Today I'm reviewing a small-cap communication equipment firm by the name of AudioCodes Ltd. Its trading ticker symbol is AUDC. AudioCodes Ltd is a Voice-over-IP technology company providing advanced Voice-over-IP, converged VoIP and Data networking products and communications applications for Service Providers and Enterprises. It has offices in more than 20 countries.

The company primarily markets and sells its products through a direct sales force and sales representatives to original equipment manufacturers, system integrators and distributors, and network equipment providers in the telecommunication and networking industries. 

AudioCodes Ltd. was incorporated in 1992 and is headquartered in Lod, Israel.

I use three key data points to gauge the value of any dividend equity or fund : 

(1) Price

(2) Dividends

(3) Returns

Besides those three, four more keys will finally unlock an equity or fund in which to invest.

But those first three primary keys best tell whether a company has made, is making, and will make money. 

AUDC Price

AudioCode's price per share was $10.97 at Friday's market close.  A year ago its price was $6.71 for a gain of $4.26 per share. Assuming AudioCode's price will trade in the range of $6 to $16 next year, that $4.26 gain could be realized in the coming year and move Audio Code's current $10.97 price to $15.23 by late-August, 2019. 

AUDC Dividends

AudioCode's most recent and only annual dividend was $0.20  declared July 24th and payable Monday, August 20th. At that most recent and only pay rate, its 2018 annual dividend is calculated at $0.20 yielding 1.82% at yesterday's closing $10.97 price.

Gains For AUDC?

Adding the $0.20 estimated annual dividend to the $4.26 year over year theoretical price gain for AUDC makes a $4.46  gross annual per share gain, which will be reduced by costs to trade the shares.  

A little under $1,000.00 invested today at the $10.97 recent price buys 91 AUDC shares. 

A $10 broker fee paid half at purchase and half at sale costs about $0.11 per share. Subtracting that $0.11 brokerage cost from the estimated $4.46 gross gain leaves a net gain of $4.35 X 91 shares = $395.85 or a 39.5% net gain on a $998.27 investment.

Therefore, AUDC now shows a possible 39.5% net gain including a 1.82% dividend yield. 

Two brokers cover this stock: One says "buy"; one says AUDC will "outperform" its peers. So, the analyst consensus recommendation number is 1.5 or "outperform". The price target set by those two brokers is $0.97 under the current price. Or about $5 below the $4.26 target I stated. 

Y Charts has little data on this firm. Y Charts has not yet rated AUDC for an overall "Y" rating; it has "insufficient data" for a value score, and "average" for AUDC fundamental score. Y Charts shows "7.50% under" for a  Historic Valuation score based on a historic $11.86 valuation per share.

So, you could look at all those various numbers this way:  AudioCodes Ltd has made money, is making money, and could net a 39.5%  gain including a 1.85% dividend yield. It could be more, it could be less. The above speculation is based on past year performance. Actual results remain to be seen.  Those results will determine if AudioCodes Ltd  is worth your time and money.