Absolute Software Corporation (ABST.CA) Stock Fundamental Analysis
TSX:ABST - Toronto Stock Exchange - CA00386B1094 - Common Stock - Currency: CAD
Overall ABST gets a fundamental rating of 3 out of 10. We evaluated ABST against 66 industry peers in the Software industry. ABST has a bad profitability rating. Also its financial health evaluation is rather negative. ABST is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ABST had negative earnings in the past year.
In the past year ABST had a positive cash flow from operations.
ABST had positive earnings in 4 of the past 5 years.
In the past 5 years ABST always reported a positive cash flow from operatings.
1.2 Ratios
The profitability ratios for ABST are negative, so there is not much use analyzing them.
| 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
With an excellent Gross Margin value of 81.60%, ABST belongs to the best of the industry, outperforming 85.53% of the companies in the same industry.
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.
ABST has more shares outstanding than it did 1 year ago.
The debt/assets ratio for ABST is higher compared to a year ago.
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.
The Altman-Z score of ABST (0.43) is comparable to the rest of the industry.
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.
The Debt to FCF ratio of ABST (7.28) is better than 71.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 7.28 | ||
| Altman-Z | 0.43 |
ROIC/WACCN/A
WACC11.03%
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 Current ratio of 0.65. This is in the lower half of the industry: ABST underperforms 76.32% 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.
ABST has a worse Quick ratio (0.65) than 75.00% of its industry peers.
| 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.
ABST shows a strong growth in Revenue. In the last year, 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 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.
The Revenue is expected to grow by 11.95% on average over the next years. This is quite good.
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
ABST's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ABST is cheaper than 73.68% of the companies in the same industry.
84.21% of the companies in the same industry are more expensive than ABST, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.39 | ||
| EV/EBITDA | 24.08 |
4.3 Compensation for Growth
ABST's earnings are expected to grow with 28.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y33.7%
EPS Next 3Y28.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.11%, ABST has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.66, ABST pays a better dividend. On top of this ABST pays more dividend than 96.05% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, ABST has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
5.2 History
The dividend of ABST has a limited annual growth rate of 0.80%.
ABST has been paying a dividend for over 5 years, so it has already some track record.
The dividend of ABST decreased in the last 3 years.
Dividend Growth(5Y)0.8%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
The earnings of ABST are negative and hence is the payout ratio. ABST will probably not be able to sustain this dividend level.
The dividend of ABST is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-48.46%
EPS Next 2Y33.7%
EPS Next 3Y28.18%
TSX:ABST (7/28/2023, 7:00:00 PM)
15.2
+0.01 (+0.07%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners28.73%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap807.43M
Analysts82.86
Price Target14.28 (-6.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
Yearly Dividend0.25
Dividend Growth(5Y)0.8%
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)-1.33%
PT rev (3m)-1.19%
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 2.72 | ||
| P/FCF | 16.39 | ||
| P/OCF | 15.45 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.08 |
EPS(TTM)-0.66
EYN/A
EPS(NY)-0.14
Fwd EYN/A
FCF(TTM)0.93
FCFY6.1%
OCF(TTM)0.98
OCFY6.47%
SpS5.59
BVpS-0.3
TBVpS-9.12
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC11.03%
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%