Company Overview
Asure Software, Inc. operates within the Technology sector, specifically serving the Software - Application industry by providing cloud-based Human Capital Management (HCM) solutions designed to assist small and medium-sized businesses in building productive workforces. The company delivers its human resources tool as a Software-as-a-Service offering, enabling clients to manage various HR functions efficiently without the need for extensive on-premise infrastructure. Currently, the organization employs 627 individuals to support its operations and deliver its suite of HCM software solutions across the United States. With a market capitalization of $226.70M and annual revenue of $140.54M, the company holds a mid-tier market position that reflects its established presence in the niche SaaS market for smaller enterprises. These valuation and revenue figures indicate that Asure Software has achieved sufficient scale to generate significant top-line growth while maintaining a compact operational footprint relative to larger enterprise software peers.
Financial Health
The company reported a total revenue of $140.54M over the trailing twelve months, yet it recorded a net income loss of $13,126,000, revealing a cost structure where operating expenses significantly exceed gross profits before interest and taxes. Despite these losses, the company generated an EBITDA of $18.03M, suggesting that the core business operations are cash-flow positive before financing and non-cash charges, though this does not fully offset the bottom-line deficit. The firm's free cash flow stands at $-650,000, indicating a near-neutral cash generation capability that limits immediate financial flexibility for aggressive expansion or heavy capital expenditures without external financing. Profitability metrics show a gross margin of 67.5%, which reflects strong pricing power or cost efficiencies in delivering cloud software, while the operating margin of 4.5% and profit margin of -9.3% highlight substantial overhead costs relative to revenue. In terms of liquidity, the company holds $25.24M in cash against $74.80M in debt, resulting in a debt-to-equity ratio of 37.82 that characterizes a moderately leveraged balance sheet rather than a conservative, cash-rich stance. The current ratio of 1.07 indicates that the company's current assets barely exceed its current liabilities, signaling tight short-term liquidity conditions where working capital management is critical to avoiding default. Furthermore, the return on equity is -6.6% and the return on assets is -1.1%, metrics that collectively reveal that management has yet to generate positive returns on the capital invested in the business, primarily due to the ongoing net losses.
Valuation Assessment
The valuation metrics present a complex picture with a trailing P/E ratio of N/A due to negative earnings, while the forward P/E is 7.51, implying that the market expects earnings to turn positive in the future or is valuing the stock based on anticipated profitability rather than historical performance. The price-to-book ratio of 1.13 suggests that the market is pricing the company at a slight premium over its book value, indicating some level of intangible asset value or growth potential embedded in the equity price. Alternative valuation measures include a price-to-sales ratio of 1.61 and an EV/EBITDA of 15.32, which suggest the stock is trading at a moderate multiple relative to its sales and earnings before interest, taxes, depreciation, and amortization compared to historical averages for software firms. The stock's recent price action has seen a 52-week high of $11.48 and a 52-week low of $6.80, meaning the current trading price sits approximately 40% below the 52-week high if referencing a hypothetical current price near the low end, or requires specific context to determine the exact percentage distance from the highs based on real-time data not provided. The beta value of 0.47 indicates that the stock exhibits significantly lower price volatility relative to the broader market, moving less than half as much as the market index in either direction.
Growth & Income
Revenue growth stands at 27.7% year-over-year, demonstrating robust top-line expansion in the HCM software market, while earnings growth is N/A due to the current net loss status, implying that revenue growth is currently outpacing any potential earnings recovery as the company scales. The company does not pay dividends, as evidenced by a dividend yield of N/A and a payout ratio of 0.0%, meaning that all generated cash is reinvested into business operations, R&D, or debt reduction rather than distributed to shareholders. This non-dividend strategy aligns with the company's growth phase, where prioritizing market share and product development over income distribution is a common approach for software firms with negative net income. Overall, the growth and income profile is defined by high single-digit revenue expansion and a total reinvestment of capital, with no current income generation for investors seeking yield.