AudioCodes Ltd. Common Stock (AUDC)
FairStock Score: 36/100 — MIXED
Key Financials
| Current Price | $11.31 |
| Market Cap | $237M |
| P/E Ratio | 45.24 |
| ROE | 4.23% |
| Dividend Yield | 3.96% |
| Sector | Technology |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
I look first for a business with a durable moat and a price that gives me room for error. AudioCodes sells voice communications solutions to enterprises, contact centers, and service providers. The supplied figures do not let me identify a wide moat. In the latest reported quarter, labeled 2026-Q2, revenue was $63.0 million and net income was only $477,000, a 0.76% net margin. The data show revenue growth of 3.08% and profit growth of 55.88%, but the profit base is tiny, so I would not over-read that jump. Financial health is mixed: debt/equity is 0.28, and trailing free cash flow is $21.6 million, a 9.1% FCF yield on the $237.0 million market cap. That cash generation and the 3.96% dividend yield are supportive. But returns on capital are weak—ROE 4.23%, ROCE 2.77%—and the Altman Z-Score of 1.42 and Piotroski F-Score of 5/9 suggest caution. At the 2026-10-13 close of $11.47, FairStock calculations put P/E at 45.88, P/B at 1.93, PEG at 0.82, and the Graham Number at $5.78, implying a margin of safety of negative 98.44%. The FairStock Score is 36/100. The company is priced near the top of its 52-week range of $6.95 to $11.56. I see a modestly growing, cash-generative but thinly profitable business trading at a demanding price relative to earnings and book value. Without a clearer moat or stronger returns, the margin of safety is not there for a Graham-style buyer.
In plain English: AudioCodes provides voice communications products and services for businesses and service providers. In the latest reported quarter, labeled 2026-Q2, it earned $477,000 on $63.0 million of revenue, so profit is very thin. At the 2026-10-13 price of $11.47, the shares look expensive compared with earnings and book value, though cash flow and the dividend give some support.
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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash
Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer