Audiocodes Stock Story


USD 22.82  0.15  0.66%   

While some baby boomers are getting worried about technology space, we are going to go over both, Audiocodes and Knowles Corp as potential short-term investments. We are going to analyze some of the competitive aspects of both Audiocodes and Knowles.
Published over three months ago
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Are retail investors taking in Audiocodes (NASDAQ:AUDC) or Knowles Corp?

By analyzing existing fundamental indicators between Audiocodes and Knowles, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Knowles with a short position in Audiocodes. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Audiocodes has an asset utilization ratio of 127.22 percent. This suggests that the company is making $1.27 for each dollar of assets. An increasing asset utilization means that Audiocodes is more efficient with each dollar of assets it utilizes for everyday operations.

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?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now check Audiocodes revenue. Based on the latest financial disclosure, Audiocodes reported 241.49 M of revenue. This is 94.07% lower than that of the Technology sector and 95.07% lower than that of the Communication Equipment industry. The revenue for all United States stocks is 97.44% higher than that of the firm. As for Knowles Corp we see revenue of 877 M, which is 82.09% lower than that of the Communication Equipment

4.1 B
AUDC241.49 Million4.65
Sector4.08 Billion78.47
KN877 Million16.88

Audiocodes current slip is ambiguous

Audiocodes current maximum drawdown builds up over 12.41. 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.

Our Final Takeaway

Whereas some other companies 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. Taking everything into account, as of the 2nd of May 2022, we believe Audiocodes is currently undervalued. It moves indifferently to market moves and projects very low probability of financial unrest in the next two years. Our primary 90 days buy-hold-sell recommendation on the company is Strong Hold.

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 Ellen Johnson do not own shares of Audiocodes. Please refer to our Terms of Use for any information regarding our disclosure principles.

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