AVAYA HOLDINGS CORP (AVYA)
US05351X1019 - Common Stock
Taking everything into account, AVYA scores 2 out of 10 in our fundamental rating. AVYA was compared to 276 industry peers in the Software industry. AVYA has a bad profitability rating. Also its financial health evaluation is rather negative. AVYA is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year AVYA was profitable.
In the past year AVYA has reported a negative cash flow from operations.
AVYA had negative earnings in 4 of the past 5 years.
Of the past 5 years AVYA 4 years had a positive operating cash flow.
1.2 Ratios
The profitability ratios for AVYA are negative, so there is not much use analyzing them.
AVYA has a better Return On Invested Capital (0.23%) than 73.33% of its industry peers.
AVYA had an Average Return On Invested Capital over the past 3 years of 76.09%. This is significantly above the industry average of 10.44%.
The last Return On Invested Capital (0.23%) for AVYA is well below the 3 year average (76.09%), which needs to be investigated, but indicates that AVYA had better years and this may not be a problem.
| Industry Rank | Sector 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
1.3 Margins
The Operating Margin of AVYA (0.33%) is better than 73.00% of its industry peers.
In the last couple of years the Operating Margin of AVYA has declined.
AVYA's Gross Margin of 51.12% is on the low side compared to the rest of the industry. AVYA is outperformed by 67.67% of its industry peers.
In the last couple of years the Gross Margin of AVYA has declined.
| Industry Rank | Sector 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%
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.
The debt/assets ratio for AVYA is higher compared to a year ago.
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.
Looking at the Altman-Z score, with a value of -0.09, AVYA is doing worse than 71.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.09 |
ROIC/WACC0.04
WACC5.23%
2.3 Liquidity
A Current Ratio of 1.18 indicates that AVYA should not have too much problems paying its short term obligations.
AVYA has a Current ratio of 1.18. This is in the lower half of the industry: AVYA underperforms 72.00% of its industry peers.
AVYA has a Quick Ratio of 1.14. This is a normal value and indicates that AVYA is financially healthy and should not expect problems in meeting 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The earnings per share for AVYA have decreased strongly by -59.78% in the last year.
The earnings per share for AVYA have been decreasing by -14.24% on average. This is quite bad
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 growth Q2Q-132%
Revenue 1Y (TTM)-6.81%
Revenue growth 3Y1.41%
Revenue growth 5Y-4.29%
Revenue growth Q2Q-21.17%
3.2 Future
Based on estimates for the next years, AVYA will show a very negative growth in Earnings Per Share. The EPS will decrease by -43.37% on average per year.
Based on estimates for the next years, AVYA will show a decrease in Revenue. The Revenue will decrease by -5.09% on average per year.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 0.19, the valuation of AVYA can be described as very cheap.
AVYA's Price/Earnings ratio is rather cheap when compared to the industry. AVYA is cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of AVYA to the average of the S&P500 Index (28.06), 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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.19 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AVYA is valued cheaply inside the industry as 96.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.09 |
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%
5. Dividend
5.1 Amount
AVYA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AVAYA HOLDINGS CORP
NYSE:AVYA (2/13/2023, 7:08:44 PM)
Premarket: 0.29 +0.01 (+5.34%)0.2753
-0.03 (-10.73%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap23.91M
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)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.19 | ||
| Fwd PE | N/A | ||
| 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)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.33% | ||
| PM (TTM) | N/A | ||
| GM | 51.12% | ||
| 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 Turnover0.64
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 | 1.18 | ||
| Quick Ratio | 1.14 | ||
| 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)-59.78%
EPS 3Y-14.24%
EPS 5Y
EPS growth Q2Q
EPS Next Y-85.74%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.81%
Revenue growth 3Y1.41%
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
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y