AWRE : NASDAQ : Technology
$6.0 -0.4 | -6.3%
Today's Range: 5.95 - 6.3895
Avg. Daily Volume: 65900.0
01/17/17 - 3:59 PM ET

Financial Analysis


AWARE INC's gross profit margin for the third quarter of its fiscal year 2016 has significantly decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased. AWARE INC is extremely liquid. Currently, the Quick Ratio is 11.67 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 8.67% 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 FY16 Q3 FY15
Net Sales ($mil)6.144.04
EBITDA ($mil)2.480.59
EBIT ($mil)2.310.43
Net Income ($mil)1.572.2


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)52.2746.42
Total Assets ($mil)63.7357.51
Total Debt ($mil)0.00.0
Equity ($mil)58.6553.97


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin40.3693.79
EBITDA Margin40.3514.67
Operating Margin37.6810.59
Sales Turnover0.390.3
Return on Assets8.585.26
Return on Equity9.325.6
Debt Q3 FY16 Q3 FY15
Current Ratio11.7514.87
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)22.6322.93
Div / share0.00.0
EPS0.070.1
Book value / share2.592.35
Institutional Own % n/a n/a
Avg Daily Volume64490.051358.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 50.22 for the Software industry and a value on par with the S&P 500 average of 25.49. To use another comparison, its price-to-book ratio of 2.43 indicates a discount versus the S&P 500 average of 2.84 and a significant discount versus the industry average of 7.84. The current price-to-sales ratio is well above the S&P 500 average, but 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 26.25 Peers 50.22   AWRE 19.66 Peers 22.87

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 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 50.61   AWRE NA Peers 0.80

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 2.43 Peers 7.84   AWRE 84.61 Peers 25.26

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 5.74 Peers 5.84   AWRE 46.16 Peers 5.17

Average. 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 valuation on par with its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

AWRE has a sales growth rate that significantly exceeds its peers.

 

 

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