AVID TECHNOLOGY INC (AVID)
US05367P1003 - Common Stock
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. AVID has an excellent profitability rating, but there are concerns on its financial health. AVID is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
AVID had positive earnings in the past year.
In the past year AVID had a positive cash flow from operations.
Of the past 5 years AVID 4 years were profitable.
Each year in the past 5 years AVID had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AVID (10.99%) is better than 84.85% of its industry peers.
Looking at the Return On Invested Capital, with a value of 23.90%, AVID belongs to the top of the industry, outperforming 87.88% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AVID is significantly above the industry average of 14.47%.
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 Rank | Sector 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%
1.3 Margins
AVID's Profit Margin of 7.59% is amongst the best of the industry. AVID outperforms 84.85% of its industry peers.
In the last couple of years the Profit Margin of AVID has grown nicely.
AVID has a Operating Margin of 9.21%. This is in the better half of the industry: AVID outperforms 78.79% of its industry peers.
AVID's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 64.13%, AVID belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
In the last couple of years the Gross Margin of AVID has grown nicely.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
AVID has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
AVID has less shares outstanding than it did 1 year ago.
AVID has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, AVID has a worse debt to assets ratio.
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.
Looking at the Altman-Z score, with a value of -1.47, AVID is doing worse than 78.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | -1.47 |
ROIC/WACC2.6
WACC9.19%
2.3 Liquidity
AVID has a Current Ratio of 1.06. This is a normal value and indicates that AVID is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.06, AVID is doing worse than 78.79% of the companies in the same industry.
A Quick Ratio of 0.89 indicates that AVID may have some problems paying its short term obligations.
With a Quick ratio value of 0.89, AVID is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.89 |
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
AVID shows a small growth in Revenue. In the last year, the Revenue has grown by 1.53%.
AVID shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.08% yearly.
EPS 1Y (TTM)-9.09%
EPS 3Y40.68%
EPS 5Y28.2%
EPS growth Q2Q-15.38%
Revenue 1Y (TTM)1.53%
Revenue growth 3Y0.45%
Revenue growth 5Y-0.08%
Revenue growth Q2Q11.12%
3.2 Future
The Earnings Per Share is expected to grow by 18.30% on average over the next years. This is quite good.
AVID is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.18% yearly.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.53, AVID is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of AVID indicates a somewhat cheap valuation: AVID is cheaper than 69.70% of the companies listed in the same industry.
AVID is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.25, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.61, AVID is valued correctly.
AVID's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AVID is cheaper than 63.64% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.67. AVID is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.53 | ||
| Fwd PE | 13.61 |
4.2 Price Multiples
AVID's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 28.25 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AVID has an outstanding profitability rating, which may justify a higher PE ratio.
AVID's earnings are expected to grow with 18.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.05
PEG (5Y)0.8
EPS Next 2Y18.3%
EPS Next 3YN/A
5. Dividend
5.1 Amount
AVID does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AVID TECHNOLOGY INC
NASDAQ:AVID (11/6/2023, 7:00:00 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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.19B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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Revenue NQ rev (1m)
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Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.53 | ||
| Fwd PE | 13.61 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.05
PEG (5Y)0.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.99% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.21% | ||
| PM (TTM) | 7.59% | ||
| GM | 64.13% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-9.09%
EPS 3Y40.68%
EPS 5Y
EPS growth Q2Q
EPS Next Y10.99%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.53%
Revenue growth 3Y0.45%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
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OCF growth 5Y