As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of AudioCodes Ltd. (NASDAQ:AUDC), it is a company with great financial health as well as a an impressive track record of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on AudioCodes here.
Flawless balance sheet with solid track record
AUDC delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. Not only did AUDC outperformed its past performance, its growth also exceeded the Communications industry expansion, which generated a 23% earnings growth. This is what investors like to see! AUDC's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that AUDC manages its cash and cost levels well, which is an important determinant of the company’s health. AUDC seems to have put its debt to good use, generating operating cash levels of 6.46x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For AudioCodes, there are three important factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for AUDC’s future growth? Take a look at our free research report of analyst consensus for AUDC’s outlook.
- Valuation: What is AUDC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether AUDC is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AUDC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.