NasdaqGM:AWRE

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.4%

AWRE

3.7%

US Software

-0.8%

US Market


1 Year Return

-7.4%

AWRE

52.2%

US Software

13.8%

US Market

Return vs Industry: AWRE underperformed the US Software industry which returned 48.3% over the past year.

Return vs Market: AWRE underperformed the US Market which returned 12% over the past year.


Shareholder returns

AWREIndustryMarket
7 Day-0.4%3.7%-0.8%
30 Day-2.6%-4.6%-5.0%
90 Day-14.0%10.2%10.1%
1 Year-7.4%-7.4%53.3%52.2%16.4%13.8%
3 Year-43.2%-43.2%148.7%140.4%36.9%27.8%
5 Year-21.2%-21.2%267.2%246.0%85.0%64.2%

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?

1.15x

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 US 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 (1.2x) compared to the US Software industry average (6.7x).


Next Steps

Future Growth

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

14.8%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Aware has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Aware performed over the past 5 years?

-69.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AWRE is currently unprofitable.

Growing Profit Margin: AWRE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AWRE is unprofitable, and losses have increased over the past 5 years at a rate of 69.6% 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 (13.9%).


Return on Equity

High ROE: AWRE has a negative Return on Equity (-24.12%), as it is currently unprofitable.


Next Steps

Financial Health

How is Aware's financial position?


Financial Position Analysis

Short Term Liabilities: AWRE's short term assets ($49.6M) exceed its short term liabilities ($5.0M).

Long Term Liabilities: AWRE's short term assets ($49.6M) exceed 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


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

0.8yrs

Average management tenure


CEO

Bob Eckel (62 yo)

1

Tenure

US$765,891

Compensation

Mr. Robert A. 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 ...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD765.89K) is about average for companies of similar size in the US market ($USD606.53K).

Compensation vs Earnings: Insufficient data to compare Bob's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Eckel
President1yrUS$765.89k0.50%
$ 283.6k
Mohamed Lazzouni
Chief Technology Officer0.83yrUS$269.85k0.040%
$ 22.9k
Robert Mungovan
Chief Commercial Officer0.92yrUS$2.53m0.53%
$ 300.4k
David Barcelo
CFO & Treasurer0.33yrno data0.047%
$ 26.4k
David Traverse
Controller0.42yrno datano data

0.8yrs

Average Tenure

60yo

Average Age

Experienced Management: AWRE's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Robert Eckel
President1yrUS$765.89k0.50%
$ 283.6k
Peter Faubert
Independent Director0.50yrno data0.023%
$ 13.2k
Brent Johnstone
Independent Chairman1.5yrsUS$76.55k0.44%
$ 248.6k
John Stafford
Independent Director9.67yrsUS$38.27k21.56%
$ 12.2m
Brian Connolly
Independent Director8.67yrsUS$38.27k0.47%
$ 264.0k

1.5yrs

Average Tenure

50yo

Average Age

Experienced Board: AWRE's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$56.761m
  • Shares outstanding: 21.50m
  • 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 Analysis2020/09/27 05:56
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.