OTCPK:ALSW.F

Stock Analysis Report

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.


Snowflake Analysis

Solid track record with mediocre balance sheet.


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: ALSW.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.6%

ALSW.F

-9.9%

US Software

-10.6%

US Market


1 Year Return

5.6%

ALSW.F

20.4%

US Software

5.2%

US Market

Return vs Industry: ALSW.F underperformed the US Software industry which returned 20.4% over the past year.

Return vs Market: ALSW.F matched the US Market which returned 5.2% over the past year.


Shareholder returns

ALSW.FIndustryMarket
7 Day-6.6%-9.9%-10.6%
30 Day5.5%-5.5%-8.5%
90 Day15.4%1.9%-4.6%
1 Year9.8%5.6%21.7%20.4%7.4%5.2%
3 Year52.8%35.4%122.5%112.9%31.7%23.2%
5 Year8.7%-11.5%190.9%169.8%56.4%39.3%

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

No news available

Valuation

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

28.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ALSW.F ($7.31) is trading above our estimate of fair value ($6.63)

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


Price To Earnings Ratio

PE vs Industry: ALSW.F is good value based on its PE Ratio (28.1x) compared to the Software industry average (43.4x).

PE vs Market: ALSW.F is poor value based on its PE Ratio (28.1x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: ALSW.F's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ALSW.F has negative assets, so we can't compare its PB Ratio to the US Software industry average.


Next Steps

Future Growth

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

-6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALSW.F's earnings are forecast to decline over the next 3 years (-6.8% per year).

Earnings vs Market: ALSW.F's earnings are forecast to decline over the next 3 years (-6.8% per year).

High Growth Earnings: ALSW.F's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ALSW.F's revenue (7.5% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: ALSW.F's revenue (7.5% 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 ALSW.F's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Absolute Software performed over the past 5 years?

1.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALSW.F has high quality earnings.

Growing Profit Margin: ALSW.F's current net profit margins (10.5%) are higher than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: ALSW.F's earnings have grown by 1.7% per year over the past 5 years.

Accelerating Growth: ALSW.F's earnings growth over the past year (61.6%) exceeds its 5-year average (1.7% per year).

Earnings vs Industry: ALSW.F earnings growth over the past year (61.6%) exceeded the Software industry 18.4%.


Return on Equity

High ROE: ALSW.F's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Absolute Software's financial position?


Financial Position Analysis

Short Term Liabilities: ALSW.F has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: ALSW.F has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: ALSW.F is debt free.

Reducing Debt: ALSW.F's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

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

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


Balance Sheet

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

Debt Coverage by Assets: ALSW.F has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

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

3.30%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%1.6%markettop25%4.1%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: ALSW.F's dividend (3.3%) is higher than the bottom 25% of dividend payers in the US market (1.59%).

High Dividend: ALSW.F's dividend (3.3%) is low compared to the top 25% of dividend payers in the US market (4.09%).


Stability and Growth of Payments

Stable Dividend: ALSW.F has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ALSW.F's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (97.2%), ALSW.F'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?

1.0yrs

Average management tenure


CEO

Christy Wyatt (47yo)

1.3yrs

Tenure

US$2,884,689

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 ($USD2.88M) is above average for companies of similar size in the US market ($USD1.76M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Christy Wyatt
CEO, President & Director1.3yrsUS$2.88m0.12% $374.8k
Nicholas Van Someren
Chief Technology Officer0.8yrsUS$884.82kno data
Sean Maxwell
Chief Commercial Officer4.1yrsUS$1.33m0.0055% $16.9k
Leigh Ramsden
Interim Chief Financial Officer0yrsno data0.11% $329.7k
Dianne Lapierre
Chief Information Officer0.08yrsno datano data
Joo-Hun Kim
Investor Relations0yrsno datano data
Lang Michener
Legal Counsel0yrsno datano data
Sandra Toms
Chief Marketing Officer0.7yrsno datano data
Mark Gracey
Senior Vice President of Worldwide OEM0yrsUS$310.91k0.0045% $13.9k
Matt Meanchoff
Senior Vice President of Customer Experience2.1yrsno data0.046% $141.9k

1.0yrs

Average Tenure

Experienced Management: ALSW.F's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Christy Wyatt
CEO, President & Director1.3yrsUS$2.88m0.12% $374.8k
Arthur Coviello
Member of Advisory Board4.8yrsno datano data
Gerhard Watzinger
Independent Director5.2yrsUS$162.22kno data
Daniel Ryan
Independent Chairman6.2yrsUS$185.34k0.28% $855.8k
Salvatore Visca
Independent Director5.9yrsUS$155.34k0.028% $87.0k
Gregory Monahan
Independent Director7.2yrsUS$159.09k0.055% $169.2k
R. Atchison
Independent Director0.5yrsno datano data

5.2yrs

Average Tenure

58yo

Average Age

Experienced Board: ALSW.F's board of directors are considered experienced (5.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ALSW.F insiders have sold more shares than they have bought 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 3.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: Absolute Software Corporation
  • Ticker: ALSW.F
  • Exchange: OTCPK
  • Founded: 1993
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: CA$409.713m
  • Listing Market Cap: CA$306.626m
  • Shares outstanding: 42.28m
  • Website: https://www.absolute.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ABTTSX (The Toronto Stock Exchange)YesCommon SharesCACADMar 2000
OU1DB (Deutsche Boerse AG)YesCommon SharesDEEURMar 2000
ALSW.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 2000

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 enterprise and public sector organizations. The company offers the Absolute platform to detect, understand, and remediate vulnerabilities across endpoints on-demand; provide firmware-embedded and cloud-delivered security to automatically self-heal critical endpoint applications; and discover and protect at-risk data on endpoints and in the cloud, as well as for reporting and analytics, geotechnology, risk assessment and response, custom query and remediation, application persistence, data awareness, and endpoint investigation applications. It also provides professional, technical support, and investigation services. The Company markets its solutions through PC OEMs, distributors, and value added resellers, as well as directly to corporations, government entities, educational institutions, and consumers. It operates in North America, Europe, and South Africa, as well as the Asia-Pacific and Latin American regions. Absolute Software Corporation was founded in 1993 and is headquartered in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 01:38
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.