Aware Inc. (Massachusetts)

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AWRE : NASDAQ : Technology Services
$4.53 | %
Today's Range: 4.3641 - 4.6
Avg. Daily Volume: 16500.0
02/16/18 - 2:21 PM ET

Financial Analysis


AWARE INC's gross profit margin for the third quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. AWARE INC is extremely liquid. Currently, the Quick Ratio is 12.46 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.31% 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 Q3 FY17 Q3 FY16
Net Sales ($mil)5.926.14
EBITDA ($mil)1.792.48
EBIT ($mil)1.662.31
Net Income ($mil)1.231.57


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)49.1352.27
Total Assets ($mil)65.1363.73
Total Debt ($mil)0.00.0
Equity ($mil)60.5958.65


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin30.2840.36
EBITDA Margin30.2840.35
Operating Margin28.0937.68
Sales Turnover0.290.39
Return on Assets3.568.58
Return on Equity3.839.32
Debt Q3 FY17 Q3 FY16
Current Ratio12.5411.75
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)21.6122.63
Div / share0.00.0
EPS0.060.07
Book value / share2.82.59
Institutional Own % n/a n/a
Avg Daily Volume17647.019850.0

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 583.58 for the Software industry and a significant premium compared to the S&P 500 average of 24.11. For additional comparison, its price-to-book ratio of 1.52 indicates a significant discount versus the S&P 500 average of 3.08 and a significant discount versus the industry average of 11.52. 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 38.64 Peers 583.58   AWRE 53.32 Peers 22.16

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.

 

Premium. 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 premium 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 37.27   AWRE NA Peers 2.57

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 1.52 Peers 11.52   AWRE -54.17 Peers -10.16

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.

 

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

However, AWRE is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AWRE 4.85 Peers 7.00   AWRE -23.79 Peers 17.24

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 significant 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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