Absolute Beneish M Score

ABST
 Stock
  

USD 9.97  0.02  0.20%   

This module uses fundamental data of Absolute Software to approximate the value of its Beneish M Score. Absolute Software M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please continue to Absolute Software Piotroski F Score and Absolute Software Altman Z Score analysis.
  
Absolute Software Total Debt is comparatively stable at the moment as compared to the past year. Absolute Software reported Total Debt of 277.14 Million in 2021. Debt Non Current is likely to gain to about 292.9 M in 2022, whereas Debt Current is likely to drop slightly above 5 M in 2022. Absolute Software Book Value per Share is comparatively stable at the moment as compared to the past year. Absolute Software reported Book Value per Share of 0.06 in 2021. Current Ratio is likely to gain to 0.95 in 2022, whereas Free Cash Flow per Share is likely to drop 0.74 in 2022.
At this time, it appears that Absolute Software is an unlikely manipulator. The earnings manipulation may begin if Absolute Software's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Absolute Software executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Absolute Software's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-3.15
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.97Focus
Asset Quality0.89Focus
Expense Coverage0.98Focus
Gross Margin Strengs0.97Focus
Accruals Factor0.98Focus
Depreciation Resistance1.06Focus
Net Sales Growth0.91Focus
Financial Leverage Condition1.14Focus

Absolute Software Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Absolute Software's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense109.1 M122.9 M
Fairly Down
Increasing
Slightly volatile
Revenues179.4 M197.3 M
Moderately Down
Increasing
Slightly volatile
Trade and Non Trade Receivables46.3 M52.7 M
Fairly Down
Increasing
Slightly volatile
Property Plant and Equipment Net15 M14.7 M
Fairly Up
Increasing
Slightly volatile
Operating Income(7.3 M)(7.1 M)
Fairly Down
Decreasing
Slightly volatile
Net Cash Flow from Operations38.6 M39.8 M
Sufficiently Down
Increasing
Slightly volatile
Liabilities Non Current407.9 M378.1 M
Significantly Up
Increasing
Slightly volatile
Current Liabilities164.6 M174.3 M
Notably Down
Increasing
Slightly volatile
Total Liabilities447.9 M552.4 M
Significantly Down
Increasing
Slightly volatile
Investments Current332.5 K324 K
Fairly Up
Decreasing
Slightly volatile
Investments332.5 K324 K
Fairly Up
Decreasing
Slightly volatile
Gross Margin0.790.814
Sufficiently Down
Decreasing
Slightly volatile
Depreciation Amortization and Accretion32.4 M39 M
Significantly Down
Increasing
Slightly volatile
Debt Non Current292.9 M271.4 M
Significantly Up
Increasing
Slightly volatile
Debt CurrentM5.7 M
Fairly Down
Increasing
Slightly volatile
Total Debt299 M277.1 M
Significantly Up
Increasing
Slightly volatile
Assets Non Current452.3 M419.2 M
Significantly Up
Increasing
Slightly volatile
Current Assets139.9 M136.4 M
Fairly Up
Increasing
Slightly volatile
Total Assets440.3 M555.6 M
Significantly Down
Increasing
Slightly volatile

Absolute Software Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Absolute Software's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Absolute Software in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Absolute Software's degree of accounting gimmicks and manipulations.

About Absolute Software Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation Amortization and Accretion

32.38 Million

Absolute Software Depreciation Amortization and Accretion is comparatively stable at the moment as compared to the past year. Absolute Software reported Depreciation Amortization and Accretion of 38.96 Million in 2021

About Absolute Software Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Absolute Software's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Absolute Software using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Absolute Software based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Absolute Software Corporation develops, markets, and provides software services that support the management and security of computing devices, applications, data, and networks for various organizations. Absolute Software Corporation was incorporated in 1993 and is headquartered in Vancouver, Canada. Absolute Software operates under SoftwareApplication classification in the United States and is traded on NASDAQ Exchange.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Absolute Software without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Pair Trading with Absolute Software

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Absolute Software position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Absolute Software will appreciate offsetting losses from the drop in the long position's value.

Moving against Absolute Software

-0.79BABoeing TrendingPairCorr
-0.6JPMJPMorgan Chase Fiscal Year End 13th of January 2023 PairCorr
The ability to find closely correlated positions to Absolute Software could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Absolute Software when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Absolute Software - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Absolute Software to buy it.
The correlation of Absolute Software is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Absolute Software moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Absolute Software moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Absolute Software can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Please continue to Absolute Software Piotroski F Score and Absolute Software Altman Z Score analysis. You can also try Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

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Is Absolute Software's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Absolute Software. If investors know Absolute will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Absolute Software listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
(0.20) 
Market Capitalization
523.1 M
Quarterly Revenue Growth YOY
0.22
Return On Assets
(0.0006) 
Return On Equity
(4.00) 
The market value of Absolute Software is measured differently than its book value, which is the value of Absolute that is recorded on the company's balance sheet. Investors also form their own opinion of Absolute Software's value that differs from its market value or its book value, called intrinsic value, which is Absolute Software's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Absolute Software's market value can be influenced by many factors that don't directly affect Absolute Software's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Absolute Software's value and its price as these two are different measures arrived at by different means. Investors typically determine Absolute Software value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Absolute Software's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.