Asure Software, based in Austin, Texas, provides human capital management solutions, including cloud-based Payroll and HR services, to employers through its AsureHCM suite and reseller partners. The company employs 564 people and offers three levels of HR services.
Based on our analysis, Asure Software has received an undervalued rating of 4 out of 5 stars from Cashu, primarily due to its attractive price-to-book (PB) ratio and potential for recovery in profitability metrics. The company's PB ratio stands at 1.23, significantly lower than the sector average of 2.39. A lower PB ratio suggests that the stock may be undervalued relative to its assets, indicating an opportunity for investors.
Despite facing challenges, Asure's financial ratios highlight areas for improvement. The net profit margin is currently -7.74, compared to the sector average of 0.83. This negative margin suggests that the company is operating at a loss, but it also indicates potential for turnaround as operational efficiencies are realized.
The return on equity (ROE) ratio of -4.81 is below the sector average of 1.74, reflecting that the company has not effectively generated profit from shareholder equity. However, this negative ROE can be viewed as a temporary setback, offering a chance for future growth as management implements strategies to enhance profitability.
Lastly, the return on assets (ROA) ratio stands at -2.08 versus the sector's 0.41. A negative ROA suggests that the company is not efficiently utilizing its assets to generate earnings. However, as operational conditions improve, this ratio could rebound, further enhancing the company's financial health.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
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