Asure (ASUR) AI Stock Analysis

• Market Cap: $263.76M
• Dividend Yield: N/A
• Average Volume (3M): 84.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: 14.54%
• EPS Growth: -33.11%
• Country: US
• Employees: 621
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.14
• Shares Outstanding: 27,763,878
• 10 Day Avg. Volume: 68,414
• 30 Day Avg. Volume: 84,361
• PEG Ratio: -2.92
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 2.05
• P/FCF Ratio: -16.62
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 2.13
• Enterprise Value/Gross Profit: 3.18
• Enterprise Value/Ebitda: 32.86
• 1Y Price Target: $17.21
• Price Target Upside: 81.16% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.92
• Revenue Forecast (FY): $159.53M

• Rating: 62 Neutral
• Price Target: $8.00 ▼(-15.79% Downside)

Asure's overall stock score reflects strong revenue growth and improved cash flow, but is tempered by ongoing profitability challenges and bearish technical indicators. The positive outlook from the earnings call provides some optimism, but valuation concerns persist.

Positive Factors

Revenue Growth

The significant year-over-year revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Successful Acquisition Integration

Effective integration of acquisitions like Lathem Time enhances product offerings and cross-selling opportunities, strengthening competitive position.

New Client Interface Launch

Innovative product launches like Asure Central can improve customer engagement and drive additional revenue streams, supporting long-term growth.

Negative Factors

Decline in Bookings

A significant drop in bookings suggests potential challenges in securing new business, which could impact future revenue growth and market share.

Net Loss Increase

Rising net losses indicate ongoing profitability challenges, which could strain financial resources and limit investment in growth initiatives.

Gross Margin Decrease

Declining gross margins may reflect increased costs or pricing pressures, potentially affecting the company's ability to maintain profitability.

Asure Business Overview & Revenue Model

Company Description

Asure Software, Inc. provides cloud-based human capital management solutions the United States. It helps various small and mid-sized businesses to build productive teams to help them stay compliant and allocate resources to grow their business. The company's solutions include Asure Payroll & Tax, an integrated cloud-based solution automates regulations associated with payroll and taxes, including wages, benefits, overtime, garnishments, tips, direct deposits, and fair labor standard act, as well as federal, state, and local payroll taxes; Asure (human resource) HR, a cloud-based functionality that handles HR complexities, such as employee self-service that enable employees to access information, pay history, and company documents; and Asure Time & Attendance that provides cost savings and return on investment gains come in the form of strategic use of labor dollars and the elimination of time theft. It also provides HR services that offers services comprising on-demand HR resource library, phone and email support for any HR issues, and compliance and policy updates; support for strategic HR decision making; and HR outsourcing solution, as well as data integration with related third-party systems, such as 401(k), benefits, and insurance provider systems. Asure Software, Inc. was incorporated in 1985 and is headquartered in Austin, Texas.

How the Company Makes Money

Asure generates revenue primarily through subscription fees from its cloud-based HCM solutions, which are typically billed on a monthly or annual basis. The company offers various service packages that include payroll, human resources, and compliance services, allowing clients to choose the level of support they need. Additional revenue streams come from value-added services such as consulting and implementation support. Asure also benefits from strategic partnerships with technology providers and payroll service companies, which help expand its market reach and enhance the functionality of its offerings. Continuous investment in product development and customer support further contribute to customer retention and revenue growth.

Asure Financial Statement Overview

Summary

Asure shows strong revenue growth and improved cash flow, but faces challenges with profitability. The balance sheet is stable with a reasonable debt level, yet the company needs to enhance its return on equity and net profit margins for sustainable growth.

Income Statement

Asure has shown a positive revenue growth trend, with a 5.56% increase in the TTM period. However, profitability remains a challenge, as indicated by negative net profit and EBIT margins. The gross profit margin is relatively strong at 67.10%, suggesting effective cost management. Despite revenue growth, the company needs to address its negative net income to improve overall financial health.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.40 in the TTM period. However, the negative return on equity indicates that the company is not generating sufficient returns on its equity base. The equity ratio is healthy, suggesting a solid capital structure, but improving profitability is crucial for enhancing shareholder value.

Cash Flow

Asure's cash flow performance has improved significantly, with a remarkable 1240.51% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is strong at 0.70, indicating efficient cash generation relative to net income. The company has effectively turned around its cash flow position, but sustaining this momentum is key to long-term success.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	132.02M	119.79M	119.08M	95.83M	76.06M	65.51M
Gross Profit	88.59M	82.11M	85.54M	62.51M	46.56M	38.09M
EBITDA	8.57M	-10.74M	15.81M	10.49M	23.85M	1.42M
Net Income	-17.09M	-11.77M	-9.21M	-14.47M	3.19M	-16.31M
Balance Sheet
Total Assets	447.08M	436.64M	443.87M	419.91M	433.25M	515.42M
Cash, Cash Equivalents and Short-Term Investments	21.52M	21.43M	30.32M	17.01M	13.43M	28.58M
Total Debt	77.17M	17.73M	10.44M	43.22M	41.32M	33.57M
Total Liabilities	253.99M	239.32M	252.21M	274.84M	275.00M	369.77M
Stockholders Equity	193.09M	197.31M	191.66M	145.07M	158.24M	145.65M
Cash Flow
Free Cash Flow	4.25M	-14.75M	2.64M	4.84M	-28.42M	-14.54M
Operating Cash Flow	20.71M	9.39M	18.90M	13.67M	1.38M	2.23M
Investing Cash Flow	-79.22M	-19.26M	-29.52M	-36.00M	-36.97M	-19.41M
Financing Cash Flow	11.25M	-22.04M	24.20M	-12.38M	-90.65M	208.10M

Asure Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASUR, the sentiment is Positive. The current price of 9.5 is above the 20-day moving average (MA) of 9.09, above the 50-day MA of 8.51, and above the 200-day MA of 9.01, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 68.37 is Neutral, neither overbought nor oversold. The STOCH value of 80.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASUR.

Asure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASUR	62 Neutral	$263.76M	-15.11	-8.71%	―	14.54%	-33.11%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LAW	54 Neutral	$463.69M	-7.39	-41.00%	―	6.33%	-66.34%
FRGE	48 Neutral	$620.10M	-9.09	-28.65%	―	16.40%	22.80%
EGHT	48 Neutral	$264.80M	-42.44	-4.88%	―	0.25%	92.10%
WALD	47 Neutral	$188.73M	-0.82	-36.11%	―	14.22%	-141.64%
NRDY	46 Neutral	$198.57M	-3.09	-120.79%	―	-9.86%	0.87%