Short Report on Avaya Stock

Now trading at a price of $0.32, Avaya fell -8.0% Friday. In contrast, the S&P 500 index moved None%. Read below for a basic value analysis of Avaya.

Avaya shares moved -98.1% over the last 52 weeks, with a high of $18.45 and a low of $0.12. During this time, the stock lagged the S&P 500 index by -88.3%. As of January 2022, the company's 50-day average price is $0.63. Avaya Holdings Corp., through its subsidiaries, provides digital communications products, solutions, and services for businesses worldwide. The small-cap Technology company has 7,851 full time employees and is based in Durham, NC. Avaya has not offered any dividends in the last year.

Exceptional EPS Growth with a Highly Leveraged Balance Sheet:

2019-09-30 2020-09-30 2021-09-30
Revenue (MM) $2,887 $2,873 $2,973
Revenue Growth n/a -0.48% 3.48%
Gross Margins 54.6% 55.0% 55.5%
Gross Margins Growth n/a 0.73% 0.91%
Operating Margins 7.2% 6.9% 8.0%
Operating Margins Growth n/a -4.17% 15.94%
Earnings Per Share -$6.06 -$7.45 -$0.2
EPS Growth n/a -22.94% 97.32%
Free Cash Flow (MM) $128 $49 -$76
FCF Growth n/a -61.72% -255.1%
Capital Expenditures (MM) -$113 -$98 -$106
Net Debt / EBITDA 3.53 3.37 3.57

Avaya has negative earnings for the current period, so its trailing twelve month P/E ratio is not meaningful. Its forward P/E isn't meaningful either because its guidance EPS is -0.07.

Avaya Is the Subject of Mixed Market Indicators:

3 analysts are following Avaya and have set target prices ranging from $0.4 to $1 per share. On average, they have given the company a rating of hold. At the current price of $0.32, AVYA is trading -48.57% away from its average analyst target price of $0.63 per share, implying an analyst consensus of strong upside potential for the stock.

The company has an unusually large proportion of its shares sold short since 27.7% of the company's shares are tied to short positions. Institutions own 59.1% of Avaya's shares, while the insider ownership rate stands at 2.55%. The biggest shareholder is the Vanguard Group, Inc. with a 8% stake in the company worth approximately $2,706,642.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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