NasdaqGM:AWRE

Stock Analysis Report

Executive Summary

Aware, Inc. provides software and services for the biometrics industry in the United States, the United Kingdom, Brazil, and internationally.

Snowflake

Fundamentals

Flawless balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: AWRE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.1%

AWRE

1.8%

US Software

0.5%

US Market


1 Year Return

-19.4%

AWRE

29.9%

US Software

12.8%

US Market

Return vs Industry: AWRE underperformed the US Software industry which returned 29.9% over the past year.

Return vs Market: AWRE underperformed the US Market which returned 12.8% over the past year.


Shareholder returns

AWREIndustryMarket
7 Day1.1%1.8%0.5%
30 Day-2.4%3.2%4.3%
90 Day-3.1%3.5%8.0%
1 Year-19.4%-19.4%31.9%29.9%15.3%12.8%
3 Year-48.9%-48.9%126.7%118.2%48.3%38.7%
5 Year-34.1%-34.1%167.5%148.6%62.6%44.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.01x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate AWRE's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate AWRE's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: AWRE is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: AWRE is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AWRE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AWRE is good value based on its PB Ratio (1x) compared to the US Software industry average (5.9x).


Next Steps

Future Growth

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

38.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AWRE is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: AWRE is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: AWRE is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if AWRE's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if AWRE's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Aware performed over the past 5 years?

-36.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AWRE has high quality earnings.

Growing Profit Margin: AWRE's current net profit margins (-1.6%) are lower than last year (0.2%).


Past Earnings Growth Analysis

Earnings Trend: AWRE is unprofitable, and losses have increased over the past 5 years at a rate of -36.3% per year.

Accelerating Growth: Unable to compare AWRE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AWRE is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (26.8%).


Return on Equity

High ROE: AWRE has a negative Return on Equity (-0.37%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Aware's financial position?


Financial Position Analysis

Short Term Liabilities: AWRE's short term assets ($56.1M) exceeds its short term liabilities ($5.1M)

Long Term Liabilities: AWRE's short term assets (56.1M) exceeds its long term liabilities (64.0K)


Debt to Equity History and Analysis

Debt Level: AWRE is debt free.

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

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

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


Balance Sheet

Inventory Level: AWRE has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if AWRE's debt is covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate AWRE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AWRE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AWRE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AWRE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AWRE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

0.2yrs

Average management tenure


CEO

Bob Eckel (61yo)

0.2yrs

Tenure

0

Mr. Robert E. Eckel, also known as Bob, serves as Chief Executive Officer, President and Director of Aware, Inc. since September 19, 2019. He also serves as Chief Executive Officer of Morphotrust and Execu ...


Management Age and Tenure

0.2yrs

Average Tenure

58.5yo

Average Age

Experienced Management: AWRE's management team is not considered experienced ( 0.2 years average tenure), which suggests a new team.


Board Age and Tenure

8.1yrs

Average Tenure

56yo

Average Age

Experienced Board: AWRE's board of directors are considered experienced (8.1 years average tenure).


Insider Trading

Insider Buying: AWRE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$16,54007 Nov 19
Robert Eckel
EntityIndividual
Role
Chief Executive Officer
President
Shares5,886
Max PriceUS$2.83
BuyUS$5,62606 Nov 19
John Stafford
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$2.83
BuyUS$3,596,54113 Aug 19
John Stafford
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,238,052
Max PriceUS$2.91
SellUS$234,47113 Aug 19
John Stafford
EntityIndividual
Shares72,856
Max PriceUS$3.66
SellUS$3,596,54113 Aug 19
John Stafford
EntityIndividual
Shares1,238,052
Max PriceUS$2.91
SellUS$27,82027 Mar 19
John Stafford
EntityIndividual
Shares7,041
Max PriceUS$4.10

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • David Martin (61yo)

    CFO & Treasurer

    • Tenure: 2.7yrs
    • Compensation: US$327.84k
  • Bob Eckel (61yo)

    President

    • Tenure: 0.2yrs
  • Kevin Russell (56yo)

    Chief Legal & Administrative Officer and Director

    • Tenure: 8.1yrs
    • Compensation: US$438.25k
  • Rob Mungovan (56yo)

    Chief Commercial Officer

    • Tenure: 0.08yrs

Board Members

  • Rick Moberg (64yo)

    Director

    • Tenure: 8.1yrs
    • Compensation: US$42.00k
  • Adrian Kruse (79yo)

    Independent Director

    • Tenure: 16.1yrs
    • Compensation: US$42.00k
  • Bob Eckel (61yo)

    President

    • Tenure: 0.2yrs
  • Brent Johnstone (48yo)

    Chairman

    • Tenure: 0.7yrs
    • Compensation: US$42.00k
  • John Stafford (49yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$42.00k
  • Kevin Russell (56yo)

    Chief Legal & Administrative Officer and Director

    • Tenure: 8.1yrs
    • Compensation: US$438.25k
  • Brian Connolly (49yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$42.00k

Company Information

Aware, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aware, Inc.
  • Ticker: AWRE
  • Exchange: NasdaqGM
  • Founded: 1986
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$61.459m
  • Shares outstanding: 21.49m
  • Website: https://www.aware.com

Number of Employees


Location

  • Aware, Inc.
  • 40 Middlesex Turnpike
  • Bedford
  • Massachusetts
  • 1730
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AWRENasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDAug 1996
AWRDB (Deutsche Boerse AG)YesCommon StockDEEURAug 1996

Biography

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 sea ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/12 23:31
End of Day Share Price2019/11/12 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.