Agilysys (AGYS) AI Stock Analysis

• Market Cap: $2.98B
• Dividend Yield: N/A
• Average Volume (3M): 244.44K
• Price to Earnings (P/E): 213.7
• Beta (1Y): 0.68
• Revenue Growth: 17.91%
• EPS Growth: -86.60%
• Country: US
• Employees: 1,900
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Application
• EPS (TTM): 0.33
• Shares Outstanding: 28,042,795
• 10 Day Avg. Volume: 211,669
• 30 Day Avg. Volume: 244,440
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 11.15
• Enterprise Value/Gross Profit: 17.96
• Enterprise Value/Ebitda: 94.28
• 1Y Price Target: $127.17
• Price Target Upside: 19.79% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 73 Outperform
• Price Target: $116.00 ▲(9.27% Upside)

Agilysys's overall stock score reflects strong financial performance and positive earnings call sentiment, driven by robust revenue growth and strategic investments. However, the high P/E ratio and technical indicators suggest caution, as the stock may be overvalued and facing bearish momentum.

Positive Factors

Market Expansion

With a $16B TAM, the Marriott PMS roll-out expected to start, and market-leading software solutions for the hospitality segment, analysts remain bullish on AGYS.

Subscription Growth

Subscription growth is poised to accelerate as back-to-back strong sales quarters have resulted in a record backlog.

Negative Factors

EBITDA Performance

AGYS missed on EBITDA due to one-time expenses related to its annual user conference.

Product Revenue

Product revenue was below expectations, only increasing by 1%.

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. The balance sheet is stable with low leverage, and cash flows are robust, ensuring liquidity. However, there is room for improvement in profit margins and return on equity.

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

Agilysys Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 106.16
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 106.16 is below the 20-day moving average (MA) of 113.25, below the 50-day MA of 113.26, and above the 200-day MA of 102.66, indicating a neutral trend. The MACD of -1.34 indicates Positive momentum. The RSI at 41.65 is Neutral, neither overbought nor oversold. The STOCH value of 31.50 is Neutral, 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	$2.98B	213.71	5.21%	―	17.91%	-86.60%
BL	64 Neutral	$3.12B	40.52	23.79%	―	7.99%	-28.47%
SPT	63 Neutral	$810.43M	―	-32.50%	―	14.79%	27.52%
BLKB	55 Neutral	$3.03B	78.53	-85.12%	―	0.11%	-817.49%
Sector *	50 Neutral	AU$1.63B	3.37	-0.63%	3.31%	16.47%	-4.12%
OCFT	47 Neutral	$289.41M	50.30	-24.43%	―	-45.80%	-13.09%
ALIT	47 Neutral	$1.97B	―	-29.09%	3.28%	-19.48%	-398.43%

Agilysys Corporate Events

Agilysys Reports Strong Revenue Growth and Expansion

Agilysys recently announced its strategic acquisition of Book4Time, a market leader in spa software solutions, for $150 million in an all-cash transaction that closed in August 2024. This acquisition expands Agilysys’s customer base by over 30% and strengthens its product penetration among large global brands, providing a strategic advantage in competitive ecosystem deals. The company also reported strong financial performance with a projected annual revenue between $308M and $312M, a 25% year-over-year growth, and a focus on expanding its property management solutions to connect more rooms in the coming years.

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.