Avid Technology, Inc.
Avid Technology, Inc. Fundamental Analysis
Avid Technology, Inc. (AVID) shows weak financial fundamentals with a PE ratio of 21.80, profit margin of 13.23%, and ROE of -45.49%. The company generates $0.4B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 9.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AVID's fundamental strength across five key dimensions:
Efficiency Score
ExcellentAVID demonstrates superior asset utilization.
Valuation Score
ExcellentAVID trades at attractive valuation levels.
Growth Score
ModerateAVID shows steady but slowing expansion.
Financial Health Score
ModerateAVID shows balanced financial health with some risks.
Profitability Score
WeakAVID struggles to sustain strong margins.
Key Financial Metrics
Is AVID Expensive or Cheap?
P/E Ratio
AVID trades at 21.80 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, AVID's PEG of 0.22 indicates potential undervaluation.
Price to Book
The market values Avid Technology, Inc. at -10.14 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 16.11 times EBITDA. This signals the market has high growth expectations.
How Well Does AVID Make Money?
Net Profit Margin
For every $100 in sales, Avid Technology, Inc. keeps $13.23 as profit after all expenses.
Operating Margin
Core operations generate 12.90 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-45.49 in profit for every $100 of shareholder equity.
ROA
Avid Technology, Inc. generates $19.22 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Avid Technology, Inc. produces operating cash flow of $47.49M, showing steady but balanced cash generation.
Free Cash Flow
Avid Technology, Inc. produces free cash flow of $32.41M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.74 in free cash annually.
FCF Yield
AVID converts 2.75% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.80
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.22
vs 25 benchmark
P/B Ratio
Price to book value ratio
-10.14
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.85
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-1.71
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.94
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.45
vs 25 benchmark
ROA
Return on assets percentage
0.19
vs 25 benchmark
ROCE
Return on capital employed
0.56
vs 25 benchmark
How AVID Stacks Against Its Sector Peers
| Metric | AVID Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.80 | 35.87 | Better (Cheaper) |
| ROE | -45.49% | 1175.00% | Weak |
| Net Margin | 13.23% | -136937.00% (disorted) | Strong |
| Debt/Equity | -1.71 | 0.45 | Strong (Low Leverage) |
| Current Ratio | 0.94 | 4.81 | Weak Liquidity |
| ROA | 19.22% | -312685.00% (disorted) | Strong |
AVID outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Avid Technology, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta