AMERICAN SOFTWARE INC-CL A (AMSWA) Stock Fundamental Analysis
NASDAQ:AMSWA - US0296831094 - Common Stock
10.95 USD
-0.24 (-2.14%)
10.95 USD
0 (0%)
Overall AMSWA gets a fundamental rating of 6 out of 10. We evaluated AMSWA against 282 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 could make AMSWA a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
In the past year AMSWA was profitable.
AMSWA had a positive operating cash flow in the past year.
AMSWA had positive earnings in each of the past 5 years.
AMSWA had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
AMSWA's Return On Assets of 5.65% is fine compared to the rest of the industry. AMSWA outperforms 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.
AMSWA had an Average Return On Invested Capital over the past 3 years of 5.64%. This is significantly below the industry average of 11.99%.
| 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
Looking at the Profit Margin, with a value of 10.39%, AMSWA is in the better half of 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.
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.
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
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.
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 Altman-Z score of 4.57. This is in the better half of the industry: AMSWA outperforms 61.70% 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 | 4.57 |
ROIC/WACC0.28
WACC10.12%
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 better Current ratio (2.03) than 60.64% of its industry peers.
A Quick Ratio of 2.03 indicates that AMSWA has no problem at all paying its short term obligations.
AMSWA has a Quick ratio of 2.03. This is in the better half of the industry: AMSWA outperforms 60.64% of its industry peers.
| 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.
Looking at the last year, AMSWA shows a very negative growth in Revenue. The Revenue has decreased by -15.41% in the last year.
Measured over the past years, AMSWA shows a decrease in Revenue. The Revenue has been decreasing by -1.16% on average per year.
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
AMSWA is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -8.45% yearly.
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
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.47, the valuation of AMSWA can be described as rather expensive.
AMSWA's Price/Earnings ratio is a bit cheaper when compared to the industry. AMSWA is cheaper than 79.79% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.24. AMSWA is valued slightly cheaper when compared to this.
AMSWA is valuated quite expensively with a Price/Forward Earnings ratio of 25.62.
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 (22.81), we can say AMSWA is valued inline with the index average.
| 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.
AMSWA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AMSWA is cheaper than 62.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.44 | ||
| EV/EBITDA | 25.23 |
4.3 Compensation for Growth
AMSWA has a very decent profitability rating, which may justify a higher PE ratio.
AMSWA's earnings are expected to decrease with -8.45% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.11
EPS Next 2Y-8.45%
EPS Next 3YN/A
5. Dividend
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 56.88. 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 2.34.
| 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 paid a dividend for at least 10 years, which is 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-97.03%
Ins Owners4.16%
Ins Owner Change0%
Market Cap368.58M
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
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%
ROICexcg growth 3YN/A
ROICexcg 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%