DB:AU1

Stock Analysis Report

Executive Summary

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.


Snowflake Analysis

Flawless balance sheet with high growth potential.


Similar Companies

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.


Market Performance


7 Day Return

7.8%

AU1

10.8%

DE Communications

9.1%

DE Market


1 Year Return

82.3%

AU1

-36.6%

DE Communications

-13.1%

DE Market

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.


Shareholder returns

AU1IndustryMarket
7 Day7.8%10.8%9.1%
30 Day42.0%3.6%-1.0%
90 Day8.7%-30.3%-20.7%
1 Year84.6%82.3%-36.3%-36.6%-10.6%-13.1%
3 Year309.7%293.0%-32.7%-32.9%-10.7%-18.1%
5 Year495.8%471.6%18.7%18.5%-10.7%-22.8%

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

Valuation

Is AudioCodes undervalued compared to its fair value and its price relative to the market?

196.83x

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).


Next Steps

Future Growth

How is AudioCodes forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

69.2%

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%)


Next Steps

Past Performance

How has AudioCodes performed over the past 5 years?

35.9%

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.


Next Steps

Financial Health

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.


Balance Sheet


Next Steps

Dividend

What is AudioCodes's current dividend yield, its reliability and sustainability?

0.93%

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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.5yrs

Average management tenure


CEO

Shabtai Adlersberg (66yo)

27.25s

Tenure

US$2,355,370

Compensation

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.


Leadership Team

NamePositionTenureCompensationOwnership
Shabtai Adlersberg
Co-Founder27.25yrsUS$2.36m15.83% $115.8m
Niran Baruch
CFO & VP of Finance3.75yrsUS$705.66kno data
Nimrode Borovsky
Vice President of Marketing6.5yrsUS$505.41kno data
Lior Aldema
Chief Business Officer & Director1.75yrsUS$1.04mno data
Ofer Nimtsovich
Chief Operating Officer2.25yrsUS$302.12kno data
Shirley Nakar
Director of Investor Relationsno datano datano data
Itamar Rosen
Chief Legal Officer & Company Secretaryno datano datano data
Tal Dor
Vice President of Human Resources20.08yrsno datano data

6.5yrs

Average Tenure

50yo

Average Age

Experienced Management: AU1's management team is seasoned and experienced (6.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Shabtai Adlersberg
Co-Founder27.25yrsUS$2.36m15.83% $115.8m
Lior Aldema
Chief Business Officer & Director1.75yrsUS$1.04mno data
Stanley Stern
Independent Chairman of the Board7.33yrsno datano data
Doron Nevo
Outside Director20.25yrsno datano data
Eyal Kishon
Outside Director23.25yrsno datano data
Zehava Simon
Independent Director6.17yrsno datano data
Joseph Tenne
Independent Director16.83yrsno datano data

16.8yrs

Average Tenure

62yo

Average Age

Experienced Board: AU1's board of directors are seasoned and experienced ( 16.8 years average tenure).


Ownership

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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

AudioCodes Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • AudioCodes Ltd.
  • 1 Hayarden Street
  • Airport City
  • Lod
  • 7019900
  • Israel

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AUDCNasdaqGS (Nasdaq Global Select)YesOrdinary SharesUSUSDMay 1999
AU1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 1999
AUDCTASE (The Tel-Aviv Stock Exchange)YesOrdinary SharesILILSMay 1999

Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 02:13
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.