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Fundamental analysis: Avid Technology, Inc. (AVID)

Awarener score: 5.9

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: 5.0

• Business has been shrinking at a fast pace. It's been weak when measured against peer companies.
• Avid Technology, Inc. business trend stability is very good. The higher the stability, the lower the risk. It looks somewhat better than rivals.

Margins score: 6.8

• AVID profit margins -on goods and services sold- are usually very good. They stand somewhat worse than rival companies.
• Business profit on sales tends to be good. It's almost average when measured against competitors.
• Profits on sales made -available to repay debt and purchase properties- are usually sufficient. They remain lacking compared to peers.
• Earnings -before income taxes and interests on loans taken- tend to be good in relation to total revenues. They're still slightly worse than similar companies.
• Profits -before income taxes- are usually sufficient considering total sales, and remain almost average when measured against rivals.
• Total net profit tends to be good when confronted to sales. Company stands below average when measured against comparable firms.

Growth score: 3.3

• Avid Technology, Inc. profit growth -on goods and services sold- has been almost stagnant. It's been in a weak position compared to competitors.
• In recent years, earnings -on operations- have been growing at a normal step, which has been slightly worse than comparable firms.
• Profits -available to repay debt and purchase properties- have been growing at a very low pace, which compares weak when measured against peer enterprises.
• Earnings -before income taxes and interests on loans taken- have been growing at a good tempo. It turns to be close to average when 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, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
• The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 6.3

• AVID managed to get a credit on income taxes in the past years, even though it earned money. It's been somewhat better than peers.
• Research and development expenses consume a moderate portion of revenues. It's almost average when measured against competitors.
• The company hardly grows despite of research and development efforts. It stands in a weak position compared to rival companies.

Profitability score: 9.5

• Avid Technology, Inc. usually gets huge returns on the resources it controls. It proves great when measured against peer firms.
• Due to insufficient track history, we were unable to estimate typical returns on invested capital (ROIC). They remain undisclosed in relation to similar companies.
• Normal return on equity (ROE) is unavailable at this time, because of not enough yearly inputs to calculate. It ranks unknown against competitors.
• In the past, got excellent 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 encouraging in relation to comparable enterprises.

Usage of Funds score: 5.2

• AVID usually uses a portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is rather normal. It stands encouraging in relation to rival firms.
• The company is usually somewhat investing in new property, plant, and equipment, to improve its operating capabilities, which is similar to industry peers.
• In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
• The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
• As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to 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 moderate portion of genuine fund generation to reward investors, which can probably be sustained for as long as business doesn't turn very sour. It still looks weak when measured against competitors.

Balance Sheet score: 5.6

• Avid Technology, Inc. has not disclosed intangibles assets, so we could not reach a meaningful conclusion on this metric. It happens to be a not known variable when measured with peer companies.
• The company has somewhat lower short-term resources than short-term obligations. Unless it's part of the business model, there might some liquidity concerns. It turns to be in a very weak position compared to similar firms.
• Most resources controlled were provided for with financial debt. Creditors have more claims on the company than shareholders. Unless the company is a financial institution that takes deposits, the situation might be very risky. It remains bottom tier against rival firms.
• Controlled resources can be made into cash within reason, which is quite good for liquidity. It looks similar to rivals.
• For every dollar of short-term obligations, the company has less than a dollar of cash and short-term receivables. It's in a very weak position compared to peer firms.
• For every dollar of short-term obligations, the company has very few cents of cash and equivalents, which is worse than most similar enterprises.
• Usually, sales are on a two-months credit. It still ranks weak when measured against peers.
• Normally has approximately somewhat more than two months of sales worth in inventory. It comes up as a disappointment compared to competitors.
• On average, it takes higher than four months from the purchase to charging customers. It happens to be bottom tier against peers.
• On average pays suppliers approximately four months or higher after the purchase. It ranks more than average in relation to industry peers.
• The company charges its customers before it must pay its suppliers, so the more it sales, the more free funds it gets. It's close to average when compared to similar companies.
• Net interest expenses consume a minor portion of usual business earnings, and are easily bearable. It stands mediocre against rival firms.
• Business earnings have usually been reasonable when measured against loans taken. Cutting back reinvesting in the business, it could take more than five years to repay the obligations with current profitability. It ranks below average when measured against comparable enterprises.
• Revenues are very good 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 in a weak position compared to similar firms.
• Resource exploitation is excellent when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still top-notch against peer companies.

Valuation score: 4.9

• Avid Technology, Inc. looks expensive in relation to profits and financial position. It happens to be below average 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 disappointment compared to peers.
• In the past twelve months, the company generated some slightly better free funds in relation to the stock price, which stands slightly worse than similar companies.
• The company usually generates reasonably 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, the current valuation might be fair. It's still almost average when measured against industry firms.
• In the past twelve months, the company has barely rewarded investors, considering both dividends and share on the pie of earnings. It came up in good shape compared to peer ventures.
• The company has barely more debt than cash. It may borrow extra money if it wishes so, or start cumulating cash for future uses. It looks bottom tier against 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 below average when measured against peer companies.
• Comparing the current stock price with the past twelve-months revenues gives a high relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks in a weak position compared to rival firms.
• There's no accounting equity, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains bottom tier 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 encouraging 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 close to average when compared to peer companies.

Total score: 5.8

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Awarener score: 5.9

Conclusion

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