AMERICAN SOFTWARE INC-CL A (AMSWA)
US0296831094 - Common Stock
Overall AMSWA gets a fundamental rating of 6 out of 10. We evaluated AMSWA against 276 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.
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.
In the past 5 years AMSWA has always been profitable.
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 6.74%, AMSWA belongs to the top of the industry, outperforming 85.40% of the companies in the same industry.
With an excellent Return On Equity value of 9.21%, AMSWA belongs to the best of the industry, outperforming 82.48% of the companies in the same industry.
AMSWA has a Return On Invested Capital of 3.87%. This is in the better half of the industry: AMSWA outperforms 76.64% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AMSWA is below the industry average of 10.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.74% | ||
| ROE | 9.21% | ||
| ROIC | 3.87% |
ROA(3y)5.51%
ROA(5y)4.93%
ROE(3y)7.9%
ROE(5y)7.05%
ROIC(3y)6.03%
ROIC(5y)5.25%
1.3 Margins
The Profit Margin of AMSWA (10.94%) is better than 82.85% of its industry peers.
AMSWA's Profit Margin has declined in the last couple of years.
AMSWA's Operating Margin of 5.33% is fine compared to the rest of the industry. AMSWA outperforms 74.82% of its industry peers.
In the last couple of years the Operating Margin of AMSWA has declined.
With a Gross Margin value of 62.02%, AMSWA perfoms like the industry average, outperforming 43.80% 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 | 5.33% | ||
| PM (TTM) | 10.94% | ||
| GM | 62.02% |
OM growth 3Y18.89%
OM growth 5Y-6.27%
PM growth 3Y13.17%
PM growth 5Y-4.77%
GM growth 3Y3.16%
GM growth 5Y1.54%
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.
The number of shares outstanding for AMSWA has been increased compared to 1 year ago.
The number of shares outstanding for AMSWA has been increased compared to 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 5.12. This indicates that AMSWA is financially healthy and has little risk of bankruptcy at the moment.
AMSWA has a Altman-Z score of 5.12. This is in the better half of the industry: AMSWA outperforms 72.26% of its industry peers.
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 | 5.12 |
ROIC/WACC0.39
WACC9.92%
2.3 Liquidity
AMSWA has a Current Ratio of 2.29. This indicates that AMSWA is financially healthy and has no problem in meeting its short term obligations.
AMSWA's Current ratio of 2.29 is fine compared to the rest of the industry. AMSWA outperforms 67.52% of its industry peers.
AMSWA has a Quick Ratio of 2.29. This indicates that AMSWA is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.29, AMSWA is doing good in the industry, outperforming 68.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.29 | ||
| Quick Ratio | 2.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.87% over the past year.
The Earnings Per Share has been growing slightly by 2.90% on average over the past years.
The Revenue for AMSWA has decreased by -14.09% in the past year. This is quite bad
AMSWA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.88% yearly.
EPS 1Y (TTM)10.87%
EPS 3Y28.92%
EPS 5Y2.9%
EPS growth Q2Q46.15%
Revenue 1Y (TTM)-14.09%
Revenue growth 3Y2.31%
Revenue growth 5Y1.88%
Revenue growth Q2Q-17.65%
3.2 Future
Based on estimates for the next years, AMSWA will show a decrease in Earnings Per Share. The EPS will decrease by -0.11% on average per year.
The Revenue is expected to decrease by -2.92% on average over the next years.
EPS Next Y6.82%
EPS Next 2Y-6.29%
EPS Next 3Y-0.11%
EPS Next 5YN/A
Revenue Next Year-17.82%
Revenue Next 2Y-7.83%
Revenue Next 3Y-2.92%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.73, which indicates a rather expensive current valuation of AMSWA.
Compared to the rest of the industry, the Price/Earnings ratio of AMSWA indicates a rather cheap valuation: AMSWA is cheaper than 85.04% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AMSWA to the average of the S&P500 Index (28.06), we can say AMSWA is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 25.46, the valuation of AMSWA can be described as expensive.
AMSWA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AMSWA is cheaper than 76.28% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.72. AMSWA is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.73 | ||
| Fwd PE | 25.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AMSWA is valued cheaply inside the industry as 83.58% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, AMSWA is valued cheaper than 87.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.81 | ||
| EV/EBITDA | 22.64 |
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 AMSWA may justify a higher PE ratio.
PEG (NY)2.89
PEG (5Y)6.79
EPS Next 2Y-6.29%
EPS Next 3Y-0.11%
5. Dividend
5.1 Amount
AMSWA has a Yearly Dividend Yield of 4.35%, which is a nice return.
Compared to an average industry Dividend Yield of 11.48, AMSWA pays a better dividend. On top of this AMSWA pays more dividend than 96.72% 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 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
5.2 History
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%
Div Incr Years0
Div Non Decr Years10
5.3 Sustainability
124.12% of the earnings are spent on dividend by AMSWA. This is not a sustainable payout ratio.
The Dividend Rate of AMSWA has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP124.12%
EPS Next 2Y-6.29%
EPS Next 3Y-0.11%
AMERICAN SOFTWARE INC-CL A
NASDAQ:AMSWA (5/2/2024, 7:00:00 PM)
After market: 10.06 0 (0%)10.06
+0.01 (+0.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap334.19M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.73 | ||
| Fwd PE | 25.46 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.89
PEG (5Y)6.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.74% | ||
| ROE | 9.21% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.33% | ||
| PM (TTM) | 10.94% | ||
| GM | 62.02% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.29 | ||
| Quick Ratio | 2.29 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)10.87%
EPS 3Y28.92%
EPS 5Y
EPS growth Q2Q
EPS Next Y6.82%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-14.09%
Revenue growth 3Y2.31%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
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OCF growth 5Y