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 several key financial ratios that suggest significant potential for improvement and growth.
The price-to-book (PB) ratio of Asure Software stands at 1.23, notably lower than the sector average of 2.39. This ratio indicates that the company's market value is undervalued relative to its book value, suggesting that investors are not fully recognizing the company's underlying worth.
Furthermore, Asure's net profit margin is -7.74%, compared to the sector average of 0.83%. A negative profit margin indicates that the company is currently operating at a loss. However, this could represent an opportunity for recovery as management focuses on improving operational efficiency and cost control.
The return on equity (ROE) for Asure is -4.81%, significantly below the sector average of 1.74%. This negative ratio reflects the challenges the company faces in generating profit from shareholders' equity. However, it also highlights potential for future gains if the company can return to positive earnings.
Lastly, the return on assets (ROA) is -2.08% versus the sector average of 0.41%. This negative ROA suggests that the company is not currently utilizing its assets effectively to generate profits, yet it also indicates a room for operational improvements.
In summary, Asure Software's lower valuations across multiple financial ratios suggest it may be undervalued in the market, presenting a potential opportunity for investors.
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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