AUDIOCODES LTD (AUDC) Stock Fundamental Analysis
USA - NASDAQ:AUDC - IL0010829658 - Common Stock
9.05 USD
0 (0%)
9.04 USD
-0.01 (-0.11%)
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 belongs to the best of the industry regarding profitability, 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.
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.
In the past 5 years AUDC always reported a positive cash flow from operatings.
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.
Looking at the Return On Equity, with a value of 7.32%, AUDC is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
AUDC has a better Return On Invested Capital (3.96%) than 64.58% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AUDC is significantly below the industry average of 12.95%.
| 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
AUDC's Profit Margin of 5.66% is fine compared to the rest of the industry. AUDC outperforms 68.75% of its industry peers.
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.
In the last couple of years the Operating Margin of AUDC has declined.
AUDC's Gross Margin of 65.07% is amongst the best of the industry. AUDC outperforms 91.67% of its industry peers.
AUDC's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AUDC is destroying value.
Compared to 1 year ago, AUDC has less shares outstanding
The number of shares outstanding for AUDC has been increased compared to 5 years ago.
AUDC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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
WACC8.79%
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.
With a Current ratio value of 2.16, AUDC perfoms like the industry average, outperforming 56.25% of the companies in the same 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.
Looking at the Quick ratio, with a value of 1.85, AUDC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.85 |
3. Growth
3.1 Past
The earnings per share for AUDC have decreased by -6.82% in the last year.
AUDC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.45% yearly.
Looking at the last year, AUDC shows a decrease in Revenue. The Revenue has decreased by -0.93% in the last year.
Measured over the past years, AUDC shows a small growth in Revenue. The Revenue has been growing by 3.87% on average per year.
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.
The Revenue is expected to grow by 1.94% on average over the next years.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
AUDC is valuated reasonably with a Price/Earnings ratio of 11.04.
Based on the Price/Earnings ratio, AUDC is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of AUDC to the average of the S&P500 Index (27.08), we can say AUDC is valued rather cheaply.
With a Price/Forward Earnings ratio of 18.76, AUDC is valued on the expensive side.
Based on the Price/Forward Earnings ratio, AUDC is valued a bit cheaper than 68.75% of the companies in the same industry.
AUDC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.04 | ||
| Fwd PE | 18.76 |
4.2 Price Multiples
87.50% of the companies in the same industry are more expensive than AUDC, based on the Enterprise Value to EBITDA ratio.
95.83% of the companies in the same industry are more expensive than AUDC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.01 | ||
| EV/EBITDA | 7.84 |
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
With a Yearly Dividend Yield of 4.21%, AUDC is a good candidate for dividend investing.
AUDC's Dividend Yield is rather good when compared to the industry average which is at 3.54. 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 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
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
78.17% of the earnings are spent on dividend by AUDC. 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%
9.05
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners43.97%
Inst Owner Change0.01%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap256.75M
Revenue(TTM)243.25M
Net Income(TTM)13.78M
Analysts80
Price Target10.97 (21.22%)
Short Float %1.71%
Short Ratio4.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
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)-40.74%
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 | 11.04 | ||
| Fwd PE | 18.76 | ||
| P/S | 1.06 | ||
| P/FCF | 8.01 | ||
| P/OCF | 5.79 | ||
| P/B | 1.37 | ||
| P/tB | 1.71 | ||
| EV/EBITDA | 7.84 |
EPS(TTM)0.82
EY9.06%
EPS(NY)0.48
Fwd EY5.33%
FCF(TTM)1.13
FCFY12.49%
OCF(TTM)1.56
OCFY17.27%
SpS8.57
BVpS6.63
TBVpS5.3
PEG (NY)N/A
PEG (5Y)N/A
Graham Number11.06
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%
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 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
WACC8.79%
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%
AUDIOCODES LTD / AUDC FAQ
What is the ChartMill fundamental rating of AUDIOCODES LTD (AUDC) stock?
ChartMill assigns a fundamental rating of 5 / 10 to AUDC.
Can you provide the valuation status for AUDIOCODES LTD?
ChartMill assigns a valuation rating of 6 / 10 to AUDIOCODES LTD (AUDC). This can be considered as Fairly Valued.
Can you provide the profitability details for AUDIOCODES LTD?
AUDIOCODES LTD (AUDC) has a profitability rating of 7 / 10.
How financially healthy is AUDIOCODES LTD?
The financial health rating of AUDIOCODES LTD (AUDC) is 6 / 10.
What is the expected EPS growth for AUDIOCODES LTD (AUDC) stock?
The Earnings per Share (EPS) of AUDIOCODES LTD (AUDC) is expected to decline by -42.86% in the next year.