AudioCodes

AUDC

Communication Equipment · Technology

Price

$9.75

+0.02 (+0.21%)

Market Cap

$248.2M

Exchange

NASDAQ

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Share count falling — buybacks

−14.4% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 33.8M (2021) → 29.0M (2025)

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,

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+1.7% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-69.9% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$53M/ year

→ Flat (+1% vs prior year)

21.4% of revenue

In line with sector average (15%)

Steady R&D investment year-over-year

Insider Activity

38.9%ownership

↑ Rising

Insiders increasing their stake — aligned with shareholders

Cash Position

Cash flow positive

$46M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

AudioCodes is growing revenue at 2% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin

65.6%

Premium pricing power — 65.6% gross margin

Operating Margin

6.0%

Thin — 6.0% operating margin

ROCE

1.8%

Weak — 1.8% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+1.4%

Nearly flat sales (1.4% YoY)

EPS YoY

-37.7%

Earnings shrinking (-37.7% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

347%

Turns 347% of profit into real cash

FCF Margin

9.8%

Modest free cash flow (9.8%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

0.18

Conservative — low debt load (0.18)

Interest Cover

6.26x

Adequate interest coverage (6.3x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)

30.8x

Pricey — P/E 30.8

P/E above the market average. People are paying up for expected growth.

P/E vs Forward

+14.8

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (30.8 → 15.9)

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Dividends

Dividend Yield

4.12%

Healthy income — 4.12% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend Growth

+5.6%

Dividend growing modestly (5.6% YoY)

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