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AVID TECHNOLOGY INC (AVID) Stock Fundamental Analysis

NASDAQ:AVID - Nasdaq - US05367P1003 - Common Stock - Currency: USD

27.04  0 (0%)

After market: 27.06 +0.02 (+0.07%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to AVID. AVID was compared to 32 industry peers in the Technology Hardware, Storage & Peripherals industry. While AVID has a great profitability rating, there are quite some concerns on its financial health. AVID has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

In the past year AVID was profitable.
AVID had a positive operating cash flow in the past year.
AVID had positive earnings in 4 of the past 5 years.
In the past 5 years AVID always reported a positive cash flow from operatings.
AVID Yearly Net Income VS EBIT VS OCF VS FCFAVID Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 20M -20M 40M -40M 60M -60M

1.2 Ratios

AVID has a Return On Assets of 10.99%. This is amongst the best in the industry. AVID outperforms 84.85% of its industry peers.
With an excellent Return On Invested Capital value of 23.90%, AVID belongs to the best of the industry, outperforming 87.88% of the companies in the same industry.
AVID had an Average Return On Invested Capital over the past 3 years of 39.28%. This is significantly above the industry average of 16.63%.
The 3 year average ROIC (39.28%) for AVID is well above the current ROIC(23.90%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 10.99%
ROE N/A
ROIC 23.9%
ROA(3y)12.65%
ROA(5y)7.29%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)39.28%
ROIC(5y)32.99%
AVID Yearly ROA, ROE, ROICAVID Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 0 100 200 300 400 500

1.3 Margins

The Profit Margin of AVID (7.59%) is better than 84.85% of its industry peers.
In the last couple of years the Profit Margin of AVID has grown nicely.
Looking at the Operating Margin, with a value of 9.21%, AVID is in the better half of the industry, outperforming 78.79% of the companies in the same industry.
AVID's Operating Margin has improved in the last couple of years.
AVID has a better Gross Margin (64.13%) than 84.85% of its industry peers.
AVID's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 9.21%
PM (TTM) 7.59%
GM 64.13%
OM growth 3Y17.93%
OM growth 5Y34.72%
PM growth 3Y92.84%
PM growth 5YN/A
GM growth 3Y2.82%
GM growth 5Y2.62%
AVID Yearly Profit, Operating, Gross MarginsAVID Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 0 20 40 60

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2

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so AVID is creating value.
Compared to 1 year ago, AVID has less shares outstanding
Compared to 1 year ago, AVID has a worse debt to assets ratio.
AVID Yearly Shares OutstandingAVID Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 10M 20M 30M 40M
AVID Yearly Total Debt VS Total AssetsAVID Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M

2.2 Solvency

Based on the Altman-Z score of -1.47, we must say that AVID is in the distress zone and has some risk of bankruptcy.
AVID has a Altman-Z score of -1.47. This is in the lower half of the industry: AVID underperforms 78.79% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Altman-Z -1.47
ROIC/WACC2.6
WACC9.19%
AVID Yearly LT Debt VS Equity VS FCFAVID Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 100M -100M 200M -200M -300M

2.3 Liquidity

A Current Ratio of 1.06 indicates that AVID should not have too much problems paying its short term obligations.
AVID has a Current ratio of 1.06. This is in the lower half of the industry: AVID underperforms 78.79% of its industry peers.
AVID has a Quick Ratio of 1.06. This is a bad value and indicates that AVID is not financially healthy enough and could expect problems in meeting its short term obligations.
AVID has a Quick ratio of 0.89. This is in the lower half of the industry: AVID underperforms 66.67% of its industry peers.
Industry RankSector Rank
Current Ratio 1.06
Quick Ratio 0.89
AVID Yearly Current Assets VS Current LiabilitesAVID Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M

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5

3. Growth

3.1 Past

AVID shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.09%.
The Earnings Per Share has been growing by 28.20% on average over the past years. This is a very strong growth
Looking at the last year, AVID shows a small growth in Revenue. The Revenue has grown by 1.53% in the last year.
The Revenue has been decreasing by -0.08% on average over the past years.
EPS 1Y (TTM)-9.09%
EPS 3Y40.68%
EPS 5Y28.2%
EPS Q2Q%-15.38%
Revenue 1Y (TTM)1.53%
Revenue growth 3Y0.45%
Revenue growth 5Y-0.08%
Sales Q2Q%11.12%

3.2 Future

AVID is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.30% yearly.
Based on estimates for the next years, AVID will show a quite strong growth in Revenue. The Revenue will grow by 9.18% on average per year.
EPS Next Y10.99%
EPS Next 2Y18.3%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.15%
Revenue Next 2Y9.51%
Revenue Next 3YN/A
Revenue Next 5Y9.18%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
AVID Yearly Revenue VS EstimatesAVID Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2026 2027 2028 2029 2030 200M 400M 600M 800M
AVID Yearly EPS VS EstimatesAVID Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.5 1 1.5

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4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 22.53 indicates a rather expensive valuation of AVID.
AVID's Price/Earnings ratio is a bit cheaper when compared to the industry. AVID is cheaper than 69.70% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.11. AVID is around the same levels.
With a Price/Forward Earnings ratio of 13.61, AVID is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AVID indicates a somewhat cheap valuation: AVID is cheaper than 63.64% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.78, AVID is valued rather cheaply.
Industry RankSector Rank
PE 22.53
Fwd PE 13.61
AVID Price Earnings VS Forward Price EarningsAVID Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as AVID.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 28.25
AVID Per share dataAVID EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 6 8

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AVID does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of AVID may justify a higher PE ratio.
A more expensive valuation may be justified as AVID's earnings are expected to grow with 18.30% in the coming years.
PEG (NY)2.05
PEG (5Y)0.8
EPS Next 2Y18.3%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

No dividends for AVID!.
Industry RankSector Rank
Dividend Yield N/A

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AVID TECHNOLOGY INC

NASDAQ:AVID (11/6/2023, 8:00:00 PM)

After market: 27.06 +0.02 (+0.07%)

27.04

0 (0%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)11-07 2023-11-07/bmo
Earnings (Next)02-28 2024-02-28/amc
Inst Owners0.08%
Inst Owner Change0%
Ins Owners5.81%
Ins Owner Change0%
Market Cap1.19B
Analysts50
Price Target27.57 (1.96%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-18.3%
Min EPS beat(2)-41.21%
Max EPS beat(2)4.62%
EPS beat(4)2
Avg EPS beat(4)-6.45%
Min EPS beat(4)-41.21%
Max EPS beat(4)18.33%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-1.1%
Min Revenue beat(2)-5.06%
Max Revenue beat(2)2.86%
Revenue beat(4)1
Avg Revenue beat(4)-1.87%
Min Revenue beat(4)-5.06%
Max Revenue beat(4)2.86%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-25.95%
EPS NQ rev (1m)-3.06%
EPS NQ rev (3m)-4.18%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.63%
Revenue NQ rev (1m)-1.12%
Revenue NQ rev (3m)-1.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.19%
Valuation
Industry RankSector Rank
PE 22.53
Fwd PE 13.61
P/S 2.8
P/FCF N/A
P/OCF 71.65
P/B N/A
P/tB N/A
EV/EBITDA 28.25
EPS(TTM)1.2
EY4.44%
EPS(NY)1.99
Fwd EY7.35%
FCF(TTM)-0.03
FCFYN/A
OCF(TTM)0.38
OCFY1.4%
SpS9.66
BVpS-2.7
TBVpS-3.44
PEG (NY)2.05
PEG (5Y)0.8
Profitability
Industry RankSector Rank
ROA 10.99%
ROE N/A
ROCE 30.26%
ROIC 23.9%
ROICexc 32.24%
ROICexgc 48.84%
OM 9.21%
PM (TTM) 7.59%
GM 64.13%
FCFM N/A
ROA(3y)12.65%
ROA(5y)7.29%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)39.28%
ROIC(5y)32.99%
ROICexc(3y)111.97%
ROICexc(5y)103.25%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)49.72%
ROCE(5y)41.76%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-14.81%
ROICexc growth 5YN/A
OM growth 3Y17.93%
OM growth 5Y34.72%
PM growth 3Y92.84%
PM growth 5YN/A
GM growth 3Y2.82%
GM growth 5Y2.62%
F-Score5
Asset Turnover1.45
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Debt/EBITDA 4.17
Cap/Depr 192.33%
Cap/Sales 4.21%
Interest Coverage 3.52
Cash Conversion 34.26%
Profit Quality N/A
Current Ratio 1.06
Quick Ratio 0.89
Altman-Z -1.47
F-Score5
WACC9.19%
ROIC/WACC2.6
Cap/Depr(3y)110.96%
Cap/Depr(5y)86.55%
Cap/Sales(3y)2.3%
Cap/Sales(5y)2.21%
Profit Quality(3y)166.41%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-9.09%
EPS 3Y40.68%
EPS 5Y28.2%
EPS Q2Q%-15.38%
EPS Next Y10.99%
EPS Next 2Y18.3%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.53%
Revenue growth 3Y0.45%
Revenue growth 5Y-0.08%
Sales Q2Q%11.12%
Revenue Next Year8.15%
Revenue Next 2Y9.51%
Revenue Next 3YN/A
Revenue Next 5Y9.18%
EBIT growth 1Y-22.13%
EBIT growth 3Y18.47%
EBIT growth 5Y34.61%
EBIT Next Year24.94%
EBIT Next 3YN/A
EBIT Next 5Y19.35%
FCF growth 1Y-102.04%
FCF growth 3Y38.25%
FCF growth 5Y100.95%
OCF growth 1Y-75.41%
OCF growth 3Y34.81%
OCF growth 5Y40.09%