AudioCodes Ltd. designs, develops, and sells voice over IP (VoIP), converged VoIP, and data networking solutions, products, and applications for enterprise unified communications, contact centers, service provider business services, mobile VoIP, and cloud virtualized data centers.
Flawless balance sheet with high growth potential.
Share Price & News
How has AudioCodes's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: AU1's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: AU1 exceeded the German Communications industry which returned -37.9% over the past year.
Return vs Market: AU1 exceeded the German Market which returned -14.3% over the past year.
Price Volatility Vs. Market
How volatile is AudioCodes's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is AudioCodes undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: AU1 (€25) is trading above our estimate of fair value (€23.25)
Significantly Below Fair Value: AU1 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: AU1 is poor value based on its PE Ratio (196.8x) compared to the Communications industry average (15.7x).
PE vs Market: AU1 is poor value based on its PE Ratio (196.8x) compared to the German market (17.1x).
Price to Earnings Growth Ratio
PEG Ratio: AU1 is poor value based on its PEG Ratio (2.8x)
Price to Book Ratio
PB vs Industry: AU1 is overvalued based on its PB Ratio (8.6x) compared to the DE Communications industry average (2.4x).
How is AudioCodes forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AU1's forecast earnings growth (69.2% per year) is above the savings rate (-0.4%).
Earnings vs Market: AU1's earnings (69.2% per year) are forecast to grow faster than the German market (14.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: AU1's revenue (7.9% per year) is forecast to grow faster than the German market (3.9% per year).
High Growth Revenue: AU1's revenue (7.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AU1's Return on Equity is forecast to be high in 3 years time (26.4%)
How has AudioCodes performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AU1 has a large one-off loss of $32.2M impacting its December 31 2019 financial results.
Growing Profit Margin: AU1's current net profit margins (2%) are lower than last year (7.7%).
Past Earnings Growth Analysis
Earnings Trend: AU1 has become profitable over the past 5 years, growing earnings by 35.9% per year.
Accelerating Growth: AU1's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: AU1 had negative earnings growth (-70.5%) over the past year, making it difficult to compare to the Communications industry average (21.9%).
Return on Equity
High ROE: AU1's Return on Equity (4.3%) is considered low.
How is AudioCodes's financial position?
Financial Position Analysis
Short Term Liabilities: AU1's short term assets ($132.6M) exceed its short term liabilities ($86.7M).
Long Term Liabilities: AU1's short term assets ($132.6M) exceed its long term liabilities ($65.2M).
Debt to Equity History and Analysis
Debt Level: AU1's debt to equity ratio (4%) is considered satisfactory.
Reducing Debt: AU1's debt to equity ratio has reduced from 7.3% to 4% over the past 5 years.
Debt Coverage: AU1's debt is well covered by operating cash flow (630.8%).
Interest Coverage: AU1 earns more interest than it pays, so coverage of interest payments is not a concern.
What is AudioCodes's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AU1's dividend (0.93%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.57%).
High Dividend: AU1's dividend (0.93%) is low compared to the top 25% of dividend payers in the German market (4.68%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, AU1 has been paying a dividend for less than 10 years.
Growing Dividend: AU1's dividend payments have increased, but the company has only paid a dividend for 2 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (183.9%), AU1's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Shabtai Adlersberg (66yo)
Mr. Shabtai Adlersberg serves as the Chief Executive Officer of AudioCodes, Inc. Mr. Adlersberg co-founded Audiocodes Ltd. in 1993 and has been its Chief Executive Officer and President since 1993. Until D ...
CEO Compensation Analysis
Compensation vs Market: Shabtai's total compensation ($USD2.36M) is above average for companies of similar size in the German market ($USD1.31M).
Compensation vs Earnings: Shabtai's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
|CFO & VP of Finance||3.75yrs||US$705.66k||no data|
|Vice President of Marketing||6.5yrs||US$505.41k||no data|
|Chief Business Officer & Director||1.75yrs||US$1.04m||no data|
|Chief Operating Officer||2.25yrs||US$302.12k||no data|
|Director of Investor Relations||no data||no data||no data|
|Chief Legal Officer & Company Secretary||no data||no data||no data|
|Vice President of Human Resources||20.08yrs||no data||no data|
Experienced Management: AU1's management team is seasoned and experienced (6.5 years average tenure).
|Chief Business Officer & Director||1.75yrs||US$1.04m||no data|
|Independent Chairman of the Board||7.33yrs||no data||no data|
|Outside Director||20.25yrs||no data||no data|
|Outside Director||23.25yrs||no data||no data|
|Independent Director||6.17yrs||no data||no data|
|Independent Director||16.83yrs||no data||no data|
Experienced Board: AU1's board of directors are seasoned and experienced ( 16.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
AudioCodes Ltd.'s company bio, employee growth, exchange listings and data sources
- Name: AudioCodes Ltd.
- Ticker: AU1
- Exchange: DB
- Founded: 1992
- Industry: Communications Equipment
- Sector: Tech
- Market Cap: US$795.445m
- Listing Market Cap: US$731.491m
- Shares outstanding: 29.73m
- Website: https://www.audiocodes.com
Number of Employees
- AudioCodes Ltd.
- 1 Hayarden Street
- Airport City
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|AUDC||NasdaqGS (Nasdaq Global Select)||Yes||Ordinary Shares||US||USD||May 1999|
|AU1||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||EUR||May 1999|
|AUDC||TASE (The Tel-Aviv Stock Exchange)||Yes||Ordinary Shares||IL||ILS||May 1999|
AudioCodes Ltd. designs, develops, and sells voice over IP (VoIP), converged VoIP, and data networking solutions, products, and applications for enterprise unified communications, contact centers, service provider business services, mobile VoIP, and cloud virtualized data centers. The company’s products include IP phones, session border controllers (SBC), media gateways, multi-service business routers, managed IP Phones, and survivable branch appliances; CloudBond 365, an adaptable solution for the data center, customer premises or the branch; CloudBond 365 CCE appliances; User Management Pack 365, a software management application; VoIP management and routing, a suite of lifecycle applications for large scale cloud or premises-based unified communications deployments. It also provides MobilityPLUS, a mobile VoIP solution; VocaNOM call routing products; SmartTAP call recording products; Auto Attendant, a tool for managing inbound calls and delivery services; signal processor chips; communications boards; and voice and data logging hardware integration board products. In addition, the company offers planning, implementation, operations, and support services, as well as consulting and training services. It primarily markets and sells its products through a direct sales force and sales representatives to original equipment manufacturers, system integrators and distributors, and network equipment providers in the telecommunication and networking industries. The company operates in Americas, Europe, the Far East, and Israel. AudioCodes Ltd. was incorporated in 1992 and is headquartered in Lod, Israel.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/10 02:13|
|End of Day Share Price||2020/04/09 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.