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AVAYA HOLDINGS CORP (AVYA) Stock Fundamental Analysis

USA - NYSE:AVYA - US05351X1019 - Common Stock

0.2753 USD
-0.03 (-10.73%)
Last: 2/13/2023, 8:08:44 PM
0.29 USD
+0.01 (+5.34%)
Pre-Market: 2/14/2023, 8:01:50 AM
Fundamental Rating

2

Taking everything into account, AVYA scores 2 out of 10 in our fundamental rating. AVYA was compared to 282 industry peers in the Software industry. Both the profitability and financial health of AVYA have multiple concerns. AVYA is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

AVYA had positive earnings in the past year.
AVYA had a negative operating cash flow in the past year.
AVYA Yearly Net Income VS EBIT VS OCF VS FCFAVYA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 0 1B 2B 3B

1.2 Ratios

AVYA has negative profitability rations, so we won't be analyzing them here.
AVYA has a Return On Invested Capital of 0.23%. This is in the better half of the industry: AVYA outperforms 73.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AVYA is significantly above the industry average of 11.88%.
The 3 year average ROIC (76.09%) for AVYA is well above the current ROIC(0.23%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA N/A
ROE N/A
ROIC 0.23%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)76.09%
ROIC(5y)N/A
AVYA Yearly ROA, ROE, ROICAVYA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 0 100 -100

1.3 Margins

Looking at the Operating Margin, with a value of 0.33%, AVYA is in the better half of the industry, outperforming 73.00% of the companies in the same industry.
AVYA's Operating Margin has declined in the last couple of years.
AVYA has a Gross Margin of 51.12%. This is in the lower half of the industry: AVYA underperforms 67.67% of its industry peers.
In the last couple of years the Gross Margin of AVYA has declined.
Industry RankSector Rank
OM 0.33%
PM (TTM) N/A
GM 51.12%
OM growth 3Y222.57%
OM growth 5Y-4.6%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.68%
GM growth 5Y-1.76%
AVYA Yearly Profit, Operating, Gross MarginsAVYA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 0 20 -20 40 60 80 100

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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 AVYA is creating value.
AVYA has more shares outstanding than it did 1 year ago.
AVYA has a worse debt/assets ratio than last year.
AVYA Yearly Shares OutstandingAVYA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 100M 200M 300M 400M
AVYA Yearly Total Debt VS Total AssetsAVYA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2B 4B 6B

2.2 Solvency

AVYA has an Altman-Z score of -0.09. This is a bad value and indicates that AVYA is not financially healthy and even has some risk of bankruptcy.
AVYA has a Altman-Z score of -0.09. This is in the lower half of the industry: AVYA underperforms 71.33% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Altman-Z -0.09
ROIC/WACC0.04
WACC5.23%
AVYA Yearly LT Debt VS Equity VS FCFAVYA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 0 2B -2B 4B -4B 6B

2.3 Liquidity

AVYA has a Current Ratio of 1.18. This is a normal value and indicates that AVYA is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.18, AVYA is not doing good in the industry: 72.00% of the companies in the same industry are doing better.
A Quick Ratio of 1.14 indicates that AVYA should not have too much problems paying its short term obligations.
AVYA's Quick ratio of 1.14 is on the low side compared to the rest of the industry. AVYA is outperformed by 72.67% of its industry peers.
Industry RankSector Rank
Current Ratio 1.18
Quick Ratio 1.14
AVYA Yearly Current Assets VS Current LiabilitesAVYA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2B 4B 6B

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0

3. Growth

3.1 Past

The earnings per share for AVYA have decreased strongly by -59.78% in the last year.
Measured over the past years, AVYA shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.24% on average per year.
AVYA shows a decrease in Revenue. In the last year, the revenue decreased by -6.81%.
The Revenue has been decreasing by -4.29% on average over the past years.
EPS 1Y (TTM)-59.78%
EPS 3Y-14.24%
EPS 5YN/A
EPS Q2Q%-132%
Revenue 1Y (TTM)-6.81%
Revenue growth 3Y1.41%
Revenue growth 5Y-4.29%
Sales Q2Q%-21.17%

3.2 Future

AVYA is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -43.37% yearly.
The Revenue is expected to decrease by -5.09% on average over the next years.
EPS Next Y-85.74%
EPS Next 2Y-42.17%
EPS Next 3Y-43.37%
EPS Next 5YN/A
Revenue Next Year-11.4%
Revenue Next 2Y-7.96%
Revenue Next 3Y-5.09%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
AVYA Yearly Revenue VS EstimatesAVYA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B
AVYA Yearly EPS VS EstimatesAVYA Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 0 1 2 3 4 5

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3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 0.19, which indicates a rather cheap valuation of AVYA.
100.00% of the companies in the same industry are more expensive than AVYA, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of AVYA to the average of the S&P500 Index (27.40), we can say AVYA is valued rather cheaply.
AVYA is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE 0.19
Fwd PE N/A
AVYA Price Earnings VS Forward Price EarningsAVYA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 20 30 40 50

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AVYA indicates a rather cheap valuation: AVYA is cheaper than 96.67% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 6.09
AVYA Per share dataAVYA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20

4.3 Compensation for Growth

AVYA's earnings are expected to decrease with -43.37% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-42.17%
EPS Next 3Y-43.37%

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0

5. Dividend

5.1 Amount

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

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AVAYA HOLDINGS CORP

NYSE:AVYA (2/13/2023, 8:08:44 PM)

Premarket: 0.29 +0.01 (+5.34%)

0.2753

-0.03 (-10.73%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-13 2023-02-13/amc
Earnings (Next)05-08 2023-05-08/amc
Inst OwnersN/A
Inst Owner ChangeN/A
Ins Owners12.25%
Ins Owner Change0%
Market Cap23.91M
Analysts44.44
Price Target0.65 (136.11%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP-0.07%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-276.28%
Min EPS beat(2)-537.11%
Max EPS beat(2)-15.45%
EPS beat(4)1
Avg EPS beat(4)-146.72%
Min EPS beat(4)-537.11%
Max EPS beat(4)5.5%
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)0
Avg Revenue beat(2)-6.95%
Min Revenue beat(2)-9.02%
Max Revenue beat(2)-4.88%
Revenue beat(4)1
Avg Revenue beat(4)-4.51%
Min Revenue beat(4)-9.02%
Max Revenue beat(4)0.9%
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)-35.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 0.19
Fwd PE N/A
P/S 0.01
P/FCF N/A
P/OCF N/A
P/B N/A
P/tB N/A
EV/EBITDA 6.09
EPS(TTM)1.48
EY537.6%
EPS(NY)-0.07
Fwd EYN/A
FCF(TTM)-2.74
FCFYN/A
OCF(TTM)-2.34
OCFYN/A
SpS31.85
BVpS-9.17
TBVpS-34.49
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA N/A
ROE N/A
ROCE N/A
ROIC 0.23%
ROICexc 0.25%
ROICexgc 1.01%
OM 0.33%
PM (TTM) N/A
GM 51.12%
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)76.09%
ROIC(5y)N/A
ROICexc(3y)3.53%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y260.08%
ROICexc growth 5YN/A
OM growth 3Y222.57%
OM growth 5Y-4.6%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.68%
GM growth 5Y-1.76%
F-Score2
Asset Turnover0.64
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Debt/EBITDA 6.53
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.18
Quick Ratio 1.14
Altman-Z -0.09
F-Score2
WACC5.23%
ROIC/WACC0.04
Cap/Depr(3y)25.09%
Cap/Depr(5y)22.24%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-59.78%
EPS 3Y-14.24%
EPS 5YN/A
EPS Q2Q%-132%
EPS Next Y-85.74%
EPS Next 2Y-42.17%
EPS Next 3Y-43.37%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.81%
Revenue growth 3Y1.41%
Revenue growth 5Y-4.29%
Sales Q2Q%-21.17%
Revenue Next Year-11.4%
Revenue Next 2Y-7.96%
Revenue Next 3Y-5.09%
Revenue Next 5YN/A
EBIT growth 1Y-96.27%
EBIT growth 3Y227.11%
EBIT growth 5Y-8.7%
EBIT Next Year-32.7%
EBIT Next 3Y-6.79%
EBIT Next 5YN/A
FCF growth 1Y-666.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-241.96%
OCF growth 3YN/A
OCF growth 5Y-23.3%