ScoreWhy is AudioCodes Ltd. ?
1
Company has a low Debt to Equity ratio (avg) at times
2
Low Debt Company with Strong Long Term Fundamental Strength
3
Flat results in Jun 25
- INTEREST COVERAGE RATIO(Q) Lowest at 298.07
- OPERATING PROFIT(Q) Lowest at USD 3.56 MM
- OPERATING PROFIT MARGIN(Q) Lowest at 5.83 %
4
With ROE of 9.28%, it has a attractive valuation with a 1.56 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -6.77%, its profits have risen by 56% ; the PEG ratio of the company is 0.3
5
High Institutional Holdings at 56.52%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -6.77% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to AudioCodes Ltd. should be less than 10%
- Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is AudioCodes Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
AudioCodes Ltd.
-9.74%
-0.30
43.66%
S&P 500
13.22%
0.61
20.17%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
3.01%
EBIT Growth (5y)
38.38%
EBIT to Interest (avg)
16.29
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.33
Sales to Capital Employed (avg)
1.29
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
72.03%
Pledged Shares
0
Institutional Holding
56.52%
ROCE (avg)
20.95%
ROE (avg)
11.73%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
17
Industry P/E
Price to Book Value
1.56
EV to EBIT
13.06
EV to EBITDA
10.48
EV to Capital Employed
1.83
EV to Sales
0.95
PEG Ratio
0.28
Dividend Yield
0.22%
ROCE (Latest)
14.02%
ROE (Latest)
9.28%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 44.54 MM
DIVIDEND PAYOUT RATIO(Y)
Highest at 1,730.77%
DEBT-EQUITY RATIO
(HY)
Lowest at -22.31 %
INVENTORY TURNOVER RATIO(HY)
Highest at 2.65 times
-25What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 298.07
OPERATING PROFIT(Q)
Lowest at USD 3.56 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 5.83 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.28 times
INTEREST(Q)
Highest at USD 1.19 MM
PRE-TAX PROFIT(Q)
Lowest at USD 1.41 MM
NET PROFIT(Q)
Lowest at USD 0.31 MM
EPS(Q)
Lowest at USD 0.01
Here's what is working for AudioCodes Ltd.
Operating Cash Flow
Highest at USD 44.54 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Debt-Equity Ratio
Lowest at -22.31 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 2.65 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Dividend Payout Ratio
Highest at 1,730.77%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Here's what is not working for AudioCodes Ltd.
Pre-Tax Profit
At USD 1.41 MM has Fallen at -73.63%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Net Profit
At USD 0.31 MM has Fallen at -91.89%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Interest
At USD 1.19 MM has Grown at inf%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest Coverage Ratio
Lowest at 298.07
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit
Lowest at USD 3.56 MM and Fallen
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite negative
Operating Profit (USD MM)
Operating Profit Margin
Lowest at 5.83 % and Fallen
In each period in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Interest
Highest at USD 1.19 MM
in the last five periods and Increased by inf% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Pre-Tax Profit
Lowest at USD 1.41 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD 0.31 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
EPS
Lowest at USD 0.01
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Debtors Turnover Ratio
Lowest at 4.28 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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