NasdaqGS:AMSW.A

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$734.0m

Last Updated

2021/06/23 03:57 UTC

Data Sources

Company Financials +

Executive Summary

American Software, Inc. develops, markets, and supports a range of computer business application software products and services in the United States and internationally. More Details


Snowflake Analysis

Flawless balance sheet with acceptable track record.


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 is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: AMSW.A's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

-8.2%

AMSW.A

2.3%

US Software

-0.1%

US Market


1 Year Return

39.5%

AMSW.A

34.2%

US Software

39.0%

US Market

Return vs Industry: AMSW.A exceeded the US Software industry which returned 33.6% over the past year.

Return vs Market: AMSW.A exceeded the US Market which returned 39% over the past year.


Shareholder returns

AMSW.AIndustryMarket
7 Day-8.2%2.3%-0.1%
30 Day13.2%9.6%2.6%
90 Day9.3%12.6%8.0%
1 Year42.8%39.5%34.9%34.2%41.2%39.0%
3 Year62.6%49.1%145.8%139.1%62.4%52.3%
5 Year163.0%122.6%386.4%362.3%132.3%106.2%

Long-Term 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?

90.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AMSW.A ($22.79) is trading above our estimate of fair value ($12.27)

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 (91.7x) compared to the US Software industry average (48.7x).

PE vs Market: AMSW.A is poor value based on its PE Ratio (91.7x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: AMSW.A is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: AMSW.A is good value based on its PB Ratio (6.1x) compared to the US Software industry average (7.7x).


Future Growth

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

21.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMSW.A's forecast earnings growth (21.4% per year) is above the savings rate (2%).

Earnings vs Market: AMSW.A's earnings (21.4% per year) are forecast to grow faster than the US market (15.7% per year).

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

Revenue vs Market: AMSW.A's revenue (7.5% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: AMSW.A's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AMSW.A's Return on Equity is forecast to be low in 3 years time (14.4%).


Past Performance

How has American Software performed over the past 5 years?

-13.3%

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 (7.3%) are higher than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: AMSW.A's earnings have declined by 13.3% per year over the past 5 years.

Accelerating Growth: AMSW.A's earnings growth over the past year (20%) exceeds its 5-year average (-13.3% per year).

Earnings vs Industry: AMSW.A earnings growth over the past year (20%) underperformed the Software industry 31%.


Return on Equity

High ROE: AMSW.A's Return on Equity (6.6%) is considered low.


Financial Health

How is American Software's financial position?


Financial Position Analysis

Short Term Liabilities: AMSW.A's short term assets ($136.6M) exceed its short term liabilities ($50.7M).

Long Term Liabilities: AMSW.A's short term assets ($136.6M) exceed its long term liabilities ($4.1M).


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


Dividend

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

1.96%

Current Dividend Yield


Upcoming Dividend Payment

TodayJun 23 2021Ex Dividend DateAug 12 2021Dividend Pay DateAug 27 202115 days from Ex DividendBuy in the next 49 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: AMSW.A's dividend (1.93%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: AMSW.A's dividend (1.93%) is low compared to the top 25% of dividend payers in the US market (3.44%).


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 (177.1%), 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

Management

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

1.1yrs

Average management tenure


CEO

H. Dow (56 yo)

1.08yrs

Tenure

US$2,555,131

Compensation

Mr. H. Allan Dow has been the President of American Software, Inc., since March 3, 2017 and its Chief Executive Officer and Director since May 20, 2020. Mr. Dow has been the President of Logility Inc. sinc...


CEO Compensation Analysis

Compensation vs Market: H.'s total compensation ($USD2.56M) is about average for companies of similar size in the US market ($USD2.34M).

Compensation vs Earnings: H.'s compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: AMSW.A's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

Experienced Board: AMSW.A's board of directors are considered experienced (6.8 years average tenure).


Ownership

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


Insider Trading Volume

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


Ownership Breakdown

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


Top Shareholders

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$733.966m
  • Shares outstanding: 32.71m
  • 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


Biography

American Software, Inc. develops, markets, and supports a range of computer business application software products and services in the United States and internationally. It operates in three segments: Supp...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/23 03:57
End of Day Share Price2021/06/22 00:00
Earnings2021/04/30
Annual Earnings2021/04/30


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.