AudioCodes (NasdaqGS:AUDC) - Share price, News & Analysis

AUDC fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	3/6
Past Performance	2/6
Financial Health	6/6
Dividends	3/6

AUDC Stock Overview

AudioCodes Ltd. provides advanced communications software, products, and productivity solutions for the digital workplace.

Rewards

Trading at 25.9% below our estimate of its fair value

Earnings are forecast to grow 17.31% per year

Earnings have grown 25.6% per year over the past 5 years

Risk Analysis

Unstable dividend track record

AudioCodes Competitors

NasdaqGS:FFIV

US$9.5b

Plantronics

NYSE:POLY

US$1.6b

Oracle

NYSE:ORCL

US$183.1b

International Business Machines

NYSE:IBM

US$115.6b

Price History & Performance

Summary of all time highs, changes and price drops for AudioCodes
Historical stock prices
Current Share Price	US$21.14
52 Week High	US$37.35
52 Week Low	US$19.62
Beta	0.64
1 Month Change	-11.36%
3 Month Change	-24.23%
1 Year Change	-36.21%
3 Year Change	37.99%
5 Year Change	211.80%
Change since IPO	147.80%

Shareholder Returns

	AUDC	US Communications	US Market
7D	2.7%	-10.4%	-2.7%
1Y	-36.2%	-13.5%	-12.9%

Return vs Industry: AUDC underperformed the US Communications industry which returned -13.5% over the past year.

Return vs Market: AUDC underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is AUDC's price volatile compared to industry and market?
AUDC volatility
AUDC Average Weekly Movement	5.7%
Communications Industry Average Movement	7.2%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

Stable Share Price: AUDC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: AUDC's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1992	885	Shabtai Adlersberg	https://www.audiocodes.com

AudioCodes Ltd. provides advanced communications software, products, and productivity solutions for the digital workplace. The company offers solutions, products, and services for unified communications, contact centers, VoiceAI business line, and service provider business. Its products include session border controllers, life cycle management solutions, VoIP network routing solutions, media gateways and servers, multi-service business routers, IP phones solutions, and value-added applications, as well as professional services.

AudioCodes Fundamentals Summary

How do AudioCodes's earnings and revenue compare to its market cap?
AUDC fundamental statistics
Market Cap	US$674.44m
Earnings (TTM)	US$32.37m
Revenue (TTM)	US$256.44m

20.8x

P/E Ratio

2.6x

P/S Ratio

Is AUDC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AUDC income statement (TTM)
Revenue	US$256.44m
Cost of Revenue	US$81.46m
Gross Profit	US$174.98m
Other Expenses	US$142.61m
Earnings	US$32.37m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.01
Gross Margin	68.23%
Net Profit Margin	12.62%
Debt/Equity Ratio	0%

How did AUDC perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

35%

Payout Ratio

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

25.9%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: AUDC ($21.14) is trading below our estimate of fair value ($28.52)

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

Price To Earnings Ratio

PE vs Industry: AUDC is good value based on its PE Ratio (20.8x) compared to the US Communications industry average (21.4x).

PE vs Market: AUDC is poor value based on its PE Ratio (20.8x) compared to the US market (15.2x).

Price to Earnings Growth Ratio

PEG Ratio: AUDC is poor value based on its PEG Ratio (1.2x)

Price to Book Ratio

PB vs Industry: AUDC is overvalued based on its PB Ratio (3.6x) compared to the US Communications industry average (1.7x).

Future Growth

How is AudioCodes forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

17.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: AUDC's forecast earnings growth (17.3% per year) is above the savings rate (1.9%).

Earnings vs Market: AUDC's earnings (17.3% per year) are forecast to grow faster than the US market (12.5% per year).

High Growth Earnings: AUDC's earnings are forecast to grow, but not significantly.

Revenue vs Market: AUDC's revenue (12.6% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: AUDC's revenue (12.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if AUDC's Return on Equity is forecast to be high in 3 years time

Past Performance

How has AudioCodes performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

25.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AUDC has high quality earnings.

Growing Profit Margin: AUDC's current net profit margins (12.6%) are lower than last year (14.1%).

Past Earnings Growth Analysis

Earnings Trend: AUDC's earnings have grown significantly by 25.6% per year over the past 5 years.

Accelerating Growth: AUDC's earnings growth over the past year (1.2%) is below its 5-year average (25.6% per year).

Earnings vs Industry: AUDC earnings growth over the past year (1.2%) underperformed the Communications industry 38.2%.

Return on Equity

High ROE: AUDC's Return on Equity (17.2%) is considered low.

Financial Health

How is AudioCodes's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: AUDC's short term assets ($129.6M) exceed its short term liabilities ($89.8M).

Long Term Liabilities: AUDC's short term assets ($129.6M) exceed its long term liabilities ($43.5M).

Debt to Equity History and Analysis

Debt Level: AUDC is debt free.

Reducing Debt: AUDC has no debt compared to 5 years ago when its debt to equity ratio was 10.4%.

Debt Coverage: AUDC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: AUDC has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

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

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.70%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: AUDC's dividend (1.7%) is higher than the bottom 25% of dividend payers in the US market (1.58%).

High Dividend: AUDC's dividend (1.7%) is low compared to the top 25% of dividend payers in the US market (4.11%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, AUDC has been paying a dividend for less than 10 years.

Growing Dividend: AUDC's dividend payments have increased, but the company has only paid a dividend for 4 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (35.2%), AUDC's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (33.9%), AUDC's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

5.8yrs

Average management tenure

CEO

Shabtai Adlersberg (68 yo)

29.33yrs

Tenure

US$3,753,268

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 ($USD3.75M) is about average for companies of similar size in the US market ($USD3.94M).

Compensation vs Earnings: Shabtai's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: AUDC's management team is seasoned and experienced (5.8 years average tenure).

Board Members

Experienced Board: AUDC's board of directors are seasoned and experienced ( 14.2 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/22 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31