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Fundamental analysis: AudioCodes Ltd. (AUDC)

Awarener score: 8.6

Conclusion

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: 8.0

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

Margins score: 6.8

• AUDC profit margins -on goods and services sold- are usually very good. They stand top-notch against rival companies.
• Business profit on sales tends to be good. It's great when measured against 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: 4.3

• AudioCodes Ltd. profit -on goods and services sold- has been growing at a normal 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 excellent in relation to industry peers.

Miscellaneous score: 6.3

• AUDC managed to pay no income taxes on profits made in the past years, sometimes even got a credit. It's been somewhat 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 great when measured against 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: 5.6

• AUDC usually uses a sparse portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is modest. 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 below average when measured against industry peers.
• In the past twelve months it paid good dividends, considering the current stock price. It came somewhat better than competitors.
• Dividend payments have been more or less stable in recent years. The company has behaved rather normal in relation to similar firms.
• Dividend payments usually represent a modest portion of genuine funds generation and shouldn't be at risk. Sustainability looks somewhat 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 close to average when compared 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 almost 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 almost average when measured against peer companies.
• The company has more short-term resources than short-term obligations. Liquidity concerns shouldn't be an issue. 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 slightly better than rival firms.
• Controlled resources can be made into cash within reason, which is quite good for liquidity. It looks below 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 close to average when compared to peer firms.
• For every dollar of short-term obligations, the company has roughly half of cash and equivalents, which is slightly 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 close to average when compared to competitors.
• On average, it takes higher than six months from the purchase to charging customers. It happens to be slightly 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 quite good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still slightly worse than peer companies.

Valuation score: 8.1

• AudioCodes Ltd. looks very cheap in relation to profits and financial position. It happens to be great when measured against 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 a slight improvement compared to peers.
• In the past twelve months, the company generated extraordinary free funds in relation to the stock price, which stands top-notch against similar companies.
• The company usually generates plenty more 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 looks to be very attractive. It's still top tier when measured against 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 more cash than debt. It might be poised to increase stockholder payments, or to fund new business projects. It looks somewhat better than similar enterprises.
• Considering the past twelve months, traditional Price-to-Earnings relation looks cheap. Possible reasons are that the market might be betting current earnings will be hard to sustain through time, or that the company has very high fund needs, or a weak financial position, among others. If that isn't the case, the current stock price might be attractive. It ranks more than average in relation to peer companies.
• Comparing the current stock price with the past twelve-months revenues gives a more than one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks close to average when compared to rival firms.
• The relation between the stock price and accounting book value is somewhat high. It's important both to check this metric through time and to compare it with rival companies. The company remains slightly better than peer firms.
• In the past twelve months, the operating business earned great money when compared to the current stock price and financial position. It happens to be top tier when measured against industry peers.
• In an alternate metric of bang for the buck, the company has usually shown an excellent earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be undervalued. It's still excellent in relation to peer companies.

Total score: 6.5

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Awarener score: 8.6

Conclusion

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