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Aware

Nasdaq:AWRE
Snowflake Description

Flawless balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AWRE
Nasdaq
$80M
Market Cap
  1. Home
  2. US
  3. Software
Company description

Aware, Inc. provides software and services for the biometrics industry in the United States, the United Kingdom, Brazil, and internationally. The last earnings update was 29 days ago. More info.


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AWRE Share Price and Events
7 Day Returns
-0.5%
NasdaqGM:AWRE
2.4%
US Software
1.2%
US Market
1 Year Returns
-10.1%
NasdaqGM:AWRE
25.6%
US Software
3%
US Market
AWRE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Aware (AWRE) -0.5% 0.8% 3.3% -10.1% -0.8% -35.2%
US Software 2.4% 5.5% 19.8% 25.6% 110.4% 139.4%
US Market 1.2% 2.1% 14.6% 3% 39% 43.5%
1 Year Return vs Industry and Market
  • AWRE underperformed the Software industry which returned 25.6% over the past year.
  • AWRE underperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
AWRE
Industry
5yr Volatility vs Market

AWRE Value

 Is Aware undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Aware to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Aware.

NasdaqGM:AWRE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGM:AWRE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.141 (1 + (1- 21%) (0%))
1.094
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.09
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.094 * 5.96%)
9.25%

Discounted Cash Flow Calculation for NasdaqGM:AWRE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Aware is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGM:AWRE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.25%)
2019 0.32 Est @ -41.32% 0.29
2020 0.23 Est @ -28.11% 0.19
2021 0.19 Est @ -18.86% 0.14
2022 0.16 Est @ -12.38% 0.12
2023 0.15 Est @ -7.85% 0.10
2024 0.14 Est @ -4.67% 0.08
2025 0.14 Est @ -2.45% 0.08
2026 0.14 Est @ -0.9% 0.07
2027 0.14 Est @ 0.19% 0.06
2028 0.14 Est @ 0.95% 0.06
Present value of next 10 years cash flows $1.19
NasdaqGM:AWRE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $0.14 × (1 + 2.73%) ÷ (9.25% – 2.73%)
$2.22
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2.22 ÷ (1 + 9.25%)10
$0.91
NasdaqGM:AWRE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1.19 + $0.91
$2.11
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2.11 / 21.57
$0.1
NasdaqGM:AWRE Discount to Share Price
Calculation Result
Value per share (USD) From above. $0.10
Current discount Discount to share price of $3.73
= -1 x ($3.73 - $0.10) / $0.10
-3719.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Aware is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Aware's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Aware's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGM:AWRE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.06
NasdaqGM:AWRE Share Price ** NasdaqGM (2019-03-20) in USD $3.73
United States of America Software Industry PE Ratio Median Figure of 84 Publicly-Listed Software Companies 53.03x
United States of America Market PE Ratio Median Figure of 3,058 Publicly-Listed Companies 17.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Aware.

NasdaqGM:AWRE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:AWRE Share Price ÷ EPS (both in USD)

= 3.73 ÷ 0.06

65.17x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Aware is overvalued based on earnings compared to the US Software industry average.
  • Aware is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Aware's expected growth come at a high price?
Raw Data
NasdaqGM:AWRE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 65.17x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
27.3%per year
United States of America Software Industry PEG Ratio Median Figure of 66 Publicly-Listed Software Companies 3.6x
United States of America Market PEG Ratio Median Figure of 2,103 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Aware, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Aware's assets?
Raw Data
NasdaqGM:AWRE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $2.88
NasdaqGM:AWRE Share Price * NasdaqGM (2019-03-20) in USD $3.73
United States of America Software Industry PB Ratio Median Figure of 220 Publicly-Listed Software Companies 5.84x
United States of America Market PB Ratio Median Figure of 5,156 Publicly-Listed Companies 1.89x
NasdaqGM:AWRE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:AWRE Share Price ÷ Book Value per Share (both in USD)

= 3.73 ÷ 2.88

1.3x

* Primary Listing of Aware.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Aware is good value based on assets compared to the US Software industry average.
X
Value checks
We assess Aware's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Aware has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

AWRE Future Performance

 How is Aware expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Aware, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
27.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Aware expected to grow at an attractive rate?
  • Aware's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Aware's earnings growth is expected to exceed the United States of America market average.
  • Unable to compare Aware's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NasdaqGM:AWRE Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGM:AWRE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 27.3%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 16.1%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 10.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGM:AWRE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGM:AWRE Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 16 1 1
2018-09-30 16 1 0
2018-06-30 16 1 0
2018-03-31 15 3 0
2017-12-31 15 4 1
2017-09-30 16 2 2
2017-06-30 17 3 2
2017-03-31 21 3 4
2016-12-31 22 4 4
2016-09-30 25 7 5
2016-06-30 23 8 6
2016-03-31 20 8 5

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Aware's earnings are expected to grow significantly at over 20% yearly.
  • Unable to determine if Aware is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGM:AWRE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Aware Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:AWRE Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.06
2018-09-30 0.01
2018-06-30 0.01
2018-03-31 0.02
2017-12-31 0.05
2017-09-30 0.09
2017-06-30 0.11
2017-03-31 0.17
2016-12-31 0.18
2016-09-30 0.24
2016-06-30 0.27
2016-03-31 0.22

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Aware will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Aware's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Aware has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

AWRE Past Performance

  How has Aware performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Aware's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Aware's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Aware's 1-year earnings growth exceeds its 5-year average (23.2% vs -22%)
  • Aware's earnings growth has not exceeded the US Software industry average in the past year (23.2% vs 32.7%).
Earnings and Revenue History
Aware's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Aware Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:AWRE Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 16.13 1.23 7.47 7.11
2018-09-30 15.95 0.32 7.72 7.46
2018-06-30 16.26 0.18 7.49 7.80
2018-03-31 15.04 0.49 7.41 7.79
2017-12-31 15.47 1.00 7.30 7.77
2017-09-30 16.33 2.02 7.27 7.62
2017-06-30 16.53 2.45 7.32 7.22
2017-03-31 20.89 3.77 7.49 7.15
2016-12-31 21.57 4.10 7.43 6.94
2016-09-30 24.58 5.47 7.51 6.64
2016-06-30 22.73 6.09 7.29 6.38
2016-03-31 20.33 4.98 7.33 6.01
2015-12-31 19.62 4.61 7.44 5.80
2015-09-30 16.98 3.03 7.37 5.81
2015-06-30 18.97 3.43 7.57 5.70
2015-03-31 21.23 3.98 7.50 5.66
2014-12-31 23.72 4.58 7.41 5.51
2014-09-30 25.05 4.87 7.35 5.10
2014-06-30 23.34 3.06 7.18 4.77
2014-03-31 21.00 2.66 6.92 4.39
2013-12-31 19.36 3.75 6.87 4.09
2013-09-30 16.78 9.63 6.22 2.10
2013-06-30 17.73 18.92 6.40 2.52
2013-03-31 17.38 73.23 6.77 3.03
2012-12-31 17.30 72.38 7.23 3.49
2012-09-30 19.42 67.24 7.63 5.66
2012-06-30 19.59 58.76 7.76 5.55
2012-03-31 18.07 3.93 8.35 4.77

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Aware has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Aware used its assets less efficiently than the US Software industry average last year based on Return on Assets.
  • Aware's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Aware's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Aware has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

AWRE Health

 How is Aware's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Aware's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Aware is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Aware's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Aware's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Aware has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Aware Company Filings, last reported 2 months ago.

NasdaqGM:AWRE Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 61.90 0.00 51.61
2018-09-30 61.18 0.00 48.96
2018-06-30 59.89 0.00 49.12
2018-03-31 60.00 0.00 50.65
2017-12-31 60.53 0.00 51.61
2017-09-30 60.59 0.00 49.13
2017-06-30 59.80 0.00 49.43
2017-03-31 60.17 0.00 48.99
2016-12-31 57.84 0.00 51.91
2016-09-30 58.65 0.00 52.27
2016-06-30 58.50 0.00 52.26
2016-03-31 57.19 0.00 52.65
2015-12-31 56.18 0.00 51.23
2015-09-30 53.97 0.00 46.42
2015-06-30 53.67 0.00 44.51
2015-03-31 53.19 0.00 44.69
2014-12-31 52.39 0.00 43.99
2014-09-30 52.01 0.00 43.51
2014-06-30 48.14 0.00 77.24
2014-03-31 86.65 0.00 74.37
2013-12-31 85.15 0.00 72.66
2013-09-30 83.26 0.00 75.42
2013-06-30 84.84 0.00 75.76
2013-03-31 84.68 0.00 72.51
2012-12-31 81.90 0.00 71.07
2012-09-30 117.21 0.00 114.59
2012-06-30 103.86 0.00 101.06
2012-03-31 56.18 0.00 48.44
  • Aware has no debt.
  • Aware has not taken on any debt in the past 5 years.
  • Aware has no debt, it does not need to be covered by operating cash flow.
  • Aware has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Aware's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Aware has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

AWRE Dividends

 What is Aware's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Aware dividends.
If you bought $2,000 of Aware shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Aware's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Aware's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGM:AWRE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Aware has not reported any payouts.
  • Unable to verify if Aware's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Aware's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Aware has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Aware's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Aware afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Aware has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

AWRE Management

 What is the CEO of Aware's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Kevin Russell
COMPENSATION $428,381
AGE 55
TENURE AS CEO 2 years
CEO Bio

Mr. Kevin Thomas Russell has been Chief Executive Officer and President of Aware Inc. since March 3, 2017 and its General Counsel since September 2005. Mr. Russell served as Co-Chief Executive Officer and Co-President of Aware Inc. from April 1, 2011 to March 3, 2017. He served as Aware Inc.'s Corporate Counsel from April 2000 to September 2005. Prior to Aware Inc., Mr. Russell served as Legal Counsel at IRIS Graphics, Inc. from November 1994 to April 2000. He has been Director of Aware Inc. since October 2011. Mr. Russell received a J.D. from Boston University School of Law and a BBA from the University of Massachusetts at Amherst.

CEO Compensation
  • Kevin's compensation has been consistent with company performance over the past year.
  • Kevin's remuneration is about average for companies of similar size in United States of America.
Management Team

Kevin Russell

TITLE
CEO, President
COMPENSATION
$428K
AGE
55
TENURE
2 yrs

David Martin

TITLE
CFO & Treasurer
COMPENSATION
$333K
AGE
60
TENURE
2 yrs
Board of Directors Tenure

Average tenure and age of the Aware board of directors in years:

7.4
Average Tenure
51.5
Average Age
  • The tenure for the Aware board of directors is about average.
Board of Directors

John Stafford

TITLE
Chairman
COMPENSATION
$50K
AGE
80
TENURE
7.4 yrs

Kevin Russell

TITLE
CEO, President
COMPENSATION
$428K
AGE
55
TENURE
7.4 yrs

Adrian Kruse

TITLE
Director
COMPENSATION
$50K
AGE
78
TENURE
15.4 yrs

John Stafford

TITLE
Director
COMPENSATION
$50K
AGE
48
TENURE
8.2 yrs

Brian Connolly

TITLE
Director
COMPENSATION
$50K
AGE
48
TENURE
7.2 yrs

Brent Johnstone

TITLE
Director
COMPENSATION
$50K
AGE
47
TENURE
6.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Aware's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Aware has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

AWRE News

Simply Wall St News

Volatility 101: Should Aware Shares Have Dropped 33%?

(NASDAQ:AWRE) shareholders should be happy to see the share price up 13% in the last month. … Looking back five years, both Aware's share price and EPS declined; the latter at a rate of 19% per year. … This fall in the EPS is worse than the 7.8% compound annual share price fall.

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Why We’re Not Impressed By Aware, Inc.’s (NASDAQ:AWRE) 0.1% ROCE

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

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How Financially Strong Is Aware, Inc. (NASDAQ:AWRE)?

(NASDAQ:AWRE), which has zero-debt on its balance sheet, can maximize capital returns by increasing debt due to its lower cost of capital. … However, the trade-off is AWRE will have to follow strict debt obligations which will reduce its financial flexibility. … Is AWRE right in choosing financial flexibility over lower cost of capital

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What Kind Of Shareholder Owns Most Aware, Inc. (NASDAQ:AWRE) Stock?

(NASDAQ:AWRE) should be aware of the most powerful shareholder groups. … As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'. … With a market capitalization of US$74m, Aware is a small cap stock, so it might not be well known by many institutional investors.

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Aware Inc (NASDAQ:AWRE): A Look At Return On Capital

Your return is tied to AWRE’s ability to do this because the amount earned is used to invest in opportunities to grow the business or payout dividends, which are the two sources of return on investment. … To understand Aware’s capital returns we will look at a useful metric called return on capital employed. … Aware's Return On Capital Employed

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Can Aware Inc (NASDAQ:AWRE) Improve Its Returns?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … That means that for every $1 worth of shareholders' equity, it generated $0.0031 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

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Who Really Owns Aware Inc (NASDAQ:AWRE)?

In this analysis, my focus will be on developing a perspective on Aware Inc’s (NASDAQ:AWRE) latest ownership structure, a less discussed, but important factor. … The impact of a company's ownership structure affects both its short- and long-term performance. … Therefore, it is beneficial for us to examine AWRE's ownership structure in more detail.

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What Should Investors Know About Aware Inc's (NASDAQ:AWRE) Capital Returns?

As a result, your investment is being put to work to fund operations and if you want to earn an attractive return on your investment, the business needs to be making an adequate amount of money from the funds you provide. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … Thus, to understand how your money can grow by investing in Aware, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

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Aware Inc's (NASDAQ:AWRE) Earnings Dropped -87.11%, How Did It Fare Against The Industry?

Measuring Aware Inc's (NASDAQ:AWRE) track record of past performance is a useful exercise for investors. … Today I will assess AWRE's recent performance announced on 31 March 2018 and weigh these figures against its long-term trend and industry movements. … Despite a decline, did AWRE underperform the long-term trend and the industry.

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Should You Be Tempted To Sell Aware Inc (AWRE) Because Of Its PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for AWRE Price per share = $4.75 Earnings per share = $0.105 ∴ Price-Earnings Ratio = $4.75 ÷ $0.105 = 45.1x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … For example, if you accidentally compared lower growth firms with AWRE, then AWRE’s P/E would naturally be higher since investors would reward AWRE’s higher growth with a higher price. … Alternatively, if you inadvertently compared riskier firms with AWRE, AWRE’s P/E would again be higher since investors would reward AWRE’s lower risk with a higher price as well.

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AWRE Company Info

Description

Aware, Inc. provides software and services for the biometrics industry in the United States, the United Kingdom, Brazil, and internationally. It offers biometrics software products, including biometric search and matching software development kits (SDKs), biometric enrollment SDKs and application program interfaces (APIs), identity text analytics SDK – Inquire, biometric services platform – BioSP, and cluster-based matching platform – Astra; and integrated solutions comprising Knomi, AwareABIS, WebEnroll, and Indigo, as well as biometric applications that enable various functions in biometrics systems, such as enrollment, analysis, and processing of biometric images and data on workstations or mobile devices; integration of peripheral biometric capture devices; centralized workflow, transaction processing, and subsystem integration; matching of biometric samples against biometric databases to authenticate or verify identities; and analysis and processing of text-based identity data. The company also provides imaging products for medical applications, such as JPEG2000 product to compress, store, and display images, as well as software maintenance services. In addition, it offers software engineering services comprising project planning and management; system design; software design, development, customization, configuration, and testing; and software integration and installation. The company’s software products are used in government and commercial biometrics systems to identify or authenticate people. It sells its biometrics software products and services through systems integrators, OEMs, and directly to end user customers. Aware, Inc. was founded in 1986 and is headquartered in Bedford, Massachusetts.

Details
Name: Aware, Inc.
AWRE
Exchange: NasdaqGM
Founded: 1986
$80,460,389
21,571,150
Website: http://www.aware.com
Address: Aware, Inc.
40 Middlesex Turnpike,
Bedford,
Massachusetts, 01730,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGM AWRE Common Stock Nasdaq Global Market US USD 09. Aug 1996
DB AWR Common Stock Deutsche Boerse AG DE EUR 09. Aug 1996
Number of employees
Current staff
Staff numbers
67
Aware employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 23:32
End of day share price update: 2019/03/20 00:00
Last earnings filing: 2019/02/19
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.