Is AudioCodes Stock a Good Investment?

AudioCodes Investment Advice

AUDC

To provide specific investment advice or recommendations on AudioCodes stock, we recommend investors consider the following general factors when evaluating AudioCodes. This will help you to make an informed decision on whether to include AudioCodes in one of your diversified portfolios:

Examine AudioCodes' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research AudioCodes' leadership team and their track record. Good management can help AudioCodes navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Communications Equipment space and any emerging trends that could impact AudioCodes' business and its evolving consumer preferences.
Compare AudioCodes' performance and market position to its competitors. Analyze how AudioCodes is positioned in terms of product offerings, innovation, and market share.
Check if AudioCodes pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about AudioCodes' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in AudioCodes stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if AudioCodes is a good investment.

Sell

Buy

Strong Sell

We provide trade advice to complement the prevailing expert consensus on AudioCodes. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. To make sure AudioCodes is not overpriced, please confirm all AudioCodes fundamentals, including its price to book, cash and equivalents, and the relationship between the shares owned by institutions and gross profit . Given that AudioCodes has a price to earning of 19.64 X, we suggest you to validate AudioCodes market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Market Performance	Very Weak	Details
Volatility	Somewhat reliable	Details
Hype Condition	Under hyped	Details
Current Valuation	Undervalued	Details
Odds Of Distress	Very Small	Details
Economic Sensitivity	Moves slightly opposite to the market	Details
Investor Sentiment	Impartial	Details
Analyst Consensus	Hold	Details
Financial Strenth (F Score)	Healthy	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unlikely Manipulator	Details

Examine AudioCodes Stock

Researching AudioCodes' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 23.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 1.34. Some equities with similar Price to Book (P/B) outperform the market in the long run. AudioCodes has Price/Earnings To Growth (PEG) ratio of 0.83. The entity last dividend was issued on the 15th of August 2024. The firm had 2:1 split on the 10th of October 2000.

To determine if AudioCodes is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding AudioCodes' research are outlined below:

	AudioCodes generated a negative expected return over the last 90 days
	AudioCodes is unlikely to experience financial distress in the next 2 years
	About 23.0% of the company shares are held by company insiders
	Latest headline from investing.com: AudioCodes SWOT analysis voice networking firm faces headwinds amid AI push

AudioCodes Quarterly Liabilities And Stockholders Equity

326.43 Million

AudioCodes uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in AudioCodes. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to AudioCodes' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	6th of February 2024 Upcoming Quarterly Report	View
	14th of May 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	6th of February 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	31st of December 2022 Last Financial Announcement	View

Earnings surprises can significantly impact AudioCodes' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises AudioCodes' investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2017-10-25	2017-09-30	0.09	0.1	0.01	11
2017-07-26	2017-06-30	0.07	0.08	0.01	14
2016-11-01	2016-09-30	0.07	0.08	0.01	14
2014-10-31	2014-09-30	0.05	0.04	-0.01	20
2014-07-29	2014-06-30	0.05	0.04	-0.01	20
2013-10-30	2013-09-30	0.03	0.04	0.01	33
2013-07-30	2013-06-30	0.02	0.03	0.01	50
2013-04-29	2013-03-31	0.01	0.02	0.01	100

Know AudioCodes' Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as AudioCodes is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading AudioCodes backward and forwards among themselves. AudioCodes' institutional investor refers to the entity that pools money to purchase AudioCodes' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Ark Investment Management Llc	2024-06-30	202.2 K
D. E. Shaw & Co Lp	2024-06-30	167.3 K
Assenagon Asset Management Sa	2024-09-30	165.6 K
Qsv Equity Investors Llc	2024-09-30	138 K
Ameriprise Financial Inc	2024-06-30	119.2 K
Y.d. More Investments Ltd	2024-06-30	107.7 K
Millennium Management Llc	2024-06-30	101.3 K
Citadel Advisors Llc	2024-06-30	97.7 K
Bnp Paribas Arbitrage, Sa	2024-06-30	88.8 K
Morgan Stanley - Brokerage Accounts	2024-06-30	4.5 M
Rima Management, Llc	2024-09-30	2.6 M

Note, although AudioCodes' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

AudioCodes' market capitalization trends

The company currently falls under 'Small-Cap' category with a current market capitalization of 250.65 M.

Market Cap

364.17 Million

AudioCodes' profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	0.03	0.03
Return On Capital Employed	0.06	0.06
Return On Assets	0.03	0.03
Return On Equity	0.05	0.05

The company has Profit Margin (PM) of 0.05 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.08 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.08.

Determining AudioCodes' profitability involves analyzing its financial statements and using various financial metrics to determine if AudioCodes is a good buy. For example, gross profit margin measures AudioCodes' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of AudioCodes' profitability and make more informed investment decisions.

Please note, the presentation of AudioCodes' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, AudioCodes' management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of AudioCodes' management manipulating its earnings.

Evaluate AudioCodes' management efficiency

AudioCodes has return on total asset (ROA) of 0.0387 % which means that it generated a profit of $0.0387 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.0666 %, meaning that it created $0.0666 on every $100 dollars invested by stockholders. AudioCodes' management efficiency ratios could be used to measure how well AudioCodes manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Tangible Assets is expected to grow to 0.03. The current year's Return On Capital Employed is expected to grow to 0.06. At present, AudioCodes' Other Current Assets are projected to decrease significantly based on the last few years of reporting. The current year's Other Assets is expected to grow to about 48.4 M, whereas Total Assets are forecasted to decline to about 236.4 M.

	Last Reported	Projected for Next Year
Book Value Per Share	5.99	6.29
Tangible Book Value Per Share	4.76	5.00
Enterprise Value Over EBITDA	22.31	35.67
Price Book Value Ratio	1.97	1.87
Enterprise Value Multiple	22.31	35.67
Price Fair Value	1.97	1.87
Enterprise Value	503.1 M	369.8 M

Management at AudioCodes focuses on leveraging technology and optimizing operations. We evaluate the impact of these focuses on the company's financial health and stock performance.

Dividend Yield

0.0414

Forward Dividend Yield

0.0414

Forward Dividend Rate

0.36

Beta

0.866

Basic technical analysis of AudioCodes Stock

As of the 21st of November, AudioCodes shows the risk adjusted performance of (0.06), and Mean Deviation of 1.81. AudioCodes technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.

AudioCodes' Outstanding Corporate Bonds

AudioCodes issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. AudioCodes uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most AudioCodes bonds can be classified according to their maturity, which is the date when AudioCodes has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	Dana 575 percent Corp Bond US235822AB96	View
	Boeing Co 2196 Corp Bond US097023DG73	View

View All AudioCodes Corporate Bonds

Understand AudioCodes' technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing AudioCodes' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	(0.06)
	Market Risk Adjusted Performance	0.3708
	Mean Deviation	1.81
	Coefficient Of Variation	(1,083)
	Standard Deviation	2.85
	Variance	8.12
	Information Ratio	(0.13)
	Jensen Alpha	(0.21)
	Total Risk Alpha	(0.60)
	Treynor Ratio	0.3608
	Maximum Drawdown	20.39
	Value At Risk	(3.37)
	Potential Upside	4.39
	Skewness	(0.92)
	Kurtosis	7.37

	Risk Adjusted Performance	(0.06)
	Market Risk Adjusted Performance	0.3708
	Mean Deviation	1.81
	Coefficient Of Variation	(1,083)
	Standard Deviation	2.85
	Variance	8.12
	Information Ratio	(0.13)
	Jensen Alpha	(0.21)
	Total Risk Alpha	(0.60)
	Treynor Ratio	0.3608
	Maximum Drawdown	20.39
	Value At Risk	(3.37)
	Potential Upside	4.39
	Skewness	(0.92)
	Kurtosis	7.37

Consider AudioCodes' intraday indicators

AudioCodes intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of AudioCodes stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	1893.31
	Daily Balance Of Power	0.7143
	Rate Of Daily Change	1.01
	Day Median Price	8.74
	Day Typical Price	8.75
	Price Action Indicator	0.08
	Period Momentum Indicator	0.1
	Relative Strength Index	34.83

AudioCodes Corporate Filings

6K	12th of November 2024 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges.	View Verify
13A	16th of July 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934	View Verify
	22nd of May 2024 Other Reports	View Verify
	27th of March 2024 Other Reports	View Verify

AudioCodes time-series forecasting models is one of many AudioCodes' stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary AudioCodes' historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

AudioCodes Stock media impact

Far too much social signal, news, headlines, and media speculation about AudioCodes that are available to investors today. That information is available publicly through AudioCodes media outlets and privately through word of mouth or via AudioCodes internal channels. However, regardless of the origin, that massive amount of AudioCodes data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of AudioCodes news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of AudioCodes relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to AudioCodes' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive AudioCodes alpha.

AudioCodes Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards AudioCodes can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

AudioCodes Corporate Executives

Elected by the shareholders, the AudioCodes' board of directors comprises two types of representatives: AudioCodes inside directors who are chosen from within the company, and outside directors, selected externally and held independent of AudioCodes. The board's role is to monitor AudioCodes' management team and ensure that shareholders' interests are well served. AudioCodes' inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, AudioCodes' outside directors are responsible for providing unbiased perspectives on the board's policies.

	Niran CPA	CFO Finance	Profile
	Lior Aldema	COO and Head of Global Sales	Profile

Already Invested in AudioCodes?

The danger of trading AudioCodes is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of AudioCodes is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than AudioCodes. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile AudioCodes is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.

When determining whether AudioCodes offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of AudioCodes' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Audiocodes Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Audiocodes Stock: