- Absolute Software continues to grow its free cash flow in the first quarter of the current financial year despite the lower net income.
- The massive difference between D&A expenses and capex results in a FCF result 2-3X higher than the reported net income.
- Trading at a FCF yield on the enterprise value of in excess of 5.4% and further growth to be expected, I'm interested in going long.
- Approximately 20% of the market cap is backed by net cash - but keep in mind you should offset this against the "unearned revenue."
For further details see:
Absolute Software: A Strong Free Cash Flow Creates Possibilities