TSX:ABST

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Absolute Software

Market Cap

CA$870.8m

Last Updated

2021/06/20 23:41 UTC

Data Sources

Company Financials +

Executive Summary

Absolute Software Corporation develops, markets, and provides cloud-based endpoint visibility and control platform for the management and security of computing devices, applications, and data for enterprise and public sector organizations. More Details


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Absolute Software's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ABST is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ABST's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

4.3%

ABST

3.2%

CA Software

-2.1%

CA Market


1 Year Return

30.4%

ABST

45.6%

CA Software

33.6%

CA Market

Return vs Industry: ABST underperformed the Canadian Software industry which returned 45.5% over the past year.

Return vs Market: ABST underperformed the Canadian Market which returned 33.6% over the past year.


Shareholder returns

ABSTIndustryMarket
7 Day4.3%3.2%-2.1%
30 Day3.6%10.8%1.0%
90 Day-4.6%3.6%4.2%
1 Year33.0%30.4%51.8%45.6%38.0%33.6%
3 Year187.2%160.9%76.1%65.6%28.7%16.4%
5 Year209.8%158.2%216.9%196.8%59.6%35.6%

Long-Term Price Volatility Vs. Market

How volatile is Absolute Software's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Absolute Software undervalued compared to its fair value and its price relative to the market?

72.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ABST (CA$17.61) is trading above our estimate of fair value (CA$16.81)

Significantly Below Fair Value: ABST is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ABST is poor value based on its PE Ratio (72.3x) compared to the Canadian Software industry average (38.9x).

PE vs Market: ABST is poor value based on its PE Ratio (72.3x) compared to the Canadian market (14.6x).


Price to Earnings Growth Ratio

PEG Ratio: ABST is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: ABST is overvalued based on its PB Ratio (26.3x) compared to the CA Software industry average (7.1x).


Future Growth

How is Absolute Software forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

21.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABST's forecast earnings growth (21.4% per year) is above the savings rate (1.5%).

Earnings vs Market: ABST's earnings (21.4% per year) are forecast to grow faster than the Canadian market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ABST's revenue (12% per year) is forecast to grow faster than the Canadian market (5.6% per year).

High Growth Revenue: ABST's revenue (12% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ABST's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Absolute Software performed over the past 5 years?

27.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ABST has high quality earnings.

Growing Profit Margin: ABST's current net profit margins (7.7%) are lower than last year (10.2%).


Past Earnings Growth Analysis

Earnings Trend: ABST's earnings have grown significantly by 27% per year over the past 5 years.

Accelerating Growth: ABST's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ABST had negative earnings growth (-14.4%) over the past year, making it difficult to compare to the Software industry average (33.7%).


Return on Equity

High ROE: ABST's Return on Equity (33.7%) is considered high.


Financial Health

How is Absolute Software's financial position?


Financial Position Analysis

Short Term Liabilities: ABST's short term assets ($171.2M) exceed its short term liabilities ($114.8M).

Long Term Liabilities: ABST's short term assets ($171.2M) exceed its long term liabilities ($77.0M).


Debt to Equity History and Analysis

Debt Level: ABST is debt free.

Reducing Debt: ABST has not had any debt for past 5 years.

Debt Coverage: ABST has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ABST has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Absolute Software current dividend yield, its reliability and sustainability?

1.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ABST's dividend (1.8%) is higher than the bottom 25% of dividend payers in the Canadian market (1.61%).

High Dividend: ABST's dividend (1.8%) is low compared to the top 25% of dividend payers in the Canadian market (4.54%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ABST has been paying a dividend for less than 10 years.

Growing Dividend: ABST's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (131.5%), ABST's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Christy Wyatt (48 yo)

2.58yrs

Tenure

US$1,314,991

Compensation

Ms. Christy Wyatt serves as Chief Executive Officer of Absolute Software Corporation and Absolute Software, Inc. since November 26, 2018. Ms. Wyatt has been the President of Absolute Software Corporation s...


CEO Compensation Analysis

Compensation vs Market: Christy's total compensation ($USD1.31M) is about average for companies of similar size in the Canadian market ($USD1.17M).

Compensation vs Earnings: Christy's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ABST's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: ABST's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.5%.


Top Shareholders

Company Information

Absolute Software Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Absolute Software Corporation
  • Ticker: ABST
  • Exchange: TSX
  • Founded: 1993
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: CA$870.808m
  • Shares outstanding: 49.45m
  • Website: https://www.absolute.com

Number of Employees


Location

  • Absolute Software Corporation
  • Four Bentall Centre
  • Suite 1400
  • Vancouver
  • British Columbia
  • V7X 1K8
  • Canada

Listings


Biography

Absolute Software Corporation develops, markets, and provides cloud-based endpoint visibility and control platform for the management and security of computing devices, applications, and data for enterpris...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/20 23:41
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2020/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.