AVID

Avid TechnologyNasdaqGS:AVID Stock Report

Market Cap

US$1.2b

7D

5.7%

1Y

237.8%

Updated

18 Sep, 2021

Data

Company Financials +
AVID fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance4/6
Financial Health2/6
Dividends0/6

AVID Overview

Avid Technology, Inc. develops, markets, sells, and supports software and integrated solutions for video and audio content creation, management, and distribution worldwide.

Share Price & News

How has Avid Technology's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AVID is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: AVID's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

5.7%

AVID

-3.7%

US Tech

-0.6%

US Market


1 Year Return

237.8%

AVID

38.0%

US Tech

33.8%

US Market

Return vs Industry: AVID exceeded the US Tech industry which returned 36.2% over the past year.

Return vs Market: AVID exceeded the US Market which returned 33.6% over the past year.


Shareholder returns

AVIDIndustryMarket
7 Day5.7%-3.7%-0.6%
30 Day-0.3%2.1%1.6%
90 Day-27.5%14.1%4.6%
1 Year237.8%237.8%39.0%38.0%35.8%33.8%
3 Year367.4%367.4%161.3%152.0%60.0%50.1%
5 Year231.9%231.9%384.4%340.2%123.0%98.7%

Long-Term Price Volatility Vs. Market

How volatile is Avid Technology's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Avid Technology Fundamentals Summary

How do Avid Technology's earnings and revenue compare to its market cap?
AVID fundamental statistics
Market CapUS$1.23b
Earnings (TTM)US$26.47m
Revenue (TTM)US$383.97m

46.4x

P/E Ratio

3.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AVID income statement (TTM)
RevenueUS$383.97m
Cost of RevenueUS$138.81m
Gross ProfitUS$245.16m
ExpensesUS$218.69m
EarningsUS$26.47m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.59
Gross Margin63.85%
Net Profit Margin6.89%
Debt/Equity Ratio-140.4%

How did AVID perform over the long term?

See historical performance and comparison

Valuation

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

36.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AVID ($26.92) is trading below our estimate of fair value ($42.69)

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


Price To Earnings Ratio

PE vs Industry: AVID is poor value based on its PE Ratio (46.4x) compared to the US Tech industry average (19.3x).

PE vs Market: AVID is poor value based on its PE Ratio (46.4x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: AVID is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: AVID has negative assets, so we can't compare its PB Ratio to the US Tech industry average.


Future Growth

How is Avid Technology forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

30.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVID's forecast earnings growth (30.4% per year) is above the savings rate (2%).

Earnings vs Market: AVID's earnings (30.4% per year) are forecast to grow faster than the US market (14.8% per year).

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

Revenue vs Market: AVID's revenue (9% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: AVID's revenue (9% 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 AVID's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Avid Technology performed over the past 5 years?

-10.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVID has high quality earnings.

Growing Profit Margin: AVID's current net profit margins (6.9%) are higher than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: AVID's earnings have declined by 10.1% per year over the past 5 years.

Accelerating Growth: AVID's earnings growth over the past year (82.2%) exceeds its 5-year average (-10.1% per year).

Earnings vs Industry: AVID earnings growth over the past year (82.2%) exceeded the Tech industry 63.2%.


Return on Equity

High ROE: AVID's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Financial Health

How is Avid Technology's financial position?


Financial Position Analysis

Short Term Liabilities: AVID has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: AVID has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: AVID has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: AVID's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: AVID's debt is well covered by operating cash flow (37.1%).

Interest Coverage: AVID's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet


Dividend

What is Avid Technology current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate AVID'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 AVID's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AVID's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Jeff Rosica (59 yo)

3.58yrs

Tenure

US$3,080,478

Compensation

Mr. Jeff Rosica has been President of at Avid Technology, Inc. since December 2016 and its Chief Executive Officer since February 25, 2018. He has been Director of Avid Technology, Inc. since March 2018 an...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD3.08M) is about average for companies of similar size in the US market ($USD3.67M).

Compensation vs Earnings: Jeff's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: AVID's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: AVID's board of directors are considered experienced (3.9 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 been diluted in the past year, with total shares outstanding growing by 3.8%.


Top Shareholders

Company Information

Avid Technology, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Avid Technology, Inc.
  • Ticker: AVID
  • Exchange: NasdaqGS
  • Founded: 1987
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: US$1.228b
  • Shares outstanding: 45.60m
  • Website: https://www.avid.com

Number of Employees


Location

  • Avid Technology, Inc.
  • 75 Network Drive
  • Burlington
  • Massachusetts
  • 1803
  • United States

Listings


Biography

Avid Technology, Inc. develops, markets, sells, and supports software and integrated solutions for video and audio content creation, management, and distribution worldwide. The company’s video products and...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 00:45
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.