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.

Risks

  • American Software is covered by less than 3 analysts.

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


Market Performance


7 Day Return

1.1%

AMSW.A

-1.1%

US Software

-0.6%

US Market


1 Year Return

28.6%

AMSW.A

13.7%

US Software

0.7%

US Market

AMSW.A outperformed the Software industry which returned 14% over the past year.

AMSW.A outperformed the Market in United States of America which returned 0.7% over the past year.


Share holder returns

AMSW.AIndustryMarket
7 Day1.1%-1.1%-0.6%
30 Day9.0%0.5%4.9%
90 Day12.5%-0.5%1.7%
1 Year33.2%28.6%15.3%13.7%3.0%0.7%
3 Year53.4%37.2%120.2%111.5%44.8%35.4%
5 Year105.2%68.5%168.5%148.8%62.0%44.3%

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 based on future cash flows and its price relative to the stock market?

12%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

American Software's share price is below the future cash flow value, but not at a moderate discount (< 20%).

American Software's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

American Software is overvalued based on earnings compared to the US Software industry average.

American Software is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

American Software is poor value based on expected growth next year.


Price Based on Value of Assets

American Software is good value based on assets compared to the US Software industry average.


Next Steps

Future Growth

How is American Software expected 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 Estimates


Future Annual Growth Analysis

American Software's revenue is expected to grow by 5.6% yearly, however this is not considered high growth (20% yearly).

American Software's earnings are expected to grow significantly at over 20% yearly.

American Software's revenue growth is positive but not above the United States of America market average.

American Software's earnings growth is expected to exceed the United States of America market average.

American Software's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if American Software will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has American Software performed over the past 5 years?

2.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

American Software's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

American Software's 1-year earnings growth is negative, it can't be compared to the 5-year average.

American Software's 1-year earnings growth is negative, it can't be compared to the US Software industry average.


Return on Equity

American Software has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

American Software used its assets less efficiently than the US Software industry average last year based on Return on Assets.


Return on Capital Employed

American Software's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is American Software's financial position?


Financial Position Analysis

American Software is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

American Software's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

American Software has no debt.

American Software has not taken on any debt in the past 5 years.

American Software has no debt, it does not need to be covered by operating cash flow.

American Software has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

American Software has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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

2.92%

Current Dividend Yield


Upcoming Dividend Payment

Purchase American Software before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

American Software's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

American Software's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.5x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

2.5yrs

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

Jim's remuneration is lower than average for companies of similar size in United States of America.

Jim's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.5yrs

Average Tenure

64yo

Average Age

The tenure for the American Software management team is about average.


Board Age and Tenure

18.2yrs

Average Tenure

64yo

Average Age

The average tenure for the American Software board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

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

Ownership Breakdown


Management Team

  • Jim Edenfield (84yo)

    Co-Founder

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

    Chief Financial Officer

    • Tenure: 20yrs
    • Compensation: US$566.36k
  • Jim McGuone (72yo)

    Corporate Secretary

    • Tenure: 31.3yrs
    • Compensation: US$321.45k
  • Don Thomas (72yo)

    Chief Information Officer

    • Tenure: 1.3yrs
  • H. Dow (55yo)

    President

    • Tenure: 2.5yrs
    • Compensation: US$1.48m
  • Bryan Sell

    Controller & Principal Accounting Officer

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

    VP & General Counsel

    • Tenure: 0.7yrs
    • Compensation: US$198.85k

Board Members

  • Jim Edenfield (84yo)

    Co-Founder

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

    Director

    • Tenure: 18.7yrs
    • Compensation: US$839.50k
  • Jim Miller (79yo)

    Director

    • Tenure: 17.7yrs
    • Compensation: US$102.88k
  • W. Hogue (66yo)

    Director

    • Tenure: 18.7yrs
    • Compensation: US$95.28k
  • Thomas Newberry (52yo)

    Director

    • Tenure: 18.7yrs
    • Compensation: US$95.28k
  • Matthew McKenna (62yo)

    Director

    • Tenure: 2.3yrs
    • 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$473.008m
  • 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 Analysis2019/09/22 23:31
End of Day Share Price2019/09/20 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.