AGILYSYS INC (AGYS) Stock Fundamental Analysis
NASDAQ:AGYS - Nasdaq - US00847J1051 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to AGYS. AGYS was compared to 284 industry peers in the Software industry. AGYS has an excellent profitability rating, but 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
In the past year AGYS was profitable.
In the past year AGYS had a positive cash flow from operations.
AGYS had positive earnings in 4 of the past 5 years.
Each year in the past 5 years AGYS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AGYS (5.35%) is better than 76.06% of its industry peers.
AGYS has a better Return On Equity (8.73%) than 76.41% of its industry peers.
The Return On Invested Capital of AGYS (7.86%) is better than 80.99% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AGYS is significantly below the industry average of 12.30%.
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 76.06% of the companies in the same industry.
AGYS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 10.18%, AGYS is in the better half of the industry, outperforming 76.76% of the companies in the same industry.
AGYS's Operating Margin has improved in the last couple of years.
AGYS has a Gross Margin of 62.40%. This is comparable to the rest of the industry: AGYS outperforms 43.31% of its industry peers.
In the last couple of years the Gross Margin of AGYS has grown nicely.
| 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
AGYS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
AGYS has more shares outstanding than it did 1 year ago.
AGYS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for AGYS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 12.31 indicates that AGYS is not in any danger for bankruptcy at the moment.
AGYS's Altman-Z score of 12.31 is amongst the best of the industry. AGYS outperforms 89.08% of its industry peers.
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 78.87% of its industry peers.
AGYS has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
AGYS has a Debt to Equity ratio (0.09) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.46 | ||
| Altman-Z | 12.31 |
ROIC/WACC0.87
WACC9.06%
2.3 Liquidity
AGYS has a Current Ratio of 1.11. This is a normal value and indicates that AGYS is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of AGYS (1.11) is worse than 69.72% 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.
AGYS's Quick ratio of 1.07 is on the low side compared to the rest of the industry. AGYS is outperformed by 70.42% of its industry peers.
| 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.
Measured over the past years, AGYS shows a very strong growth in Earnings Per Share. The EPS has been growing by 47.96% on average per year.
The Revenue has grown by 16.06% in the past year. This is quite good.
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
The Earnings Per Share is expected to grow by 17.55% on average over the next years. This is quite good.
AGYS is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.76% yearly.
EPS Next Y7.36%
EPS Next 2Y17.55%
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.
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
With a Price/Earnings ratio of 70.06, AGYS can be considered very expensive at the moment.
AGYS's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.31. AGYS is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 65.26, the valuation of AGYS can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as AGYS.
When comparing the Price/Forward Earnings ratio of AGYS to the average of the S&P500 Index (22.13), we can say AGYS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.06 | ||
| Fwd PE | 65.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AGYS is valued a bit cheaper than 60.21% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as AGYS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.51 | ||
| EV/EBITDA | 83.56 |
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 17.55% in the coming years.
PEG (NY)9.52
PEG (5Y)1.46
EPS Next 2Y17.55%
EPS Next 3YN/A
5. Dividend
5.1 Amount
AGYS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
109.3
-1.7 (-1.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners101.17%
Inst Owner Change0.54%
Ins Owners4.61%
Ins Owner Change-1.18%
Market Cap3.06B
Analysts85.45
Price Target119.09 (8.96%)
Short Float %4.76%
Short Ratio4.43
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)-17.49%
EPS NQ rev (1m)7.89%
EPS NQ rev (3m)9.17%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.85%
Revenue NQ rev (1m)1.11%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)-2.87%
Revenue NY rev (3m)-6.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.06 | ||
| Fwd PE | 65.26 | ||
| P/S | 11.11 | ||
| P/FCF | 58.51 | ||
| P/OCF | 55.55 | ||
| P/B | 11.52 | ||
| P/tB | 47.52 | ||
| EV/EBITDA | 83.56 |
EPS(TTM)1.56
EY1.43%
EPS(NY)1.67
Fwd EY1.53%
FCF(TTM)1.87
FCFY1.71%
OCF(TTM)1.97
OCFY1.8%
SpS9.84
BVpS9.49
TBVpS2.3
PEG (NY)9.52
PEG (5Y)1.46
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 | 12.31 |
F-Score5
WACC9.06%
ROIC/WACC0.87
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 Y7.36%
EPS Next 2Y17.55%
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%