NasdaqGS:AMSW.A

Stock Analysis Report

Executive Summary

American Software, Inc. develops, markets, and supports a portfolio of software and services worldwide.

Snowflake

Fundamentals

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: AMSW.A has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.3%

AMSW.A

2.2%

US Software

0.9%

US Market


1 Year Return

56.6%

AMSW.A

39.3%

US Software

16.8%

US Market

Return vs Industry: AMSW.A exceeded the US Software industry which returned 39.3% over the past year.

Return vs Market: AMSW.A exceeded the US Market which returned 16.8% over the past year.


Shareholder returns

AMSW.AIndustryMarket
7 Day-2.3%2.2%0.9%
30 Day2.9%10.5%4.5%
90 Day11.8%4.6%6.2%
1 Year60.7%56.6%41.5%39.3%19.4%16.8%
3 Year56.5%41.5%126.3%117.4%47.5%38.0%
5 Year112.5%76.3%176.1%156.3%62.0%44.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

76.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AMSW.A ($16.27) is trading above our estimate of fair value ($14.24)

Significantly Below Fair Value: AMSW.A is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AMSW.A is poor value based on its PE Ratio (77x) compared to the Software industry average (45.5x).

PE vs Market: AMSW.A is poor value based on its PE Ratio (77x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: AMSW.A is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: AMSW.A is good value based on its PB Ratio (4.5x) compared to the US Software industry average (6x).


Next Steps

Future Growth

How is American Software forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

29.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMSW.A's forecast earnings growth (29.9% per year) is above the savings rate (2.7%).

Earnings vs Market: AMSW.A's earnings (29.9% per year) are forecast to grow faster than the US market (14.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AMSW.A's revenue (5.6% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: AMSW.A's revenue (5.6% 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 AMSW.A's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has American Software performed over the past 5 years?

2.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMSW.A has high quality earnings.

Growing Profit Margin: AMSW.A's current net profit margins (6%) are lower than last year (9.5%).


Past Earnings Growth Analysis

Earnings Trend: AMSW.A's earnings have grown by 2.8% per year over the past 5 years.

Accelerating Growth: AMSW.A's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AMSW.A had negative earnings growth (-38.7%) over the past year, making it difficult to compare to the Software industry average (25.8%).


Return on Equity

High ROE: AMSW.A's Return on Equity (5.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is American Software's financial position?


Financial Position Analysis

Short Term Liabilities: AMSW.A's short term assets ($112.6M) exceeds its short term liabilities ($43.3M)

Long Term Liabilities: AMSW.A's short term assets ($112.6M) exceeds its long term liabilities (5.4M)


Debt to Equity History and Analysis

Debt Level: AMSW.A is debt free.

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

Debt Coverage: AMSW.A has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: AMSW.A has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

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


Next Steps

Dividend

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

2.70%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: AMSW.A's dividend (2.7%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: AMSW.A's dividend (2.7%) is low compared to the top 25% of dividend payers in the US market (3.68%).


Stability and Growth of Payments

Stable Dividend: AMSW.A's dividends per share have been stable in the past 10 years.

Growing Dividend: AMSW.A's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (208.2%), AMSW.A's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

  • Explore strong dividend paying companies in the Software industry.

Management

What is the CEO of American Software's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Jim Edenfield (84yo)

0yrs

Tenure

US$872,569

Compensation

Mr. James Clyde Edenfield, also known as Jim, Co-Founded American Software Inc. in 1970 and has been its Executive Chairman since September 2014. Mr. Edenfield serves as Principal Executive Officer and Tre ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD872.57K) is below average for companies of similar size in the US market ($USD1.73M).

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


Management Age and Tenure

2.7yrs

Average Tenure

64yo

Average Age

Experienced Management: AMSW.A's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

17.8yrs

Average Tenure

62yo

Average Age

Experienced Board: AMSW.A's board of directors are seasoned and experienced ( 17.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$251,49426 Mar 19
W. Hogue
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares21,850
Max PriceUS$11.51

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.4%.


Management Team

  • Jim Edenfield (84yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: US$872.57k
  • Vince Klinges (56yo)

    Chief Financial Officer

    • Tenure: 20.2yrs
    • Compensation: US$566.36k
  • Jim McGuone (72yo)

    Corporate Secretary

    • Tenure: 31.5yrs
    • Compensation: US$321.45k
  • Don Thomas (72yo)

    Chief Information Officer

    • Tenure: 1.4yrs
  • H. Dow (55yo)

    President

    • Tenure: 2.7yrs
    • Compensation: US$1.48m
  • Bryan Sell

    Controller & Principal Accounting Officer

    • Tenure: 0yrs
  • Valerie King (56yo)

    VP & General Counsel

    • Tenure: 0.8yrs
    • Compensation: US$198.85k

Board Members

  • Jim Edenfield (84yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: US$872.57k
  • Mike Edenfield (61yo)

    Director

    • Tenure: 18.8yrs
    • Compensation: US$839.50k
  • Jim Miller (79yo)

    Independent Director

    • Tenure: 17.8yrs
    • Compensation: US$102.88k
  • W. Hogue (66yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$95.28k
  • Lizanne Thomas (61yo)

    Director

    • Tenure: 0.08yrs
  • Thomas Newberry (52yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$95.28k
  • Matthew McKenna (62yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$95.28k

Company Information

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


Key Information

  • Name: American Software, Inc.
  • Ticker: AMSW.A
  • Exchange: NasdaqGS
  • Founded: 1970
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$526.645m
  • Shares outstanding: 31.37m
  • Website: https://www.amsoftware.com

Number of Employees


Location

  • American Software, Inc.
  • 470 East Paces Ferry Road, N.E.
  • Atlanta
  • Georgia
  • 30305
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AMSW.ANasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDFeb 1983
ADWADB (Deutsche Boerse AG)YesClass A Common StockDEEURFeb 1983

Biography

American Software, Inc. develops, markets, and supports a portfolio of software and services worldwide. It operates in three segments: Supply Chain Management (SCM), Information Technology Consulting (IT C ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/19 23:31
End of Day Share Price2019/11/19 00:00
Earnings2019/07/31
Annual Earnings2019/04/30


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.