NasdaqGS:AVID

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Fair value with moderate growth potential.


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

Stable Share Price: AVID has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.1%

AVID

-5.0%

US Tech

-4.6%

US Market


1 Year Return

23.8%

AVID

73.8%

US Tech

11.5%

US Market

Return vs Industry: AVID underperformed the US Tech industry which returned 73.8% over the past year.

Return vs Market: AVID exceeded the US Market which returned 11.5% over the past year.


Shareholder returns

AVIDIndustryMarket
7 Day-6.1%-5.0%-4.6%
30 Day-5.1%-3.3%-0.9%
90 Day1.6%14.8%2.2%
1 Year23.8%23.8%75.8%73.8%14.0%11.5%
3 Year90.4%90.4%157.1%145.8%34.5%25.6%
5 Year-6.9%-6.9%261.2%226.3%73.0%53.6%

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?

26.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AVID ($8.36) is trading below our estimate of fair value ($11.41)

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 (24.9x) compared to the US Tech industry average (18.8x).

PE vs Market: AVID is poor value based on its PE Ratio (24.9x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: AVID is good value based on its PEG Ratio (0.5x)


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.


Next Steps

Future Growth

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

50.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVID's forecast earnings growth (50.1% per year) is above the savings rate (2.2%).

Earnings vs Market: AVID's earnings (50.1% per year) are forecast to grow faster than the US market (22% per year).

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

Revenue vs Market: AVID's revenue (6.6% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: AVID's revenue (6.6% 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?

-32.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVID has a high level of non-cash earnings.

Growing Profit Margin: AVID became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AVID's earnings have declined by 32.9% per year over the past 5 years.

Accelerating Growth: AVID has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AVID has become profitable in the last year, making it difficult to compare its past year earnings growth to the Tech industry (-4.1%).


Return on Equity

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


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 (3%).

Interest Coverage: AVID's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet


Next Steps

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?

2.4yrs

Average management tenure


CEO

Jeff Rosica (58 yo)

2.58yrs

Tenure

US$714,229

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's total compensation ($USD714.23K) is below average for companies of similar size in the US market ($USD1.94M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jeff Rosica
President2.58yrsUS$714.23k1.46%
$ 5.4m
Kenneth Gayron
Senior VP & CFO2.42yrsUS$1.78m0.22%
$ 806.7k
Tom J. Cordiner
Senior VP & Chief Revenue Officer1.58yrsUS$1.15m0.51%
$ 1.9m
Dana Ruzicka
Senior VP & Chief Product Officer5.17yrsUS$1.09m0.65%
$ 2.4m
Dave Perillo
Senior Vice President of Operations & Supply Chain0.75yrno datano data
Garrard Brown
VP & Chief Accounting Officer0.92yrno data0.085%
$ 312.6k
Tim Claman
CTO & VP of Product Management2.42yrsno datano data
Whit Rappole
Vice President of Investor Relationsno datano datano data
Alessandra Melloni
Corporate Secretary0.25yrno datano data
Robert Roose
Director of Corporate Developmentno datano datano data
Diana Brunelle
Chief Human Resources Officer & Senior VP2.42yrsno datano data
Peter Ennis
Senior Vice President of Global Services & Support2.58yrsno datano data

2.4yrs

Average Tenure

50yo

Average Age

Experienced Management: AVID's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeff Rosica
President2.58yrsUS$714.23k1.46%
$ 5.4m
Elizabeth Daley
Independent Director15.58yrsUS$179.11k0.25%
$ 905.9k
Nancy Hawthorne
Independent Director23yrsUS$189.36k0.25%
$ 904.9k
Paula Boggs
Independent Director5.25yrsUS$183.37k0.20%
$ 741.2k
Peter Westley
Independent Chairman of the Board2.75yrsUS$245.61k0.080%
$ 292.4k
Robert Bakish
Independent Director11yrsUS$192.61k1.83%
$ 6.7m
Michelle Munson
Independent Director1.25yrsUS$111.33kno data
John Wallace
Independent Director3.42yrsUS$199.86k0.10%
$ 376.0k
Daniel Silvers
Independent Director2.75yrsUS$179.84k0.063%
$ 231.9k
Christian Asmar
Independent Director1yrUS$67.27k0.020%
$ 74.9k

3.1yrs

Average Tenure

56yo

Average Age

Experienced Board: AVID's board of directors are considered experienced (3.1 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 2.3%.


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$367.448m
  • Shares outstanding: 43.95m
  • 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 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 Analysis2020/10/29 00:07
End of Day Share Price2020/10/28 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.