AGILYSYS INC (AGYS) Stock Fundamental Analysis
NASDAQ:AGYS - Nasdaq - US00847J1051 - Common Stock - Currency: USD
AGYS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 282 industry peers in the Software industry. While AGYS has a great profitability rating, there are some minor concerns on its financial health. 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
AGYS had positive earnings in the past year.
In the past year AGYS had a positive cash flow from operations.
AGYS had positive earnings in 4 of the past 5 years.
AGYS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AGYS's Return On Assets of 5.35% is fine compared to the rest of the industry. AGYS outperforms 75.89% of its industry peers.
AGYS's Return On Equity of 8.73% is fine compared to the rest of the industry. AGYS outperforms 76.24% of its industry peers.
The Return On Invested Capital of AGYS (7.86%) is better than 80.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AGYS is significantly below the industry average of 12.28%.
The 3 year average ROIC (7.16%) for AGYS is below the current ROIC(7.86%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.35% | ||
| ROE | 8.73% | ||
| ROIC | 7.86% |
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
Looking at the Profit Margin, with a value of 8.43%, AGYS is in the better half of the industry, outperforming 75.89% of the companies in the same industry.
In the last couple of years the Profit Margin of AGYS has grown nicely.
The Operating Margin of AGYS (10.18%) is better than 76.60% of its industry peers.
In the last couple of years the Operating Margin of AGYS has grown nicely.
AGYS's Gross Margin of 62.40% is in line compared to the rest of the industry. AGYS outperforms 42.55% of its industry peers.
AGYS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.18% | ||
| PM (TTM) | 8.43% | ||
| GM | 62.4% |
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%
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
Compared to 1 year ago, AGYS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 12.90 indicates that AGYS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 12.90, AGYS belongs to the top of the industry, outperforming 87.94% of the companies in the same industry.
The Debt to FCF ratio of AGYS is 0.46, which is an excellent value as it means it would take AGYS, only 0.46 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AGYS (0.46) is better than 78.72% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that AGYS is not too dependend on debt financing.
AGYS's Debt to Equity ratio of 0.09 is in line compared to the rest of the industry. AGYS outperforms 54.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.46 | ||
| Altman-Z | 12.9 |
ROIC/WACC0.72
WACC10.89%
2.3 Liquidity
A Current Ratio of 1.11 indicates that AGYS should not have too much problems paying its short term obligations.
AGYS has a Current ratio of 1.11. This is in the lower half of the industry: AGYS underperforms 69.50% of its industry peers.
AGYS has a Quick Ratio of 1.07. 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 1.07, AGYS is not doing good in the industry: 70.57% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
AGYS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 41.82%, 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
Looking at the last year, AGYS shows a quite strong growth in Revenue. The Revenue has grown by 16.06% in the last year.
Measured over the past years, AGYS shows a quite strong growth in Revenue. The Revenue has been growing by 11.38% on average per year.
EPS 1Y (TTM)41.82%
EPS 3Y23.91%
EPS 5Y47.96%
EPS Q2Q%68.75%
Revenue 1Y (TTM)16.06%
Revenue growth 3Y19.23%
Revenue growth 5Y11.38%
Sales Q2Q%19.37%
3.2 Future
Based on estimates for the next years, AGYS will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.23% on average per year.
AGYS is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.76% yearly.
EPS Next Y7.49%
EPS Next 2Y16.23%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.53%
Revenue Next 2Y15.49%
Revenue Next 3Y25.41%
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.
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
A Price/Earnings ratio of 73.03 indicates a quite expensive valuation of AGYS.
AGYS's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.30. AGYS is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 67.94, which means the current valuation is very expensive for AGYS.
The rest of the industry has a similar Price/Forward Earnings ratio as AGYS.
AGYS is valuated expensively when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 73.03 | ||
| Fwd PE | 67.94 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AGYS.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AGYS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.98 | ||
| EV/EBITDA | 88.16 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AGYS does not grow enough to justify the current Price/Earnings ratio.
AGYS has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as AGYS's earnings are expected to grow with 16.23% in the coming years.
PEG (NY)9.75
PEG (5Y)1.52
EPS Next 2Y16.23%
EPS Next 3YN/A
5. Dividend
5.1 Amount
AGYS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
113.92
-1.29 (-1.12%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners101.17%
Inst Owner Change0%
Ins Owners4.61%
Ins Owner Change-0.9%
Market Cap3.19B
Analysts85
Price Target119.09 (4.54%)
Short Float %5.69%
Short Ratio5.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)46.94%
Min EPS beat(2)8.77%
Max EPS beat(2)85.11%
EPS beat(4)4
Avg EPS beat(4)30.36%
Min EPS beat(4)8.77%
Max EPS beat(4)85.11%
EPS beat(8)8
Avg EPS beat(8)27.71%
EPS beat(12)12
Avg EPS beat(12)25.32%
EPS beat(16)15
Avg EPS beat(16)23.95%
Revenue beat(2)1
Avg Revenue beat(2)-2.41%
Min Revenue beat(2)-6.77%
Max Revenue beat(2)1.95%
Revenue beat(4)1
Avg Revenue beat(4)-2.27%
Min Revenue beat(4)-6.77%
Max Revenue beat(4)1.95%
Revenue beat(8)2
Avg Revenue beat(8)-1.38%
Revenue beat(12)5
Avg Revenue beat(12)-0.5%
Revenue beat(16)7
Avg Revenue beat(16)-0.83%
PT rev (1m)-4.3%
PT rev (3m)-12.38%
EPS NQ rev (1m)-1.76%
EPS NQ rev (3m)6.83%
EPS NY rev (1m)0.12%
EPS NY rev (3m)0.7%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 73.03 | ||
| Fwd PE | 67.94 | ||
| P/S | 11.58 | ||
| P/FCF | 60.98 | ||
| P/OCF | 57.9 | ||
| P/B | 12.01 | ||
| P/tB | 49.53 | ||
| EV/EBITDA | 88.16 |
EPS(TTM)1.56
EY1.37%
EPS(NY)1.68
Fwd EY1.47%
FCF(TTM)1.87
FCFY1.64%
OCF(TTM)1.97
OCFY1.73%
SpS9.84
BVpS9.49
TBVpS2.3
PEG (NY)9.75
PEG (5Y)1.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.35% | ||
| ROE | 8.73% | ||
| ROCE | 8.68% | ||
| ROIC | 7.86% | ||
| ROICexc | 10.16% | ||
| ROICexgc | 52.03% | ||
| OM | 10.18% | ||
| PM (TTM) | 8.43% | ||
| GM | 62.4% | ||
| FCFM | 18.99% |
ROA(3y)11.61%
ROA(5y)4.91%
ROE(3y)17.82%
ROE(5y)7.29%
ROIC(3y)7.16%
ROIC(5y)N/A
ROICexc(3y)15.95%
ROICexc(5y)N/A
ROICexgc(3y)439.05%
ROICexgc(5y)N/A
ROCE(3y)7.91%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-16.81%
ROICexc growth 5YN/A
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%
F-Score5
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.46 | ||
| Debt/EBITDA | 0.67 | ||
| Cap/Depr | 34.79% | ||
| Cap/Sales | 1.01% | ||
| Interest Coverage | 20.35 | ||
| Cash Conversion | 152.87% | ||
| Profit Quality | 225.38% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 12.9 |
F-Score5
WACC10.89%
ROIC/WACC0.72
Cap/Depr(3y)131.65%
Cap/Depr(5y)90.98%
Cap/Sales(3y)2.69%
Cap/Sales(5y)1.97%
Profit Quality(3y)162.49%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)41.82%
EPS 3Y23.91%
EPS 5Y47.96%
EPS Q2Q%68.75%
EPS Next Y7.49%
EPS Next 2Y16.23%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)16.06%
Revenue growth 3Y19.23%
Revenue growth 5Y11.38%
Sales Q2Q%19.37%
Revenue Next Year13.53%
Revenue Next 2Y15.49%
Revenue Next 3Y25.41%
Revenue Next 5Y21.76%
EBIT growth 1Y59.04%
EBIT growth 3Y46.64%
EBIT growth 5YN/A
EBIT Next Year188.57%
EBIT Next 3Y75.6%
EBIT Next 5Y56.79%
FCF growth 1Y30.67%
FCF growth 3Y24.23%
FCF growth 5Y48.7%
OCF growth 1Y14.41%
OCF growth 3Y24.6%
OCF growth 5Y39.06%