Audinate Group (AD8) AI Stock Analysis

• Market Cap: $591.88M
• Dividend Yield: N/A
• Average Volume (3M): 214.87K
• Price to Earnings (P/E): 179.3
• Beta (1Y): 1.35
• Revenue Growth: -13.88%
• EPS Growth: -80.31%
• Country: AU
• Employees: 226
• Sector: Technology
• Sector Strength: 89
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.03
• Shares Outstanding: 83,362,980
• 10 Day Avg. Volume: 173,489
• 30 Day Avg. Volume: 214,867
• PEG Ratio: -0.20
• Price to Book (P/B): 7.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -244.68
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $10.60
• Price Target Upside: 49.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 65 Neutral
• Price Target: AU$7.50 ▲(5.63%Upside)

Audinate Group Ltd. demonstrates strong financial performance with robust revenue growth and profitability. However, the high P/E ratio suggests overvaluation, which is a significant concern. Technical indicators present a neutral outlook with potential for upward movement. The absence of dividend yield further impacts its valuation score.

Audinate Group Business Overview & Revenue Model

Company Description

Audinate Group Limited develops and sells digital audio visual (AV) networking solutions in Australia and internationally. It provides Dante, a technology platform that distributes digital audio and video signals over computer networks to original equipment manufacturers. The company also offers software products, such as Dante Controller, a real-time network monitoring device; Dante Virtual Soundcard that provides access to various audio devices on the network; Dante Via, a software that delivers multi-channel routing of computer-based audio; Dante Studio; and Dante Domain Manager, as well as Dante AVIO adapter. In addition, it provides Dante-enabled products; and various products to develop networked AV products, including chips and modules, IP Core, Dante application library, and reference designs. Audinate Group Limited was founded in 2003 and is headquartered in Surry Hills, Australia.

How the Company Makes Money

Audinate Group Ltd. generates revenue through the licensing of its Dante technology to original equipment manufacturers (OEMs) who integrate it into their audio products. This licensing model is complemented by the sale of hardware products, such as audio adapters and interface cards, which facilitate the integration of Dante networking capabilities. Additionally, Audinate provides software solutions that enhance the functionality and manageability of Dante-enabled networks. The company's earnings are also supported by partnerships with major audio equipment manufacturers and the continuous expansion of its ecosystem, which drives recurring revenue from software subscriptions and support services.

Audinate Group Financial Statement Overview

Summary

Audinate Group Ltd. showcases strong financial health with solid revenue growth and increasing profitability. The company's balance sheet is robust, with minimal leverage and high equity levels, providing stability. Cash flow improvements are notable, though sustained positive free cash flow will be key for ongoing success. Operational efficiencies and consistent cash flow generation remain areas for potential enhancement.

Income Statement

Audinate Group has demonstrated strong revenue growth with an impressive 31.2% increase from 2023 to 2024, alongside a rising gross profit margin of 74.3%. The net profit margin improved to 11.2%, reflecting enhanced profitability. However, while EBIT and EBITDA margins have strengthened to 9.0% and 26.7%, respectively, they suggest room for operational efficiency improvements.

Balance Sheet

The company maintains a robust balance sheet with a low debt-to-equity ratio of 0.02, indicating minimal leverage. Return on equity has improved significantly to 6.0%, reflecting effective use of equity capital. The equity ratio stands strong at 90.0%, underscoring financial stability. However, the low debt level may limit potential leverage benefits.

Cash Flow

Audinate's free cash flow turned positive in 2024, a significant improvement from prior years. The operating cash flow to net income ratio of 2.48 indicates strong cash generation relative to earnings. The free cash flow to net income ratio of 1.02 further supports healthy cash utilization. Despite these strengths, consistent positive free cash flow is necessary for sustained growth.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	73.60M	91.48M	69.70M	46.29M	33.37M	30.32M
Gross Profit	35.13M	67.96M	10.20M	2.04M	1.16M	2.99M
EBITDA	7.08M	24.41M	12.21M	4.45M	3.55M	2.87M
Net Income	3.28M	10.24M	10.64M	-4.46M	-3.44M	-4.14M
Balance Sheet
Total Assets	181.47M	189.47M	106.60M	90.44M	89.81M	50.30M
Cash, Cash Equivalents and Short-Term Investments	111.28M	118.06M	40.03M	44.47M	65.43M	29.29M
Total Debt	3.04M	3.45M	2.60M	1.97M	2.09M	2.59M
Total Liabilities	13.41M	18.99M	16.41M	15.15M	10.95M	8.34M
Stockholders Equity	168.06M	170.49M	90.20M	75.28M	78.86M	41.97M
Cash Flow
Free Cash Flow	6.10M	10.48M	-2.94M	-11.08M	-1.29M	-3.47M
Operating Cash Flow	14.79M	25.38M	12.42M	981.00K	6.74M	4.83M
Investing Cash Flow	-5.54M	-68.09M	-5.21M	-21.16M	-35.03M	-8.75M
Financing Cash Flow	-1.01M	66.91M	-949.00K	-738.00K	38.14M	3.13M

Audinate Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AD8, the sentiment is Neutral. The current price of 7.1 is below the 20-day moving average (MA) of 7.28, above the 50-day MA of 6.79, and below the 200-day MA of 7.82, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 49.93 is Neutral, neither overbought nor oversold. The STOCH value of 26.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:AD8.

Audinate Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RUL	73 Outperform	AU$644.50M	100.34	11.59%	―	9.76%	-28.92%
AD8	65 Neutral	$591.88M	179.29	1.98%	―	-13.88%	-80.31%
Sector *	63 Neutral	$32.92B	6.79	-11.98%	1.89%	5.66%	-22.06%
CAZGF		$1.00B	―	-10.89%	―	―	―
ZMM	41 Neutral	AU$4.70M	―	-174.80%	―	-50.78%	45.67%
HYD	40 Underperform	AU$3.55M	―	-637.73%	―	-13.05%	-184.09%
AKP	23 Underperform	AU$181.10M	―		―	-100.00%	44.26%

Audinate Group Corporate Events

Audinate Group Enhances Dante Platform with Iris Acquisition

Audinate Group has announced the acquisition of Iris, which will enhance the Dante platform by integrating Iris’s remote production capabilities with Dante’s cloud-based management software. This strategic move is expected to significantly benefit AV professionals by improving the management of millions of Dante-enabled devices, thereby strengthening Audinate’s position in the audio-visual industry.

The most recent analyst rating on (AU:AD8) stock is a Buy with a A$12.00 price target. To see the full list of analyst forecasts on Audinate Group stock, see the AU:AD8 Stock Forecast page.

Audinate Group Expands Video Capabilities with Acquisition of Iris Studio

Audinate Group Limited has announced its acquisition of Iris Studio Inc, a US-based leader in AI-powered, cloud-based camera control technology, for up to US$28 million. This acquisition strengthens Audinate’s video platform capabilities and aligns with its vision for interoperable AV device management, enhancing its position in key growth segments. The Iris platform, which is in the early stages of market launch, will benefit from Audinate’s investment to support development and scaling. The transaction is funded through existing cash reserves and share issuance, leaving Audinate with a strong balance sheet. This move is expected to provide significant value to AV professionals by integrating Iris’s remote production capabilities with Audinate’s Dante platform.

The most recent analyst rating on (AU:AD8) stock is a Buy with a A$12.00 price target. To see the full list of analyst forecasts on Audinate Group stock, see the AU:AD8 Stock Forecast page.

Audinate Group Issues New Securities to Align Employee and Shareholder Interests

Audinate Group Limited has announced the issuance of 5,388 ordinary fully paid securities under an employee incentive scheme, which will be quoted on the Australian Securities Exchange (ASX). This move is part of the company’s strategy to incentivize employees and align their interests with shareholders, potentially impacting the company’s operational dynamics and market positioning positively.

The most recent analyst rating on (AU:AD8) stock is a Hold with a A$7.70 price target. To see the full list of analyst forecasts on Audinate Group stock, see the AU:AD8 Stock Forecast page.

Audinate Group Announces Leadership Transition with New Chair Appointment

Audinate Group Limited has announced the retirement of David Krall as Chair of the Board, with Alison Ledger set to succeed him following the release of the company’s FY25 financial results. Krall, who has been with Audinate since 2010 and Chair since 2017, will continue as a Strategic Adviser, leveraging his industry expertise to support the company’s next development phase. Ledger, a seasoned Non-Executive Director with extensive experience in various sectors, is expected to provide continuity and leadership as Audinate embarks on its next growth phase.

The most recent analyst rating on (AU:AD8) stock is a Buy with a A$12.00 price target. To see the full list of analyst forecasts on Audinate Group stock, see the AU:AD8 Stock Forecast page.

Audinate Group Announces Share Registry Address Change

Audinate Group Limited has announced a change in the address of its share registry office, effective from April 14, 2025. This move to MUFG Corporate Markets (AU) Limited in Sydney is part of the company’s operational updates, with no changes to mailing addresses or contact details, ensuring continuity for stakeholders.

Audinate Group Ltd. Announces Cessation of Securities

Audinate Group Ltd. announced the cessation of 17,578 performance rights due to unmet conditions, effective March 31, 2025. This development may impact the company’s financial structure and could have implications for stakeholders, reflecting on the company’s operational adjustments and strategic focus.