- Absolute helps clients track and secure their mobile computing devices.
- The company’s revenue is mainly generated in North America. If the company successfully sells software overseas, revenue growth will most likely increase.
- In my view, the recent acquisition of NetMotion proves that management is really trying to increase the number of endpoint protection software available for clients.
- If we also assume an EBITDA margin of 20% to 21%, operating margin of 6.7%-6%, and capex/sales ratio of 0.20%-0.42%, the implied FCF would be $51-$101 million.
- In my view, the recent acquisition of NetMotion could generate a significant number of synergies and FCF growth.
For further details see:
I Buy The Dip Of Absolute Software Because Of New Acquisition And Third-Party Tools