AMERICAN SOFTWARE INC-CL A (AMSWA) Fundamental Analysis & Valuation

NASDAQ:AMSWA • US0296831094

Current stock price

10.95 USD
-0.24 (-2.14%)
At close:
10.95 USD
0 (0%)
After Hours:

This AMSWA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. AMSWA Profitability Analysis

1.1 Basic Checks

  • AMSWA had positive earnings in the past year.
  • AMSWA had a positive operating cash flow in the past year.
  • Each year in the past 5 years AMSWA has been profitable.
  • AMSWA had a positive operating cash flow in 4 of the past 5 years.
AMSWA Yearly Net Income VS EBIT VS OCF VS FCFAMSWA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10M 20M

1.2 Ratios

  • AMSWA has a Return On Assets of 5.65%. This is in the better half of the industry: AMSWA outperforms 78.72% of its industry peers.
  • AMSWA has a Return On Equity of 8.19%. This is in the better half of the industry: AMSWA outperforms 77.31% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 2.84%, AMSWA is in the better half of the industry, outperforming 71.63% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for AMSWA is significantly below the industry average of 10.93%.
Industry RankSector Rank
ROA 5.65%
ROE 8.19%
ROIC 2.84%
ROA(3y)5.96%
ROA(5y)5.27%
ROE(3y)8.6%
ROE(5y)7.61%
ROIC(3y)5.64%
ROIC(5y)4.75%
AMSWA Yearly ROA, ROE, ROICAMSWA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10

1.3 Margins

  • AMSWA's Profit Margin of 10.39% is fine compared to the rest of the industry. AMSWA outperforms 78.37% of its industry peers.
  • AMSWA's Profit Margin has improved in the last couple of years.
  • The Operating Margin of AMSWA (4.44%) is better than 70.92% of its industry peers.
  • AMSWA's Operating Margin has declined in the last couple of years.
  • The Gross Margin of AMSWA (65.20%) is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of AMSWA has grown nicely.
Industry RankSector Rank
OM 4.44%
PM (TTM) 10.39%
GM 65.2%
OM growth 3Y0.48%
OM growth 5Y-4.21%
PM growth 3Y15.12%
PM growth 5Y12.14%
GM growth 3Y5.77%
GM growth 5Y4.43%
AMSWA Yearly Profit, Operating, Gross MarginsAMSWA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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8

2. AMSWA Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AMSWA is destroying value.
  • Compared to 1 year ago, AMSWA has less shares outstanding
  • AMSWA has more shares outstanding than it did 5 years ago.
  • AMSWA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
AMSWA Yearly Shares OutstandingAMSWA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M
AMSWA Yearly Total Debt VS Total AssetsAMSWA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M

2.2 Solvency

  • AMSWA has an Altman-Z score of 4.57. This indicates that AMSWA is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 4.57, AMSWA is in the better half of the industry, outperforming 61.70% of the companies in the same industry.
  • AMSWA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 4.57
ROIC/WACC0.28
WACC10.12%
AMSWA Yearly LT Debt VS Equity VS FCFAMSWA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M

2.3 Liquidity

  • AMSWA has a Current Ratio of 2.03. This indicates that AMSWA is financially healthy and has no problem in meeting its short term obligations.
  • AMSWA has a Current ratio of 2.03. This is in the better half of the industry: AMSWA outperforms 60.64% of its industry peers.
  • AMSWA has a Quick Ratio of 2.03. This indicates that AMSWA is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 2.03, AMSWA is in the better half of the industry, outperforming 60.64% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.03
Quick Ratio 2.03
AMSWA Yearly Current Assets VS Current LiabilitesAMSWA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M

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3

3. AMSWA Growth Analysis

3.1 Past

  • AMSWA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.51%, which is quite good.
  • Measured over the past years, AMSWA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.42% on average per year.
  • Looking at the last year, AMSWA shows a very negative growth in Revenue. The Revenue has decreased by -15.41% in the last year.
  • AMSWA shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.16% yearly.
EPS 1Y (TTM)8.51%
EPS 3Y18.05%
EPS 5Y19.42%
EPS Q2Q%0%
Revenue 1Y (TTM)-15.41%
Revenue growth 3Y-2.73%
Revenue growth 5Y-1.16%
Sales Q2Q%-10.2%

3.2 Future

  • The Earnings Per Share is expected to decrease by -8.45% on average over the next years.
  • Based on estimates for the next years, AMSWA will show a small growth in Revenue. The Revenue will grow by 4.03% on average per year.
EPS Next Y-17.06%
EPS Next 2Y-8.45%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.33%
Revenue Next 2Y4.03%
Revenue Next 3YN/A
Revenue Next 5YN/A

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 decreasing.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
AMSWA Yearly Revenue VS EstimatesAMSWA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20M 40M 60M 80M 100M
AMSWA Yearly EPS VS EstimatesAMSWA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.1 0.2 0.3 0.4 0.5

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4

4. AMSWA Valuation Analysis

4.1 Price/Earnings Ratio

  • AMSWA is valuated rather expensively with a Price/Earnings ratio of 21.47.
  • Based on the Price/Earnings ratio, AMSWA is valued a bit cheaper than the industry average as 79.79% of the companies are valued more expensively.
  • AMSWA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.60, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 25.62 indicates a quite expensive valuation of AMSWA.
  • AMSWA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AMSWA is cheaper than 71.63% of the companies in the same industry.
  • AMSWA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.84.
Industry RankSector Rank
PE 21.47
Fwd PE 25.62
AMSWA Price Earnings VS Forward Price EarningsAMSWA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, AMSWA is valued a bit cheaper than the industry average as 75.53% of the companies are valued more expensively.
  • 62.77% of the companies in the same industry are more expensive than AMSWA, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 48.44
EV/EBITDA 25.23
AMSWA Per share dataAMSWA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3

4.3 Compensation for Growth

  • AMSWA has a very decent profitability rating, which may justify a higher PE ratio.
  • A cheap valuation may be justified as AMSWA's earnings are expected to decrease with -8.45% in the coming years.
PEG (NY)N/A
PEG (5Y)1.11
EPS Next 2Y-8.45%
EPS Next 3YN/A

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7

5. AMSWA Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 4.02%, AMSWA is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 0.66, AMSWA pays a better dividend. On top of this AMSWA pays more dividend than 97.52% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.88, AMSWA pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.02%

5.2 History

  • The dividend of AMSWA has a limited annual growth rate of 0.17%.
  • AMSWA has been paying a dividend for at least 10 years, so it has a reliable track record.
  • AMSWA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.17%
Div Incr Years0
Div Non Decr Years11
AMSWA Yearly Dividends per shareAMSWA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.1 0.2 0.3 0.4

5.3 Sustainability

  • 138.84% of the earnings are spent on dividend by AMSWA. This is not a sustainable payout ratio.
  • AMSWA's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP138.84%
EPS Next 2Y-8.45%
EPS Next 3YN/A
AMSWA Yearly Income VS Free CF VS DividendAMSWA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10M 20M
AMSWA Dividend Payout.AMSWA Dividend Payout, showing the Payout Ratio.AMSWA Dividend Payout.PayoutRetained Earnings

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AMSWA Fundamentals: All Metrics, Ratios and Statistics

AMERICAN SOFTWARE INC-CL A

NASDAQ:AMSWA (10/1/2024, 8:00:00 PM)

After market: 10.95 0 (0%)

10.95

-0.24 (-2.14%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)08-22
Earnings (Next)11-14
Inst Owners73.34%
Inst Owner Change-99.97%
Ins Owners4.16%
Ins Owner Change0%
Market Cap368.58M
Revenue(TTM)102.81M
Net Income(TTM)10.68M
Analysts85.45
Price Target16.32 (49.04%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.02%
Yearly Dividend0.44
Dividend Growth(5Y)0.17%
DP138.84%
Div Incr Years0
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)48.73%
Min EPS beat(2)48.09%
Max EPS beat(2)49.37%
EPS beat(4)3
Avg EPS beat(4)66.2%
Min EPS beat(4)-9.34%
Max EPS beat(4)176.69%
EPS beat(8)7
Avg EPS beat(8)47.5%
EPS beat(12)11
Avg EPS beat(12)48.85%
EPS beat(16)15
Avg EPS beat(16)58.73%
Revenue beat(2)1
Avg Revenue beat(2)-0.62%
Min Revenue beat(2)-1.89%
Max Revenue beat(2)0.65%
Revenue beat(4)1
Avg Revenue beat(4)-3.27%
Min Revenue beat(4)-11.78%
Max Revenue beat(4)0.65%
Revenue beat(8)1
Avg Revenue beat(8)-4.03%
Revenue beat(12)4
Avg Revenue beat(12)-1.66%
Revenue beat(16)4
Avg Revenue beat(16)-1.9%
PT rev (1m)0%
PT rev (3m)2.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.18%
EPS NY rev (1m)0%
EPS NY rev (3m)11.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.76%
Valuation
Industry RankSector Rank
PE 21.47
Fwd PE 25.62
P/S 3.59
P/FCF 48.44
P/OCF 47
P/B 2.83
P/tB 4.92
EV/EBITDA 25.23
EPS(TTM)0.51
EY4.66%
EPS(NY)0.43
Fwd EY3.9%
FCF(TTM)0.23
FCFY2.06%
OCF(TTM)0.23
OCFY2.13%
SpS3.05
BVpS3.88
TBVpS2.23
PEG (NY)N/A
PEG (5Y)1.11
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 5.65%
ROE 8.19%
ROCE 3.46%
ROIC 2.84%
ROICexc 9.37%
ROICexgc N/A
OM 4.44%
PM (TTM) 10.39%
GM 65.2%
FCFM 7.4%
ROA(3y)5.96%
ROA(5y)5.27%
ROE(3y)8.6%
ROE(5y)7.61%
ROIC(3y)5.64%
ROIC(5y)4.75%
ROICexc(3y)60.32%
ROICexc(5y)42.81%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)6.87%
ROCE(5y)5.79%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-25.04%
ROICexc growth 5Y-12.71%
OM growth 3Y0.48%
OM growth 5Y-4.21%
PM growth 3Y15.12%
PM growth 5Y12.14%
GM growth 3Y5.77%
GM growth 5Y4.43%
F-Score5
Asset Turnover0.54
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 4.76%
Cap/Sales 0.23%
Interest Coverage 250
Cash Conversion 82.92%
Profit Quality 71.25%
Current Ratio 2.03
Quick Ratio 2.03
Altman-Z 4.57
F-Score5
WACC10.12%
ROIC/WACC0.28
Cap/Depr(3y)53.1%
Cap/Depr(5y)45.36%
Cap/Sales(3y)1.48%
Cap/Sales(5y)1.75%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.51%
EPS 3Y18.05%
EPS 5Y19.42%
EPS Q2Q%0%
EPS Next Y-17.06%
EPS Next 2Y-8.45%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-15.41%
Revenue growth 3Y-2.73%
Revenue growth 5Y-1.16%
Sales Q2Q%-10.2%
Revenue Next Year3.33%
Revenue Next 2Y4.03%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-52.35%
EBIT growth 3Y-2.26%
EBIT growth 5Y-5.32%
EBIT Next Year22.59%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-65.83%
FCF growth 3Y-0.44%
FCF growth 5Y-0.58%
OCF growth 1Y-67.95%
OCF growth 3Y-1.81%
OCF growth 5Y-6.82%

AMERICAN SOFTWARE INC-CL A / AMSWA Fundamental Analysis FAQ

What is the ChartMill fundamental rating of AMERICAN SOFTWARE INC-CL A (AMSWA) stock?

ChartMill assigns a fundamental rating of 6 / 10 to AMSWA.


Can you provide the valuation status for AMERICAN SOFTWARE INC-CL A?

ChartMill assigns a valuation rating of 4 / 10 to AMERICAN SOFTWARE INC-CL A (AMSWA). This can be considered as Fairly Valued.


How profitable is AMERICAN SOFTWARE INC-CL A (AMSWA) stock?

AMERICAN SOFTWARE INC-CL A (AMSWA) has a profitability rating of 6 / 10.


What is the valuation of AMERICAN SOFTWARE INC-CL A based on its PE and PB ratios?

The Price/Earnings (PE) ratio for AMERICAN SOFTWARE INC-CL A (AMSWA) is 21.47 and the Price/Book (PB) ratio is 2.83.


Can you provide the dividend sustainability for AMSWA stock?

The dividend rating of AMERICAN SOFTWARE INC-CL A (AMSWA) is 7 / 10 and the dividend payout ratio is 138.84%.