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Fundamental analysis: Absolute Software Corporation (ABST)

Awarener score: 5.1

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Lacking), the business stability (Bottom) and growth (Superb), and the company's inclination to return cash to the stockholders (Lacking).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.5

  • Business has been growing at an extremely fast pace. It's been top tier when measured against peer companies.
  • Absolute Software Corporation business varies wildly, ups and downs could be very frequent. It's very risky. It looks bottom tier against rivals.

Margins score: 4.5

  • ABST profit margins -on goods and services sold- are usually huge. They stand well ranked against rival companies.
  • Business profit on sales tends to be meagre. It's encouraging in relation to competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually very poor. They remain close to average when compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be very poor in relation to total revenues. They're still slightly worse than similar companies.
  • Profits -before income taxes- are usually meagre considering total sales, and remain encouraging in relation to rivals.
  • Total net profit tends to be very poor when confronted to sales. Company stands similar to comparable firms.

Growth score: 2.3

  • Absolute Software Corporation profit -on goods and services sold- has been growing at an extremely fast pace. It's been impressive in relation to competitors.
  • In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
  • In past years, the company couldn't always turn a profit -available to repay debt and purchase properties-, which compares last-in-rank when measured against peer enterprises.
  • In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
  • In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
  • In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
  • The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 5.3

  • ABST had still to pay income taxes, even though in recent past years mostly lost money. It's been bottom tier against peers.
  • Research and development expenses consume a moderate portion of revenues. It's similar to competitors.
  • The company shows very good business growth in relation to research and development efforts. It stands impressive in relation to rival companies.

Profitability score: 4.5

  • Absolute Software Corporation usually gets low returns on the resources it controls. It proves encouraging in relation to peer firms.
  • Due to insufficient track history, we were unable to estimate typical returns on invested capital (ROIC). They remain undisclosed in relation to similar companies.
  • Normal return on equity (ROE) is unavailable at this time, because of not enough yearly inputs to calculate. It ranks unknown against competitors.
  • In the past, got barely sufficient returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's encouraging in relation to comparable enterprises.

Usage of Funds score: 3.9

  • ABST usually uses almost all genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is huge. It stands encouraging in relation to rival firms.
  • The company is usually replacing some proportion of the property, plant, and equipment that gets old, saving part of the funds for something else, which is almost average when measured against industry peers.
  • In the past twelve months it paid run-of-the-mill dividends, considering the current stock price. It came better than most competitors.
  • Has greatly increased dividend payments in the past years. Business prospects are most likely good. The company has behaved excellent in relation to similar firms.
  • The company generates very few genuine funds. Dividend payments are usually on borrowed money, which isn't sustainable in the long run. Unless business prospects improve greatly, future payments could be at risk. Sustainability looks bottom tier against comparable companies.
  • The company usually enlarges quite a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains rather normal in relation to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands a disappointment compared to rivals.
  • We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 3.8

  • Absolute Software Corporation intangible assets (like brands and goodwill) represent a huge portion of resources controlled, according to accounting books. There could be major difficulties in liquidating them if the company ever gets in financial distress. It happens to be last-in-rank when measured against peer companies.
  • The company has lower short-term resources than short-term obligations. Unless it's part of the business model, there might be liquidity concerns. It turns to be a disappointment compared to similar firms.
  • A substantial part of resources controlled were provided for with financial debt. Creditors have as many claims on the company as shareholders. The situation is somewhat risky. It remains worse than most rival firms.
  • Most controlled resources might be only slowly turned into cash and equivalents, which is risky. It looks last-in-rank when measured against rivals.
  • For every dollar of short-term obligations, the company has almost another of cash and short-term receivables. It's in a very weak position compared to peer firms.
  • For every dollar of short-term obligations, the company has roughly half of cash and equivalents, which is worse than most similar enterprises.
  • Usually, sales are on somewhat more than three months credit. It still ranks substantially worse when measured against peers.
  • Normally has no inventories. It comes up as impressive in relation to competitors.
  • On average, it takes higher than four months from the purchase to charging customers. It happens to be worse than most peers.
  • On average pays suppliers longer than two months after the purchase. It ranks more than average in relation to industry peers.
  • The company pays its suppliers roughly two months before charging its customers, so there's some money invested in working capital. It's in a weak position compared to similar companies.
  • Has usually been losing money on the business, so net interest expenses must be paid by increasing borrowings, which is unsustainable in the long run. The situation is very risky for both creditors and shareholders, profitability must increase. It stands bottom tier against rival firms.
  • Business earnings have usually been extremely low when measured against loans taken. Even severely cutting back reinvesting in the business, it could take more than twenty years to repay the obligations. Additional stockholders' funding may be a quicker way, but at the cost of increasing the mouths to feed on the eventual pie of profits. It ranks substantially worse when measured against comparable enterprises.
  • Revenues are quite good in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks lacking compared to similar firms.
  • Resource exploitation is low when yearly sales are considered, business volume must be significantly increased. This metric is normally tied to the industry where the firm belongs. It's still mediocre against peer companies.

Valuation score: 3.1

  • Absolute Software Corporation reported losses, so valuating it in relation to earnings is meaningless. It happens to be last-in-rank when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a disappointment compared to peers.
  • In the past twelve months, the company neither generated nor consumed funds. Whatever funds it could generate, it reinvested in the business, which stands slightly worse than similar companies.
  • In the past years the company barely generated enough genuine funds to cover up for its business needs. Business prospects should improve to be in a better position to reward investors. It's still almost average when measured against industry firms.
  • In the past twelve months, the company has enlarged the pool of investors by issuing new shares. Future profits need to be high enough to justify the measure, as the pie of earnings will now be split among somewhat more stockholders. It came up rather normal in relation to peer ventures.
  • The company is indebted, it should focus on loan repayment. It looks bottom tier against similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation has been negative, as the company lost money. It ranks last-in-rank when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a very high relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks rather normal in relation to rival firms.
  • The relation between the stock price and accounting book value is extremely high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains worse than most peer firms.
  • In the past twelve months, the operating business lost a little money. It happens to be encouraging in relation to industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a somewhat low earnings power ability when measured against the current stock price and financial position. It's still a slight improvement compared to peer companies.

Total score: 4.1


ABST logos

Company at a glance: Absolute Software Corporation (ABST)

Sector, industry: Technology, Software—Application

Market Cap: 0.55 billions

Revenues TTM: 0.12 billions

Absolute Software Corporation develops, markets, and provides software services that support the management and security of computing devices, applications, data, and networks for various organizations. The company's Absolute platform offer Absolute Visibility that provides information on device hardware, software, and location; Absolute Control that provide remediation capabilities, such as the ability to remotely freeze devices and delete data; Absolute Resilience, which offer remote scripting, self-healing for critical apps, investigation and recovery services, and sensitive data identification; Absolute Ransomware Response that enables organizations to assess their ransomware preparedness for endpoints, monitors their endpoint cyber hygiene across the entire device fleet and allows for an expedited endpoint recovery; Absolute VPN an enterprise solution; Absolute ZTNA that protects networks and employees with real time risk analysis; and Absolute Insights for Network provides real-time data about device, application, and network performance in a single pane of glass. The company markets its solutions through device original equipment manufacturers, distributors, and value added resellers, as well as directly to healthcare organizations, educational institutions, governmental agencies, and individual consumers. It operates in North America, the United Kingdom, Vietnam, Germany, Australia, Japan, and Latin America. Absolute Software Corporation was incorporated in 1993 and is headquartered in Vancouver, Canada.

Awarener score: 5.1

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Lacking), the business stability (Bottom) and growth (Superb), and the company's inclination to return cash to the stockholders (Lacking).