NasdaqGS:AVID

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Slightly overvalued with weak fundamentals.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

5.4%

AVID

1.9%

US Tech

1.0%

US Market


1 Year Return

24.1%

AVID

8.2%

US Tech

8.0%

US Market

Return vs Industry: AVID exceeded the US Tech industry which returned 8.2% over the past year.

Return vs Market: AVID exceeded the US Market which returned 8% over the past year.


Shareholder returns

AVIDIndustryMarket
7 Day5.4%1.9%1.0%
30 Day9.3%9.6%-0.07%
90 Day-30.5%14.0%-1.0%
1 Year24.1%24.1%10.1%8.2%10.4%8.0%
3 Year-4.9%-4.9%104.4%88.6%46.2%36.7%
5 Year-32.1%-32.1%125.4%102.4%64.3%46.2%

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

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AVID ($6.79) is trading below our estimate of fair value ($31.02)

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


Price To Earnings Ratio

PE vs Industry: AVID is unprofitable, so we can't compare its PE Ratio to the Tech industry average.

PE vs Market: AVID is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


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.


Next Steps

Future Growth

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

2.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

Earnings vs Market: Insufficient data to determine if AVID'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: AVID's revenue (2.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: AVID's revenue (2.1% 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


Next Steps

Past Performance

How has Avid Technology performed over the past 5 years?

-39.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AVID is unprofitable, and losses have increased over the past 5 years at a rate of -39.6% per year.

Accelerating Growth: Unable to compare AVID's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AVID is unprofitable, making it difficult to compare its past year earnings growth to the Tech industry (64%).


Return on Equity

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


Return on Assets

ROA vs Industry: AVID is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: AVID is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

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 not well covered by operating cash flow (8.7%).

Interest Coverage: AVID is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

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

Debt Coverage by Assets: AVID has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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

1.4yrs

Average management tenure


CEO

Jeff Rosica (57yo)

1.7yrs

Tenure

US$4,841,282

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. H ...


CEO Compensation Analysis

Compensation vs. Market: Jeff has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Jeff's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

1.4yrs

Average Tenure

48yo

Average Age

Experienced Management: AVID's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

2.4yrs

Average Tenure

56yo

Average Age

Experienced Board: AVID's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$25,282,27006 Sep 19
Impactive Capital LP
EntityCompany
Shares2,528,227
Max PriceUS$10.00
SellUS$7,223,11709 Jul 19
Cove Street Capital, LLC
EntityCompany
Shares818,608
Max PriceUS$9.83
SellUS$7,009,50614 May 19
Cove Street Capital, LLC
EntityCompany
Shares768,450
Max PriceUS$9.83
SellUS$96,00013 May 19
Ryan Murray
EntityIndividual
Shares12,000
Max PriceUS$8.00
SellUS$5,021,43925 Apr 19
Cove Street Capital, LLC
EntityCompany
Shares598,607
Max PriceUS$8.65
SellUS$7,527,15108 Apr 19
Cove Street Capital, LLC
EntityCompany
Shares896,240
Max PriceUS$8.61
BuyUS$1,981,14101 Apr 19
Cove Street Capital, LLC
EntityCompany
Shares183,428
Max PriceUS$26.36
SellUS$7,142,16801 Apr 19
Cove Street Capital, LLC
EntityCompany
Shares1,056,669
Max PriceUS$7.94

Ownership Breakdown


Management Team

  • Robert Roose

    Director of Corporate Development

    • Tenure: 0yrs
  • Jason Duva (46yo)

    Executive VP and Chief Legal & Administrative Officer

    • Tenure: 1.4yrs
    • Compensation: US$1.31m
  • Jeff Rosica (57yo)

    President

    • Tenure: 1.7yrs
    • Compensation: US$4.84m
  • Tom J. Cordiner (49yo)

    Senior VP & Chief Revenue Officer

    • Tenure: 0.6yrs
    • Compensation: US$1.15m
  • Ken Gayron (49yo)

    Executive VP

    • Tenure: 1.4yrs
    • Compensation: US$1.01m
  • Melissa Puls (45yo)

    Chief Marketing Officer & Senior VP

    • Tenure: 1.3yrs
  • Dana Ruzicka (47yo)

    Senior VP & Chief Product Officer

    • Tenure: 4.2yrs
    • Compensation: US$1.08m
  • Diana Brunelle

    Chief Human Resources Officer & VP

    • Tenure: 1.4yrs
  • Tim Claman

    CTO & VP of Product Management

    • Tenure: 1.4yrs
  • Whit Rappole

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Elizabeth Daley (76yo)

    Independent Director

    • Tenure: 14.7yrs
    • Compensation: US$206.38k
  • Nancy Hawthorne (68yo)

    Independent Director

    • Tenure: 22yrs
    • Compensation: US$212.29k
  • Paula Boggs (60yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$185.75k
  • Peter Westley (55yo)

    Independent Chairman of the Board

    • Tenure: 1.8yrs
    • Compensation: US$138.24k
  • Bob Bakish (55yo)

    Independent Director

    • Tenure: 10yrs
    • Compensation: US$191.11k
  • Michelle Munson

    Independent Director

    • Tenure: 0.3yrs
  • John Wallace (53yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$201.71k
  • Dan Silvers (43yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$182.07k
  • Jeff Rosica (57yo)

    President

    • Tenure: 1.7yrs
    • Compensation: US$4.84m

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$291.671m
  • Shares outstanding: 42.96m
  • Website: https://www.avid.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AVIDNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 1993
AVDDB (Deutsche Boerse AG)YesCommon StockDEEURMar 1993

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:32
End of Day Share Price2019/10/21 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.