ABSOLUTE SOFTWARE CORPORATIO (ABST)
CA00386B1094 - Common Stock
We assign a fundamental rating of 3 out of 10 to ABST. ABST was compared to 276 industry peers in the Software industry. ABST has a bad profitability rating. Also its financial health evaluation is rather negative. ABST is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ABST had negative earnings in the past year.
ABST had a positive operating cash flow in the past year.
Of the past 5 years ABST 4 years were profitable.
ABST had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ABST has negative profitability rations, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROIC | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
ABST has a better Gross Margin (81.60%) than 87.19% of its industry peers.
In the last couple of years the Gross Margin of ABST has remained more or less at the same level.
ABST does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 81.6% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.15%
GM growth 5Y-0.69%
2. Health
2.1 Basic Checks
ABST does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for ABST has been increased compared to 1 year ago.
ABST has more shares outstanding than it did 5 years ago.
ABST has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.43, we must say that ABST is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ABST (0.43) is worse than 69.04% of its industry peers.
ABST has a debt to FCF ratio of 7.28. This is a slightly negative value and a sign of low solvency as ABST would need 7.28 years to pay back of all of its debts.
ABST has a Debt to FCF ratio of 7.28. This is in the better half of the industry: ABST outperforms 63.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.28 | ||
| Altman-Z | 0.43 |
ROIC/WACCN/A
WACC11.02%
2.3 Liquidity
ABST has a Current Ratio of 0.65. This is a bad value and indicates that ABST is not financially healthy enough and could expect problems in meeting its short term obligations.
ABST has a worse Current ratio (0.65) than 90.04% of its industry peers.
ABST has a Quick Ratio of 0.65. This is a bad value and indicates that ABST is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.65, ABST is not doing good in the industry: 89.68% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The earnings per share for ABST have decreased strongly by -11.36% in the last year.
Looking at the last year, ABST shows a very strong growth in Revenue. The Revenue has grown by 25.77%.
The Revenue has been growing by 16.69% on average over the past years. This is quite good.
EPS 1Y (TTM)-11.36%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q38.46%
Revenue 1Y (TTM)25.77%
Revenue growth 3Y25.89%
Revenue growth 5Y16.69%
Revenue growth Q2Q13.05%
3.2 Future
ABST is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.18% yearly.
ABST is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.95% yearly.
EPS Next Y7.92%
EPS Next 2Y33.7%
EPS Next 3Y28.18%
EPS Next 5YN/A
Revenue Next Year10.4%
Revenue Next 2Y11.32%
Revenue Next 3Y11.95%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
ABST reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for ABST. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
84.34% of the companies in the same industry are more expensive than ABST, based on the Enterprise Value to EBITDA ratio.
ABST's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ABST is cheaper than 92.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.58 | ||
| EV/EBITDA | 24.29 |
4.3 Compensation for Growth
A more expensive valuation may be justified as ABST's earnings are expected to grow with 28.18% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y33.7%
EPS Next 3Y28.18%
5. Dividend
5.1 Amount
ABST does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ABSOLUTE SOFTWARE CORPORATIO
NASDAQ:ABST (7/26/2023, 7:09:16 PM)
After market: 11.49 0 (0%)11.49
-0.01 (-0.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap610.35M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 81.6% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-11.36%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y7.92%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)25.77%
Revenue growth 3Y25.89%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y