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 with moderate growth potential.


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


Market Performance


7 Day Return

3.3%

AWRE

-4.4%

US Software

0.07%

US Market


1 Year Return

-22.0%

AWRE

19.3%

US Software

8.9%

US Market

Return vs Industry: AWRE underperformed the US Software industry which returned 19.3% over the past year.

Return vs Market: AWRE underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

AWREIndustryMarket
7 Day3.3%-4.4%0.07%
30 Day-1.7%-4.4%-0.3%
90 Day-4.6%-9.3%-1.6%
1 Year-22.0%-22.0%21.1%19.3%11.3%8.9%
3 Year-44.0%-44.0%108.2%99.8%46.3%36.8%
5 Year-32.2%-32.2%157.9%139.3%62.1%44.3%

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?

52x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AWRE ($2.91) is trading above our estimate of fair value ($0.01)

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


Price To Earnings Ratio

PE vs Industry: AWRE is poor value based on its PE Ratio (52x) compared to the Software industry average (45x).

PE vs Market: AWRE is poor value based on its PE Ratio (52x) compared to the US market (17.8x).


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 (5.3x).


Next Steps

Future Growth

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

28.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AWRE's forecast earnings growth (28% per year) is above the savings rate (2.7%).

Earnings vs Market: AWRE's earnings (28% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly 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?

-28.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AWRE's earnings have declined by -28.8% per year over the past 5 years.

Accelerating Growth: AWRE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AWRE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (19.1%).


Return on Equity

High ROE: AWRE's Return on Equity (2%) is considered low.


Return on Assets

ROA vs Industry: AWRE's Return on Assets is below or equal to the Software industry average last year.


Return on Capital Employed

ROCE Improving: AWRE's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Aware's financial position?


Financial Position Analysis

Short Term Liabilities: AWRE's short term assets ($55.8M) exceeds its short term liabilities ($3.9M)

Long Term Liabilities: AWRE's short term assets (55.8M) exceeds its long term liabilities (79.0K)


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%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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?

0.08yrs

Average management tenure


CEO

Bob Eckel (61yo)

0.08yrs

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

0.08yrs

Average Tenure

58.5yo

Average Age

Experienced Management: AWRE's management team is not considered experienced ( 0.1 years average tenure), which suggests a new team.


Board Age and Tenure

8.0yrs

Average Tenure

56yo

Average Age

Experienced Board: AWRE's board of directors are considered experienced (8 years average tenure).


Insider Trading

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


Recent Insider Transactions

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


Management Team

  • David Martin (61yo)

    CFO & Treasurer

    • Tenure: 2.6yrs
    • Compensation: US$327.84k
  • Bob Eckel (61yo)

    President

    • Tenure: 0.08yrs
  • Kevin Russell (56yo)

    Chief Legal & Administrative Officer and Director

    • Tenure: 8yrs
    • Compensation: US$438.25k
  • Rob Mungovan (56yo)

    Chief Commercial Officer

    • Tenure: 0yrs

Board Members

  • Rick Moberg (64yo)

    Director

    • Tenure: 8yrs
    • Compensation: US$42.00k
  • Adrian Kruse (79yo)

    Independent Director

    • Tenure: 16yrs
    • Compensation: US$42.00k
  • Bob Eckel (61yo)

    President

    • Tenure: 0.08yrs
  • Brent Johnstone (48yo)

    Chairman

    • Tenure: 0.6yrs
    • 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: 8yrs
    • 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$62.777m
  • Shares outstanding: 21.57m
  • 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 Analysis2019/10/23 23:33
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
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.