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Fundamental analysis: AudioCodes Ltd. (AUDC)

Awarener score: 7.5

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Good), the business stability (Superb) and growth (Good), and the company's inclination to return cash to the stockholders (Very good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 8.5

  • Business has been growing at a good pace. It's been more than average in relation to peer companies.
  • AudioCodes Ltd. business trend is extremely stable, which is best. It looks top-notch against rivals.

Margins score: 7.2

  • AUDC profit margins -on goods and services sold- are usually excellent. They stand top-notch against rival companies.
  • Business profit on sales tends to be very good. It's more than average in relation to competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually sufficient. They remain a slight improvement compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be sufficient in relation to total revenues. They're still well ranked against similar companies.
  • Profits -before income taxes- are usually good considering total sales, and remain great when measured against rivals.
  • Total net profit tends to be good when confronted to sales. Company stands more than average in relation to comparable firms.

Growth score: 4.4

  • AudioCodes Ltd. profit -on goods and services sold- has been growing at a good pace. It's been in good shape compared to competitors.
  • In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
  • In past years, the company couldn't always turn a profit -available to repay debt and purchase properties-, which compares last-in-rank when measured against peer enterprises.
  • In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
  • In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
  • In the previous years, growth trend on total net profit has been extremely high, and more than average in relation to peer companies.
  • Earnings per share have grown at an extremely fast rhythm in past years. It's been in good shape compared to industry peers.

Miscellaneous score: 6.0

  • AUDC managed to pay little to no income taxes on profits made in the past years. It's been slightly better than peers.
  • Research and development expenses consume some portion of revenues. It's substantially worse when measured against competitors.
  • The company grows sparsely in relation to research and development efforts. It stands rather normal in relation to rival companies.

Profitability score: 8.0

  • AudioCodes Ltd. usually gets very good returns on the resources it controls. It proves more than average in relation to peer firms.
  • The company normally gets very good proceeds -on the resources directly invested in the business-. They remain excellent in relation to similar companies.
  • There's usually abundant profitability -in relation to owned resources-. It ranks great when measured against competitors.
  • In the past, got very good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's more than average in relation to comparable enterprises.

Usage of Funds score: 5.2

  • AUDC usually uses a modest portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments isn't too high. It stands more than average in relation to rival firms.
  • The company is usually replacing some proportion of the property, plant, and equipment that gets old, saving part of the funds for something else, which is almost average when measured against industry peers.
  • In the past twelve months it paid run-of-the-mill dividends, considering the current stock price. It came somewhat worse than competitors.
  • Dividend payments have been more or less stable in recent years. The company has behaved close to average when compared to similar firms.
  • Dividend payments usually represent a modest portion of genuine funds generation and shouldn't be at risk. Sustainability looks slightly better than comparable companies.
  • The company somewhat enlarges a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains rather normal in relation to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands close to average when compared to rivals.
  • The company uses a large portion of genuine fund generation to reward investors, which can probably be sustained for as long as business doesn't turn sour. It still looks below average when measured against competitors.

Balance Sheet score: 4.8

  • AudioCodes Ltd. intangible assets (like brands and goodwill) represent a modest portion of resources controlled, according to accounting books. There could be some difficulties in liquidating them if the company ever gets in financial distress. It happens to be similar to peer companies.
  • The company has somewhat more short-term resources than short-term obligations. Liquidity concerns might not be that important. It turns to be in a very weak position compared to similar firms.
  • A very minor portion of resources controlled were provided for with financial debt. Financial strength is solid. Company could increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains somewhat better than rival firms.
  • Controlled resources can be made into cash within reason, which is quite good for liquidity. It looks almost average when measured against rivals.
  • For every dollar of short-term obligations, the company has roughly another of cash and short-term receivables. It's lacking compared to peer firms.
  • For every dollar of short-term obligations, the company has roughly half of cash and equivalents, which is somewhat worse than similar enterprises.
  • Usually, sales are on somewhat less than three months credit. It still ranks below average when measured against peers.
  • Normally has approximately four months of sales worth in inventory. It comes up as in a weak position compared to competitors.
  • On average, it takes higher than six months from the purchase to charging customers. It happens to be somewhat worse than peers.
  • On average pays suppliers before a month since the purchase. It ranks last-in-rank when measured against industry peers.
  • The company pays its suppliers six months or more before charging its customers, so there's abundant money invested in working capital. It's in a weak position compared to similar companies.
  • To what extent normalized EBITDA covers interest expenses is not known. It stands impossible to compare against rival firms.
  • Business earnings have usually been excellent when measured against loans taken. It could take less than two years to repay the obligations with current profitability. It ranks more than average in relation to comparable enterprises.
  • Revenues are excellent in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements, allows the company to keep more money to reward stockholders in the long run. It looks a slight improvement compared to similar firms.
  • Resource exploitation is very good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still slightly better than peer companies.

Valuation score: 6.0

  • AudioCodes Ltd. looks somewhat expensive in relation to profits and financial position. It happens to be encouraging in relation to competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a weak position compared to peers.
  • In the past twelve months, the company generated some good free funds in relation to the stock price, which stands well ranked against similar companies.
  • The company usually generates more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be interesting. It's still encouraging in relation to industry firms.
  • In the past twelve months, the company has slightly rewarded investors, considering both dividends and share on the pie of earnings. It came up excellent in relation to peer ventures.
  • The company has neither net debt nor net cash. It may borrow extra money if it wishes so, or start cumulating cash for future uses. It looks somewhat better than similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is high. Substantial improvement expectations are already in the stock price, which is somewhat risky. It ranks similar to peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a three or four to one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks in a very weak position compared to rival firms.
  • The relation between the stock price and accounting book value is significantly high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains mediocre against peer firms.
  • In the past twelve months, the operating business earned some money when compared to the current stock price and financial position. It happens to be more than average in relation to industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a modest earnings power ability when measured against the current stock price and financial position. It's still a slight improvement compared to peer companies.

Total score: 6.3


AUDC logos

Company at a glance: AudioCodes Ltd. (AUDC)

Sector, industry: Technology, Communication Equipment

Market Cap: 0.69 billions

Revenues TTM: 0.26 billions

AudioCodes Ltd. provides advanced communications software, products, and productivity solutions for the digital workplace. The company offers solutions, products, and services for unified communications, contact centers, VoiceAI business line, and service provider business. Its products include session border controllers, life cycle management solutions, VoIP network routing solutions, media gateways and servers, multi-service business routers, IP phones solutions, and value-added applications, as well as professional services. The company also offers One Voice Operations Center, a voice network management solution; Device Manager for administering business phones and meeting room solutions; AudioCodes Routing Manager for handling call routing in VoIP networks; and User Management Pack 365 simplifies user lifecycle and identity management across Microsoft Teams and Skype for Business deployments. In addition, it provides AudioCodes Live for Microsoft Teams, a portfolio of managed services for simplifying Teams adoption; appliances for Microsoft Skype/Teams for Business such as survivable branch appliances, CCE, and CloudBond 365; and a range of value-added voice applications comprising SmartTAP, Voca, VoiceAI Connect, and Meeting Insights. Further, the company offers managed services; and AudioCodes Live Cloud, a Microsoft Teams software as a service solution that enables service providers to offer their business customers a seamless migration to Microsoft Teams. It primarily markets and sells its products through a direct sales force and sales representatives to original equipment manufacturers, network equipment providers, and systems integrators and distributors in the telecommunications and networking industries. The company primarily operates in the Americas, Europe, the Far East, and Israel. AudioCodes Ltd. was incorporated in 1992 and is headquartered in Lod, Israel.

Awarener score: 7.5

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Good), the business stability (Superb) and growth (Good), and the company's inclination to return cash to the stockholders (Very good).