somewhat cheap valuation: AUDC is cheaper than 66.67% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of AUDC to the average of the S&P500 Index (23.09), we can say AUDC is valued inline with the index average.
Industry RankSector Rank
PE 10.89
Fwd PE 18.51
AUDC Price Earnings VS Forward Price EarningsAUDC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, AUDC is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AUDC indicates a rather cheap valuation: AUDC is cheaper than 95.83% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 7.9
EV/EBITDA 7.67
AUDC Per share dataAUDC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

4.3 Compensation for Growth

The decent profitability rating of AUDC may justify a higher PE ratio.
AUDC's earnings are expected to decrease with -7.45% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-25.96%
EPS Next 3Y-7.45%

6

5. Dividend

5.1 Amount

AUDC has a Yearly Dividend Yield of 4.08%, which is a nice return.
AUDC's Dividend Yield is rather good when compared to the industry average which is at 3.55. AUDC pays more dividend than 93.75% of the companies in the same industry.
AUDC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
Industry RankSector Rank
Dividend Yield 4.08%

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
AUDC Yearly Dividends per shareAUDC Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 2024 2025 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

AUDC pays out 78.17% of its income as dividend. This is not a sustainable payout ratio.
AUDC's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP78.17%
EPS Next 2Y-25.96%
EPS Next 3Y-7.45%
AUDC Yearly Income VS Free CF VS DividendAUDC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M
AUDC Dividend Payout.AUDC Dividend Payout, showing the Payout Ratio.AUDC Dividend Payout.PayoutRetained Earnings

AUDIOCODES LTD

NASDAQ:AUDC (10/22/2025, 8:16:40 PM)

Premarket: 8.93 0 (0%)

8.93

-0.16 (-1.76%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)07-29 2025-07-29/bmo
Earnings (Next)11-04 2025-11-04/bmo
Inst Owners43.97%
Inst Owner Change0.01%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap253.34M
Revenue(TTM)243.25M
Net Income(TTM)13.78M
Analysts80
Price Target10.97 (22.84%)
Short Float %1.65%
Short Ratio3.12
Dividend
Industry RankSector Rank
Dividend Yield 4.08%
Yearly Dividend0.36
Dividend Growth(5Y)9.6%
DP78.17%
Div Incr Years0
Div Non Decr Years3
Ex-Date08-14 2025-08-14 (0.2)
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 RankSector Rank
PE 10.89
Fwd PE 18.51
P/S 1.04
P/FCF 7.9
P/OCF 5.71
P/B 1.35
P/tB 1.69
EV/EBITDA 7.67
EPS(TTM)0.82
EY9.18%
EPS(NY)0.48
Fwd EY5.4%
FCF(TTM)1.13
FCFY12.66%
OCF(TTM)1.56
OCFY17.5%
SpS8.57
BVpS6.63
TBVpS5.3
PEG (NY)N/A
PEG (5Y)N/A
Graham Number11.06
Profitability
Industry RankSector 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%
ROICexgc growth 3Y-26.53%
ROICexgc 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 RankSector 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
WACC8.79%
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%