NasdaqGS:AMSW.A

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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.


Snowflake Analysis

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.6%

AMSW.A

-2.3%

US Software

-0.7%

US Market


1 Year Return

14.2%

AMSW.A

31.8%

US Software

5.3%

US Market

Return vs Industry: AMSW.A underperformed the US Software industry which returned 37.4% over the past year.

Return vs Market: AMSW.A exceeded the US Market which returned 6.7% over the past year.


Shareholder returns

AMSW.AIndustryMarket
7 Day-6.6%-2.3%-0.7%
30 Day-19.3%9.0%4.6%
90 Day3.7%23.2%14.0%
1 Year17.6%14.2%32.8%31.8%7.6%5.3%
3 Year67.1%51.0%143.6%135.3%34.9%26.1%
5 Year90.4%58.1%236.6%216.7%62.3%44.7%

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?

71.17x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AMSW.A ($15.12) is trading above our estimate of fair value ($11.3)

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 (71.2x) compared to the US Software industry average (54.4x).

PE vs Market: AMSW.A is poor value based on its PE Ratio (71.2x) compared to the US market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: AMSW.A is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: AMSW.A is good value based on its PB Ratio (4.1x) compared to the US Software industry average (7x).


Next Steps

Future Growth

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

23.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMSW.A's forecast earnings growth (23.4% per year) is above the savings rate (2.2%).

Earnings vs Market: AMSW.A's earnings (23.4% per year) are forecast to grow faster than the US market (22.9% per year).

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

Revenue vs Market: AMSW.A's revenue (5.1% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: AMSW.A's revenue (5.1% 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?

-4.5%

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 (5.8%) are lower than last year (6.3%).


Past Earnings Growth Analysis

Earnings Trend: AMSW.A's earnings have declined by -4.5% 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 (-0.9%) over the past year, making it difficult to compare to the Software industry average (12.3%).


Return on Equity

High ROE: AMSW.A's Return on Equity (5.6%) is considered low.


Next Steps

Financial Health

How is American Software's financial position?


Financial Position Analysis

Short Term Liabilities: AMSW.A's short term assets ($125.7M) exceed its short term liabilities ($47.0M).

Long Term Liabilities: AMSW.A's short term assets ($125.7M) exceed its long term liabilities ($4.4M).


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


Next Steps

Dividend

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

2.91%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: AMSW.A's dividend (2.91%) is higher than the bottom 25% of dividend payers in the US market (1.68%).

High Dividend: AMSW.A's dividend (2.91%) is low compared to the top 25% of dividend payers in the US market (4.6%).


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 (207.2%), 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

Management

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

2.1yrs

Average management tenure


CEO

H. Dow (56yo)

0.17

Tenure

US$1,479,315

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 ($USD1.48M) is below average for companies of similar size in the US market ($USD2.16M).

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


Leadership Team

NamePositionTenureCompensationOwnership
James Edenfield
Co-Founder5.83yrsUS$872.57k5.85% $28.7m
H. Dow
CEO, President & Director0.17yrUS$1.48m0.19% $934.0k
Vincent Klinges
Chief Financial Officer20.83yrsUS$566.36k0.30% $1.5m
Valerie King
VP & General Counsel1.5yrsUS$198.85kno data
James McGuone
Corporate Secretary32.17yrsUS$321.45kno data
Bryan Sell
Controller & Principal Accounting Officerno datano datano data
Donald Thomas
Chief Information Officer2.08yrsno datano data

2.1yrs

Average Tenure

65yo

Average Age

Experienced Management: AMSW.A's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Edenfield
Co-Founder5.83yrsUS$872.57k5.85% $28.7m
H. Dow
CEO, President & Director0.17yrUS$1.48m0.19% $934.0k
James Miller
Independent Director18.5yrsUS$102.88k0.23% $1.1m
W. Hogue
Independent Director19.5yrsUS$95.28k0.038% $187.0k
Lizanne Thomas
Director0.75yrno datano data
Thomas Newberry
Independent Director19.5yrsUS$95.28kno data
Matthew McKenna
Independent Director3.08yrsUS$95.28k0.031% $152.4k

5.8yrs

Average Tenure

63yo

Average Age

Experienced Board: AMSW.A's board of directors are considered experienced (5.8 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.2%.


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$490.363m
  • Shares outstanding: 32.44m
  • 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 range of computer business application software products and services in the United States and internationally. It operates in three segments: Supply Chain Management (SCM), Information Technology Consulting (IT Consulting), and Other. The SCM segment offers supply chain optimization and retail planning solutions, including sales and operations planning, demand optimization, inventory optimization, manufacturing planning and scheduling, supply optimization, retail allocation and merchandise planning, and transportation optimization to streamline and optimize the forecasting, inventory, production, supply, allocation, distribution, and management of products between trading partners. It also provides cloud solutions for supply chain and product lifecycle management, quality control, vendor compliance, and enterprise resource planning for retailers and manufacturers; and advanced analytics and business intelligence solutions for the supply chain market. The IT Consulting segment offers IT staffing and consulting services, such as professional, product management, and project management outsourcing services; staff augmentation services in the areas of cloud, collaboration, network, and security; and social media and analytic marketing services. It also provides software enhancement, documentation, updates, customer education, consulting, systems integration services, maintenance, and support services. The Other segment offers purchasing and materials management, customer order processing, financial, e-commerce, human resource, and manufacturing solutions. The company markets its products through direct and indirect sales channels to the retail, apparel and footwear, consumer packaged goods, chemicals, oil and gas, life sciences, consumer electronics, industrial products, and other manufacturing industries. American Software, Inc. was founded in 1970 and is headquartered in Atlanta, Georgia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/14 00:02
End of Day Share Price2020/07/13 00:00
Earnings2020/04/30
Annual Earnings2020/04/30


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.