AUDIOCODES LTD (AUDC) Stock Fundamental Analysis
USA - NASDAQ:AUDC - IL0010829658 - Common Stock
8.93 USD
-0.16 (-1.76%)
8.93 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to AUDC. AUDC was compared to 48 industry peers in the Communications Equipment industry. While AUDC has a great profitability rating, 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.
Each year in the past 5 years AUDC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.05%, AUDC is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
AUDC's Return On Equity of 7.32% is fine compared to the rest of the industry. AUDC outperforms 75.00% of its industry peers.
AUDC has a Return On Invested Capital of 3.96%. This is in the better half of the industry: AUDC outperforms 64.58% 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 13.08%.
| 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 has a Profit Margin of 5.66%. This is in the better half of the industry: AUDC outperforms 68.75% of its industry peers.
AUDC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 6.81%, AUDC is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
AUDC's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 65.07%, AUDC belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
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
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
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
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
WACC8.79%
2.3 Liquidity
A Current Ratio of 2.16 indicates that AUDC has no problem at all paying its short term obligations.
The Current ratio of AUDC (2.16) is comparable to the rest of the 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.
AUDC has a Quick ratio of 1.85. This is in the better half of the industry: AUDC outperforms 66.67% of its industry peers.
| 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.
Measured over the past years, AUDC shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.45% on average per year.
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
Based on estimates for the next years, AUDC will show a decrease in Earnings Per Share. The EPS will decrease by -7.45% on average per year.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 10.89 indicates a reasonable valuation of AUDC.
93.75% of the companies in the same industry are more expensive than AUDC, based on the Price/Earnings ratio.
AUDC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.57.
AUDC is valuated rather expensively with a Price/Forward Earnings ratio of 18.51.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AUDC indicates a somewhat cheap valuation: AUDC is cheaper than 66.67% 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 (23.09), we can say AUDC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.89 | ||
| Fwd PE | 18.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AUDC is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AUDC indicates a rather cheap valuation: AUDC is cheaper than 95.83% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.9 | ||
| EV/EBITDA | 7.67 |
4.3 Compensation for Growth
The decent profitability rating of AUDC may justify a higher PE ratio.
AUDC's earnings are expected to decrease with -7.45% in the coming years. This may justify a cheaper valuation.
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 4.08%, which is a nice return.
AUDC's Dividend Yield is rather good when compared to the industry average which is at 3.55. 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
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%
8.93
-0.16 (-1.76%)
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 Cap253.34M
Revenue(TTM)243.25M
Net Income(TTM)13.78M
Analysts80
Price Target10.97 (22.84%)
Short Float %1.65%
Short Ratio3.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.08% |
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)-46.67%
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 | 10.89 | ||
| Fwd PE | 18.51 | ||
| P/S | 1.04 | ||
| P/FCF | 7.9 | ||
| P/OCF | 5.71 | ||
| P/B | 1.35 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 7.67 |
EPS(TTM)0.82
EY9.18%
EPS(NY)0.48
Fwd EY5.4%
FCF(TTM)1.13
FCFY12.66%
OCF(TTM)1.56
OCFY17.5%
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%