Audiocodes Stock Story

Audiocodes Earnings Before Interest Taxes and Depreciation Amortization EBITDA are projected to increase significantly based on the last few years of reporting. The past year's Earnings Before Interest Taxes and Depreciation Amortization EBITDA were at 42.08 Million. The current year Earnings before Tax is expected to grow to about 42.8 M, whereas Average Assets are forecasted to decline to about 308.9 M. Today's short post will go over Audiocodes as your potential position. We will analyze the question of why investors should continue to be confident in Audiocodes outlook.
Published over three months ago
View all stories for Audiocodes | View All Stories

Should you continue to rely on Audiocodes (NASDAQ:AUDC) management?

About 26.0% of Audiocodes shares are held by company insiders. Insiders ownership of Audiocodes refers to the amount of Audiocodes equity owned by Audiocodes officers, directors, relatives of the leadership team, or anyone who has access to private information before it's made available to the public. Check out our latest analysis of Audiocodes, including its current ownership diagnostics.

How important is Audiocodes's Liquidity

Audiocodes financial leverage refers to using borrowed capital as a funding source to finance Audiocodes ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Audiocodes financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Audiocodes's total debt and its cash.

How does Audiocodes utilize its cash?

To perform a cash flow analysis of Audiocodes, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Audiocodes is receiving and how much cash it distributes out in a given period. The Audiocodes cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Audiocodes Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 47.34 Million

Is Audiocodes valued fairly by the market?

The current slip in stock price could raise concerns from investors as the firm is trading at a share price of 23.53 on very low momentum in volume. The company directors and management have failed to build on market volatilities in April. However, diversifying your overall positions with Audiocodes may protect your principal portfolio during upcoming market swings. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.22. The current volatility is consistent with the ongoing market swings in April 2022 as well as with Audiocodes unsystematic, company-specific events.

Returns Breakdown

0.1
Return on Assets
0.18
Return on Equity
0.17
Return on Sales
Return on Assets0.1
Return on Equity0.18
Return Capital0.31
Return on Sales0.17

Will Audiocodes investors exit after the slip?

Current treynor ratio indicator falls down to -2.06. Possible price jump? Audiocodes exhibits very low volatility with skewness of -0.04 and kurtosis of 1.17. However, we advise investors to further study Audiocodes technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Audiocodes' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Audiocodes' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Audiocodes Implied Volatility

Audiocodes' implied volatility exposes the market's sentiment of Audiocodes stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Audiocodes' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Audiocodes stock will not fluctuate a lot when Audiocodes' options are near their expiration.

Whereas some other entities in the communication equipment industry are either recovering or due for a correction, Audiocodes may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the current economy, it is better to hold off any trading of Audiocodes as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Audiocodes.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Audiocodes. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com