AUDIOCODES LTD (AUDC) Stock Fundamental Analysis
NASDAQ:AUDC - Nasdaq - IL0010829658 - Common Stock - Currency: USD
AUDC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 49 industry peers in the Communications Equipment industry. Both the health and profitability get an excellent rating, making AUDC a very profitable company, without any liquidiy or solvency issues. 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.
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 Return On Assets of 4.56%. This is in the better half of the industry: AUDC outperforms 75.51% of its industry peers.
The Return On Equity of AUDC (7.98%) is better than 79.59% of its industry peers.
With a decent Return On Invested Capital value of 4.39%, AUDC is doing good in the industry, outperforming 69.39% 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 13.68%.
| 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's Profit Margin of 6.32% is fine compared to the rest of the industry. AUDC outperforms 77.55% of its industry peers.
AUDC's Profit Margin has improved in the last couple of years.
AUDC has a better Operating Margin (7.66%) than 69.39% of its industry peers.
AUDC's Operating Margin has declined in the last couple of years.
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
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
AUDC has more shares outstanding than it did 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
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.
Looking at the Altman-Z score, with a value of 2.47, AUDC is in the better half of the industry, outperforming 69.39% of the companies in the same industry.
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
A Current Ratio of 2.09 indicates that AUDC has no problem at all paying its short term obligations.
AUDC's Current ratio of 2.09 is fine compared to the rest of the industry. AUDC outperforms 61.22% of its industry peers.
AUDC has a Quick Ratio of 1.69. This is a normal value and indicates that AUDC is financially healthy and should not expect problems in meeting its short term obligations.
AUDC's Quick ratio of 1.69 is fine compared to the rest of the industry. AUDC outperforms 65.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
AUDC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
The Earnings Per Share has been decreasing by -0.45% on average over the past years.
Looking at the last year, AUDC shows a decrease in Revenue. The Revenue has decreased by -0.90% in the last year.
AUDC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.87% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
AUDC is valuated reasonably with a Price/Earnings ratio of 10.85.
AUDC's Price/Earnings ratio is rather cheap when compared to the industry. AUDC is cheaper than 85.71% of the companies in the same industry.
AUDC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.35.
A Price/Forward Earnings ratio of 11.44 indicates a reasonable valuation of AUDC.
Based on the Price/Forward Earnings ratio, AUDC is valued a bit cheaper than the industry average as 79.59% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.20, AUDC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.85 | ||
| Fwd PE | 11.44 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AUDC indicates a somewhat cheap valuation: AUDC is cheaper than 79.59% of the companies listed in the same industry.
AUDC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.24 | ||
| EV/EBITDA | 9.49 |
4.3 Compensation for Growth
AUDC has a very decent profitability rating, which 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
AUDC has a Yearly Dividend Yield of 4.02%, which is a nice return.
AUDC's Dividend Yield is rather good when compared to the industry average which is at 3.58. AUDC pays more dividend than 93.88% of the companies in the same industry.
AUDC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
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 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.
AUDC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP71.16%
EPS Next 2Y-3.74%
EPS Next 3Y5.32%
9.33
-0.05 (-0.53%)
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 Cap276.91M
Analysts80
Price Target11.99 (28.51%)
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 | 10.85 | ||
| Fwd PE | 11.44 | ||
| P/S | 1.14 | ||
| P/FCF | 25.24 | ||
| P/OCF | 7.86 | ||
| P/B | 1.44 | ||
| P/tB | 1.8 | ||
| EV/EBITDA | 9.49 |
EPS(TTM)0.86
EY9.22%
EPS(NY)0.82
Fwd EY8.74%
FCF(TTM)0.37
FCFY3.96%
OCF(TTM)1.19
OCFY12.73%
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%