| Share Based Compensation | Net Cash Flow from Operations | ||
| 2008 | 0.00 | 0.00 | |
| 2009 | 0.00 | 0.00 | |
| 2018 | 0.00 | 0.00 | |
| 2019 (projected) | 0.00 | 0.00 |
AudioCodes Ltd builds up to 0.05 percent albeit modest market slip
 | By Rifka Kats | Macroaxis Story |
Today article will go over AudioCodes Ltd. I will look into why albeit cyclical market disturbance, the long term basic indicators of the company are still strong. This firm current daily volatility is 2.41 percent, with beta of 0.13 and alpha of 0.6 over S&P 500. Macroaxis considers AudioCodes Ltd slightly risky given 1 month investment horizon. AudioCodes Ltd secures Sharpe Ratio (or Efficiency) of 0.2561 which signifies that the organization had 0.2561% of return per unit of standard deviation over the last 1 month. Our philosophy in foreseeing volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By analyzing AudioCodes Ltd technical indicators you can presently evaluate if the expected return of 0.6172% is justified by implied risk. Please makes use of AudioCodes Ltd Mean Deviation of 1.7 and Risk Adjusted Performance of 0.135 to double-check if our risk estimates are consistent with your expectations.
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Reviewed by Ellen Johnson
The company currently holds 38.53M in liabilities with Debt to Equity (D/E) ratio of 40.5 indicating the firm may have difficulties to generate enough cash to satisfy its financial obligations. AudioCodes Ltd dividends can provide a clue to current valuation of the stock. The firm one year expected dividend income is about $0.14 per share. Let me take a closer look at AudioCodes Ltd Current Ratio. In accordance with recently published financial statements AudioCodes Ltd has Current Ratio of 1.73 times. This is 38.87% lower than that of the Technology sector, and 60.68% lower than that of Communication Equipment industry, The Current Ratio for all stocks is 19.91% higher than AudioCodes Ltd. AudioCodes financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of AudioCodes, including all of AudioCodes's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of AudioCodes assets, the company is considered highly leveraged. Understanding the composition and structure of overall AudioCodes debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
Understanding AudioCodes Total Debt
AudioCodes liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. AudioCodes has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on AudioCodes balance sheet include debt obligations and money owed to different AudioCodes vendors, workers, and loan providers. Below is the chart of AudioCodes main long-term debt accounts currently reported on its balance sheet. You can use AudioCodes financial leverage analysis tool to get a better grip on understanding its financial positionHow 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. Financial leverage can amplify the potential profits to AudioCodes' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of AudioCodes' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between AudioCodes's total debt and its cash.
Is AudioCodes valued correctly by the market?
The latest price spikes of AudioCodes Ltd could raise concerns from investors as the firm closed today at a share price of 18.4262 on 308531.000 in volume. The company management were quite successful positioning the firm components to exploit market volatility in September 2019. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 2.4099. The current volatility is consistent with the ongoing market swings in July 2019 as well as with AudioCodes Ltd unsystematic, company specific events. AudioCodes Ltd is trading at 18.66. This is 0.05% increase. Started trading at 18.66. AudioCodes Ltd Net Cash Flow from Investing is somewhat stable at the moment. Moreover, AudioCodes Ltd Net Cash Flow from Financing is somewhat stable at the moment.
To conclude, our current Buy/Hold/Sell recommendation on the company is Strong Buy. We believe AudioCodes Ltd is overvalued with very low odds of distress for the next two years.
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