AUDIOCODES LTD (AUDC) Stock Fundamental Analysis
NASDAQ:AUDC - Nasdaq - IL0010829658 - Common Stock - Currency: USD
Overall AUDC gets a fundamental rating of 6 out of 10. We evaluated AUDC against 49 industry peers in the Communications Equipment industry. AUDC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
Each year in the past 5 years AUDC has been profitable.
AUDC had a positive operating cash flow in each of the past 5 years.
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.
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.
The Return On Invested Capital of AUDC (4.39%) is better than 69.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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
The Profit Margin of AUDC (6.32%) is better than 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.
Looking at the Gross Margin, with a value of 65.31%, AUDC belongs to the top of the industry, outperforming 89.80% of the companies in the same industry.
AUDC's Gross Margin has improved in the last couple of years.
| 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
The number of shares outstanding for AUDC has been increased compared to 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 2.42 indicates that AUDC is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of AUDC (2.42) is better than 69.39% 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 | 2.42 |
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.
With a decent Current ratio value of 2.09, AUDC is doing good in the industry, outperforming 61.22% of the companies in the same industry.
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.
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.
AUDC shows a decrease in Revenue. In the last year, the revenue decreased by -0.90%.
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
The Earnings Per Share is expected to grow by 5.32% on average over the next years.
Based on estimates for the next years, AUDC will show a small growth in Revenue. The Revenue will grow by 1.73% on average per year.
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.
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
A Price/Earnings ratio of 10.91 indicates a reasonable valuation of AUDC.
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.
AUDC is valuated cheaply when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.50, the valuation of AUDC can be described as reasonable.
AUDC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AUDC is cheaper than 79.59% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.20. AUDC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.91 | ||
| Fwd PE | 11.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AUDC is valued a bit cheaper than 79.59% of the companies in the same industry.
AUDC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.37 | ||
| EV/EBITDA | 8.95 |
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
AUDC has a Yearly Dividend Yield of 4.02%, which is a nice return.
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.
Compared to an average S&P500 Dividend Yield of 2.40, AUDC pays a better dividend.
| 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.
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%
9.38
+0.41 (+4.57%)
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 Cap278.40M
Analysts80
Price Target11.99 (27.83%)
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 | 10.91 | ||
| Fwd PE | 11.5 | ||
| P/S | 1.15 | ||
| P/FCF | 25.37 | ||
| P/OCF | 7.9 | ||
| P/B | 1.45 | ||
| P/tB | 1.81 | ||
| EV/EBITDA | 8.95 |
EPS(TTM)0.86
EY9.17%
EPS(NY)0.82
Fwd EY8.69%
FCF(TTM)0.37
FCFY3.94%
OCF(TTM)1.19
OCFY12.66%
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 | 2.42 |
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%