Patrick Goepel, CEO of Asure Software (ASUR, Financial), purchased 50,000 shares of the software company for $5.29 per share on Sept. 2, according to a Form 4 filing with the Securities and Exchange Commission. Goepel now owns a total of 650,097 shares, which represents 9.97% of the shares outstanding. Since the purchase, Asure Software’s market price has gained an estimated 21.55%.
Asure Software has a market cap of $41.9 million, an enterprise value of $72.59 million, a price-book (P/B) ratio of 13.74, a current ratio of 0.75 and a quick ratio of 0.74.
Asure Software is a Delaware corporation that was incorporated in 1985. The company focuses on bringing people and places together using a unified platform approach to business. The company focuses on helping its clients prepare their workplaces for a modern workforce. Asure Software serves a wide range of businesses, including Fortune 500 clients as well as small to mid-sized businesses. Some of its clients include Apple (AAPL, Financial), Deutsche Bank (DB, Financial), Merck & Co. (MRK, Financial), Pfizer (PFE, Financial), Salesforce (CRM, Financial) and Thomson Reuters (TRI, Financial), among others. The company currently has approximately 6,000 clients that are located in 80 countries across the world. The company's mission is, "To deliver innovative technology with the passion to empower every client’s workplace and the commitment to make their workdays easier.”
According to GuruFocus, Asure Software has a 2 of 10 financial strength rating with a cash to debt ratio of 0.01. Its Piotroski F-Score of 3 usually indicates a poor business operation. The company also has a 5 of 10 profitability and growth rating with an operating margin of -1.72%, a ROE of -76.73%, a ROA of -5.44% and a ROC (Joel Greenblatt (Trades, Portfolio)) of -53.78%, whick rank it beneath 75% of the 1871 companies in the global software applications industry.
GuruFocus has detected 4 severe warning signs that investors should pay attention to.
- Asure Software has a low Piotroski F-Score, which usually implies a poor business operation.
- The company’s gross margin has been in long-term decline. The average rate of decline is 1.20% over the previous 5 years.
- The company’s asset growth is faster than its revenue growth. If a company builds asset at 41.2% a year, faster than its revenue growth rate of 17.3% over the past 5 years, it means that the company may be getting less efficient.
- The company’s days inventory is building up. If a company builds up inventory, it may mean it is having difficulties selling its goods.
According to the Peter Lynch Chart below, Asure Software is trading above its intrinsic value.
Patrick Goepel has more than 20 years of experience in the human resources outsourcing industry. Before joining Asure Software, he was president and CEO of Fidelity Investment’s HR services division, president and CEO of Advantec and executive vice president at Ceridian. Goepel serves on the boards of Allover Media and SafeGuard World International. He also serves as the CEO of APPD Investments.
Disclosure: Author does not own any shares of this company.
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