Audiocodes Stock Story

AUDC -  USA Stock  

USD 34.95  0.24  0.68%

As many rational traders are trying to avoid technology space, it makes sense to go over Audiocodes a little further and understand how it stands against Knowles Corp and other similar entities. We are going to analyze some of the competitive aspects of both Audiocodes and Knowles.
Published over a month ago
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Will Knowles Corp (NYSE:KN) and Audiocodes (NASDAQ:AUDC) deliver in November?
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 123.61 percent. This suggests that the company is making $1.24 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.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Audiocodes or Knowles is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

Understending Audiocodes dividends

A dividend is the distribution of a portion of Audiocodes earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Audiocodes dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Audiocodes one year expected dividend income is about $0.23 per share.
The current year Dividend Yield is expected to grow to 0.0107, whereas Payment of Dividends and Other Cash Distributions is forecasted to decline to (9.1 M).
Last ReportedProjected for 2021
Payment of Dividends and Other Cash Distributions-8.4 M-9.1 M
Dividend Yield 0.01  0.0107 
Dividends per Basic Common Share 0.27  0.27 
Investing in stocks that pay dividends, such as stock of Audiocodes, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Audiocodes must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Audiocodes. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

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.

Correlation Between Audiocodes and Knowles Corp

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Audiocodes together with similar or unrelated positions with a negative correlation. For example, you can also add Knowles Corp to your portfolio. If Knowles Corp is not perfectly correlated to Audiocodes it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Audiocodes for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between AUDC and KN for more information.

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

Let me now analyze Audiocodes revenue. Based on the latest financial disclosure, Audiocodes reported 234.64 M of revenue. This is 94.24% lower than that of the Technology sector and 95.21% lower than that of the Communication Equipment industry. The revenue for all United States stocks is 97.51% higher than that of Audiocodes. As for Knowles Corp we see revenue of 849.8 M, which is 82.65% lower than that of the Communication Equipment

4.1 B
AUDC234.64 Million4.55
Sector4.08 Billion78.98
KN849.8 Million16.47

Audiocodes has a small chance to finish above $35 in 2 months

Current Total Risk Alpha is up to 0.02. Price may slip again.
As of the 26th of October, Audiocodes shows the mean deviation of 1.38, and Risk Adjusted Performance of 0.0407. 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. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to break down nineteen technical drivers for Audiocodes, which can be compared to its rivals. Please confirm Audiocodes downside deviation, treynor ratio, expected short fall, as well as the relationship between the variance and potential upside to decide if Audiocodes is priced correctly, providing market reflects its regular price of 33.92 per share. Given that Audiocodes has jensen alpha of 0.0632, we suggest you to validate Audiocodes's prevailing market performance to make sure the company can sustain itself at a future point.

Our Final Takeaway

Whereas some firms 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 sum up, as of the 26th of October 2021, we believe Audiocodes is currently undervalued. It follows the market closely and projects very small odds of financial distress in the next two years. Our actual 90 days buy-or-sell advice on the company is Buy.

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.

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