AGILYSYS INC (AGYS) Stock Fundamental Analysis
NASDAQ:AGYS - Nasdaq - US00847J1051 - Common Stock
Overall AGYS gets a fundamental rating of 5 out of 10. We evaluated AGYS against 285 industry peers in the Software industry. Both the profitability and the financial health of AGYS get a neutral evaluation. Nothing too spectacular is happening here. AGYS shows excellent growth, but is valued quite expensive already. This makes AGYS very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year AGYS was profitable.
AGYS had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: AGYS reported negative net income in multiple years.
In the past 5 years AGYS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 21.56%, AGYS belongs to the top of the industry, outperforming 96.77% of the companies in the same industry.
AGYS has a better Return On Equity (36.61%) than 93.19% of its industry peers.
The Return On Invested Capital of AGYS (5.68%) is better than 76.70% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AGYS is significantly below the industry average of 12.12%.
The 3 year average ROIC (5.60%) for AGYS is below the current ROIC(5.68%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.56% | ||
| ROE | 36.61% | ||
| ROIC | 5.68% |
ROA(3y)10.54%
ROA(5y)-0.57%
ROE(3y)16.06%
ROE(5y)-3.96%
ROIC(3y)5.6%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 37.43%, AGYS belongs to the top of the industry, outperforming 96.42% of the companies in the same industry.
AGYS has a Operating Margin of 9.77%. This is in the better half of the industry: AGYS outperforms 77.06% of its industry peers.
The Gross Margin of AGYS (62.53%) is comparable to the rest of the industry.
AGYS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.77% | ||
| PM (TTM) | 37.43% | ||
| GM | 62.53% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.31%
GM growth 5Y2.97%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AGYS is destroying value.
AGYS has more shares outstanding than it did 1 year ago.
The number of shares outstanding for AGYS has been increased compared to 5 years ago.
There is no outstanding debt for AGYS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 12.52 indicates that AGYS is not in any danger for bankruptcy at the moment.
AGYS has a Altman-Z score of 12.52. This is amongst the best in the industry. AGYS outperforms 86.74% of its industry peers.
AGYS has a debt to FCF ratio of 1.07. This is a very positive value and a sign of high solvency as it would only need 1.07 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.07, AGYS is in the better half of the industry, outperforming 71.33% of the companies in the same industry.
AGYS has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
AGYS's Debt to Equity ratio of 0.19 is in line compared to the rest of the industry. AGYS outperforms 43.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.07 | ||
| Altman-Z | 12.52 |
ROIC/WACC0.51
WACC11.19%
2.3 Liquidity
A Current Ratio of 1.13 indicates that AGYS should not have too much problems paying its short term obligations.
AGYS's Current ratio of 1.13 is on the low side compared to the rest of the industry. AGYS is outperformed by 69.89% of its industry peers.
A Quick Ratio of 1.07 indicates that AGYS should not have too much problems paying its short term obligations.
AGYS has a worse Quick ratio (1.07) than 74.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 37.89% over the past year.
The Earnings Per Share has been growing by 10.74% on average over the past years. This is quite good.
AGYS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.05%.
AGYS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.02% yearly.
EPS 1Y (TTM)37.89%
EPS 3Y10.74%
EPS 5YN/A
EPS Q2Q%36%
Revenue 1Y (TTM)17.05%
Revenue growth 3Y20.06%
Revenue growth 5Y11.02%
Sales Q2Q%16.49%
3.2 Future
Based on estimates for the next years, AGYS will show a very strong growth in Earnings Per Share. The EPS will grow by 27.11% on average per year.
The Revenue is expected to grow by 21.96% on average over the next years. This is a very strong growth
EPS Next Y22.86%
EPS Next 2Y27.11%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year18.84%
Revenue Next 2Y20.61%
Revenue Next 3Y21.1%
Revenue Next 5Y21.96%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 96.11, the valuation of AGYS can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of AGYS is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.29. AGYS is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 70.84, which means the current valuation is very expensive for AGYS.
AGYS's Price/Forward Earnings ratio is in line with the industry average.
AGYS's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 96.11 | ||
| Fwd PE | 70.84 |
4.2 Price Multiples
AGYS's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as AGYS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 75.31 | ||
| EV/EBITDA | 112.78 |
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.
AGYS's earnings are expected to grow with 27.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.2
PEG (5Y)N/A
EPS Next 2Y27.11%
EPS Next 3YN/A
5. Dividend
5.1 Amount
AGYS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AGILYSYS INC
NASDAQ:AGYS (1/21/2025, 8:00:00 PM)
After market: 99.859 -26.04 (-20.68%)125.9
+4.09 (+3.36%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners94.82%
Inst Owner Change-0.53%
Ins Owners4.64%
Ins Owner Change-1.48%
Market Cap3.52B
Analysts85.45
Price Target144.07 (14.43%)
Short Float %4.43%
Short Ratio5.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.06
Dividend Growth(5Y)-11.99%
DP0.8%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.79%
Min EPS beat(2)12.23%
Max EPS beat(2)15.34%
EPS beat(4)4
Avg EPS beat(4)18.18%
Min EPS beat(4)11.25%
Max EPS beat(4)33.91%
EPS beat(8)8
Avg EPS beat(8)20.63%
EPS beat(12)12
Avg EPS beat(12)22.77%
EPS beat(16)15
Avg EPS beat(16)19.5%
Revenue beat(2)0
Avg Revenue beat(2)-2.12%
Min Revenue beat(2)-3.41%
Max Revenue beat(2)-0.83%
Revenue beat(4)0
Avg Revenue beat(4)-1.73%
Min Revenue beat(4)-3.41%
Max Revenue beat(4)-0.83%
Revenue beat(8)2
Avg Revenue beat(8)-0.61%
Revenue beat(12)5
Avg Revenue beat(12)-0.22%
Revenue beat(16)6
Avg Revenue beat(16)-0.74%
PT rev (1m)2.73%
PT rev (3m)13.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.39%
EPS NY rev (1m)0%
EPS NY rev (3m)8.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 96.11 | ||
| Fwd PE | 70.84 | ||
| P/S | 13.82 | ||
| P/FCF | 75.31 | ||
| P/OCF | 69.86 | ||
| P/B | 13.52 | ||
| P/tB | 76.8 | ||
| EV/EBITDA | 112.78 |
EPS(TTM)1.31
EY1.04%
EPS(NY)1.78
Fwd EY1.41%
FCF(TTM)1.67
FCFY1.33%
OCF(TTM)1.8
OCFY1.43%
SpS9.11
BVpS9.31
TBVpS1.64
PEG (NY)4.2
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.56% | ||
| ROE | 36.61% | ||
| ROCE | 7.19% | ||
| ROIC | 5.68% | ||
| ROICexc | 6.75% | ||
| ROICexgc | 25.59% | ||
| OM | 9.77% | ||
| PM (TTM) | 37.43% | ||
| GM | 62.53% | ||
| FCFM | 18.35% |
ROA(3y)10.54%
ROA(5y)-0.57%
ROE(3y)16.06%
ROE(5y)-3.96%
ROIC(3y)5.6%
ROIC(5y)N/A
ROICexc(3y)16.08%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)7.09%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.31%
GM growth 5Y2.97%
F-Score5
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.07 | ||
| Debt/EBITDA | 1.66 | ||
| Cap/Depr | 69.22% | ||
| Cap/Sales | 1.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 167.11% | ||
| Profit Quality | 49.04% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 12.52 |
F-Score5
WACC11.19%
ROIC/WACC0.51
Cap/Depr(3y)130.31%
Cap/Depr(5y)87.86%
Cap/Sales(3y)2.6%
Cap/Sales(5y)2.19%
Profit Quality(3y)285.19%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)37.89%
EPS 3Y10.74%
EPS 5YN/A
EPS Q2Q%36%
EPS Next Y22.86%
EPS Next 2Y27.11%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)17.05%
Revenue growth 3Y20.06%
Revenue growth 5Y11.02%
Sales Q2Q%16.49%
Revenue Next Year18.84%
Revenue Next 2Y20.61%
Revenue Next 3Y21.1%
Revenue Next 5Y21.96%
EBIT growth 1Y91.35%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year130.67%
EBIT Next 3Y59.2%
EBIT Next 5Y48.37%
FCF growth 1Y149.88%
FCF growth 3Y14.05%
FCF growth 5Y88.13%
OCF growth 1Y153.14%
OCF growth 3Y19.27%
OCF growth 5Y46.26%