AUDC

AudioCodes Ltd.

Fundamental data last updated:June 4, 2026

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company profile

SECTOR

Technology

industry

Communication Equipment

Exchange

NASDAQ

County of HQ

IL

Next Earnings Date

08/04/2026

Business Summary

AudioCodes Ltd. provides advanced communications software, products, and productivity solutions for the digital workplace. The company offers solutions, products, and services for unified communications, contact centers, VoiceAI business line, and service provider business. Its products include session border controllers, life cycle management solutions, VoIP network routing solutions, media gateways and servers, multi-service business routers, IP phones solutions, and value-added applications, as well as professional services. The company also offers One Voice Operations Center, a voice network management solution; Device Manager for administering business phones and meeting room solutions; AudioCodes Routing Manager for handling call routing in VoIP networks; and User Management Pack 365 simplifies user lifecycle and identity management across Microsoft Teams and Skype for Business deployments. In addition, it provides AudioCodes Live for Microsoft Teams, a portfolio of managed services for simplifying Teams adoption; appliances for Microsoft Skype/Teams for Business such as survivable branch appliances, CCE, and CloudBond 365; and a range of value-added voice applications comprising SmartTAP, Voca, VoiceAI Connect, and Meeting Insights. Further, the company offers managed services; and AudioCodes Live Cloud, a Microsoft Teams software as a service solution that enables service providers to offer their business customers a seamless migration to Microsoft Teams. It primarily markets and sells its products through a direct sales force and sales representatives to original equipment manufacturers, network equipment providers, and systems integrators and distributors in the telecommunications and networking industries. The company primarily operates in the Americas, Europe, the Far East, and Israel. AudioCodes Ltd. was incorporated in 1992 and is headquartered in Lod, Israel.

 


VALUATION

P/E

37.67

Market Cap ($M USD)

$249.70M

Forward P/E

15.57

PEG

0.11

PRICE TO SALES

1.01

PRICE TO BOOK

1.68

EV / EBITDA

13.52

5-Year Average P/E

Free Cash Flow Yield

9.52%

DCF Value

$7.77

Graham Number

$5.84

Price to FCF

10.50

EV to FCF

10.34

Earnings Yield

2.65%

FCF Yield

9.52%

DIVIDEND

Yield

4.08%

Annual Payout

$0.40

Payout Ratio

167.72%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$0.26

Next Year EPS Growth Estimate

$0.63

Next Year Revenue Growth Estimate

$26.13B

Return on Equity (ROE)

4.01%

FREE CASH FLOW

Operating Margin

5.56%

Debt-to-Equity

0.40

Piotroski F-Score

7

Altman Z-Score

2.20

Return on Invested Capital (ROIC)

6.15%

Current Ratio

2.01

Quick Ratio

1.73

Net Debt to EBITDA

-0.21

Interest Coverage

5.25

Gross Profit margin

65.34%

FCF PER SHARE

$0.90

REVENUE PER SHARE

$9.35

Gainseekers Quantitative Analysis

Summary

The market seems to be underestimating AudioCodes Ltd. Based on the data at the time of this analysis, the stock traded below its DCF value and Graham Number, suggesting potential undervaluation. The Forward P/E of 13.37 indicates a more attractive valuation compared to its current P/E, hinting at expected earnings growth. However, the Altman Z-score of 2.15 suggests moderate financial distress, while the earnings yield of 3.09% is relatively low, indicating limited immediate returns. Overall, the financial health is mixed, with some growth potential but caution warranted.

AI Exposure / Tech Reliance

Operating within the Communication Equipment industry, AudioCodes is well-positioned to leverage AI and modern tech advancements. Its focus on communication solutions aligns with the increasing demand for AI-driven communication tools. This positioning could enhance its resilience in adapting to tech shifts.

The Bull Case

For a value or GARP investor, AudioCodes presents an intriguing opportunity. The company boasts a robust ROIC of 6.15%, indicating efficient capital use. A strong Piotroski F-Score of 7 suggests solid financial health, while a healthy FCF Yield of 10.91% underscores its ability to generate cash. These metrics, combined with a gross profit margin of 65.34%, highlight its pricing power and operational efficiency.

The Bear Case

Despite some strengths, AudioCodes faces significant challenges. The payout ratio of 167.72% raises red flags about dividend sustainability. Its operating margin of 5.56% is modest, suggesting limited profitability. Furthermore, the stock's price-to-book ratio of 1.45 and price-to-sales ratio of 0.88 indicate it may not be as undervalued as it appears, especially with a recent pricing extended above its 50-Day SMA.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$19.00

Institutional Ownership %

1-Year Beta

0.96

Insider Buying % (6 Mo)

Distance to 52-Week High

17.23%

Distance to 52-Week Low

29.15%

EARNINGS SURPRISE %

-12.50%

50-DAY SMA

$8.80

200-DAY SMA

$8.87

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.