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ABSOLUTE SOFTWARE CORPORATIO (ABST) Stock Fundamental Analysis

NASDAQ:ABST - Nasdaq - CA00386B1094 - Common Stock - Currency: USD

11.49  -0.01 (-0.09%)

After market: 11.49 0 (0%)

Fundamental Rating

3

Overall ABST gets a fundamental rating of 3 out of 10. We evaluated ABST against 282 industry peers in the Software industry. Both the profitability and financial health of ABST have multiple concerns. ABST is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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3

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.
ABST had positive earnings in 4 of the past 5 years.
ABST had a positive operating cash flow in each of the past 5 years.
ABST Yearly Net Income VS EBIT VS OCF VS FCFABST Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 20M -20M 40M

1.2 Ratios

The profitability ratios for ABST are negative, so there is not much use analyzing them.
Industry RankSector 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
ABST Yearly ROA, ROE, ROICABST Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 0 -200 -400 -600

1.3 Margins

ABST has a better Gross Margin (81.60%) than 87.19% of its industry peers.
ABST's Gross Margin has been stable in the last couple of years.
ABST does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector 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%
ABST Yearly Profit, Operating, Gross MarginsABST Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 0 20 40 60 80

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1

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 a worse debt/assets ratio than last year.
ABST Yearly Shares OutstandingABST Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 10M 20M 30M 40M 50M
ABST Yearly Total Debt VS Total AssetsABST Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M 400M 500M

2.2 Solvency

ABST has an Altman-Z score of 0.43. This is a bad value and indicates that ABST is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.43, ABST is not doing good in the industry: 69.04% of the companies in the same industry are doing better.
The Debt to FCF ratio of ABST is 7.28, which is on the high side as it means it would take ABST, 7.28 years of fcf income to pay off all of its debts.
ABST has a better Debt to FCF ratio (7.28) than 63.70% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 7.28
Altman-Z 0.43
ROIC/WACCN/A
WACC11.02%
ABST Yearly LT Debt VS Equity VS FCFABST Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 100M 200M

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.
The Current ratio of ABST (0.65) is worse than 90.04% of its industry peers.
A Quick Ratio of 0.65 indicates that ABST may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.65, ABST is doing worse than 89.68% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.65
Quick Ratio 0.65
ABST Yearly Current Assets VS Current LiabilitesABST Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 50M 100M 150M

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5

3. Growth

3.1 Past

ABST shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.36%.
The Revenue has grown by 25.77% in the past year. This is a very strong growth!
ABST shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.69% yearly.
EPS 1Y (TTM)-11.36%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%38.46%
Revenue 1Y (TTM)25.77%
Revenue growth 3Y25.89%
Revenue growth 5Y16.69%
Sales Q2Q%13.05%

3.2 Future

Based on estimates for the next years, ABST will show a very strong growth in Earnings Per Share. The EPS will grow by 28.18% on average per year.
Based on estimates for the next years, ABST will show a quite strong growth in Revenue. The Revenue will grow by 11.95% on average per year.
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.
ABST Yearly Revenue VS EstimatesABST Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
ABST Yearly EPS VS EstimatesABST Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 0.2 -0.2 -0.4

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3

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 RankSector Rank
PE N/A
Fwd PE N/A
ABST Price Earnings VS Forward Price EarningsABST Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 50 -50 -100

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ABST is valued cheaper than 84.34% of the companies in the same industry.
92.17% of the companies in the same industry are more expensive than ABST, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 16.58
EV/EBITDA 24.29
ABST Per share dataABST EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 -4 -6

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%

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0

5. Dividend

5.1 Amount

No dividends for ABST!.
Industry RankSector Rank
Dividend Yield N/A

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ABSOLUTE SOFTWARE CORPORATIO

NASDAQ:ABST (7/26/2023, 8:09:16 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)05-15 2023-05-15/amc
Earnings (Next)08-21 2023-08-21/amc
Inst Owners66.33%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap610.35M
Analysts81.82
Price Target10.67 (-7.14%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP-48.46%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-30.26%
Min EPS beat(2)-59.31%
Max EPS beat(2)-1.2%
EPS beat(4)0
Avg EPS beat(4)-41.01%
Min EPS beat(4)-81%
Max EPS beat(4)-1.2%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-4.15%
Min Revenue beat(2)-5.04%
Max Revenue beat(2)-3.25%
Revenue beat(4)0
Avg Revenue beat(4)-4.17%
Min Revenue beat(4)-5.48%
Max Revenue beat(4)-2.89%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-0.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.14%
EPS NY rev (1m)-2.68%
EPS NY rev (3m)-2.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-0.21%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 2.75
P/FCF 16.58
P/OCF 15.63
P/B N/A
P/tB N/A
EV/EBITDA 24.29
EPS(TTM)-0.49
EYN/A
EPS(NY)-0.1
Fwd EYN/A
FCF(TTM)0.69
FCFY6.03%
OCF(TTM)0.74
OCFY6.4%
SpS4.18
BVpS-0.22
TBVpS-6.81
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA N/A
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 81.6%
FCFM 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
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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%
F-Score5
Asset Turnover0.42
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 7.28
Debt/EBITDA 7.87
Cap/Depr 6.09%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.65
Quick Ratio 0.65
Altman-Z 0.43
F-Score5
WACC11.02%
ROIC/WACCN/A
Cap/Depr(3y)16.48%
Cap/Depr(5y)19.5%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-11.36%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%38.46%
EPS Next Y7.92%
EPS Next 2Y33.7%
EPS Next 3Y28.18%
EPS Next 5YN/A
Revenue 1Y (TTM)25.77%
Revenue growth 3Y25.89%
Revenue growth 5Y16.69%
Sales Q2Q%13.05%
Revenue Next Year10.4%
Revenue Next 2Y11.32%
Revenue Next 3Y11.95%
Revenue Next 5YN/A
EBIT growth 1Y80.29%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year868.22%
EBIT Next 3Y133.87%
EBIT Next 5YN/A
FCF growth 1Y-15.29%
FCF growth 3Y74.21%
FCF growth 5YN/A
OCF growth 1Y-16.82%
OCF growth 3Y57.11%
OCF growth 5Y107.68%