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Agilysys (AGYS)
NASDAQ:AGYS
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Agilysys
(NASDAQ:AGYS)
68Neutral
Positive Factors
Market Opportunities
Agilysys is operating in a favorable selling environment and against legacy competitors.
New Client Wins
Strong new logo wins, including 17 new subscription logos, indicate a positive trend for AGYS.
Subscription Revenue Growth
Agilysys is set up well to deliver over 25% organic subscription revenue growth on a multi-year basis while expanding EBITDA margins.
Negative Factors
Gross Margin Pressure
Gross margins are expected to decrease slightly as products revenue rebounds and the mix is a headwind to gross margin.
Investor Expectations
The setup ahead of the F1Q print is less favorable with elevated investor expectations after a significant move up in the company valuation during F1Q, and likely underwhelming guidance since it's early in a new fiscal year.
Revenue Softness
AGYS' revenue segments came in softer than expected due to ongoing POS sales pressures and project implementations getting delayed.
Agilysys (AGYS) vs. S&P 500 (SPY)
Market Cap
$2.07B
Dividend YieldN/A
Average Volume (3M)251.97K
Price to Earnings (P/E)93.7
Beta (1Y)0.82
Revenue Growth15.53%
EPS Growth-75.45%
CountryUS
Employees1,900
SectorTechnology
Sector Strength63
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.79
Shares Outstanding27,963,987
10 Day Avg. Volume238,657
30 Day Avg. Volume251,969
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)N/A
Price to Sales (P/S)7.86
Price to Cash Flow (P/CF)25.40
P/FCF Ratio37.50
Enterprise Value/Market Cap1.80
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit25.85
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$122.67Price Target Upside65.61% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Agilysys Business Overview & Revenue Model
Company DescriptionAgilysys, 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. It offers point of sale, property management systems, inventory and procurement, payments, reservations management, and seat solutions to enhance guest experience. The company also provides technical software support, maintenance, and subscription services; and professional services. It offers its solutions for gaming, hotels, resorts and cruise, corporate foodservice management, restaurants, universities, stadium, 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 1932 and is headquartered in Alpharetta, Georgia.
How the Company Makes MoneyAgilysys makes money primarily through the sale and licensing of its software solutions and services to hospitality businesses. The company's revenue model includes subscription fees for its cloud-based solutions, maintenance and support fees for on-premise software, and professional services fees for consulting and implementation. Additionally, Agilysys generates income from hardware sales related to its software solutions, which includes point of sale terminals and other related devices. The company also benefits from strategic partnerships and alliances with other technology providers and hospitality organizations, enhancing its market reach and revenue potential.
Agilysys Financial Statement Overview
Summary
Agilysys demonstrates strong revenue growth and operational efficiency with robust margins and a stable balance sheet. There is room for improvement in net profit margins to align with top industry peers.Income Statement
Agilysys shows strong revenue growth with a 33% increase from 2023 to 2024 TTM. The gross profit margin is robust at 61.85%, indicating effective cost management. Net profit margin stands at 8.45%, showing profitability, although it is slightly below the industry top performers. EBIT margin at 8.85% and EBITDA margin at 10.79% indicate solid operational efficiency.87
Very Positive
Balance Sheet
The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.09, indicating low leverage risk. The return on equity is strong at 8.67%, and the equity ratio is 57.85%, demonstrating a substantial equity base relative to assets. Overall, the balance sheet suggests financial stability.82
Very Positive
Cash Flow
Agilysys exhibits a strong free cash flow growth rate of 37.86%. The operating cash flow to net income ratio is 2.60, indicating efficient cash generation from operations. The free cash flow to net income ratio is 2.48, underscoring strong cash flow relative to earnings.80
Positive
| Breakdown | ||||
| Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 237.46M | 198.06M | 162.64M | 137.18M | 160.76M | Gross Profit |
| 144.26M | 120.82M | 101.53M | 89.38M | 80.95M | EBIT |
| 15.75M | 12.88M | 9.08M | -18.23M | -9.66M | EBITDA |
| 25.95M | 19.28M | 10.39M | -16.40M | -16.18M | Net Income Common Stockholders |
| 86.19M | 14.58M | 6.48M | -21.00M | -34.07M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 144.89M | 112.84M | 96.97M | 99.18M | 46.65M | Total Assets |
| 350.43M | 243.04M | 214.16M | 189.87M | 154.56M | Total Debt |
| 23.89M | 16.74M | 10.70M | 13.63M | 15.38M | Net Debt |
| -121.00M | -96.10M | -86.27M | -85.55M | -31.27M | Total Liabilities |
| 113.95M | 98.27M | 81.36M | 74.54M | 82.81M | Stockholders Equity |
| 236.48M | 144.77M | 132.80M | 115.33M | 71.76M |
| Cash Flow | Free Cash Flow | |||
| 40.06M | 27.23M | 27.28M | 27.02M | 7.16M | Operating Cash Flow |
| 48.19M | 34.46M | 28.48M | 28.41M | 10.57M | Investing Cash Flow |
| -7.60M | -6.87M | -25.68M | -1.39M | -3.45M | Financing Cash Flow |
| -8.56M | -11.09M | -4.90M | 25.32M | -1.12M |
Agilysys Technical Analysis
Neutral
74.07
Price Trends
75.18
Negative
97.04
Negative
104.03
Negative
Market Momentum
-1.40
Negative
53.64
Neutral
74.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AGYS, the sentiment is Neutral. The current price of 74.07 is above the 20-day moving average (MA) of 70.43, below the 50-day MA of 75.18, and below the 200-day MA of 104.03, indicating a neutral trend. The MACD of -1.40 indicates Negative momentum. The RSI at 53.64 is Neutral, neither overbought nor oversold. The STOCH value of 74.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AGYS.
Agilysys Risk Analysis
Agilysys disclosed 32 risk factors in its most recent earnings report. Agilysys reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Agilysys Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.36B | 16.77 | 12.21% | 0.97% | 3.51% | 18.34% | |
68 Neutral | $2.07B | 93.68 | 9.14% | ― | 15.53% | -75.45% | |
66 Neutral | $2.18B | 31.94 | 7.50% | ― | 15.16% | -15.16% | |
64 Neutral | $2.08B | 18.53 | 85.07% | ― | -4.53% | 93.29% | |
61 Neutral | $1.92B | ― | -5.21% | ― | 3.46% | 7.88% | |
61 Neutral | $1.95B | 21.86 | 33.46% | ― | 3.01% | ― | |
59 Neutral | $10.73B | 10.11 | -6.65% | 3.02% | 7.41% | -11.17% |
* Technology Sector Average
Performance Comparison
AGYS
Agilysys
74.07
-8.95
-10.78%
FORM
Formfactor
28.34
-17.19
-37.76%
FORTY
Formula Systems
92.62
17.73
23.67%
TDC
Teradata
21.61
-16.25
-42.92%
EVCM
EverCommerce
10.46
1.31
14.32%
NATL
NCR Atleos, LLC
26.61
5.97
28.92%
Agilysys Earnings Call Summary
Earnings Call Date:Jan 21, 2025
(Q3-2025)
| % Change Since: -41.17%|
Next Earnings Date:May 20, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong growth in PMS and subscription revenues, but significant challenges in POS sales and international markets. The record revenue and high sales pipeline are promising, yet the setbacks in POS and international sales temper the optimism.Q3-2025 Updates
Positive Updates
Record Revenue and Growth in PMS Segment
Fiscal 2025 Q3 revenue was a record $69.6 million, marking the 12th consecutive record revenue quarter, up 14.9% from the previous year's quarter. PMS sales were 70% higher than the prior year quarter, and fiscal 2025 is already the best year for PMS sales, ahead of the previous best full year by 33%.
Strong Recurring and Subscription Revenue
Recurring revenue was a record $44.4 million, up 26.4% from the prior year. Subscription revenue grew 45.1% year-over-year, making up 63.8% of total recurring revenue.
Increased New Customer Acquisitions
Fiscal 2025 Q3 saw the addition of 12 new customers, 11 of whom were fully subscription-based, with an average of 6 products purchased per customer, a record high.
High Sales Pipeline
The sales pipeline at the demonstration stage was at a record level, 20% higher than the previous year, with PMS and POS opportunities up 37% and 22%, respectively.
Negative Updates
Challenges in POS Sales
POS sales fell short of expectations, especially in the Managed Food Services vertical. Product revenue was down 15.8% year-over-year, impacted by a decrease in POS sales.
International Sales Performance
Sales in the APAC and EMEA regions remained disappointing, with a continued dependence on significant deals rather than consistent smaller opportunities.
Service Revenue Challenges
Services revenue was below expectations due to the completion of significant development projects and customer delays during December, impacting the quarterly figures.
Company Guidance
During the Agilysys Q3 2025 earnings call, the company provided various performance metrics and insights into their financial guidance. Sales for the fiscal 2025 third quarter were the third highest ever, despite point-of-sale (POS) sales falling below expectations, particularly in the managed food services vertical. However, the company achieved its all-time best sales quarter for Property Management Systems (PMS), with sales excluding Book4Time being 70% higher than the same quarter the previous year. Overall, fiscal 2025 is already a record sales year for PMS and related modules, with sales up 33% compared to the previous best year. Revenue for Q3 reached a record $69.6 million, marking the 12th consecutive record revenue quarter, a 14.9% increase from the previous year. Recurring revenue was also at a record $44.4 million, growing by 26.4%, with subscription revenue making up 63.8% of the total. Despite challenges, the company expects POS sales to normalize in the coming quarters and maintains strong sales momentum moving forward. Agilysys anticipates full fiscal year revenue to reach $273 million, with a focus on profitability and subscription revenue growth.Agilysys Corporate Events
M&A TransactionsBusiness Operations and Strategy
Agilysys Acquires Book4Time, Expands Spa Software Reach
Positive
Jan 28, 2025
Agilysys has closed a strategic acquisition of Book4Time for $150 million in cash, enhancing its customer base by over 30% and expanding its market leadership in spa software solutions. This acquisition strengthens Agilysys’ competitive position, allowing for greater product penetration within large global brands, and highlights the company’s ongoing revenue growth and strategic focus on hospitality software solutions.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.