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Attractive stocks have exceptional fundamentals. In the case of AudioCodes Ltd. (NASDAQ:AUDC), there’s is a company with great financial health as well as a a great history 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
Over the past few years, AUDC has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, AUDC also outperformed its industry, which delivered a growth of 16%. This is what investors like to see! AUDC’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. AUDC seems to have put its debt to good use, generating operating cash levels of 4.14x 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 key factors you should look at:
- 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.