ASANASAN
US • —
$6.86
P/E
—
PEG
—
FCF Yield
6.8%
Rev Growth YoY
+9.5% YoY
Gross Margin
88.5%
Health Score
5/10
D/E Ratio
0.26
Confidence
LOW
Business Snapshot
Asana provides a work management platform designed to help teams coordinate, manage, and track their work digitally across an organisation. The company operates in the increasingly competitive project management and collaboration software market, facing larger players like Microsoft and Salesforce while maintaining a recognised brand presence. This is a small-cap stock with a market capitalisation of $1.58B, and the company is not yet profitable on a net income basis. A defining characteristic of Asana is its high gross margin of 88.5%, typical for enterprise SaaS companies with recurring revenue, though it continues to invest heavily relative to its revenue base.
Financial Health
Gross margin stands at a strong 88.5%, though net margin is deeply negative at -20.2%, indicating the company is still unprofitable after accounting for operating expenses. The balance sheet appears conservative with a debt/equity ratio of just 0.26x and a current ratio of 1.18x, providing adequate liquidity without excessive leverage...
Risk Assessment
- EARNINGS QUALITY — Despite beating estimates in 4/4 recent quarters, the company's net margin of -20.2% shows underlying earnings quality is poor due to ongoing losses.
- DEBT / LIQUIDITY — Return on equity of -92.8% indicates the company is destroying shareholder equity at a high rate relative to its equity base.
- VALUATION DIVERGENCE — The DCF estimate of $11.18 carries high sensitivity, with a 0.5% change in the terminal growth assumption moving the fair value by 15-25%, introducing significant uncertainty.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- INSIDER ACTIVITY — Insiders have been net sellers with 0 buys versus 8 sells over the last 90 days, a cautionary signal about management's view of the stock's value....
Gross margin stands at a strong 88.5%, though net margin is deeply negative at -20.2%, indicating the company is still unprofitable after accounting for operating expenses. The balance sheet appears conservative with a debt/equity ratio of just 0.26x and a current ratio of 1.18x, providing adequate liquidity without excessive leverage. However, the return on equity of -92.8% highlights that the company is currently destroying shareholder equity through losses, a significant red flag for a company at this stage. On the positive side, free cash flow was positive at $107.34M, yielding 6.8%, which shows the underlying business model can generate cash before working capital and investment costs. Overall, Asana has a healthy cash flow profile and low debt, but deeply negative profitability means it has no capacity for dividends and remains reliant on reinvestment to achieve eventual net income breakeven.
- EARNINGS QUALITY — Despite beating estimates in 4/4 recent quarters, the company's net margin of -20.2% shows underlying earnings quality is poor due to ongoing losses. - DEBT / LIQUIDITY — Return on equity of -92.8% indicates the company is destroying shareholder equity at a high rate relative to its equity base. - VALUATION DIVERGENCE — The DCF estimate of $11.18 carries high sensitivity, with a 0.5% change in the terminal growth assumption moving the fair value by 15-25%, introducing significant uncertainty. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - INSIDER ACTIVITY — Insiders have been net sellers with 0 buys versus 8 sells over the last 90 days, a cautionary signal about management's view of the stock's value.
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