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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 283 industry peers in the Software industry. ABST has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, ABST is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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3

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.
Of the past 5 years ABST 4 years were profitable.
Each year in the past 5 years ABST had a positive operating cash flow.
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

ABST has negative profitability rations, so we won't be analyzing them here.
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 Gross Margin of 81.60%. This is amongst the best in the industry. ABST outperforms 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 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.
ABST has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, ABST has a worse debt to assets ratio.
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

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.
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.
Looking at the Current ratio, with a value of 0.65, ABST is doing worse than 90.04% of the companies in the same industry.
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 Quick ratio of 0.65. This is amonst the worse of the industry: ABST underperforms 89.68% of its industry peers.
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%.
ABST shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.77%.
Measured over the past years, ABST shows a quite strong growth in Revenue. The Revenue has been growing by 16.69% on average per year.
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.
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.
Also next year ABST is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABST indicates a rather cheap valuation: ABST is cheaper than 92.17% of the companies listed in the same industry.
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

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%

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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%