View: Buy
A sticky, recurring-revenue HCM consolidator with structural pricing power and cross-sell optionality, trading at a discount to peers. Key risks are integration of acquisitions, execution on cross-sell, and sustaining organic growth.
Key Statistics:
Market Cap $222.28M
Total Debt $73.03M
Cash & Inv. $66.00M
Enterprise Value $229.31M
NTM P/E 8.3x
NTM EV/Sales 1.5x
EV/EBITDA 6.4x
ASUR (~$240M market cap/EV) provides Human Capital Management solutions for growing businesses, serving over 100k clients and 2M+ employees in the U.S. It is a serial acquirer and rolling up businesses in the HCM space (last ~2 years have seen 16+ acquisitions)
Asure's solutions are described as "sticky," with clients typically staying for 8-10 years. The expected customer relationship period is estimated to be 8 years
The company currently offers a range of HCM products/tools:
Payroll/tax filing
HR software & consulting: tools to navigate federal/state/municipal regulations and ensuring compliance
Benefits administration for healthcare, 401(k), etc.
Time management for payroll
Recruiting tools: automates postings on job boards/other hiring workflows
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