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.


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

4.0%

AUDC

2.1%

US Communications

1.8%

US Market


1 Year Return

92.3%

AUDC

1.6%

US Communications

7.3%

US Market

Return vs Industry: AUDC exceeded the US Communications industry which returned 1.6% over the past year.

Return vs Market: AUDC exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

AUDCIndustryMarket
7 Day4.0%2.1%1.8%
30 Day-7.8%-3.8%-0.7%
90 Day16.1%-14.7%0.06%
1 Year95.2%92.3%3.9%1.6%9.7%7.3%
3 Year268.7%255.9%52.9%43.4%46.3%36.9%
5 Year323.0%308.4%92.3%72.2%64.5%46.5%

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?

19.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: AUDC ($18.58) is trading below our estimate of fair value ($22.99)

Significantly Undervalued: AUDC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AUDC is poor value based on its PE Ratio (32.7x) compared to the Communications industry average (30.4x).

PE vs Market: AUDC is poor value based on its PE Ratio (32.7x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AUDC is overvalued based on its PB Ratio (5.7x) 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 1 analyst?

8.5%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if AUDC's forecast earnings growth is above the savings rate (2.7%).

Earnings vs Market: Insufficient data to determine if AUDC's earnings are forecast to grow faster than the US market

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

Revenue vs Market: AUDC's revenue (8.5% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: AUDC's revenue (8.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


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

Earnings Trend: AUDC's earnings have grown significantly by 42.8% per year over the past 5 years.

Accelerating Growth: AUDC's earnings growth over the past year (152.1%) exceeds its 5-year average (42.8% per year).

Earnings vs Industry: AUDC earnings growth over the past year (152.1%) exceeded the Communications industry 22.8%.


Return on Equity

High ROE: AUDC's Return on Equity (17.4%) is considered low.


Return on Assets

ROA vs Industry: AUDC has a higher Return on Assets than the Communications industry average last year.


Return on Capital Employed

ROCE Improving: AUDC has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is AudioCodes's financial position?


Financial Position Analysis

Short Term Liabilities: AUDC's short term assets ($128.1M) exceeds its short term liabilities ($74.2M)

Long Term Liabilities: AUDC's short term assets (128.1M) exceeds its long term liabilities (56.0M)


Debt to Equity History and Analysis

Debt Level: AUDC's debt to equity ratio (5.2%) is considered satisfactory

Reducing Debt: AUDC's debt to equity ratio has reduced from 8.8% to 5.2% over the past 5 years.

Debt Coverage: AUDC's debt is well covered by operating cash flow (646%).

Interest Coverage: AUDC's interest payments on its debt are well covered by EBIT (46.3x coverage).


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 26.001010x debt).


Next Steps

Dividend

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

1.24%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%1.5%markettop25%3.7%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: AUDC's dividend (1.24%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: AUDC's dividend (1.24%) is low compared to the top 25% of dividend payers in the US market (3.72%).

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 (40.5%), 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?

11.4yrs

Average management tenure


CEO

Shabtai Adlersberg (66yo)

26.8yrs

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 ($USD1.45M) is about average for companies of similar size in the US market ($USD1.79M).

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


Management Age and Tenure

11.4yrs

Average Tenure

50yo

Average Age

Experienced Management: AUDC's management team is seasoned and experienced (11.4 years average tenure).


Board Age and Tenure

16.3yrs

Average Tenure

62yo

Average Age

Experienced Board: AUDC's board of directors are seasoned and experienced ( 16.3 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


Management Team

  • Shabtai Adlersberg (66yo)

    Co-Founder

    • Tenure: 26.8yrs
    • Compensation: US$1.45m
  • Tal Dor (50yo)

    Vice President of Human Resources

    • Tenure: 19.6yrs
  • Itamar Rosen (54yo)

    Chief Legal Officer & Company Secretary

    • Tenure: 0yrs
  • Shirley Nakar

    Director of Investor Relations

    • Tenure: 0yrs
  • Ofer Nimtsovich (50yo)

    Chief Operating Officer

    • Tenure: 1.8yrs
    • Compensation: US$302.12k
  • Niran Baruch (48yo)

    CFO & VP of Finance

    • Tenure: 3.3yrs
    • Compensation: US$605.90k

Board Members

  • Stanley Stern (62yo)

    Chairman of the Board

    • Tenure: 6.8yrs
  • Shabtai Adlersberg (66yo)

    Co-Founder

    • Tenure: 26.8yrs
    • Compensation: US$1.45m
  • Doron Nevo (63yo)

    Outside Director

    • Tenure: 19.8yrs
  • Eyal Kishon (59yo)

    Outside Director

    • Tenure: 22.8yrs
  • Zehava Simon (60yo)

    Director

    • Tenure: 5.7yrs
  • Lior Aldema (53yo)

    Executive VP

    • Tenure: 1.3yrs
    • Compensation: US$826.19k
  • Joseph Tenne (64yo)

    Director

    • Tenure: 16.3yrs

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$542.080m
  • 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 Analysis2019/10/17 23:40
End of Day Share Price2019/10/17 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.