Opinions Robert McWhirter
Absolute Software Corp.ABST.TOTOP PICKNov 10, 2014
Stock price when the opinion was issued
As of Jul 28, 2023. Market Open.
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The stock drifted along under $12 through 2022 to August when it moved up to about $16 which held to the start of November when it fell to its month-end close of $13.24. ABST is a leading provider of self-healing endpoint and secure access solutions. This involves the only undeletable defense platform embedded in more than 600,000 devices, which helps some 18,000 customers protect against the escalating threat of ransomware and malicious attacks. It enjoys a relationship with over 1,100 partners, including several global carriers and unique integrations with 28 leading PC OEMs (including Dell and HP). For the first fiscal quarter ended September 30, 2022 revenue was $53.6 million, up 23% over the comparable prior year period, (adjusted revenue at $54.2 million grew a like percent) but the net loss was $9.5 million, 25% worse than the prior period. This was attributed to an increase in salaries related to employee headcount in support of projected growth. Management confirmed the fiscal year (ending June 30, 2023) outlook for adjusted revenue to grow 14.8% minimum and adjusted EBITDA 21%.
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Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Dividend yield of 2.3%. Good growth driven by acquisition of NetMotion. Management increased FY2023 guidance. Long-term tailwinds from remote access requirement. Unlock Premium - Try 5i Free
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Dividend yield of 2.3%. Good growth driven by acquisition of NetMotion. Management increased FY2023 guidance. Long-term tailwinds from remote access requirements. Unlock Premium - Try 5i Free
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Absolute Software Corp (ABST) stock was up 11.14% on the month. Enjoys a relationship with over 1,100 partners, including several global carriers and unique integrations. Revenue for the quarter ended June 30, 2022, at US$52.5 million (97% recurring). Cash on hand on June 30th, 2022 was $64 million. Unlock Premium - Try 5i Free
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The acquisition of Netmotion added a lot of debt. The company has historically had net excess cash. They reported a weaker quarter. It is down 50% from highs. Proceed slowly with a partial position. Unlock Premium - Try 5i Free
Stockchase Insights
Makes firmware embedded security, particularly for laptops and tablets as well as for the management of computer and mobile devices. New CEO. Reported 10% sales growth. Free cash flow yield of 2.7%. Cash of $80 million is 23% of their market cap. Cash flow is expected to grow at 17% in 2015, and accelerate to 19% for the June/16 year. Shares are trading at an enterprise value of 7X. Looks reasonably priced.