AMERICAN SOFTWARE INC-CL A (AMSWA) Stock Fundamental Analysis
USA - NASDAQ:AMSWA - US0296831094 - Common Stock
10.95 USD
-0.24 (-2.14%)
10.95 USD
0 (0%)
Taking everything into account, AMSWA scores 6 out of 10 in our fundamental rating. AMSWA was compared to 281 industry peers in the Software industry. While AMSWA has a great health rating, its profitability is only average at the moment. AMSWA has a valuation in line with the averages, but it does not seem to be growing. AMSWA also has an excellent dividend rating. These ratings would make AMSWA suitable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year AMSWA was profitable.
In the past year AMSWA had a positive cash flow from operations.
AMSWA had positive earnings in each of the past 5 years.
Of the past 5 years AMSWA 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.65%, AMSWA is in the better half of the industry, outperforming 78.72% of the companies in the same industry.
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.
AMSWA's Return On Invested Capital of 2.84% is fine compared to the rest of the industry. AMSWA outperforms 71.63% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AMSWA is significantly below the industry average of 11.95%.
| Industry Rank | Sector 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%
1.3 Margins
With a decent Profit Margin value of 10.39%, AMSWA is doing good in the industry, outperforming 78.37% of the companies in the same industry.
In the last couple of years the Profit Margin of AMSWA has grown nicely.
AMSWA has a better Operating Margin (4.44%) than 70.92% of its industry peers.
AMSWA's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 65.20%, AMSWA perfoms like the industry average, outperforming 46.45% of the companies in the same industry.
In the last couple of years the Gross Margin of AMSWA has grown nicely.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
AMSWA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
AMSWA has less shares outstanding than it did 1 year ago.
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.57 |
ROIC/WACC0.28
WACC10.12%
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.
Looking at the Current 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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.03 | ||
| Quick Ratio | 2.03 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.51% over the past year.
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.
AMSWA shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -15.41%.
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.
AMSWA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.03% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
AMSWA is valuated rather expensively with a Price/Earnings ratio of 21.47.
Compared to the rest of the industry, the Price/Earnings ratio of AMSWA indicates a somewhat cheap valuation: AMSWA is cheaper than 79.79% of the companies listed in the same industry.
AMSWA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.28, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 25.62, AMSWA can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, AMSWA is valued a bit cheaper than the industry average as 71.63% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of AMSWA to the average of the S&P500 Index (33.61), we can say AMSWA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.47 | ||
| Fwd PE | 25.62 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.44 | ||
| EV/EBITDA | 25.23 |
4.3 Compensation for Growth
The decent profitability rating of AMSWA 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
5. Dividend
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 41.10, AMSWA pays a better dividend. On top of this AMSWA pays more dividend than 97.52% of the companies listed in the same industry.
AMSWA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.17%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
138.84% of the earnings are spent on dividend by AMSWA. This is not a sustainable payout ratio.
The Dividend Rate of AMSWA has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP138.84%
EPS Next 2Y-8.45%
EPS Next 3YN/A
10.95
-0.24 (-2.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners73.34%
Inst Owner Change-80.99%
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 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.
What is the valuation status of AMERICAN SOFTWARE INC-CL A (AMSWA) stock?
ChartMill assigns a valuation rating of 4 / 10 to AMERICAN SOFTWARE INC-CL A (AMSWA). This can be considered as Fairly Valued.
What is the profitability of AMSWA stock?
AMERICAN SOFTWARE INC-CL A (AMSWA) has a profitability rating of 6 / 10.
How financially healthy is AMERICAN SOFTWARE INC-CL A?
The financial health rating of AMERICAN SOFTWARE INC-CL A (AMSWA) is 8 / 10.
How sustainable is the dividend of AMERICAN SOFTWARE INC-CL A (AMSWA) stock?
The dividend rating of AMERICAN SOFTWARE INC-CL A (AMSWA) is 7 / 10 and the dividend payout ratio is 138.84%.