AUDIOCODES LTD (AUDC) Stock Fundamental Analysis
NASDAQ:AUDC - Nasdaq - IL0010829658 - Common Stock - Currency: USD
Taking everything into account, AUDC scores 6 out of 10 in our fundamental rating. AUDC was compared to 49 industry peers in the Communications Equipment industry. AUDC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
AUDC had a positive operating cash flow in the past year.
AUDC had positive earnings in each of the past 5 years.
In the past 5 years AUDC always reported a positive cash flow from operatings.
1.2 Ratios
AUDC has a better Return On Assets (4.56%) than 75.51% of its industry peers.
AUDC has a Return On Equity of 7.98%. This is in the better half of the industry: AUDC outperforms 79.59% of its industry peers.
AUDC has a better Return On Invested Capital (4.39%) than 69.39% 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 13.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.56% | ||
| ROE | 7.98% | ||
| ROIC | 4.39% |
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 has a better Profit Margin (6.32%) than 77.55% of its industry peers.
In the last couple of years the Profit Margin of AUDC has grown nicely.
With a decent Operating Margin value of 7.66%, AUDC is doing good in the industry, outperforming 69.39% of the companies in the same industry.
In the last couple of years the Operating Margin of AUDC has declined.
The Gross Margin of AUDC (65.31%) is better than 89.80% of its industry peers.
In the last couple of years the Gross Margin of AUDC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.66% | ||
| PM (TTM) | 6.32% | ||
| GM | 65.31% |
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
AUDC has more shares outstanding than it did 5 years ago.
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
An Altman-Z score of 2.47 indicates that AUDC is not a great score, but indicates only limited risk for bankruptcy at the moment.
AUDC has a better Altman-Z score (2.47) than 67.35% of its industry peers.
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 | 2.47 |
ROIC/WACC0.49
WACC9.02%
2.3 Liquidity
AUDC has a Current Ratio of 2.09. This indicates that AUDC is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of AUDC (2.09) is better than 61.22% of its industry peers.
A Quick Ratio of 1.69 indicates that AUDC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.69, AUDC is in the better half of the industry, outperforming 65.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
The earnings per share for AUDC have decreased by 0.00% 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 -0.90% in the last year.
The Revenue has been growing slightly by 3.87% on average over the past years.
EPS 1Y (TTM)0%
EPS 3Y-16.47%
EPS 5Y-0.45%
EPS Q2Q%-11.76%
Revenue 1Y (TTM)-0.9%
Revenue growth 3Y-0.91%
Revenue growth 5Y3.87%
Sales Q2Q%0.5%
3.2 Future
AUDC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.32% yearly.
The Revenue is expected to grow by 1.73% on average over the next years.
EPS Next Y-16.6%
EPS Next 2Y-3.74%
EPS Next 3Y5.32%
EPS Next 5YN/A
Revenue Next Year-0.44%
Revenue Next 2Y0.48%
Revenue Next 3Y1.73%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 10.97.
Compared to the rest of the industry, the Price/Earnings ratio of AUDC indicates a rather cheap valuation: AUDC is cheaper than 85.71% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AUDC to the average of the S&P500 Index (26.17), we can say AUDC is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.56, the valuation of AUDC can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AUDC indicates a somewhat cheap valuation: AUDC is cheaper than 77.55% 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 (22.10), we can say AUDC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 11.56 |
4.2 Price Multiples
AUDC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AUDC is cheaper than 79.59% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as AUDC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.51 | ||
| EV/EBITDA | 9.42 |
4.3 Compensation for Growth
The decent profitability rating of AUDC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.74%
EPS Next 3Y5.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.02%, AUDC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.58, AUDC pays a better dividend. On top of this AUDC pays more dividend than 93.88% 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
5.2 History
On average, the dividend of AUDC grows each year by 9.60%, which is quite nice.
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 Years2
Div Non Decr Years3
5.3 Sustainability
AUDC pays out 71.16% of its income as dividend. This is not a sustainable payout ratio.
The dividend of AUDC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP71.16%
EPS Next 2Y-3.74%
EPS Next 3Y5.32%
NASDAQ:AUDC (5/29/2025, 2:24:43 PM)
9.43
+0.1 (+1.07%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners49.45%
Inst Owner Change-6.87%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap279.88M
Analysts80
Price Target11.99 (27.15%)
Short Float %0.91%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
Yearly Dividend0.36
Dividend Growth(5Y)9.6%
DP71.16%
Div Incr Years2
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)13.96%
Min EPS beat(2)-33.06%
Max EPS beat(2)60.98%
EPS beat(4)1
Avg EPS beat(4)-1.83%
Min EPS beat(4)-33.06%
Max EPS beat(4)60.98%
EPS beat(8)4
Avg EPS beat(8)5.74%
EPS beat(12)4
Avg EPS beat(12)1.7%
EPS beat(16)6
Avg EPS beat(16)1.8%
Revenue beat(2)0
Avg Revenue beat(2)-2.69%
Min Revenue beat(2)-3.48%
Max Revenue beat(2)-1.89%
Revenue beat(4)0
Avg Revenue beat(4)-3.23%
Min Revenue beat(4)-5.69%
Max Revenue beat(4)-1.86%
Revenue beat(8)0
Avg Revenue beat(8)-3.23%
Revenue beat(12)0
Avg Revenue beat(12)-3.1%
Revenue beat(16)0
Avg Revenue beat(16)-2.53%
PT rev (1m)5.22%
PT rev (3m)11.9%
EPS NQ rev (1m)1.88%
EPS NQ rev (3m)2.86%
EPS NY rev (1m)-10.06%
EPS NY rev (3m)-8.34%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-0.81%
Revenue NY rev (1m)-3.4%
Revenue NY rev (3m)-3.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 11.56 | ||
| P/S | 1.16 | ||
| P/FCF | 25.51 | ||
| P/OCF | 7.94 | ||
| P/B | 1.46 | ||
| P/tB | 1.82 | ||
| EV/EBITDA | 9.42 |
EPS(TTM)0.86
EY9.12%
EPS(NY)0.82
Fwd EY8.65%
FCF(TTM)0.37
FCFY3.92%
OCF(TTM)1.19
OCFY12.6%
SpS8.16
BVpS6.46
TBVpS5.18
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.56% | ||
| ROE | 7.98% | ||
| ROCE | 7.18% | ||
| ROIC | 4.39% | ||
| ROICexc | 5.78% | ||
| ROICexgc | 7.17% | ||
| OM | 7.66% | ||
| PM (TTM) | 6.32% | ||
| GM | 65.31% | ||
| FCFM | 4.53% |
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-Score8
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 625.29% | ||
| Cap/Sales | 10.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 157.18% | ||
| Profit Quality | 71.67% | ||
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.69 | ||
| Altman-Z | 2.47 |
F-Score8
WACC9.02%
ROIC/WACC0.49
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)0%
EPS 3Y-16.47%
EPS 5Y-0.45%
EPS Q2Q%-11.76%
EPS Next Y-16.6%
EPS Next 2Y-3.74%
EPS Next 3Y5.32%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.9%
Revenue growth 3Y-0.91%
Revenue growth 5Y3.87%
Sales Q2Q%0.5%
Revenue Next Year-0.44%
Revenue Next 2Y0.48%
Revenue Next 3Y1.73%
Revenue Next 5YN/A
EBIT growth 1Y28.49%
EBIT growth 3Y-22.28%
EBIT growth 5YN/A
EBIT Next Year-9.85%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y22.93%
FCF growth 3Y-38.06%
FCF growth 5Y-12.36%
OCF growth 1Y136.74%
OCF growth 3Y-9.36%
OCF growth 5Y8.76%