Overall AVDX gets a fundamental rating of 4 out of 10. We evaluated AVDX against 97 industry peers in the Financial Services industry. While AVDX seems to be doing ok healthwise, there are quite some concerns on its profitability. AVDX shows excellent growth, but is valued quite expensive already.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year AVDX was profitable.
In the past year AVDX had a positive cash flow from operations.
AVDX had negative earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: AVDX reported negative operating cash flow in multiple years.

1.2 Ratios

The Return On Assets of AVDX (-0.40%) is worse than 76.77% of its industry peers.
Looking at the Return On Equity, with a value of -1.17%, AVDX is doing worse than 73.74% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	-0.4%
ROE	-1.17%
ROIC	N/A

ROA(3y)-2.03%

ROA(5y)-7.78%

ROE(3y)-7.14%

ROE(5y)-20.83%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

AVDX has a better Gross Margin (72.52%) than 80.81% of its industry peers.
In the last couple of years the Gross Margin of AVDX has grown nicely.
The Profit Margin and Operating Margin are not available for AVDX so they could not be analyzed.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	N/A
GM	72.52%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y6.57%

GM growth 5Y6.61%

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ROA

ROE

ROIC

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2. Health

2.1 Basic Checks

AVDX does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, AVDX has about the same amount of shares outstanding.
Compared to 5 years ago, AVDX has more shares outstanding
AVDX has a better debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 0.67, we must say that AVDX is in the distress zone and has some risk of bankruptcy.
AVDX has a Altman-Z score (0.67) which is in line with its industry peers.
AVDX has a debt to FCF ratio of 1.15. This is a very positive value and a sign of high solvency as it would only need 1.15 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.15, AVDX is in the better half of the industry, outperforming 78.79% of the companies in the same industry.
AVDX has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
AVDX has a better Debt to Equity ratio (0.10) than 80.81% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.1
Debt/FCF	1.15
Altman-Z	0.67

ROIC/WACCN/A

WACC8.67%

2.3 Liquidity

A Current Ratio of 1.33 indicates that AVDX should not have too much problems paying its short term obligations.
AVDX has a better Current ratio (1.33) than 61.62% of its industry peers.
AVDX has a Quick Ratio of 1.33. This is a normal value and indicates that AVDX is financially healthy and should not expect problems in meeting its short term obligations.
AVDX has a Quick ratio of 1.33. This is in the better half of the industry: AVDX outperforms 63.64% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.33
Quick Ratio	1.33

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 38.89% over the past year.
AVDX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.04%.
AVDX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.02% yearly.

EPS 1Y (TTM)38.89%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%0%

Revenue 1Y (TTM)8.04%

Revenue growth 3Y20.9%

Revenue growth 5Y24.02%

Sales Q2Q%5.17%

3.2 Future

Based on estimates for the next years, AVDX will show a very strong growth in Earnings Per Share. The EPS will grow by 31.94% on average per year.
The Revenue is expected to grow by 12.59% on average over the next years. This is quite good.

EPS Next Y8.08%

EPS Next 2Y16.17%

EPS Next 3Y12.07%

EPS Next 5Y31.94%

Revenue Next Year3.61%

Revenue Next 2Y6.58%

Revenue Next 3Y7.48%

Revenue Next 5Y12.59%

3.3 Evolution

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 40.00, AVDX can be considered very expensive at the moment.
AVDX's Price/Earnings ratio is a bit more expensive when compared to the industry. AVDX is more expensive than 69.70% of the companies in the same industry.
AVDX is valuated rather expensively when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 29.64, the valuation of AVDX can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AVDX indicates a slightly more expensive valuation: AVDX is more expensive than 72.73% of the companies listed in the same industry.
AVDX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.

		Industry Rank	Sector Rank
PE	40
Fwd PE	29.64

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, AVDX is valued a bit more expensive than the industry average as 67.68% of the companies are valued more cheaply.
AVDX's Price/Free Cash Flow is on the same level as the industry average.

		Industry Rank	Sector Rank
P/FCF	33.05
EV/EBITDA	90.19

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as AVDX's earnings are expected to grow with 12.07% in the coming years.