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Avaya Holdings

NYSE:AVYA
Snowflake Description

Undervalued with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AVYA
NYSE
$2B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Avaya Holdings Corp., through its subsidiaries, provides digital communications products, solutions, and services for businesses worldwide. The last earnings update was 34 days ago. More info.


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  • Avaya Holdings has significant price volatility in the past 3 months.
AVYA Share Price and Events
7 Day Returns
-4.2%
NYSE:AVYA
2.4%
US Software
1.2%
US Market
1 Year Returns
-39.5%
NYSE:AVYA
25.6%
US Software
3%
US Market
AVYA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Avaya Holdings (AVYA) -4.2% -14.6% -4.5% -39.5% - -
US Software 2.4% 5.5% 19.8% 25.6% 110.4% 139.4%
US Market 1.2% 2.1% 14.6% 3% 39% 43.5%
1 Year Return vs Industry and Market
  • AVYA underperformed the Software industry which returned 25.6% over the past year.
  • AVYA underperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
Industry
5yr Volatility vs Market
Related Companies

AVYA Value

 Is Avaya Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Avaya Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Avaya Holdings.

NYSE:AVYA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 14.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:AVYA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.141 (1 + (1- 21%) (208%))
2.35
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (2 * 5.96%)
14.65%

Discounted Cash Flow Calculation for NYSE:AVYA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Avaya Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:AVYA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 14.65%)
2019 308.50 Analyst x2 269.08
2020 430.00 Analyst x1 327.13
2021 532.36 Est @ 23.8% 353.25
2022 625.43 Est @ 17.48% 361.98
2023 707.09 Est @ 13.06% 356.95
2024 777.50 Est @ 9.96% 342.34
2025 838.07 Est @ 7.79% 321.86
2026 890.63 Est @ 6.27% 298.34
2027 937.03 Est @ 5.21% 273.77
2028 978.87 Est @ 4.47% 249.45
Present value of next 10 years cash flows $3,154.14
NYSE:AVYA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $978.87 × (1 + 2.73%) ÷ (14.65% – 2.73%)
$8,436.21
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $8,436.21 ÷ (1 + 14.65%)10
$2,149.84
NYSE:AVYA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $3,154.14 + $2,149.84
$5,303.98
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $5,303.98 / 110.70
$47.92
NYSE:AVYA Discount to Share Price
Calculation Result
Value per share (USD) From above. $47.92
Current discount Discount to share price of $13.82
= -1 x ($13.82 - $47.92) / $47.92
71.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Avaya Holdings is available for.
Intrinsic value
>50%
Share price is $13.82 vs Future cash flow value of $47.92
Current Discount Checks
For Avaya Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Avaya Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Avaya Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Avaya Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Avaya Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:AVYA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $4.10
NYSE:AVYA Share Price ** NYSE (2019-03-20) in USD $13.82
United States of America Software Industry PE Ratio Median Figure of 84 Publicly-Listed Software Companies 53.03x
United States of America Market PE Ratio Median Figure of 3,058 Publicly-Listed Companies 17.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Avaya Holdings.

NYSE:AVYA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:AVYA Share Price ÷ EPS (both in USD)

= 13.82 ÷ 4.10

3.37x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Avaya Holdings is good value based on earnings compared to the US Software industry average.
  • Avaya Holdings is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Avaya Holdings's expected growth come at a high price?
Raw Data
NYSE:AVYA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 3.37x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
-70.1%per year
United States of America Software Industry PEG Ratio Median Figure of 66 Publicly-Listed Software Companies 3.6x
United States of America Market PEG Ratio Median Figure of 2,103 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

NYSE:AVYA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 3.37x ÷ -70.1%

-0.05x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Avaya Holdings earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Avaya Holdings's assets?
Raw Data
NYSE:AVYA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $19.26
NYSE:AVYA Share Price * NYSE (2019-03-20) in USD $13.82
United States of America Software Industry PB Ratio Median Figure of 220 Publicly-Listed Software Companies 5.84x
United States of America Market PB Ratio Median Figure of 5,156 Publicly-Listed Companies 1.89x
NYSE:AVYA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:AVYA Share Price ÷ Book Value per Share (both in USD)

= 13.82 ÷ 19.26

0.72x

* Primary Listing of Avaya Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Avaya Holdings is good value based on assets compared to the US Software industry average.
X
Value checks
We assess Avaya Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Avaya Holdings has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

AVYA Future Performance

 How is Avaya Holdings expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-70.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Avaya Holdings expected to grow at an attractive rate?
  • Avaya Holdings's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Avaya Holdings's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Avaya Holdings's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:AVYA Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:AVYA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts -70.1%
NYSE:AVYA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 2.2%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 16.1%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 10.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:AVYA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:AVYA Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-09-30 3,147 47 3
2020-09-30 3,097 58 5
2019-09-30 3,064 23 6
NYSE:AVYA Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 2,837 248 454
2018-09-30 2,851 -212 3,264
2018-06-30 2,906 -71 2,620
2018-03-31 3,017 -82 2,602
2017-12-31 3,149 -39 2,717
2017-09-30 3,272 291 -213
2017-06-30 3,440 208 -722
2016-09-30 3,702 113 -771

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Avaya Holdings's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Avaya Holdings's revenue is expected to grow by 2.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:AVYA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Avaya Holdings Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:AVYA Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-09-30 0.41 0.41 0.41 1.00
2020-09-30 0.20 0.20 0.20 1.00
2019-09-30 0.36 0.36 0.36 1.00
NYSE:AVYA Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 4.10
2018-09-30 17.12
2018-06-30 9.14
2018-03-31 6.78
2017-12-31 5.66
2017-09-30 -0.43
2017-06-30 -1.45
2016-09-30 -1.54

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Avaya Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Avaya Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Avaya Holdings has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

AVYA Past Performance

  How has Avaya Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Avaya Holdings's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Avaya Holdings has delivered over 20% year on year earnings growth in the past 5 years.
  • Avaya Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Avaya Holdings's 1-year earnings growth is negative, it can't be compared to the US Software industry average.
Earnings and Revenue History
Avaya Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Avaya Holdings Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:AVYA Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 2,837.00 454.00 1,028.00 216.00
2018-09-30 2,851.00 3,264.00 1,095.00 210.00
2018-06-30 2,906.00 2,620.00 1,156.00 195.00
2018-03-31 3,017.00 2,602.00 1,206.00 203.00
2017-12-31 3,149.00 2,717.00 1,216.00 210.00
2017-09-30 3,272.00 -213.00 1,231.00 225.00
2017-06-30 3,440.00 -722.00 1,275.00 242.00
2016-09-30 3,702.00 -771.00 1,322.00 273.00
2015-09-30 4,081.00 -214.00 1,432.00 338.00
2014-09-30 4,371.00 -360.00 1,507.00 374.00
2013-09-30 4,578.00 -362.00 1,481.00 445.00
2012-09-30 5,019.00 -439.00 1,617.00 464.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Avaya Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Avaya Holdings used its assets more efficiently than the US Software industry average last year based on Return on Assets.
  • Avaya Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Avaya Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Avaya Holdings has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

AVYA Health

 How is Avaya Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Avaya Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Avaya Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Avaya Holdings's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Avaya Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Avaya Holdings Company Filings, last reported 2 months ago.

NYSE:AVYA Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 2,132.00 3,182.00 743.00
2018-09-30 2,051.00 3,164.00 700.00
2018-06-30 1,718.00 3,159.00 685.00
2018-03-31 1,756.00 2,908.00 311.00
2017-12-31 1,867.00 2,918.00 417.00
2017-09-30 -4,436.00 6,571.00 876.00
2017-06-30 -4,640.00 6,626.00 729.00
2016-09-30 -4,477.00 6,074.00 336.00
2015-09-30 -3,496.00 5,967.00 323.00
2014-09-30 -3,162.00 6,027.00 322.00
2013-09-30 -2,724.00 6,107.00 289.00
2012-09-30
  • Avaya Holdings's level of debt (149.2%) compared to net worth is high (greater than 40%).
  • Avaya Holdings had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.
  • Debt is not well covered by operating cash flow (7.8%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 0.3x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Avaya Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Avaya Holdings has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

AVYA Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Avaya Holdings dividends. Estimated to be 0% next year.
If you bought $2,000 of Avaya Holdings shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Avaya Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Avaya Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:AVYA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:AVYA Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-09-30 0.00 2.00
2020-09-30 0.00 2.00
2019-09-30 0.00 2.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Avaya Holdings has not reported any payouts.
  • Unable to verify if Avaya Holdings's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Avaya Holdings's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Avaya Holdings has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Avaya Holdings's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Avaya Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Avaya Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Avaya Holdings has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

AVYA Management

 What is the CEO of Avaya Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jim Chirico
COMPENSATION $32,871,900
AGE 60
TENURE AS CEO 1.4 years
CEO Bio

Mr. James M. Chirico, Jr., also known as Jim, has been Chief Executive Officer of Avaya Inc. since October 1, 2017 and serves as its President. Mr. Chirico serves as an Executive Vice President of Business Operations at Avaya India Private Limited. He is President, Chief Executive Officer and Director at Avaya Holdings Corp. since October 1, 2017. He served as Chief Operating Officer & Global Sales Leader at Avaya Inc. until October 1, 2017. He served as an Executive Vice President of Business Operations at Avaya Inc. since June 14, 2010 to August 31, 2016. He served as President of Operations and Chief Restructuring Officer at Avaya Inc. he served as Executive Vice President, Business Operations and Chief Restructuring Officer from June 14, 2010 through August 31, 2016. He served as President, Operations from January 2008 until June 14, 2010 and was appointed Chief Restructuring Officer on February 3, 2009 at Avaya Holdings Corp. He served as Senior Vice President of Avaya Inc. Mr. Chirico joined Avaya in January 2008. He served as an Executive Vice President of Global Disc Storage Operations, Development and Manufacturing of Veritas Software Technology Corporation until February 8, 2006. He served as Senior Vice President and General Manager of Asia Operations of Veritas Software Technology Corporation and Seagate Technology Public Limited Company from September 2000 to February 8, 2006. He served as a Senior Vice President and General Manager of Asia Operations of Veritas Software Technology Corporation (Formerly known as Seagate Technology Inc.) since September 2000. He joined Seagate Technology Holdings in February 1998 as Senior Vice President of Worldwide Manufacturing Quality based in Singapore. He served as Executive Vice President, Global Disc Storage Operations at Seagate Technology from February 2006 until November 2007, and served as its Senior Vice President and General Manager, Asia Operations, from September 2000 to February 2006. In April 1999, he served as Senior Vice President and General Manager of Recording Head Operations based in Minnesota. He began his career at IBM in 1980 where he spent 18 years with held a number of management positions within manufacturing operations. Since 1998, Mr. Chirico held key leadership roles in worldwide operations, manufacturing, development, engineering, logistics, product management, procurement and supply chain. He has been a Director of Avaya Inc. since October 1, 2017. Mr. Chirico served as Director of Caraustar Industries Inc. from August 20, 2009 until 2013. He served as chairman of IDEMA (International Disc Drives and Equipment Manufacturer Association) Asia Pacific Management Committee until April 2004. Mr. Chirico holds a Bachelor of Science degree in Logistics Management from Providence College in Providence Rhode Island.

CEO Compensation
  • Jim's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Jim's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Avaya Holdings management team in years:

1.1
Average Tenure
57
Average Age
  • The average tenure for the Avaya Holdings management team is less than 2 years, this suggests a new team.
Management Team

Jim Chirico

TITLE
President
COMPENSATION
$33M
AGE
60
TENURE
1.4 yrs

Shefali Shah

TITLE
Senior VP
COMPENSATION
$4M
AGE
46
TENURE
1.3 yrs

Pat O'Malley

TITLE
Senior Vice President of Growth Initiatives
COMPENSATION
$6M
AGE
56
TENURE
0.1 yrs

Ed Nalbandian

TITLE
President of Avaya Services
COMPENSATION
$3M
AGE
57
TENURE
1 yrs

Kieran McGrath

TITLE
Senior VP & CFO
AGE
59
TENURE
0.1 yrs

Fred Hayes

TITLE
Senior Vice President of Global Business Operations
TENURE
1.2 yrs

L. Dell'Osso

TITLE
VP, Controller & Chief Accounting Officer

Chris McGugan

TITLE
Senior Vice President of Solutions & Technology

Mike McCarthy

TITLE
Vice President of Investor Relations
TENURE
0.3 yrs

Nikos Nikolopoulos

TITLE
Senior Vice President of Corporate Strategy & Development
TENURE
1.4 yrs
Board of Directors Tenure

Average tenure and age of the Avaya Holdings board of directors in years:

1.3
Average Tenure
54.5
Average Age
  • The average tenure for the Avaya Holdings board of directors is less than 3 years, this suggests a new board.
Board of Directors

Bill Watkins

TITLE
Chairman & Lead Independent Director
COMPENSATION
$324K
AGE
65
TENURE
1.3 yrs

Jim Chirico

TITLE
President
COMPENSATION
$33M
AGE
60
TENURE
1.3 yrs

Sue Spradley

TITLE
Director
COMPENSATION
$324K
AGE
57
TENURE
1.3 yrs

Scott Vogel

TITLE
Director
COMPENSATION
$324K
AGE
43
TENURE
1.3 yrs

Stan Sutula

TITLE
Director
COMPENSATION
$324K
AGE
52
TENURE
1.3 yrs

Stephan Scholl

TITLE
Director
COMPENSATION
$324K
AGE
47
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Avaya Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Avaya Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

AVYA News

Simply Wall St News

What does Avaya Holdings Corp's (NYSE:AVYA) Balance Sheet Tell Us About Its Future?

See our latest analysis for Avaya Holdings How does AVYA’s operating cash flow stack up against its debt? … On top of this, AVYA has generated cash from operations of US$291.00M during the same period of time, leading to an operating cash to total debt ratio of 4.43%, indicating that AVYA’s debt is not appropriately covered by operating cash. … Since total debt levels have outpaced equities, AVYA is a highly leveraged company.

Simply Wall St -

When Will Avaya Holdings Corp (NYSE:AVYA) Turn A Profit?

Check out our latest analysis for Avaya Holdings According to the industry analysts covering AVYA, breakeven is near. … So, AVYA is predicted to breakeven approximately a couple of months from now! … In order to meet this breakeven date, I calculated the rate at which AVYA must grow year-on-year.

Simply Wall St -

Does Avaya Holdings Corp's (NYSE:AVYA) Earnings Growth Make It An Outperformer?

Check out our latest analysis for Avaya Holdings Did AVYA beat its long-term earnings growth trend and its industry? … For Avaya Holdings, its most recent trailing-twelve-month earnings is -$213.0M, which compared to the prior year's figure, has become less negative. … This means despite the fact that Avaya Holdings is presently loss-making, it may have benefited from industry tailwinds, moving earnings into a more favorable position.What does this mean?

Simply Wall St -

AVYA Company Info

Description

Avaya Holdings Corp., through its subsidiaries, provides digital communications products, solutions, and services for businesses worldwide. The company operates through two segments, Products & Solutions, and Services. The Products & Solutions segment offers unified communications and contact center platforms, applications, and devices. It also provides an open development platform for customers and third parties to create custom applications and automated workflows for their needs; and contact center solutions that enable customers to build a customized portfolio of applications driving customer engagement and customer value. This segments communications solutions include voice, email, chat, social media, video, and performance management. The Services segment provides global support services, enterprise cloud and managed services, and professional services. The company also delivers cloud business communications services and solutions to connect with customers. Avaya Holdings Corp. sells directly through its sales force, as well as indirectly through its network of channel partners, including distributors, service providers, dealers, value-added resellers, system integrators, and business partners. The company is based in Santa Clara, California.

Details
Name: Avaya Holdings Corp.
AVYA
Exchange: NYSE
Founded:
$1,529,812,127
110,695,523
Website: http://investors.avaya.com/home/default.aspx
Address: Avaya Holdings Corp.
4655 Great America Parkway,
Santa Clara,
California, 95054,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE AVYA New Common Stock New York Stock Exchange US USD 19. Dec 2017
DB 1KU New Common Stock Deutsche Boerse AG DE EUR 19. Dec 2017
Number of employees
Current staff
Staff numbers
8,100
Avaya Holdings employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/21 01:11
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/19
Last earnings filing: 2019/02/15
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.