One-glance verdict
Undervalued
$27.03 our estimate vs market $7.85
Wall Street consensus: $12.50 (-53.8% lower than our fair-value estimate)
71% below our estimate, below the bear case
Fundamentals snapshot
AudioCodes Ltd.
AUDC · NMS · Technology · Communication Equipment
Current price
$7.85
52-week range
$6.95 - $11.74
Market cap
$182.88M
Balance sheet
Healthy
74.68x Strong cushion
Net cash $5.56M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 1.4% last year.
- Reward Returns 5.3% on equity, ahead of 83% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Operating margin compressed from 11.4% to 5.3% over 3 years.
What this company does
AudioCodes Ltd.
AudioCodes Ltd. sells technology that helps businesses manage their phone calls and meetings, especially for companies with lots of employees or customer service centers. Their main income comes from selling these voice communication systems and software, and it matters because it shows how well they are keeping up with the changing ways people communicate for work. This helps them maintain healthy operating margins (the percent of each sales dollar left after day-to-day business costs).
How the company got here
AudioCodes was founded in 1992, starting its journey in the telecommunications industry. Over the years, it has evolved from providing basic voice networking hardware to offering comprehensive voice solutions. A key turning point was its strategic shift towards cloud-based services and solutions, adapting to the growing demand for unified communications and contact center technologies. This evolution has positioned AudioCodes as a significant player in enabling modern voice communication for businesses.
What it actually does
AudioCodes provides the technology that allows businesses to communicate effectively using voice. Think of it as the behind-the-scenes plumbing for phone calls, video meetings, and customer service interactions. They offer everything from the physical devices like IP phones and meeting room equipment to the software and cloud platforms that manage these communications. Their solutions help ensure that calls are clear, meetings are productive, and customer service centers can handle inquiries efficiently.
Voice Networking Infrastructure and Devices
This part of AudioCodes' business focuses on the foundational elements of voice communication. They provide hardware like media gateways, which act as bridges between different types of phone networks, and multi-service business routers that handle data and voice traffic. They also offer IP phones and devices for meeting rooms, similar to the phones you might see on a desk or the speakerphones used in conference rooms. This segment is crucial for establishing the basic connectivity and hardware needed for reliable voice services.
Cloud-Based Platforms and Management Solutions
This segment is about the software and services that manage voice communications, especially in the cloud. AudioCodes offers platforms like the AudioCodes Live Platform, which helps businesses set up, run, and manage their voice and AI-powered communication services. They also provide tools for managing devices and call routing, ensuring that communication systems run smoothly and efficiently. This is a growing area as more companies move their communication systems to the cloud.
Voice AI Applications
This is where AudioCodes integrates artificial intelligence into voice communication. They offer solutions like Meeting Insights, which automatically generates notes from meetings held on platforms like Microsoft Teams, Zoom, and Google Meet. They also have Interaction Insights, which helps analyze customer interactions, and Voca CIC, an omnichannel contact center solution with built-in AI. These applications aim to make voice interactions smarter and more productive by leveraging AI to understand and process conversations.
What management is betting on now
AudioCodes' management is heavily focused on expanding its cloud-based offerings and leveraging Artificial Intelligence (AI) to enhance voice solutions. They are investing in developing advanced AI applications that can automate tasks, provide insights from conversations, and improve the overall user experience in both enterprise communications and contact centers. The strategy aims to capitalize on the ongoing digital transformation and the increasing demand for intelligent, cloud-native communication tools.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$10.97M
FY2025 Q4
$22.89M
Revenue
$245.60M
Net income
$8.96M
Diluted EPS
0.31
Operating cash flow
$29.36M
Free cash flow
$22.89M
Fetching…
Sources
Revenue
$242.18M
Net income
$15.31M
Diluted EPS
0.50
Operating cash flow
$35.25M
Free cash flow
$10.97M
Fetching…
Sources
Is it cheap or expensive?
Fair value $27.03 vs current price $7.85
Wall Street consensus is the average analyst price target: $12.50 (-53.8% lower than our fair-value estimate).
Our most-likely fair value is $27.03 a share — about 244.3% above today's price of $7.85, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $5.6M - more cash than debt. Interest coverage 74.7x.
Net debt
$-5.56M
Interest coverage
74.68x
AudioCodes Ltd.'s profit covers its interest bill about 74.7 times over. which is stronger than every peer shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
AUDC
BASELINE
AudioCodes Ltd.
Total debt $39.21M Interest coverage 74.68x This is the baseline the peer rows are being compared against.
Total debt $409.68M Interest coverage 0.46x -99% vs AUDC Carries about 162.3x less debt cushion than AUDC.
Total debt $356.03M Interest coverage 1.07x -99% vs AUDC Carries about 70.1x less debt cushion than AUDC.
Total debt $8.29M Interest coverage -6.34x -100% vs AUDC This peer has almost no interest-payment cushion compared with AUDC.
Total debt $23.21M Interest coverage 2.20x -97% vs AUDC Carries about 34.0x less debt cushion than AUDC.
Total debt $300.70M Interest coverage -0.81x -100% vs AUDC This peer has almost no interest-payment cushion compared with AUDC.
What you should know
The case for and against AUDC
3 Rewards
1 Risk
Rewards
-
Revenue grew 1.4% last year.
-
Returns 5.3% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Operating margin compressed from 11.4% to 5.3% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
25.32x
Forward P/E
12.27x
P/B
1.44x
P/S
0.73x
EV/EBITDA
9.75x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
65.8%
Operating margin
5.3%
Net margin
3.2%
ROE
5.3%
ROA
2.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.31x
Current ratio
1.69x
Quick ratio
1.40x
Total debt
$39.21M
Total cash
$44.76M
Growth
How the business has been compounding
Revenue TTM
$1.01B
Revenue 5Y CAGR
-0.3%
EPS TTM
0.31
EPS 5Y CAGR
-29.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$87.79M
Free CF TTM
$22.89M
FCF margin
2.3%
Dividend
Shareholder payout
Yield
5.1%
Payout ratio
129.0%
Last ex-div date
2026-08-19