NasdaqGS:AGYS

Stock Analysis Report

Executive Summary

Agilysys, Inc., together with its subsidiaries, operates as a developer and marketer of hardware and software products and services to the hospitality industry in North America, Europe, the Asia-Pacific, and India.


Snowflake Analysis

Flawless balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Agilysys's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AGYS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.3%

AGYS

2.6%

US Software

5.3%

US Market


1 Year Return

-17.5%

AGYS

9.5%

US Software

-10.7%

US Market

Return vs Industry: AGYS underperformed the US Software industry which returned 11% over the past year.

Return vs Market: AGYS underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

AGYSIndustryMarket
7 Day-0.3%2.6%5.3%
30 Day-48.6%-7.9%-13.6%
90 Day-35.5%-3.2%-19.8%
1 Year-17.5%-17.5%10.6%9.5%-8.9%-10.7%
3 Year81.2%81.2%106.4%97.6%15.5%8.0%
5 Year66.5%66.5%173.9%154.7%35.2%20.4%

Price Volatility Vs. Market

How volatile is Agilysys's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Agilysys undervalued compared to its fair value and its price relative to the market?

3.99x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: AGYS ($15.75) is trading below our estimate of fair value ($16.46)

Significantly Below Fair Value: AGYS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AGYS is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: AGYS is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AGYS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AGYS is good value based on its PB Ratio (3.8x) compared to the US Software industry average (4.3x).


Next Steps

Future Growth

How is Agilysys forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

38.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AGYS is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: AGYS is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: AGYS is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: AGYS's revenue (3.8% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: AGYS's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AGYS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Agilysys performed over the past 5 years?

-8.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AGYS is currently unprofitable.

Growing Profit Margin: AGYS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AGYS is unprofitable, and losses have increased over the past 5 years at a rate of -8.4% per year.

Accelerating Growth: Unable to compare AGYS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AGYS is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (18.7%).


Return on Equity

High ROE: AGYS has a negative Return on Equity (-11%), as it is currently unprofitable.


Next Steps

Financial Health

How is Agilysys's financial position?


Financial Position Analysis

Short Term Liabilities: AGYS's short term assets ($84.3M) exceed its short term liabilities ($62.6M).

Long Term Liabilities: AGYS's short term assets ($84.3M) exceed its long term liabilities ($12.3M).


Debt to Equity History and Analysis

Debt Level: AGYS is debt free.

Reducing Debt: AGYS has not had any debt for past 5 years.


Balance Sheet

Inventory Level: AGYS has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if AGYS's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable AGYS has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: AGYS is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 34% per year.


Next Steps

Dividend

What is Agilysys's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AGYS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AGYS's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AGYS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AGYS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: AGYS is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AGYS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure


CEO

Ramesh Srinivasan (59yo)

3.25s

Tenure

US$1,066,039

Compensation

Mr. Ramesh Srinivasan has been the Chief Executive Officer, President and Director at Agilysys, Inc. since January 3,2017. Throughout his career, Mr. Srinivasan has demonstrated tremendous success in formu ...


CEO Compensation Analysis

Compensation vs Market: Ramesh's total compensation ($USD1.07M) is below average for companies of similar size in the US market ($USD2.12M).

Compensation vs Earnings: Ramesh's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ramesh Srinivasan
CEO, President & Director3.25yrsUS$1.07m1.01% $3.9m
Anthony Pritchett
VP & CFO3.42yrsUS$555.58k0.16% $611.3k
Prabuddha Biswas
Chief Technology Officer2yrsUS$1.12m0.16% $630.7k
Kyle Badger
Senior VP8.5yrsUS$600.99k0.43% $1.7m
Donald Demarinis
Senior Vice President of Sales - Americas2.25yrsUS$607.23k0.068% $262.1k
Robert Jacks
VP & Chief Information Officer1.75yrsno data0.049% $190.1k
Theresa Putnal
Vice President of Human Resourcesno datano datano data
James Slatter
EMEA Managing Director3.75yrsno datano data
Prakash Bhat
VP & MD of India Development Center3.08yrsno datano data
Andrew Cox
Managing Director of APAC1.08yrsno datano data

3.1yrs

Average Tenure

55yo

Average Age

Experienced Management: AGYS's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ramesh Srinivasan
CEO, President & Director3.25yrsUS$1.07m1.01% $3.9m
John Mutch
Independent Director11.08yrsUS$125.00k0.15% $572.5k
Donald Colvin
Independent Director4.58yrsUS$130.00k0.11% $418.2k
Melvin Keating
Independent Director4.58yrsUS$137.50k0.14% $532.5k
Gerald Jones
Independent Director8.25yrsUS$125.00k0.22% $834.7k
Michael Kaufmann
Chairman of the Board4.5yrsUS$92.50kno data
Dana Jones
Independent Director1yrno data0.026% $102.2k

4.6yrs

Average Tenure

62yo

Average Age

Experienced Board: AGYS's board of directors are considered experienced (4.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AGYS insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Agilysys, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Agilysys, Inc.
  • Ticker: AGYS
  • Exchange: NasdaqGS
  • Founded: 1963
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$388.107m
  • Shares outstanding: 23.24m
  • Website: https://www.agilysys.com

Number of Employees


Location

  • Agilysys, Inc.
  • 1000 Windward Concourse
  • Suite 250
  • Alpharetta
  • Georgia
  • 30005
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AGYSNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDDec 1972
PS3DB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1972

Biography

Agilysys, Inc., together with its subsidiaries, operates as a developer and marketer of hardware and software products and services to the hospitality industry in North America, Europe, the Asia-Pacific, and India. The company offers point of sale, property management systems, payment, business intelligence, guest self-service, inventory and procurement, reservations, table management, activity scheduling, golf and spa management, document management, and online booking solutions to enhance guest experience. It also provides technical software support, maintenance, and subscription services; and professional services. Agilysys, Inc. offers its solutions for gaming, hotels, resorts and cruise, corporate foodservice management, restaurants, universities, stadia, and healthcare. The company was formerly known as Pioneer-Standard Electronics, Inc. and changed its name to Agilysys, Inc. in 2003. Agilysys, Inc. was founded in 1963 and is headquartered in Alpharetta, Georgia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 07:02
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.