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AudioCodes

Nasdaq:AUDC
Snowflake Description

Flawless balance sheet with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AUDC
Nasdaq
$621M
Market Cap
  1. Home
  2. US
  3. Tech
Company description

AudioCodes Ltd. designs, develops, and sells voice over IP (VoIP), converged VoIP, and data networking solutions, products, and applications for enterprise unified communications, contact centers, service provider business services, mobile VoIP, and cloud virtualized data centers worldwide. The last earnings update was 12 days ago. More info.


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AUDC Share Price and Events
7 Day Returns
1.9%
NasdaqGS:AUDC
4.7%
US Communications
0.9%
US Market
1 Year Returns
79.4%
NasdaqGS:AUDC
1.1%
US Communications
10.5%
US Market
AUDC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
AudioCodes (AUDC) 1.9% 18.6% 18.2% 79.4% 265.6% 355.7%
US Communications 4.7% 5.9% -3.8% 1.1% 42.8% 65.8%
US Market 0.9% 5.2% 5.4% 10.5% 40.1% 45%
1 Year Return vs Industry and Market
  • AUDC outperformed the Communications industry which returned 1.1% over the past year.
  • AUDC outperformed the Market in United States of America which returned 10.5% over the past year.
Price Volatility
AUDC
Industry
5yr Volatility vs Market
Related Companies

Value

 Is AudioCodes undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of AudioCodes to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for AudioCodes.

NasdaqGS:AUDC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:AUDC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Communications Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.131 (1 + (1- 23%) (5.7%))
1.121
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.12
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.121 * 5.96%)
9.41%

Discounted Cash Flow Calculation for NasdaqGS:AUDC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for AudioCodes is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:AUDC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.41%)
2020 38.37 Est @ 25.58% 35.07
2021 45.55 Est @ 18.72% 38.05
2022 51.89 Est @ 13.92% 39.62
2023 57.38 Est @ 10.57% 40.04
2024 62.09 Est @ 8.22% 39.60
2025 66.17 Est @ 6.57% 38.57
2026 69.75 Est @ 5.42% 37.16
2027 72.97 Est @ 4.61% 35.53
2028 75.92 Est @ 4.05% 33.79
2029 78.70 Est @ 3.65% 32.01
Present value of next 10 years cash flows $369.00
NasdaqGS:AUDC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $78.70 × (1 + 2.73%) ÷ (9.41% – 2.73%)
$1,209.85
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,209.85 ÷ (1 + 9.41%)10
$492.12
NasdaqGS:AUDC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $369.00 + $492.12
$861.12
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $861.12 / 29.18
$29.52
NasdaqGS:AUDC Discount to Share Price
Calculation Result
Value per share (USD) From above. $29.52
Current discount Discount to share price of $21.28
= -1 x ($21.28 - $29.52) / $29.52
27.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price AudioCodes is available for.
Intrinsic value
28%
Share price is $21.28 vs Future cash flow value of $29.52
Current Discount Checks
For AudioCodes to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • AudioCodes's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • AudioCodes's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for AudioCodes's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are AudioCodes's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:AUDC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $0.57
NasdaqGS:AUDC Share Price ** NasdaqGS (2019-11-08) in USD $21.28
United States of America Communications Industry PE Ratio Median Figure of 30 Publicly-Listed Communications Companies 24.34x
United States of America Market PE Ratio Median Figure of 2,915 Publicly-Listed Companies 18.21x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of AudioCodes.

NasdaqGS:AUDC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:AUDC Share Price ÷ EPS (both in USD)

= 21.28 ÷ 0.57

37.1x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AudioCodes is overvalued based on earnings compared to the US Communications industry average.
  • AudioCodes is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does AudioCodes's expected growth come at a high price?
Raw Data
NasdaqGS:AUDC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 37.1x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
Not available
United States of America Communications Industry PEG Ratio Median Figure of 19 Publicly-Listed Communications Companies 1.44x
United States of America Market PEG Ratio Median Figure of 2,014 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for AudioCodes, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on AudioCodes's assets?
Raw Data
NasdaqGS:AUDC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $3.36
NasdaqGS:AUDC Share Price * NasdaqGS (2019-11-08) in USD $21.28
United States of America Communications Industry PB Ratio Median Figure of 61 Publicly-Listed Communications Companies 1.85x
United States of America Market PB Ratio Median Figure of 5,041 Publicly-Listed Companies 1.74x
NasdaqGS:AUDC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:AUDC Share Price ÷ Book Value per Share (both in USD)

= 21.28 ÷ 3.36

6.34x

* Primary Listing of AudioCodes.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AudioCodes is overvalued based on assets compared to the US Communications industry average.
X
Value checks
We assess AudioCodes's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Communications industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Communications industry average (and greater than 0)? (1 check)
  5. AudioCodes has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is AudioCodes expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
28.8%
Expected annual growth in earnings per share.
Earnings growth vs Low Risk Savings
Is AudioCodes expected to grow at an attractive rate?
  • AudioCodes's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • AudioCodes's earnings growth is expected to exceed the United States of America market average.
  • AudioCodes's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:AUDC Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:AUDC Future Earnings per Share Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 28.8%
NasdaqGS:AUDC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 8.8%
United States of America Communications Industry Earnings Growth Rate Market Cap Weighted Average 12%
United States of America Communications Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:AUDC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:AUDC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 216 1
2019-12-31 199 1
2019-11-10
NasdaqGS:AUDC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 193 32 17
2019-06-30 186 32 17
2019-03-31 180 26 14
2018-12-31 176 26 13
2018-09-30 172 22 10
2018-06-30 167 25 7
2018-03-31 162 25 5
2017-12-31 157 18 4
2017-09-30 153 16 18
2017-06-30 151 13 18
2017-03-31 148 16 18
2016-12-31 146 18 16

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • AudioCodes's earnings are expected to grow significantly at over 20% yearly.
  • AudioCodes's revenue is expected to grow by 8.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:AUDC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from AudioCodes Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:AUDC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 0.82 0.82 0.82 1.00
2019-12-31 0.63 0.63 0.63 1.00
2019-11-10
NasdaqGS:AUDC Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 0.57
2019-06-30 0.57
2019-03-31 0.49
2018-12-31 0.47
2018-09-30 0.33
2018-06-30 0.22
2018-03-31 0.17
2017-12-31 0.13
2017-09-30 0.57
2017-06-30 0.55
2017-03-31 0.52
2016-12-31 0.46

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if AudioCodes will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess AudioCodes's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
AudioCodes has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has AudioCodes performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare AudioCodes's growth in the last year to its industry (Communications).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • AudioCodes has delivered over 20% year on year earnings growth in the past 5 years.
  • AudioCodes's 1-year earnings growth exceeds its 5-year average (73.7% vs 43%)
  • AudioCodes's earnings growth has exceeded the US Communications industry average in the past year (73.7% vs 21.7%).
Earnings and Revenue History
AudioCodes's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from AudioCodes Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:AUDC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 193.27 16.74 60.53 39.29
2019-06-30 186.37 16.51 59.42 36.98
2019-03-31 180.38 14.11 59.07 35.51
2018-12-31 176.22 13.49 59.38 34.66
2018-09-30 171.86 9.64 59.97 33.75
2018-06-30 166.55 6.55 59.67 33.16
2018-03-31 161.79 5.17 59.34 31.83
2017-12-31 156.74 4.03 57.97 30.35
2017-09-30 153.08 18.13 56.50 29.90
2017-06-30 151.06 18.05 55.58 29.51
2017-03-31 148.19 17.76 54.08 29.43
2016-12-31 145.57 16.24 51.45 29.14
2016-09-30 143.46 4.27 51.89 28.12
2016-06-30 140.50 3.17 51.09 27.48
2016-03-31 137.04 0.52 51.87 27.28
2015-12-31 139.76 0.37 52.09 28.00
2015-09-30 143.23 -1.48 53.18 29.27
2015-06-30 147.95 -2.06 53.89 30.72
2015-03-31 153.11 -0.19 53.53 32.04
2014-12-31 151.58 -0.09 53.21 32.28
2014-09-30 148.71 1.74 52.28 31.54
2014-06-30 144.79 3.38 51.27 30.14
2014-03-31 140.92 3.87 49.62 28.70
2013-12-31 137.23 4.22 47.74 28.19
2013-09-30 133.79 1.97 46.85 27.23
2013-06-30 130.12 -0.07 46.37 27.71
2013-03-31 127.45 -2.55 47.05 27.87
2012-12-31 127.49 -4.18 48.25 28.68

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • AudioCodes has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • AudioCodes used its assets more efficiently than the US Communications industry average last year based on Return on Assets.
  • AudioCodes has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess AudioCodes's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Communications industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
AudioCodes has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is AudioCodes's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up AudioCodes's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • AudioCodes is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • AudioCodes's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of AudioCodes's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 30x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from AudioCodes Company Filings, last reported 1 month ago.

NasdaqGS:AUDC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 97.84 4.27 68.50
2019-06-30 94.95 4.93 67.82
2019-03-31 95.88 5.53 66.84
2018-12-31 94.55 6.17 56.11
2018-09-30 91.28 6.82 53.28
2018-06-30 89.86 7.45 54.39
2018-03-31 89.90 8.18 43.93
2017-12-31 92.38 8.76 31.32
2017-09-30 99.46 9.35 28.05
2017-06-30 103.99 10.22 28.78
2017-03-31 105.19 11.00 28.18
2016-12-31 108.66 11.94 31.12
2016-09-30 99.97 7.19 30.43
2016-06-30 113.25 8.47 37.30
2016-03-31 113.94 10.22 23.72
2015-12-31 117.45 11.37 21.69
2015-09-30 119.13 6.47 22.23
2015-06-30 123.88 7.45 21.75
2015-03-31 129.16 8.82 22.49
2014-12-31 133.72 9.79 15.87
2014-09-30 134.81 11.21 24.95
2014-06-30 137.66 12.19 20.80
2014-03-31 136.64 13.55 87.74
2013-12-31 104.81 14.83 48.25
2013-09-30 101.89 16.20 45.32
2013-06-30 99.78 17.92 49.56
2013-03-31 99.17 20.79 44.57
2012-12-31 98.30 23.27 22.84
  • AudioCodes's level of debt (4.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (8.3% vs 4.4% today).
  • Debt is well covered by operating cash flow (758.1%, greater than 20% of total debt).
  • AudioCodes earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess AudioCodes's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. AudioCodes has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.08%
Current annual income from AudioCodes dividends.
If you bought $2,000 of AudioCodes shares you are expected to receive $22 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • AudioCodes's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • AudioCodes's dividend is below the markets top 25% of dividend payers in United States of America (3.66%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:AUDC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
United States of America Communications Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1944 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:AUDC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31
2019-12-31
2019-11-10
NasdaqGS:AUDC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-08-06 0.230 1.227
2019-01-28 0.220 1.474
2018-10-23 0.200 1.765
2018-07-24 0.200 1.980

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether AudioCodes has stable dividend payments.
  • AudioCodes only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of AudioCodes's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.5x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess AudioCodes's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can AudioCodes afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. AudioCodes has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of AudioCodes's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Shabtai Adlersberg
COMPENSATION $1,451,858
AGE 66
TENURE AS CEO 26.8 years
CEO Bio

Mr. Shabtai Adlersberg serves as the Chief Executive Officer of AudioCodes, Inc. Mr. Adlersberg co-founded Audiocodes Ltd. in 1993 and has been its Chief Executive Officer and President since 1993. Until December 2012, Mr. Adlersberg also served as the Chairman of Board of Directors. He serves as the President of Audiocodes. Mr. Adlersberg co-founded DSP Group Inc., in 1987. He served as Acting Chief Financial Officer of AudioCodes Ltd. from April 2010 to July 1, 2010. From 1987 to 1990, He served as Vice President of Engineering at DSP Group and served as its Vice President of Advanced Technology from 1990 to 1992. As Vice President of Engineering, he established a research and development team for digital cellular communication which was spun-off in 1992 as DSP Communications Inc. Mr. Adlersberg serves as the Chairman of Natural Speech Communication Ltd. He served as the Chairman of AudioCodes Ltd and has been its Director since 1993. He serves as a Director of Netrake Corporation, Natural Speech Communication Ltd., MailVision Ltd and CTI Squared Ltd. He serves as a Member of the Advisory Board at Mplicity. He served as a Member of the Advisory Board at Provigent Inc. Mr. Adlersberg holds a M.Sc. degree in Electronics and Computer Engineering from Tel Aviv University and a B.Sc. degree in Electrical Engineering from the Technion-Israel Institute of Technology, or the Technion.

CEO Compensation
  • Shabtai's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Shabtai's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the AudioCodes management team in years:

11.5
Average Tenure
50
Average Age
  • The average tenure for the AudioCodes management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Shabtai Adlersberg

TITLE
Co-Founder
COMPENSATION
$1M
AGE
66
TENURE
26.8 yrs

Niran Baruch

TITLE
CFO & VP of Finance
COMPENSATION
$606K
AGE
48
TENURE
3.3 yrs

Shirley Nakar

TITLE
Director of Investor Relations

Itamar Rosen

TITLE
Chief Legal Officer & Company Secretary
AGE
54

Tal Dor

TITLE
Vice President of Human Resources
AGE
50
TENURE
19.7 yrs

Ofer Nimtsovich

TITLE
Chief Operating Officer
COMPENSATION
$302K
AGE
50
TENURE
1.8 yrs
Board of Directors Tenure

Average tenure and age of the AudioCodes board of directors in years:

16.4
Average Tenure
62
Average Age
  • The average tenure for the AudioCodes board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Stanley Stern

TITLE
Chairman of the Board
AGE
62
TENURE
6.9 yrs

Shabtai Adlersberg

TITLE
Co-Founder
COMPENSATION
$1M
AGE
66
TENURE
26.8 yrs

Doron Nevo

TITLE
Outside Director
AGE
63
TENURE
19.8 yrs

Eyal Kishon

TITLE
Outside Director
AGE
59
TENURE
22.8 yrs

Lior Aldema

TITLE
Executive VP
COMPENSATION
$826K
AGE
53
TENURE
1.3 yrs

Joseph Tenne

TITLE
Independent Director
AGE
64
TENURE
16.4 yrs

Zehava Simon

TITLE
Independent Director
AGE
60
TENURE
5.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess AudioCodes's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. AudioCodes has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is AudioCodes (NASDAQ:AUDC) Using Too Much Debt?

Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. … NasdaqGS:AUDC Historical Debt, August 22nd 2019 A Look At AudioCodes's Liabilities According to the last reported balance sheet, AudioCodes had liabilities of US$74.2m due within 12 months, and liabilities of US$56.0m due beyond 12 months. … AudioCodes may have net cash on the balance sheet, but it is still interesting to look at how well the business converts its earnings before interest and tax (EBIT) to free cash flow, because that will influence both its need for, and its capacity to manage debt.

Simply Wall St -

There's A Lot To Like About AudioCodes Ltd.'s (NASDAQ:AUDC) Upcoming 0.6% Dividend

Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that AudioCodes Ltd. … NasdaqGS:AUDC Historical Dividend Yield, August 12th 2019 Have Earnings And Dividends Been Growing? … Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving.

Simply Wall St -

What Does AudioCodes Ltd.'s (NASDAQ:AUDC) P/E Ratio Tell You?

The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for AudioCodes: P/E of 32.87 = $18.65 ÷ $0.57 (Based on the trailing twelve months to June 2019.) Is A High P/E Ratio Good? … How Does AudioCodes's Debt Impact Its P/E Ratio? … The Bottom Line On AudioCodes's P/E Ratio AudioCodes has a P/E of 32.9.

Simply Wall St -

Is AudioCodes Ltd. (NASDAQ:AUDC) A Smart Choice For Dividend Investors?

(NASDAQ:AUDC) a good dividend stock? How can we tell? Dividend paying companies with growing earnings can be highly rewarding in the long term. If you are hoping to live on the income from dividends, it's important to be a lot more stringent with your investments than the average punter. Some readers mightn't know much about AudioCodes's 1.2% dividend, as it has only been paying distributions for a year or so. The company also bought back stock equivalent to around 0.5% of market capitalisation this year. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. … Click the interactive chart for our full dividend analysis NasdaqGS:AUDC Historical Dividend Yield, July 24th 2019 Payout ratios Companies (usually) pay dividends out of their earnings. … Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see AudioCodes has grown its earnings per share at 35% per annum over the past five years.

Simply Wall St -

Why AudioCodes Ltd.'s (NASDAQ:AUDC) CEO Pay Matters To You

Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. … See our latest analysis for AudioCodes How Does Shabtai Adlersberg's Compensation Compare With Similar Sized Companies? … While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$366k.

Simply Wall St -

A Close Look At AudioCodes Ltd.’s (NASDAQ:AUDC) 12% ROCE

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for AudioCodes: 0.12 = US$18m ÷ (US$223m - US$73m) (Based on the trailing twelve months to March 2019.) So, AudioCodes has an ROCE of 12%. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. … What We Can Learn From AudioCodes's ROCE With a decent ROCE, the company could be interesting, but remember that the level of current liabilities make the ROCE look better.

Simply Wall St -

Do Insiders Own Shares In AudioCodes Ltd. (NASDAQ:AUDC)?

Taking a look at our data on the ownership groups (below), it's seems that institutional investors have bought into the company. … We can see that AudioCodes does have institutional investors; and they hold 40% of the stock. … Insider Ownership Of AudioCodes The definition of company insiders can be subjective, and does vary between jurisdictions.

Simply Wall St -

Is AudioCodes Ltd.'s (NASDAQ:AUDC) ROE Of 15% Impressive?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for AudioCodes: 15% = US$14m ÷ US$96m (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Does AudioCodes Have A Good Return On Equity? … Judicious use of debt to improve returns can certainly be a good thing, although it does elevate risk slightly and reduce future optionality.

Simply Wall St -

With EPS Growth And More, AudioCodes (NASDAQ:AUDC) Is Interesting

But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' So if you're like me, you might be more interested in profitable, growing companies, like AudioCodes (NASDAQ:AUDC). … Check out our latest analysis for AudioCodes AudioCodes's Improving Profits In the last three years AudioCodes's earnings per share took off like a rocket; fast, and from a low base. … It's good to see that insiders are invested in the company, but are remuneration levels reasonable?

Simply Wall St -

AudioCodes Ltd. (NASDAQ:AUDC): Commentary On Fundamentals

Solid track record with excellent balance sheet Over the past few years, AUDC has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. … NasdaqGS:AUDC Past and Future Earnings, May 14th 2019 AUDC's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. … NasdaqGS:AUDC Historical Debt, May 14th 2019 Next Steps: For AudioCodes, there are three pertinent factors you should look at: Valuation: What is AUDC worth today?

Simply Wall St -

Company Info

Description

AudioCodes Ltd. designs, develops, and sells voice over IP (VoIP), converged VoIP, and data networking solutions, products, and applications for enterprise unified communications, contact centers, service provider business services, mobile VoIP, and cloud virtualized data centers worldwide. The company’s products include IP phones, session border controllers (SBC), media gateways, multi-service business routers, huddle room solutions, managed IP Phones, and survivable branch appliances; CloudBond 365, an adaptable solution for the data center, customer premises or the branch; CloudBond 365 CCE appliances; User Management Pack 365, a software management application; VoIP management and routing, a suite of lifecycle applications for large scale cloud or premises-based unified communications deployments. It also provides MobilityPLUS, a mobile VoIP solution; VocaNOM call routing products; SmartTAP call recording products; Auto Attendant, a tool for managing inbound calls and delivery services; Fax Server, a tool for managing inbound and outbound enterprise fax transmissions; SIP Phone Support, a value-added application for SBC and gateways; signal processor chips; communications boards; and voice and data logging hardware integration board products. In addition, the company offers planning, implementation, operations, and support services, as well as consulting and training services. It primarily markets and sells its products through a direct sales force and sales representatives to original equipment manufacturers, system integrators and distributors, and network equipment providers in the telecommunication and networking industries. The company was incorporated in 1992 and is headquartered in Lod, Israel.

Details
Name: AudioCodes Ltd.
AUDC
Exchange: NasdaqGS
Founded: 1992
$620,853,682
29,175,455
Website: http://www.audiocodes.com
Address: AudioCodes Ltd.
1 Hayarden Street,
Airport City,
Lod,
7019900,
Israel
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS AUDC Ordinary Shares Nasdaq Global Select US USD 28. May 1999
DB AU1 Ordinary Shares Deutsche Boerse AG DE EUR 28. May 1999
TASE AUDC Ordinary Shares The Tel-Aviv Stock Exchange IL ILS 28. May 1999
Number of employees
Current staff
Staff numbers
706
AudioCodes employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/10 23:41
End of day share price update: 2019/11/08 00:00
Last estimates confirmation: 2019/10/29
Last earnings filing: 2019/10/29
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.