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

Fundamentals

Flawless balance sheet with solid track record.

Risks

  • AudioCodes is covered by less than 3 analysts.

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


Market Performance


7 Day Return

2.3%

NasdaqGS:AUDC

3.4%

US Communications

2.1%

US Market


1 Year Return

66.8%

NasdaqGS:AUDC

-1.9%

US Communications

-0.04%

US Market

AUDC outperformed the Communications industry which returned -0.3% over the past year.

AUDC outperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

AUDCIndustryMarket
7 Day2.3%3.4%2.1%
30 Day-2.4%-14.6%-3.2%
90 Day15.2%-9.1%2.8%
1 Year69.3%66.8%0.2%-1.9%2.2%-0.04%
3 Year245.6%233.6%52.1%42.4%41.5%32.3%
5 Year226.2%214.9%81.2%62.6%55.0%37.8%

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

Valuation

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

29%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

AudioCodes's share price is below the future cash flow value, and at a moderate discount (> 20%).

AudioCodes's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

AudioCodes is overvalued based on earnings compared to the US Communications industry average.

AudioCodes is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for AudioCodes, we can't assess if its growth is good value.


Price Based on Value of Assets

AudioCodes is overvalued based on assets compared to the US Communications industry average.


Next Steps

Future Growth

How is AudioCodes expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

8.5%

Forecasted annual revenue growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

AudioCodes's revenue is expected to grow by 8.5% yearly, however this is not considered high growth (20% yearly).

AudioCodes's earnings are expected to grow significantly at over 20% yearly.

AudioCodes's revenue growth is expected to exceed the United States of America market average.

AudioCodes's earnings growth is expected to exceed the United States of America market average.

AudioCodes's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if AudioCodes will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has AudioCodes performed over the past 5 years?

42.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

AudioCodes has delivered over 20% year on year earnings growth in the past 5 years.

AudioCodes's 1-year earnings growth exceeds its 5-year average (152.1% vs 42.8%)

AudioCodes's earnings growth has exceeded the US Communications industry average in the past year (152.1% vs 23.2%).


Return on Equity

AudioCodes has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

AudioCodes used its assets more efficiently than the US Communications industry average last year based on Return on Assets.


Return on Capital Employed

AudioCodes has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is AudioCodes's financial position?


Financial Position Analysis

AudioCodes is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

AudioCodes's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

AudioCodes's level of debt (5.2%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (8.8% vs 5.2% today).

Debt is well covered by operating cash flow (646%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 46.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 26x debt.


Next Steps

Dividend

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

1.30%

Current Dividend Yield


Dividend Yield and Payments Analysis

AudioCodes's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

AudioCodes's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

It is too early to tell whether AudioCodes has stable dividend payments.

AudioCodes only just started paying a dividend, it is too early to tell if payments are increasing.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.5x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

17.6yrs

Average management tenure


CEO

Shabtai Adlersberg (66yo)

26.6yrs

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

Shabtai's remuneration is about average for companies of similar size in United States of America.

Shabtai's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

17.6yrs

Average Tenure

50yo

Average Age

The average tenure for the AudioCodes management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

16.2yrs

Average Tenure

62yo

Average Age

The average tenure for the AudioCodes board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Shabtai Adlersberg (66yo)

    Co-Founder

    • Tenure: 26.6yrs
    • Compensation: US$1.45m
  • Lior Aldema (53yo)

    Executive VP

    • Tenure: 1.1yrs
    • Compensation: US$826.19k
  • Tal Dor (50yo)

    Vice President of Human Resources

    • Tenure: 19.4yrs
  • Shirley Nakar

    Director of Investor Relations

    • Tenure: 0.0yrs
  • Ofer Nimtsovich (50yo)

    Chief Operating Officer

    • Tenure: 1.6yrs
    • Compensation: US$302.12k
  • Niran Baruch (48yo)

    CFO & VP of Finance

    • Tenure: 3.1yrs
    • Compensation: US$605.90k

Board Members

  • Stanley Stern (62yo)

    Chairman of the Board

    • Tenure: 6.7yrs
  • Shabtai Adlersberg (66yo)

    Co-Founder

    • Tenure: 26.6yrs
    • Compensation: US$1.45m
  • Doron Nevo (63yo)

    Outside Director

    • Tenure: 19.6yrs
  • Eyal Kishon (59yo)

    Outside Director

    • Tenure: 22.6yrs
  • Zehava Simon (60yo)

    Director

    • Tenure: 5.5yrs
  • Lior Aldema (53yo)

    Executive VP

    • Tenure: 1.1yrs
    • Compensation: US$826.19k
  • Joseph Tenne (64yo)

    Director

    • Tenure: 16.2yrs

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$514.947m
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 23:46
End of Day Share Price2019/08/22 00:00
Earnings2019/06/30
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.