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 Analysis

Moderate growth potential 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

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


Market Performance


7 Day Return

-8.4%

AVID

-6.5%

US Tech

-4.2%

US Market


1 Year Return

73.7%

AVID

63.1%

US Tech

14.0%

US Market

Return vs Industry: AVID exceeded the US Tech industry which returned 63.1% over the past year.

Return vs Market: AVID exceeded the US Market which returned 14% over the past year.


Shareholder returns

AVIDIndustryMarket
7 Day-8.4%-6.5%-4.2%
30 Day-5.1%-6.6%-1.8%
90 Day2.2%10.2%2.6%
1 Year73.7%73.7%65.5%63.1%16.3%14.0%
3 Year45.5%45.5%112.2%97.7%43.2%34.0%
5 Year-46.8%-46.8%130.0%107.5%65.9%47.6%

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?


Share Price vs. Fair Value

Below Fair Value: AVID ($8.47) is trading above our estimate of fair value ($8.22)

Significantly Below Fair Value: AVID is trading above our estimate of fair value.


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?

95.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVID is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: AVID is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AVID's is expected to become profitable in the next 3 years.

Revenue vs Market: AVID's revenue (3.2% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: AVID's revenue (3.2% 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?

-42.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVID is currently unprofitable.

Growing Profit Margin: AVID is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AVID is unprofitable, and losses have increased over the past 5 years at a rate of -42.5% 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 (-3.2%).


Return on Equity

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


Return on Assets


Return on Capital Employed


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.


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.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: AVID has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: AVID has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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.


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?

1.8yrs

Average management tenure


CEO

Jeff Rosica (57yo)

2yrs

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's total compensation ($USD4.84M) is above average for companies of similar size in the US market ($USD1.72M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jeff Rosica
President2yrsUS$4.84m1.14% $4.2m
Kenneth Gayron
Executive VP1.8yrsUS$1.01m0.41% $1.5m
Jason Duva
Executive VP and Chief Legal & Administrative Officer1.8yrsUS$1.31m0.44% $1.6m
Tom J. Cordiner
Senior VP & Chief Revenue Officer0.9yrsUS$1.15m0.39% $1.4m
Dana Ruzicka
Senior VP & Chief Product Officer4.5yrsUS$1.08m0.74% $2.7m
Garrard Brown
VP & Chief Accounting Officer0.3yrsno data0.058% $211.7k
Tim Claman
CTO & VP of Product Management1.8yrsno datano data
Whit Rappole
Vice President of Investor Relations0yrsno datano data
Robert Roose
Director of Corporate Development0yrsno datano data
Melissa Puls
Chief Marketing Officer & Senior VP1.6yrsno datano data

1.8yrs

Average Tenure

47yo

Average Age

Experienced Management: AVID's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jeff Rosica
President2yrsUS$4.84m1.14% $4.2m
Elizabeth Daley
Independent Director15yrsUS$206.38k0.25% $917.8k
Nancy Hawthorne
Independent Director22.3yrsUS$212.29k0.25% $916.8k
Paula Boggs
Independent Director4.6yrsUS$185.75k0.21% $751.0k
Peter Westley
Independent Chairman of the Board2.1yrsUS$138.24k0.037% $133.7k
Robert Bakish
Independent Director10.3yrsUS$191.11k1.87% $6.8m
Michelle Munson
Independent Director0.6yrsno datano data
John Wallace
Independent Director2.8yrsUS$201.71k0.10% $381.0k
Daniel Silvers
Independent Director2.1yrsUS$182.07k0.064% $234.9k
Christian Asmar
Independent Director0.3yrsno datano data

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.


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%.


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$364.627m
  • Shares outstanding: 43.05m
  • 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 products and solutions include the Media Composer, which is used to edit video content, such as television programming, commercials, and films; Avid NEXIS shared storage systems; and Maestro product line solutions for the integration of virtual sets, augmented reality, and video wall control into existing workflows. Its audio products and solutions include Pro Tools digital audio software solutions to facilitate the audio production process, including music and sound creation, recording, editing, signal processing, integrated surround mixing and mastering, and reference video playback; Sibelius, which allows users to create, edit, and publish musical scores; S6 that offers complementary control surfaces and consoles; and VENUE | S6L live-sound systems. The company also provides Avid Link, a mobile application to connect with other artists, producers, mixers, composers, editors, videographers, movie makers, and graphic designers; FastServe video server that assists broadcasters in making the move to UHD and IP based workflows with a new and modular architecture; and hardware products, such as I/O devices, interfaces, and audio and video processing equipment. In addition, it offers various service contracts and support plans; professional services, such as workflow design and consulting, program and project management, system installation and commissioning, and custom development and role-based product level training; and public and private training to customers and alliance partners, as well as develops and licenses curriculum content for use by third party Avid Learning partners to deliver training to customers, users, and alliance partners. Avid Technology, Inc. was incorporated in 1987 and is headquartered in Burlington, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 00:08
End of Day Share Price2020/02/25 00:00
Earnings2019/09/30
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.