AUDIOCODES LTD (AUDC) Stock Fundamental Analysis
USA - NASDAQ:AUDC - IL0010829658 - Common Stock
8.83 USD
-0.1 (-1.12%)
Overall AUDC gets a fundamental rating of 5 out of 10. We evaluated AUDC against 48 industry peers in the Communications Equipment industry. While AUDC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. AUDC is valued correctly, 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.
In the past 5 years AUDC has always been profitable.
AUDC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AUDC has a better Return On Assets (4.05%) than 70.83% of its industry peers.
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 better Return On Invested Capital (3.96%) than 62.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AUDC is significantly below the industry average of 13.03%.
| 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 70.83% 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 6.81%, AUDC is doing good in the industry, outperforming 70.83% of the companies in the same industry.
AUDC's Operating Margin has declined in the last couple of years.
AUDC has a Gross Margin of 65.07%. This is amongst the best in the industry. AUDC outperforms 91.67% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AUDC is destroying value.
AUDC has less shares outstanding than it did 1 year ago.
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
WACC8.79%
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.
A Quick Ratio of 1.85 indicates that AUDC should not have too much problems paying its short term obligations.
AUDC has a better Quick ratio (1.85) than 66.67% 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%.
The Revenue has been growing slightly by 3.87% on average over the past years.
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
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
The Price/Earnings ratio is 10.77, which indicates a very decent 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 93.75% of the companies listed in the same industry.
AUDC is valuated cheaply when we compare the Price/Earnings ratio to 26.11, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 18.30 indicates a rather expensive valuation of AUDC.
Based on the Price/Forward Earnings ratio, AUDC is valued a bit cheaper than 68.75% of the companies in the same industry.
AUDC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.55, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.77 | ||
| Fwd PE | 18.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AUDC is valued cheaply inside the industry as 89.58% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, AUDC is valued cheaper than 97.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.81 | ||
| EV/EBITDA | 7.67 |
4.3 Compensation for Growth
The decent profitability rating of AUDC 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
With a Yearly Dividend Yield of 4.30%, AUDC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.44, 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 2.37, AUDC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
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.
The Dividend Rate of AUDC has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP78.17%
EPS Next 2Y-25.96%
EPS Next 3Y-7.45%
NASDAQ:AUDC (11/3/2025, 4:04:05 PM)
8.83
-0.1 (-1.12%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners43.97%
Inst Owner Change-0.17%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap250.51M
Revenue(TTM)243.25M
Net Income(TTM)13.78M
Analysts80
Price Target10.97 (24.24%)
Short Float %1.71%
Short Ratio4.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
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)-32.87%
EPS NY rev (1m)0%
EPS NY rev (3m)-29.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.77 | ||
| Fwd PE | 18.3 | ||
| P/S | 1.03 | ||
| P/FCF | 7.81 | ||
| P/OCF | 5.65 | ||
| P/B | 1.33 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | 7.67 |
EPS(TTM)0.82
EY9.29%
EPS(NY)0.48
Fwd EY5.46%
FCF(TTM)1.13
FCFY12.8%
OCF(TTM)1.56
OCFY17.7%
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%
AUDIOCODES LTD / AUDC FAQ
What is the ChartMill fundamental rating of AUDIOCODES LTD (AUDC) stock?
ChartMill assigns a fundamental rating of 5 / 10 to AUDC.
Can you provide the valuation status for AUDIOCODES LTD?
ChartMill assigns a valuation rating of 6 / 10 to AUDIOCODES LTD (AUDC). This can be considered as Fairly Valued.
Can you provide the profitability details for AUDIOCODES LTD?
AUDIOCODES LTD (AUDC) has a profitability rating of 7 / 10.
How financially healthy is AUDIOCODES LTD?
The financial health rating of AUDIOCODES LTD (AUDC) is 6 / 10.
What is the expected EPS growth for AUDIOCODES LTD (AUDC) stock?
The Earnings per Share (EPS) of AUDIOCODES LTD (AUDC) is expected to decline by -42.86% in the next year.