AUDIOCODES LTD

AUDCdata completeness 88%17 fiscal years on file

Data notes: no data for concept 'totalDebt'

The thesis, from the filings

AUDIOCODES LTD earns about 14% on invested capital, comfortably above its ~9% cost of capital, and has bought back 14% of its shares over 5 years — the marks of a durable business run for its owners. The estimate methods put fair value between $5.47 and $6.97 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$248.9M1$275.1M2$244.4M3$242.2M3$245.6M3
Net income$33.8M4$28.5M5$8.78M6$15.3M6$8.96M6
Operating cash flow$47.3M7$8.28M8$14.9M9$35.3M9$29.4M9
Capital expenditure$1.17M10$1.49M11$5.97M12$24.3M12$6.47M12
Free cash flow (derived)$46.2M7$6.79M8$8.93M9$11M9$22.9M9
Total debt
Cash & equivalents$79.4M13$24.5M13$30.5M14$58.7M15$45.3M15
Diluted shares33.8M32.5M31.6M30.6M29.0M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$59.1
your share of equity
Profit it earned you last year
$3.09
Free cash flow it threw off
$7.9
Debt you’d be carrying

10 shares is a claim on $59.1 of net worth that earned you $3.09 and generated $7.9 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
14% avg · 5y
FY21 27%FY22 17%FY23 6%FY24 11%FY25 7%

It earned about 14% on invested capital against a ~9% cost of capital — comfortably above the cost of funding, a moderate advantage.

seeing a moat in the numbers →
Management signal · capital allocation
−14% shares · 5y

Share count is down 14% over 5 years — management has been buying back stock, quietly handing owners a bigger slice.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $5.47 and $6.97 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$6.56
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$11M
DCF · Growth Exit 5Y
$6.97
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$11M
Earnings Power Value
$5.47
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$15.3M
  • growthAssumed0.0%
Graham Number
$6.42
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years0.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $6.97
The three cases
Bear0.0%$6.97
Base0.0%$6.97
Bull5.0%$8.28

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 0.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 20-F · period ending 2021-12-31 · accession 0001410578-24-000314 (Revenues)
  2. 20-F · period ending 2022-12-31 · accession 0001410578-25-000464 (Revenues)
  3. 20-F · period ending 2023-12-31 · accession 0001185185-26-001124 (Revenues)
  4. 20-F · period ending 2021-12-31 · accession 0001410578-24-000314 (NetIncomeLoss)
  5. 20-F · period ending 2022-12-31 · accession 0001410578-25-000464 (NetIncomeLoss)
  6. 20-F · period ending 2023-12-31 · accession 0001185185-26-001124 (NetIncomeLoss)
  7. 20-F · period ending 2021-12-31 · accession 0001410578-24-000314 (NetCashProvidedByUsedInOperatingActivities)
  8. 20-F · period ending 2022-12-31 · accession 0001410578-25-000464 (NetCashProvidedByUsedInOperatingActivities)
  9. 20-F · period ending 2023-12-31 · accession 0001185185-26-001124 (NetCashProvidedByUsedInOperatingActivities)
  10. 20-F · period ending 2021-12-31 · accession 0001410578-24-000314 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 20-F · period ending 2022-12-31 · accession 0001410578-25-000464 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 20-F · period ending 2023-12-31 · accession 0001185185-26-001124 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 20-F · period ending 2021-12-31 · accession 0001410578-24-000314 (CashAndCashEquivalentsAtCarryingValue)
  14. 20-F · period ending 2023-12-31 · accession 0001410578-25-000464 (CashAndCashEquivalentsAtCarryingValue)
  15. 20-F · period ending 2024-12-31 · accession 0001185185-26-001124 (CashAndCashEquivalentsAtCarryingValue)