AUDIOCODES LTD (AUDC) Stock Fundamental Analysis
NASDAQ:AUDC - IL0010829658 - Common Stock
9.48 USD
+0.06 (+0.64%)
Overall AUDC gets a fundamental rating of 5 out of 10. We evaluated AUDC against 48 industry peers in the Communications Equipment industry. AUDC scores excellent on profitability, but 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
AUDC had positive earnings in the past year.
In the past year AUDC had a positive cash flow from operations.
AUDC had positive earnings in each of the past 5 years.
Each year in the past 5 years AUDC had a positive operating cash flow.
1.2 Ratios
AUDC has a Return On Assets of 4.05%. This is in the better half of the industry: AUDC outperforms 70.83% of its industry peers.
With a decent Return On Equity value of 7.32%, AUDC is doing good in the industry, outperforming 75.00% of the companies in the same industry.
With a decent Return On Invested Capital value of 3.96%, AUDC is doing good in the industry, outperforming 68.75% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AUDC is significantly below the industry average of 13.48%.
| 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
The Profit Margin of AUDC (5.66%) is better than 72.92% of its industry peers.
AUDC's Profit Margin has improved in the last couple of years.
AUDC has a Operating Margin of 6.81%. This is in the better half of the industry: AUDC outperforms 70.83% of its industry peers.
In the last couple of years the Operating Margin of AUDC has declined.
With an excellent Gross Margin value of 65.07%, AUDC belongs to the best of the industry, outperforming 89.58% of the companies in the same industry.
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
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | N/A |
ROIC/WACC0.45
WACC8.82%
2.3 Liquidity
A Current Ratio of 2.16 indicates that AUDC has no problem at all paying its short term obligations.
AUDC has a better Current ratio (2.16) than 62.50% 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 70.83% 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%.
The Earnings Per Share has been decreasing by -0.45% on average over the past years.
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
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 11.56, the valuation of AUDC can be described as reasonable.
Based on the Price/Earnings ratio, AUDC is valued cheaply inside the industry as 89.58% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.17. AUDC is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 19.65, which indicates a rather expensive current valuation of AUDC.
62.50% of the companies in the same industry are more expensive than AUDC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of AUDC to the average of the S&P500 Index (22.78), we can say AUDC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.56 | ||
| Fwd PE | 19.65 |
4.2 Price Multiples
81.25% of the companies in the same industry are more expensive than AUDC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AUDC is valued cheaper than 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.84 | ||
| EV/EBITDA | 9.05 |
4.3 Compensation for Growth
AUDC has a very decent profitability rating, which 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 4.18%, which is a nice return.
Compared to an average industry Dividend Yield of 3.80, AUDC pays a better dividend. On top of this AUDC pays more dividend than 93.75% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, AUDC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
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.
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%
NASDAQ:AUDC (8/28/2025, 8:00:00 PM)
9.48
+0.06 (+0.64%)
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 Cap283.36M
Analysts80
Price Target10.97 (15.72%)
Short Float %1.54%
Short Ratio2.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
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)-8.51%
EPS NQ rev (1m)-40.74%
EPS NQ rev (3m)-51.92%
EPS NY rev (1m)-29.42%
EPS NY rev (3m)-31.48%
Revenue NQ rev (1m)1.26%
Revenue NQ rev (3m)-3.1%
Revenue NY rev (1m)0.97%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.56 | ||
| Fwd PE | 19.65 | ||
| P/S | 1.16 | ||
| P/FCF | 8.84 | ||
| P/OCF | 6.39 | ||
| P/B | 1.51 | ||
| P/tB | 1.89 | ||
| EV/EBITDA | 9.05 |
EPS(TTM)0.82
EY8.65%
EPS(NY)0.48
Fwd EY5.09%
FCF(TTM)1.07
FCFY11.32%
OCF(TTM)1.48
OCFY15.65%
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
WACC8.82%
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%