AGILYSYS INC (AGYS) Stock Fundamental Analysis
NASDAQ:AGYS - Nasdaq - US00847J1051 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to AGYS. AGYS was compared to 284 industry peers in the Software industry. AGYS has only an average score on both its financial health and profitability. AGYS shows excellent growth, but is valued quite expensive already. With these ratings, AGYS could be worth investigating further 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.
Each year in the past 5 years AGYS had a positive operating cash flow.
1.2 Ratios
AGYS's Return On Assets of 5.02% is fine compared to the rest of the industry. AGYS outperforms 75.72% of its industry peers.
Looking at the Return On Equity, with a value of 8.67%, AGYS is in the better half of the industry, outperforming 76.45% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.19%, AGYS belongs to the top of the industry, outperforming 80.07% of the companies in the same industry.
AGYS had an Average Return On Invested Capital over the past 3 years of 5.60%. This is significantly below the industry average of 11.91%.
The 3 year average ROIC (5.60%) for AGYS is below the current ROIC(6.19%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.02% | ||
| ROE | 8.67% | ||
| ROIC | 6.19% |
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 8.45%, AGYS is in the better half of the industry, outperforming 74.28% of the companies in the same industry.
With a decent Operating Margin value of 9.78%, AGYS is doing good in the industry, outperforming 76.81% of the companies in the same industry.
AGYS's Gross Margin of 62.68% is in line compared to the rest of the industry. AGYS outperforms 42.03% of its industry peers.
In the last couple of years the Gross Margin of AGYS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.78% | ||
| PM (TTM) | 8.45% | ||
| GM | 62.68% |
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
AGYS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, AGYS has more shares outstanding
The number of shares outstanding for AGYS has been increased compared to 5 years ago.
AGYS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
AGYS has an Altman-Z score of 8.58. This indicates that AGYS is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 8.58, AGYS is doing good in the industry, outperforming 77.54% of the companies in the same industry.
The Debt to FCF ratio of AGYS is 0.69, which is an excellent value as it means it would take AGYS, only 0.69 years of fcf income to pay off all of its debts.
AGYS has a Debt to FCF ratio of 0.69. This is in the better half of the industry: AGYS outperforms 74.28% of its industry peers.
AGYS has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
AGYS has a Debt to Equity ratio (0.15) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.69 | ||
| Altman-Z | 8.58 |
ROIC/WACC0.44
WACC13.99%
2.3 Liquidity
AGYS has a Current Ratio of 1.14. 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 1.14, AGYS is not doing good in the industry: 68.84% of the companies in the same industry are doing better.
A Quick Ratio of 1.09 indicates that AGYS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.09, AGYS is doing worse than 72.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.85% over the past year.
The Earnings Per Share has been growing by 10.74% on average over the past years. This is quite good.
The Revenue has grown by 15.52% in the past year. This is quite good.
The Revenue has been growing by 11.02% on average over the past years. This is quite good.
EPS 1Y (TTM)28.85%
EPS 3Y10.74%
EPS 5YN/A
EPS Q2Q%8.57%
Revenue 1Y (TTM)15.52%
Revenue growth 3Y20.06%
Revenue growth 5Y11.02%
Sales Q2Q%14.85%
3.2 Future
AGYS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.24% yearly.
Based on estimates for the next years, AGYS will show a very strong growth in Revenue. The Revenue will grow by 21.96% on average per year.
EPS Next Y20.78%
EPS Next 2Y25.19%
EPS Next 3Y22.24%
EPS Next 5YN/A
Revenue Next Year15.06%
Revenue Next 2Y17.88%
Revenue Next 3Y17.98%
Revenue Next 5Y21.96%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 57.87, AGYS can be considered very expensive at the moment.
AGYS's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 29.63. AGYS is valued rather expensively when compared to this.
AGYS is valuated quite expensively with a Price/Forward Earnings ratio of 44.98.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AGYS is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.68. AGYS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.87 | ||
| Fwd PE | 44.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AGYS is valued a bit cheaper than the industry average as 64.13% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, AGYS is valued a bit cheaper than the industry average as 69.20% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.25 | ||
| EV/EBITDA | 69.16 |
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 22.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.79
PEG (5Y)N/A
EPS Next 2Y25.19%
EPS Next 3Y22.24%
5. Dividend
5.1 Amount
AGYS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
77.54
-3.39 (-4.19%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners94.82%
Inst Owner Change6.95%
Ins Owners4.64%
Ins Owner Change-2.05%
Market Cap2.17B
Analysts85.45
Price Target144.33 (86.14%)
Short Float %4.18%
Short Ratio3.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.06
Dividend Growth(5Y)-11.99%
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.5%
Min EPS beat(2)8.77%
Max EPS beat(2)12.23%
EPS beat(4)4
Avg EPS beat(4)11.9%
Min EPS beat(4)8.77%
Max EPS beat(4)15.34%
EPS beat(8)8
Avg EPS beat(8)19.05%
EPS beat(12)12
Avg EPS beat(12)21.65%
EPS beat(16)15
Avg EPS beat(16)19.33%
Revenue beat(2)0
Avg Revenue beat(2)-3.8%
Min Revenue beat(2)-6.77%
Max Revenue beat(2)-0.83%
Revenue beat(4)0
Avg Revenue beat(4)-3.14%
Min Revenue beat(4)-6.77%
Max Revenue beat(4)-0.83%
Revenue beat(8)1
Avg Revenue beat(8)-1.66%
Revenue beat(12)5
Avg Revenue beat(12)-0.3%
Revenue beat(16)6
Avg Revenue beat(16)-1.14%
PT rev (1m)0.18%
PT rev (3m)14.11%
EPS NQ rev (1m)-17.02%
EPS NQ rev (3m)-17.26%
EPS NY rev (1m)-1.7%
EPS NY rev (3m)0.58%
Revenue NQ rev (1m)-7%
Revenue NQ rev (3m)-1.79%
Revenue NY rev (1m)-3.18%
Revenue NY rev (3m)-2.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.87 | ||
| Fwd PE | 44.98 | ||
| P/S | 8.23 | ||
| P/FCF | 39.25 | ||
| P/OCF | 37.52 | ||
| P/B | 8.44 | ||
| P/tB | 39.63 | ||
| EV/EBITDA | 69.16 |
EPS(TTM)1.34
EY1.73%
EPS(NY)1.72
Fwd EY2.22%
FCF(TTM)1.98
FCFY2.55%
OCF(TTM)2.07
OCFY2.67%
SpS9.43
BVpS9.18
TBVpS1.96
PEG (NY)2.79
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.02% | ||
| ROE | 8.67% | ||
| ROCE | 7.84% | ||
| ROIC | 6.19% | ||
| ROICexc | 7.59% | ||
| ROICexgc | 30.82% | ||
| OM | 9.78% | ||
| PM (TTM) | 8.45% | ||
| GM | 62.68% | ||
| FCFM | 20.96% |
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 Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.69 | ||
| Debt/EBITDA | 1.17 | ||
| Cap/Depr | 38.56% | ||
| Cap/Sales | 0.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 178.39% | ||
| Profit Quality | 248.11% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 8.58 |
F-Score5
WACC13.99%
ROIC/WACC0.44
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)28.85%
EPS 3Y10.74%
EPS 5YN/A
EPS Q2Q%8.57%
EPS Next Y20.78%
EPS Next 2Y25.19%
EPS Next 3Y22.24%
EPS Next 5YN/A
Revenue 1Y (TTM)15.52%
Revenue growth 3Y20.06%
Revenue growth 5Y11.02%
Sales Q2Q%14.85%
Revenue Next Year15.06%
Revenue Next 2Y17.88%
Revenue Next 3Y17.98%
Revenue Next 5Y21.96%
EBIT growth 1Y59.83%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year128.72%
EBIT Next 3Y53.59%
EBIT Next 5Y48.37%
FCF growth 1Y166.82%
FCF growth 3Y14.05%
FCF growth 5Y88.13%
OCF growth 1Y136.82%
OCF growth 3Y19.27%
OCF growth 5Y46.26%