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AVYA

Avaya Holdings NYSE:AVYA Stock Report

Last Price

US$2.87

Market Cap

US$246.4m

7D

-27.3%

1Y

-89.3%

Updated

26 Jun, 2022

Data

Company Financials +
AVYA fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance0/6
Financial Health2/6
Dividends0/6

AVYA Stock Overview

Avaya Holdings Corp., through its subsidiaries, provides digital communications products, solutions, and services for businesses worldwide.

Avaya Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Avaya Holdings
Historical stock prices
Current Share PriceUS$2.87
52 Week HighUS$27.62
52 Week LowUS$2.61
Beta1.68
1 Month Change-23.06%
3 Month Change-77.68%
1 Year Change-89.26%
3 Year Change-75.90%
5 Year Changen/a
Change since IPO-82.55%

Recent News & Updates

Jun 13

Avaya: Near-Term Balance Sheet Catalyst Could Send Shares Higher

Avaya Holdings is a large unified communications and contact center as a service provider undergoing a business model transformation to the cloud and an Annual Recurring Revenue (“ARR”) model. ARR has scaled dramatically since it was first offered in early 2020 and is on pace to end the calendar year 2022 at $1 billion or more. The transition from one-time perpetual sales impacted near-term revenue and cash flow but yielded stickier revenue and more predictable cash flow over time while also ostensibly stressing the balance sheet. Avaya shares sold off dramatically in May as a result of bankruptcy fears regarding a June 2023 $350 million bond maturity. The company launched a $500 million offering which should close soon and cause liquidity fears to subside, yielding upside to the stock.

Shareholder Returns

AVYAUS SoftwareUS Market
7D-27.3%9.9%6.6%
1Y-89.3%-17.9%-18.4%

Return vs Industry: AVYA underperformed the US Software industry which returned -17.9% over the past year.

Return vs Market: AVYA underperformed the US Market which returned -18.4% over the past year.

Price Volatility

Is AVYA's price volatile compared to industry and market?
AVYA volatility
AVYA Average Weekly Movement18.3%
Software Industry Average Movement11.1%
Market Average Movement8.1%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.2%

Stable Share Price: AVYA is more volatile than 90% of US stocks over the past 3 months, typically moving +/- 18% a week.

Volatility Over Time: AVYA's weekly volatility has increased from 12% to 18% over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a8,063Jim Chiricohttps://www.avaya.com

Avaya Holdings Corp., through its subsidiaries, provides digital communications products, solutions, and services for businesses worldwide. The company operates in two segments, Products & Solutions and Services. The Products & Solutions segment offers unified communications and collaboration (UCC), and contact center (CC) platforms, applications, and devices.

Avaya Holdings Fundamentals Summary

How do Avaya Holdings's earnings and revenue compare to its market cap?
AVYA fundamental statistics
Market CapUS$246.35m
Earnings (TTM)-US$22.00m
Revenue (TTM)US$2.92b

0.1x

P/S Ratio

-11.2x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AVYA income statement (TTM)
RevenueUS$2.92b
Cost of RevenueUS$1.20b
Gross ProfitUS$1.73b
Other ExpensesUS$1.75b
Earnings-US$22.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.26
Gross Margin59.09%
Net Profit Margin-0.75%
Debt/Equity Ratio506.7%

How did AVYA perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is AVYA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AVYA?

Other financial metrics that can be useful for relative valuation.

AVYA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1x
Enterprise Value/EBITDA8x
PEG Ration/a

Price to Sales Ratio vs Peers

How does AVYA's PS Ratio compare to its peers?

AVYA PS Ratio vs Peers
The above table shows the PS ratio for AVYA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1.9x
EXOD Exodus Movement
2.9xn/aUS$252.4m
WEAV Weave Communications
2.1x20.9%US$254.5m
KLDI KLDiscovery
0.9xn/aUS$278.0m
KLTR Kaltura
1.6x10.2%US$273.3m
AVYA Avaya Holdings
0.08x2.5%US$246.4m

Price-To-Sales vs Peers: AVYA is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (1.9x).


Price to Earnings Ratio vs Industry

How does AVYA's PE Ratio compare vs other companies in the US Software Industry?

Price-To-Sales vs Industry: AVYA is good value based on its Price-To-Sales Ratio (0.1x) compared to the US Software industry average (4.7x)


Price to Sales Ratio vs Fair Ratio

What is AVYA's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AVYA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.08x
Fair PS Ratio1.8x

Price-To-Sales vs Fair Ratio: AVYA is good value based on its Price-To-Sales Ratio (0.1x) compared to the estimated Fair Price-To-Sales Ratio (1.8x).


Share Price vs Fair Value

What is the Fair Price of AVYA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AVYA ($2.87) is trading below our estimate of fair value ($57.96)

Significantly Below Fair Value: AVYA is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AVYA's PEG Ratio to determine if it is good value.


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Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


11.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVYA is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: AVYA is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: AVYA is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: AVYA's revenue (2.5% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: AVYA's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AVYA's Return on Equity is forecast to be very high in 3 years time (48.4%).


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Past Performance

How has Avaya Holdings performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-48.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AVYA is currently unprofitable.

Growing Profit Margin: AVYA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AVYA is unprofitable, and losses have increased over the past 5 years at a rate of 48.1% per year.

Accelerating Growth: Unable to compare AVYA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AVYA is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (27.1%).


Return on Equity

High ROE: AVYA has a negative Return on Equity (-3.2%), as it is currently unprofitable.


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Financial Health

How is Avaya Holdings's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: AVYA's short term assets ($1.6B) exceed its short term liabilities ($948.0M).

Long Term Liabilities: AVYA's short term assets ($1.6B) do not cover its long term liabilities ($4.3B).


Debt to Equity History and Analysis

Debt Level: AVYA's net debt to equity ratio (449.2%) is considered high.

Reducing Debt: AVYA had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: AVYA's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: AVYA's interest payments on its debt are not well covered by EBIT (0.7x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate AVYA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AVYA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AVYA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AVYA's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as AVYA has not reported any payouts.


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Management

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

3.3yrs

Average management tenure


CEO

Jim Chirico (63 yo)

4.67yrs

Tenure

US$13,851,692

Compensation

Mr. James M. Chirico, Jr., also known as Jim, has been the President and Chief Executive Officer of Avaya Inc. since October 1, 2017 and serves as its Director since December 15, 2017. Mr. Chirico serves a...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD13.85M) is above average for companies of similar size in the US market ($USD1.69M).

Compensation vs Earnings: Jim's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: AVYA's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: AVYA's board of directors are considered experienced (4.5 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Avaya Holdings Corp.'s employee growth, exchange listings and data sources


Key Information

  • Name: Avaya Holdings Corp.
  • Ticker: AVYA
  • Exchange: NYSE
  • Founded: NaN
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: US$246.351m
  • Shares outstanding: 85.84m
  • Website: https://www.avaya.com

Number of Employees


Location

  • Avaya Holdings Corp.
  • 2605 Meridian Parkway
  • Suite 200
  • Durham
  • North Carolina
  • 27713
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/09/30


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.