Agilysys (AGYS) AI Stock Analysis

• Market Cap: $2.92B
• Dividend Yield: N/A
• Average Volume (3M): 194.76K
• Price to Earnings (P/E): 208.6
• Beta (1Y): 0.65
• Revenue Growth: 17.91%
• EPS Growth: -86.60%
• Country: US
• Employees: 1,900
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.33
• Shares Outstanding: 28,042,795
• 10 Day Avg. Volume: 240,564
• 30 Day Avg. Volume: 194,765
• PEG Ratio: -1.15
• Price to Book (P/B): 7.51
• Price to Sales (P/S): 7.24
• P/FCF Ratio: 38.13
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 11.15
• Enterprise Value/Gross Profit: 17.96
• Enterprise Value/Ebitda: 94.28
• 1Y Price Target: $130.40
• Price Target Upside: 24.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 73 Outperform
• Price Target: $118.00 ▲(12.75% Upside)

Agilysys's overall stock score is driven by strong financial performance and a positive earnings call, highlighting robust sales momentum and subscription growth. However, the high P/E ratio and mixed technical indicators suggest caution. The company's profitability and valuation metrics indicate areas for improvement.

Positive Factors

Revenue Growth

Consistent revenue growth underscores Agilysys's strong market position and successful product adoption, ensuring long-term financial stability.

Subscription Revenue Surge

The surge in subscription revenue reflects a shift towards a more predictable and recurring revenue model, enhancing financial predictability and customer retention.

Strong Backlog

A strong backlog indicates robust demand and future revenue visibility, supporting sustained growth and operational planning.

Negative Factors

Profitability Challenges

Declining profitability suggests challenges in cost management and operational efficiency, which may impact long-term financial health if not addressed.

Cash Flow Challenges

Negative cash flow can strain liquidity and limit investment capacity, potentially hindering growth and operational flexibility.

Profitability Impacted by Costs

One-time costs affecting profitability highlight the need for better cost forecasting and management to maintain financial stability.

Agilysys Business Overview & Revenue Model

Company Description

Agilysys, 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 Money

Agilysys generates revenue through a combination of software licensing, subscription services, and support and maintenance fees. The company offers its software products on a recurring subscription basis, which provides a steady stream of income. Additionally, Agilysys earns revenue from professional services related to the implementation and customization of its solutions. Key partnerships with major hospitality brands and technology providers enhance its market position and drive sales. The company also benefits from ongoing customer relationships, as clients often require updates, training, and support, contributing to its long-term revenue stability.

Agilysys Financial Statement Overview

Summary

Agilysys demonstrates solid financial health with strong revenue growth and efficient cost management. However, profitability has room for improvement, as indicated by the decrease in net profit margin and ROE. The balance sheet is stable with low leverage, and cash flows are robust, ensuring liquidity.

Income Statement

Agilysys has demonstrated strong revenue growth with a 23.0% increase in the recent TTM period. The gross profit margin stands at 62.2%, indicating efficient cost management. However, the net profit margin has decreased to 4.9% in the TTM, down from 8.4% in the previous year. The EBIT and EBITDA margins are moderate at 7.4% and 11.8%, respectively, showing room for improvement in operational efficiency.

Balance Sheet

The balance sheet reflects a strong equity position with an equity ratio of 66.5%. The debt-to-equity ratio is low at 0.08, indicating low leverage and financial stability. ROE has decreased significantly to 4.9% in the TTM from 8.7% in the previous year, suggesting a need to enhance profitability.

Cash Flow

Agilysys shows healthy free cash flow generation with a minor decline of 9.9% in the TTM. The operating cash flow to net income ratio is robust at 3.55, indicating strong cash generation capability relative to net income. The free cash flow to net income ratio is high at 3.36, supporting the company's liquidity position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	288.79M	275.62M	237.46M	198.06M	162.64M	137.18M
Gross Profit	179.41M	171.99M	144.26M	120.82M	101.53M	89.38M
EBITDA	34.17M	35.16M	25.95M	19.28M	10.39M	-16.40M
Net Income	14.01M	23.23M	86.19M	14.58M	6.48M	-21.00M
Balance Sheet
Total Assets	426.05M	434.37M	350.43M	243.04M	214.16M	189.87M
Cash, Cash Equivalents and Short-Term Investments	55.56M	73.04M	144.89M	112.84M	96.97M	99.18M
Total Debt	21.91M	46.96M	23.89M	16.74M	10.70M	13.63M
Total Liabilities	142.83M	168.48M	113.95M	98.27M	81.36M	74.54M
Stockholders Equity	283.22M	265.89M	236.48M	144.77M	132.80M	115.33M
Cash Flow
Free Cash Flow	47.14M	52.34M	40.06M	27.23M	27.28M	27.02M
Operating Cash Flow	49.68M	55.13M	48.19M	34.46M	28.48M	28.41M
Investing Cash Flow	-148.33M	-148.57M	-7.60M	-6.87M	-25.68M	-1.39M
Financing Cash Flow	9.93M	21.93M	-8.56M	-11.09M	-4.90M	25.32M

Agilysys Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 104.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AGYS, the sentiment is Negative. The current price of 104.66 is below the 20-day moving average (MA) of 107.33, below the 50-day MA of 109.80, and above the 200-day MA of 100.55, indicating a neutral trend. The MACD of -1.34 indicates Positive momentum. The RSI at 43.06 is Neutral, neither overbought nor oversold. The STOCH value of 15.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AGYS.

Agilysys Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGYS	73 Outperform	$2.92B	208.56	5.21%	―	17.91%	-86.60%
SPT	62 Neutral	826.33M	-14.80	-37.20%	―	14.79%	27.52%
BL	61 Neutral	3.27B	42.51	21.25%	―	7.99%	-28.47%
BLKB	56 Neutral	3.11B	-11.09	-317.65%	―	0.11%	-817.49%
OCFT	46 Neutral	291.79M	-2.90	-17.97%	―	-48.61%	-2291.48%
ALIT	46 Neutral	1.75B	-1.51	-37.33%	4.92%	-19.48%	-398.43%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Agilysys Corporate Events

Agilysys Holds 2025 Annual Stockholders Meeting

The 2025 Annual Meeting of Stockholders of Agilysys, Inc. took place on September 4, 2025, where several key proposals were voted on. The election of directors resulted in the appointment of individuals to serve until the 2026 Annual Meeting. Additionally, there was an advisory vote on executive compensation and the ratification of Grant Thornton LLP as the independent registered public accounting firm for the fiscal year ending March 31, 2026.

The most recent analyst rating on (AGYS) stock is a Buy with a $121.00 price target. To see the full list of analyst forecasts on Agilysys stock, see the AGYS Stock Forecast page.

Agilysys Reports Strong Q1 FY26 Financial Performance

Agilysys has released a slide presentation for Q1 Fiscal Year 2026, highlighting their financial performance and strategic focus. The company reported a strong financial position with significant revenue growth and a raised annual guidance for FY26. Agilysys continues to focus on expanding its subscription revenue and maintaining a robust balance sheet, which is expected to enhance its market positioning in the hospitality industry.

The most recent analyst rating on (AGYS) stock is a Buy with a $120.00 price target. To see the full list of analyst forecasts on Agilysys stock, see the AGYS Stock Forecast page.