NasdaqGS:AUDC

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 worldwide.


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: AUDC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.1%

AUDC

3.7%

US Communications

2.0%

US Market


1 Year Return

117.9%

AUDC

7.0%

US Communications

23.6%

US Market

Return vs Industry: AUDC exceeded the US Communications industry which returned 6.7% over the past year.

Return vs Market: AUDC exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

AUDCIndustryMarket
7 Day6.1%3.7%2.0%
30 Day10.1%2.5%3.9%
90 Day46.5%4.7%12.0%
1 Year121.2%117.9%9.3%7.0%26.2%23.6%
3 Year358.8%342.9%53.7%44.0%53.2%43.3%
5 Year455.5%436.3%76.5%56.3%75.7%56.3%

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

Valuation

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

47.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AUDC ($27.46) is trading above our estimate of fair value ($19.13)

Significantly Below Fair Value: AUDC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AUDC is poor value based on its PE Ratio (47.6x) compared to the Communications industry average (21.1x).

PE vs Market: AUDC is poor value based on its PE Ratio (47.6x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: AUDC is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: AUDC is overvalued based on its PB Ratio (8.1x) compared to the US Communications industry average (1.9x).


Next Steps

Future Growth

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

35.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AUDC's forecast earnings growth (35.8% per year) is above the savings rate (1.7%).

Earnings vs Market: AUDC's earnings (35.8% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AUDC's revenue (8.8% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: AUDC's revenue (8.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AUDC's Return on Equity is forecast to be high in 3 years time (34.7%)


Next Steps

Past Performance

How has AudioCodes performed over the past 5 years?

43.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AUDC has high quality earnings.

Growing Profit Margin: AUDC's current net profit margins (8.7%) are higher than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: AUDC's earnings have grown significantly by 43% per year over the past 5 years.

Accelerating Growth: AUDC's earnings growth over the past year (73.7%) exceeds its 5-year average (43% per year).

Earnings vs Industry: AUDC earnings growth over the past year (73.7%) exceeded the Communications industry 12.6%.


Return on Equity

High ROE: AUDC's Return on Equity (17.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AudioCodes's financial position?


Financial Position Analysis

Short Term Liabilities: AUDC's short term assets ($128.0M) exceed its short term liabilities ($71.7M).

Long Term Liabilities: AUDC's short term assets ($128.0M) exceed its long term liabilities ($53.4M).


Debt to Equity History and Analysis

Debt Level: AUDC's debt to equity ratio (4.4%) is considered satisfactory.

Reducing Debt: AUDC's debt to equity ratio has reduced from 8.3% to 4.4% over the past 5 years.

Debt Coverage: AUDC's debt is well covered by operating cash flow (758.1%).

Interest Coverage: AUDC earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: AUDC has a high level of physical assets or inventory.

Debt Coverage by Assets: AUDC's debt is covered by short term assets (assets are 30x debt).


Next Steps

Dividend

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

0.84%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: AUDC's dividend (0.84%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: AUDC's dividend (0.84%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether AUDC's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if AUDC's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.1%), AUDC's dividend payments are 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

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

11.7yrs

Average management tenure


CEO

Shabtai Adlersberg (66yo)

27yrs

Tenure

US$1,451,858

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 ($USD1.45M) is below average for companies of similar size in the US market ($USD2.53M).

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


Management Age and Tenure

11.7yrs

Average Tenure

50yo

Average Age

Experienced Management: AUDC's management team is seasoned and experienced (11.7 years average tenure).


Board Age and Tenure

16.6yrs

Average Tenure

62yo

Average Age

Experienced Board: AUDC's board of directors are seasoned and experienced ( 16.6 years average tenure).


Insider Trading

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.


Management Team

  • Shabtai Adlersberg (66yo)

    Co-Founder

    • Tenure: 27yrs
    • Compensation: US$1.45m
  • Tal Dor (50yo)

    Vice President of Human Resources

    • Tenure: 19.8yrs
  • Itamar Rosen (54yo)

    Chief Legal Officer & Company Secretary

    • Shirley Nakar

      Director of Investor Relations

      • Ofer Nimtsovich (50yo)

        Chief Operating Officer

        • Tenure: 2yrs
        • Compensation: US$302.12k
      • Niran Baruch (48yo)

        CFO & VP of Finance

        • Tenure: 3.5yrs
        • Compensation: US$605.90k

      Board Members

      • Stanley Stern (62yo)

        Chairman of the Board

        • Tenure: 7.1yrs
      • Shabtai Adlersberg (66yo)

        Co-Founder

        • Tenure: 27yrs
        • Compensation: US$1.45m
      • Doron Nevo (63yo)

        Outside Director

        • Tenure: 20yrs
      • Eyal Kishon (59yo)

        Outside Director

        • Tenure: 23yrs
      • Zehava Simon (60yo)

        Independent Director

        • Tenure: 5.9yrs
      • Lior Aldema (53yo)

        Executive VP

        • Tenure: 1.5yrs
        • Compensation: US$826.19k
      • Joseph Tenne (64yo)

        Independent Director

        • Tenure: 16.6yrs

      Company Information

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


      Key Information

      • Name: AudioCodes Ltd.
      • Ticker: AUDC
      • Exchange: NasdaqGS
      • Founded: 1992
      • Industry: Communications Equipment
      • Sector: Tech
      • Market Cap: US$801.158m
      • Shares outstanding: 29.18m
      • 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 worldwide. The company’s products include IP phones, session border controllers (SBC), media gateways, multi-service business routers, huddle room solutions, 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; Fax Server, a tool for managing inbound and outbound enterprise fax transmissions; SIP Phone Support, a value-added application for SBC and gateways; 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 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 Analysis2020/01/18 23:44
      End of Day Share Price2020/01/17 00:00
      Earnings2019/09/30
      Annual Earnings2018/12/31


      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.