Avid Technology, Inc.

AVID

Services-Prepackaged Software

Mkt Cap

$1.191B

PE

91.97

Debt

$203.7M

Cash

$23.03M

EV

$1.372B

FCF

-$23.34M

Market Cap

$1.191B

P/E Ratio

91.97

Debt

$203.7M

Cash

$23.03M

EV

$1.372B

FCF

-$23.34M

Avid Technology, Inc., together with its subsidiaries, develops, markets, sells, and supports software and integrated solutions for video and audio content creation, management, and distribution in the United States and internationally. The company's video products and solutions include the Media Composer, a cloud-enabled solution used to edit video content; Avid NEXIS shared storage systems; Maestro solutions for the integration of virtual sets, augmented reality, and video wall control into existing workflows; AirSpeed 5000 and AirSpeed 5500 on-air server solutions; and MediaCentral, a media production suite. Its audio products and solutions comprise Pro Tools digital audio software solutions to facilitate the audio production process; Sibelius solution to create, edit, and publish musical scores; S1 and dock line audio control surface; S4 and S6 audio control surfaces; and VENUE | S6L live sound system for mixing audio for live sound reinforcement. The company also provides Avid Link, a mobile application to connect with other artists, producers, mixers, composers, editors, videographers, movie makers, and graphic designers; FastServe video server that assists broadcasters in making the move to UHD and IP based workflows with a new and modular architecture; and hardware products, such as I/O devices, interfaces, and audio and video processing equipment. In addition, it offers various maintenance contracts and support services; professional services, such as workflow design and consulting, program and project management, system installation and commissioning, and custom development and role-based product level training; and public and private training to customers and alliance partners, as well as develops and licenses curriculum content for use by third party Avid Learning partners to deliver training to customers, users, and alliance partners. Avid Technology, Inc. was incorporated in 1987 and is headquartered in Burlington, Massachusetts.

Sector

10-Q
9/30/23
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6/30/23
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3/31/23
10-K
12/31/22
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12/31/21
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12/31/20
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12/31/19
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3/31/19
10-K
12/31/18
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9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 19%

Earnings Stability -5.7%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2014	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	TTM
Net Margin	2.8%	0.49%	9.4%	-3.2%	-2.6%	1.8%	3.1%	10%	13%	3.1%
ROA	10%	2.8%	26%	2.8%	5.3%	11%	11%	17%	19%	6.4%
ROE	-4.3%	-0.75%	-18%	5%	6.4%	-4.9%	-8.3%	-33%	-47%	-11%

What is the average Net Margin?

The average Net Margin over the past 5 years is +3.74%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +3.47%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +10.82%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +3.27%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -13.61%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -10.87%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2014	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	TTM
Debt FCF	0.00	-1.94	-3.14	193.10	37.48	15.98	5.99	2.89	5.28	-8.73
Debt Equity	0.00	-0.29	-0.70	-0.76	-1.32	-1.28	-1.53	-1.30	-1.46	-1.65
MIN
Graham Stability	-	-	100%	-62%	-86%	95%	-	100%	100%	-86%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is -8.73.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -30.08.

What is the Graham’s Stability?

Graham’s Stability measure stands at -0.86.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2015	12-2017	12-2019	12-2021	Trend
Revenue	-2.7%	-0.076%	0.45%	1.8%	1.3%
Net Income	56%	-	94%	33%	-39%
Stockholders Equity	-	-	-	-	-
FCF	-	99%	38%	-41%	-100%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is -0.08%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +1.27%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -39.14%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -15.05%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +98.66%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -104.11%.