NEW YORK ( TheStreet) -- Asure Software (Nasdaq: ASUR) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and generally weak debt management. Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Software industry. The net income has significantly decreased by 1077.3% when compared to the same quarter one year ago, falling from $0.07 million to -$0.65 million.
- The debt-to-equity ratio is very high at 3.11 and currently higher than the industry average, implying that there is very poor management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.36, which clearly demonstrates the inability to cover short-term cash needs.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Software industry and the overall market, ASURE SOFTWARE INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for ASURE SOFTWARE INC is currently very high, coming in at 72.20%. Regardless of ASUR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ASUR's net profit margin of -17.70% significantly underperformed when compared to the industry average.
- ASURE SOFTWARE INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, ASURE SOFTWARE INC continued to lose money by earning -$0.21 versus -$0.37 in the prior year.
-- Written by a member of TheStreet Ratings Staff