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

  • In the past year AMSWA was profitable.
  • AMSWA had a positive operating cash flow in the past year.
  • In the past 5 years AMSWA has always been profitable.
  • Of the past 5 years AMSWA 4 years had a positive operating cash flow.
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

  • The Return On Assets of AMSWA (5.65%) is better than 78.72% of its industry peers.
  • Looking at the Return On Equity, with a value of 8.19%, AMSWA is in the better half of the industry, outperforming 77.31% of the companies in the same industry.
  • 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.
  • Measured over the past 3 years, the Average Return On Invested Capital for AMSWA is significantly below the industry average of 11.04%.
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 has a better Profit Margin (10.39%) than 78.37% of its industry peers.
  • AMSWA's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 4.44%, AMSWA is in the better half of the industry, outperforming 70.92% of the companies in the same industry.
  • In the last couple of years the Operating Margin of AMSWA has declined.
  • Looking at the Gross Margin, with a value of 65.20%, AMSWA is in line with its industry, outperforming 46.45% of the companies in the same industry.
  • AMSWA's Gross Margin has improved in the last couple of years.
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

  • AMSWA 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, AMSWA has less shares outstanding
  • Compared to 5 years ago, AMSWA has more shares outstanding
  • There is no outstanding debt for AMSWA. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and 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.
  • AMSWA has a better Altman-Z score (4.57) than 61.70% of its industry peers.
  • There is no outstanding debt for AMSWA. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and 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

  • A Current Ratio of 2.03 indicates that AMSWA has no problem at all paying 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.
  • With a decent Quick ratio value of 2.03, AMSWA is doing good in 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.
  • AMSWA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.42% yearly.
  • The Revenue for AMSWA has decreased by -15.41% in the past year. This is quite bad
  • The Revenue has been decreasing by -1.16% on average over the past years.
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

  • Based on estimates for the next years, AMSWA will show a decrease in Earnings Per Share. The EPS will decrease by -8.45% on average per year.
  • 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.
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

  • With a Price/Earnings ratio of 21.47, AMSWA is valued on the expensive side.
  • 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.
  • When comparing the Price/Earnings ratio of AMSWA to the average of the S&P500 Index (27.15), we can say AMSWA is valued slightly cheaper.
  • With a Price/Forward Earnings ratio of 25.62, AMSWA can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of AMSWA indicates a somewhat cheap valuation: AMSWA is cheaper than 71.63% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of AMSWA to the average of the S&P500 Index (22.12), we can say AMSWA is valued inline with the index average.
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.
  • Based on the Price/Free Cash Flow ratio, AMSWA is valued a bit cheaper than the industry average as 62.77% of the companies are valued more expensively.
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

  • 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

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7

5. AMSWA Dividend Analysis

5.1 Amount

  • AMSWA has a Yearly Dividend Yield of 4.02%, which is a nice return.
  • AMSWA's Dividend Yield is rather good when compared to the industry average which is at 0.68. AMSWA pays more dividend than 97.52% of the companies in the same industry.
  • AMSWA's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
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.
  • 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
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 Change0%
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 Number0 (-100%)
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%.