Taking everything into account, AGYS scores 6 out of 10 in our fundamental rating. AGYS was compared to 278 industry peers in the Software industry. AGYS scores excellent on profitability, but there are some minor concerns on its financial health. AGYS is valued quite expensively, but it does show have an excellent growth rating. With these ratings, AGYS could be worth investigating further for growth investing!.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

AGYS had positive earnings in the past year.
In the past year AGYS had a positive cash flow from operations.
Of the past 5 years AGYS 4 years were profitable.
Each year in the past 5 years AGYS had a positive operating cash flow.

1.2 Ratios

AGYS's Return On Assets of 6.40% is fine compared to the rest of the industry. AGYS outperforms 74.82% of its industry peers.
AGYS has a better Return On Equity (9.72%) than 73.02% of its industry peers.
AGYS has a better Return On Invested Capital (7.91%) than 78.42% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AGYS is below the industry average of 10.76%.
The last Return On Invested Capital (7.91%) for AGYS is above the 3 year average (7.16%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	6.4%
ROE	9.72%
ROIC	7.91%

ROA(3y)11.61%

ROA(5y)4.91%

ROE(3y)17.82%

ROE(5y)7.29%

ROIC(3y)7.16%

ROIC(5y)N/A

1.3 Margins

With a decent Profit Margin value of 9.79%, AGYS is doing good in the industry, outperforming 70.14% of the companies in the same industry.
AGYS's Profit Margin has improved in the last couple of years.
AGYS has a better Operating Margin (9.71%) than 74.46% of its industry peers.
AGYS's Operating Margin has improved in the last couple of years.
The Gross Margin of AGYS (61.67%) is worse than 60.79% of its industry peers.
AGYS's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	9.71%
PM (TTM)	9.79%
GM	61.67%

OM growth 3Y22.98%

OM growth 5YN/A

PM growth 3Y43.88%

PM growth 5YN/A

GM growth 3Y-0.01%

GM growth 5Y4.37%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AGYS is destroying value.
The number of shares outstanding for AGYS has been increased compared to 1 year ago.
Compared to 5 years ago, AGYS has more shares outstanding
AGYS has a worse debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 10.52 indicates that AGYS is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 10.52, AGYS belongs to the best of the industry, outperforming 92.09% of the companies in the same industry.
AGYS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	10.52

ROIC/WACC0.71

WACC11.16%

2.3 Liquidity

AGYS has a Current Ratio of 1.31. This is a normal value and indicates that AGYS is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.31, AGYS is not doing good in the industry: 60.43% of the companies in the same industry are doing better.
AGYS has a Quick Ratio of 1.25. This is a normal value and indicates that AGYS is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.25, AGYS is not doing good in the industry: 62.95% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	1.31
Quick Ratio	1.25

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

AGYS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.12%, which is quite impressive.
The Earnings Per Share has been growing by 47.96% on average over the past years. This is a very strong growth
The Revenue has grown by 17.86% in the past year. This is quite good.
AGYS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.38% yearly.

EPS 1Y (TTM)26.12%

EPS 3Y23.91%

EPS 5Y47.96%

EPS Q2Q%10.53%

Revenue 1Y (TTM)17.86%

Revenue growth 3Y19.23%

Revenue growth 5Y11.38%

Sales Q2Q%15.57%

3.2 Future

AGYS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.34% yearly.
The Revenue is expected to grow by 21.76% on average over the next years. This is a very strong growth

EPS Next Y9.1%

EPS Next 2Y19.97%

EPS Next 3Y23.34%

EPS Next 5YN/A

Revenue Next Year16.41%

Revenue Next 2Y16.35%

Revenue Next 3Y20.21%

Revenue Next 5Y21.76%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 52.81, which means the current valuation is very expensive for AGYS.
AGYS's Price/Earnings is on the same level as the industry average.
AGYS is valuated expensively when we compare the Price/Earnings ratio to 28.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 39.75, which means the current valuation is very expensive for AGYS.
AGYS's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of AGYS to the average of the S&P500 Index (25.64), we can say AGYS is valued expensively.

		Industry Rank	Sector Rank
PE	52.81
Fwd PE	39.75

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as AGYS.
AGYS's Price/Free Cash Flow ratio is in line with the industry average.

		Industry Rank	Sector Rank
P/FCF	42.28
EV/EBITDA	58.26

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of AGYS may justify a higher PE ratio.
A more expensive valuation may be justified as AGYS's earnings are expected to grow with 23.34% in the coming years.