AWRE : NASDAQ : Technology
$4.48 up 0.08 | 1.80%
Today's Range: 4.33 - 4.51
Avg. Daily Volume: 14,500
07/26/16 - 1:29 PM ET

Financial Analysis


AWARE INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. AWARE INC is extremely liquid. Currently, the Quick Ratio is 8.64 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 7.53% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)4.834.12
EBITDA ($mil)1.040.53
EBIT ($mil)0.880.38
Net Income ($mil)0.640.27


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)52.6544.69
Total Assets ($mil)64.0456.24
Total Debt ($mil)0.00.0
Equity ($mil)57.1953.19


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin89.6890.25
EBITDA Margin21.5512.83
Operating Margin18.29.31
Sales Turnover0.320.38
Return on Assets7.777.06
Return on Equity8.77.47
Debt Q1 FY16 Q1 FY15
Current Ratio8.7416.48
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)22.9922.87
Div / share0.00.0
EPS0.030.01
Book value / share2.492.33
Institutional Own % n/a n/a
Avg Daily Volume14557.013122.0

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 58.30 for the Software industry and a discount compared to the S&P 500 average of 25.05. To use another comparison, its price-to-book ratio of 1.76 indicates a discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 6.93. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, AWARE INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AWRE 19.86 Peers 58.30   AWRE 12.97 Peers 21.62

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

AWRE is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

AWRE is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AWRE NA Peers 47.03   AWRE NA Peers 0.84

Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential.

Ratio not available.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AWRE 1.76 Peers 6.93   AWRE 29.41 Peers -2.42

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

AWRE is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

AWRE is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AWRE 4.94 Peers 5.86   AWRE -4.22 Peers 5.32

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

AWRE is trading at a discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

AWRE significantly trails its peers on the basis of sales growth

 

 

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