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

NASDAQ:AMSWA • US0296831094

10.95 USD
-0.24 (-2.14%)
At close: Oct 1, 2024
10.95 USD
0 (0%)
After Hours: 10/1/2024, 8:00:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

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

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to AMSWA. AMSWA was compared to 279 industry peers in the Software industry. AMSWA has an excellent financial health rating, but there are some minor concerns on its profitability. AMSWA is valued correctly, but it does not seem to be growing. Finally AMSWA also has an excellent dividend rating. With these ratings, AMSWA could be worth investigating further for dividend investing!.


Dividend Valuation Growth Profitability Health

6

1. AMSWA Profitability Analysis

1.1 Basic Checks

  • AMSWA had positive earnings in the past year.
  • In the past year AMSWA had a positive cash flow from operations.
  • 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's Return On Assets of 5.65% is fine compared to the rest of the industry. AMSWA outperforms 78.72% of its industry peers.
  • AMSWA's Return On Equity of 8.19% is fine compared to the rest of the industry. AMSWA outperforms 77.31% of its industry peers.
  • The Return On Invested Capital of AMSWA (2.84%) is better than 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 10.72%.
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

  • 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.
  • 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.
  • AMSWA's Operating Margin has declined in the last couple of years.
  • 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 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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • AMSWA has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for AMSWA has been increased compared to 5 years ago.
  • 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's Altman-Z score of 4.57 is fine compared to the rest 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 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.
  • A Quick Ratio of 2.03 indicates that AMSWA has no problem at all paying its short term obligations.
  • The Quick ratio of AMSWA (2.03) is better than 60.64% of its industry peers.
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

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. AMSWA Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 8.51% over the past year.
  • 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

More info and screens

Find the best growth stocksShow best growing peers

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 79.79% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.29, AMSWA is valued at the same level.
  • Based on the Price/Forward Earnings ratio of 25.62, the valuation of AMSWA can be described as expensive.
  • 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.
  • AMSWA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.57.
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 40

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

  • 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

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. AMSWA Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 4.02%, AMSWA is a good candidate for dividend investing.
  • AMSWA's Dividend Yield is rather good when compared to the industry average which is at 0.57. AMSWA pays more dividend than 97.52% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, 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 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
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

More info and screens

Find the best dividend stocksShow peers with best dividend

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 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.


What is the profitability of AMSWA stock?

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


Can you provide the PE and PB ratios for AMSWA stock?

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


What is the earnings growth outlook for AMERICAN SOFTWARE INC-CL A?

The Earnings per Share (EPS) of AMERICAN SOFTWARE INC-CL A (AMSWA) is expected to decline by -17.06% in the next year.