Audiocodes Stock Story

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AUDC
 Stock
  

USD 22.78  1.34  6.25%   

By Vlad Skutelnik
Macroaxis Story
It appears Audiocodes may not have a good chance to recover from the current slip as its shares fell again. The company current daily volatility is 2.38 percent, with a beta of 1.13 and an alpha of -0.3 over DOW. While some baby boomers are getting worried growing market volatility, it is reasonable to go over Audiocodes based on its historical price movement. We will look into some reasons why it is still possible for Audiocodes to maintain above-average margins while minimizing volatility.
Published over three months ago
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How risky is Audiocodes after the current volatility rise?

Audiocodes currently holds roughly 89.56 M in cash with 53.18 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.75.
Our investment recommendation module complements current analysts and expert consensus on Audiocodes. It analyzes the firm potential to grow using all fundamental, technical, and market related data available at the time.
Investing in Audiocodes, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Audiocodes along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Audiocodes' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Audiocodes in the context of predictive analytics.
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Please note, it is not enough to conduct a financial or market analysis of a single entity such as Audiocodes. Your research has to be compared to or analyzed against Audiocodes' peers to derive any actionable benefits. When done correctly, Audiocodes' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Audiocodes.

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

Audiocodes Correlation with Peers

Investors in Audiocodes can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Audiocodes. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Audiocodes and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Audiocodes is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Audiocodes for more details

Is Audiocodes valued fairly by the market?

Audiocodes secures Sharpe Ratio (or Efficiency) of -0.2, which signifies that the company had -0.2% of return per unit of standard deviation over the last 3 months. Macroaxis philosophy in foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Audiocodes exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Audiocodes risk adjusted performance of (0.17), and Mean Deviation of 1.8 to double-check the risk estimate we provide.
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Does Audiocodes have anything more to drop some light on in May?

Variance is down to 5.97. It may suggest a possible volatility slip. Audiocodes exhibits very low volatility with skewness of -0.29 and kurtosis of 1.27. 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 Conclusion on Audiocodes

Whereas 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. To conclude, as of the 2nd of May 2022, our analysis shows that Audiocodes almost mirrors the market. The company is undervalued and projects very low probability of distress for the next 2 years. Our current 90 days recommendation on the company is Strong Hold.

Editorial Staff

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile
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.

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