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Agilysys (AGYS)
NASDAQ:AGYS
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Agilysys
(NASDAQ:AGYS)
Rating:68Neutral
Price Target:―
Positive Factors
Market Position
Agilysys is viewed as one of the highest-quality SaaS hospitality platforms.
Revenue Growth
Agilysys reported strong fiscal fourth-quarter results, indicating robust company performance.
Strategic Partnerships
AGYS announced that Boyd Gaming signed a deal to implement its POS across 28 properties.
Negative Factors
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 Guidance
Management's guidance for fiscal 2026 was slightly below consensus on revenue, reflecting cautious future expectations.
Sales Pressure
AGYS' revenue segments came in softer than expected due to ongoing POS sales pressures and project implementations getting delayed.
Agilysys (AGYS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.83B
Dividend YieldN/A
Average Volume (3M)271.44K
Price to Earnings (P/E)121.4
Beta (1Y)0.84
Revenue Growth15.53%
EPS Growth-75.45%
CountryUS
Employees1,900
SectorTechnology
Sector Strength77
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.54
Shares Outstanding27,963,987
10 Day Avg. Volume368,317
30 Day Avg. Volume271,445
Financial Highlights & Ratios
PEG Ratio-1.17
Price to Book (P/B)7.88
Price to Sales (P/S)0.00
P/FCF Ratio37.02
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$116.75Price Target Upside14.90% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
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 | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 263.57M | 237.46M | 198.06M | 162.64M | 137.18M | 160.76M | Gross Profit |
| 163.02M | 144.26M | 120.82M | 101.53M | 89.38M | 80.95M | EBIT |
| 23.32M | 15.75M | 12.88M | 9.08M | -18.23M | -9.66M | EBITDA |
| 32.03M | 25.95M | 19.28M | 10.39M | -16.40M | -16.18M | Net Income Common Stockholders |
| 22.26M | 86.19M | 14.58M | 6.48M | -21.00M | -34.07M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 65.53M | 144.89M | 112.84M | 96.97M | 99.18M | 46.65M | Total Assets |
| 330.37M | 350.43M | 243.04M | 214.16M | 189.87M | 154.56M | Total Debt |
| 311.00K | 23.89M | 16.74M | 10.70M | 13.63M | 15.38M | Net Debt |
| -65.22M | -121.00M | -96.10M | -86.27M | -85.55M | -31.27M | Total Liabilities |
| 131.45M | 113.95M | 98.27M | 81.36M | 74.54M | 82.81M | Stockholders Equity |
| 198.92M | 236.48M | 144.77M | 132.80M | 115.33M | 71.76M |
| Cash Flow | Free Cash Flow | ||||
| 55.23M | 40.06M | 27.23M | 27.28M | 27.02M | 7.16M | Operating Cash Flow |
| 57.78M | 48.19M | 34.46M | 28.48M | 28.41M | 10.57M | Investing Cash Flow |
| -147.00M | -7.60M | -6.87M | -25.68M | -1.39M | -3.45M | Financing Cash Flow |
| 34.09M | -8.56M | -11.09M | -4.90M | 25.32M | -1.12M |
Agilysys Technical Analysis
Positive
101.61
Price Trends
76.80
Positive
86.86
Positive
101.64
Negative
Market Momentum
6.71
Negative
76.35
Negative
88.93
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AGYS, the sentiment is Positive. The current price of 101.61 is above the 20-day moving average (MA) of 83.68, above the 50-day MA of 76.80, and below the 200-day MA of 101.64, indicating a neutral trend. The MACD of 6.71 indicates Negative momentum. The RSI at 76.35 is Negative, neither overbought nor oversold. The STOCH value of 88.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.52B | 18.34 | 12.47% | 1.14% | 3.51% | 18.34% | |
68 Neutral | $2.37B | 44.49 | 5.74% | ― | 15.33% | -47.04% | |
68 Neutral | $2.83B | 121.44 | 9.25% | ― | 15.53% | -75.45% | |
68 Neutral | $1.81B | ― | -3.09% | ― | -1.96% | 19.43% | |
66 Neutral | $2.06B | 15.19 | 130.19% | ― | -6.53% | 240.56% | |
64 Neutral | $1.91B | 16.68 | 41.58% | ― | -0.19% | ― | |
61 Neutral | $11.29B | 10.07 | -7.05% | 2.96% | 7.47% | -10.75% |
* Technology Sector Average
Performance Comparison
AGYS
Agilysys
101.61
-2.44
-2.35%
FORM
Formfactor
30.37
-28.03
-48.00%
FORTY
Formula Systems
97.50
19.99
25.79%
TDC
Teradata
21.54
-10.31
-32.37%
EVCM
EverCommerce
9.72
-0.34
-3.38%
NATL
NCR Atleos, LLC
25.57
-2.76
-9.74%
Agilysys Earnings Call Summary
Earnings Call Date:May 19, 2025
(Q4-2025)
| % Change Since: 22.39%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Positive
Agilysys demonstrated significant growth and expansion across various segments, with record sales and revenue in fiscal 2025. The company successfully navigated through previous challenges with its POS platform and showed robust subscription revenue growth. However, challenges remain with product revenue decline and dependency on large wins in international markets. The outlook for fiscal 2026 remains optimistic with anticipated strong growth in subscription revenue.Q4-2025 Updates
Positive Updates
Record Sales Year
Fiscal 2025 was a record global sales year overall, with notable achievements in international regions, gaming casinos, hotels and resorts, and North America domestic sales. Subscription SaaS software and services saw significant growth, with sales 58% higher than the previous best year.
Strong Fourth Quarter Performance
Q4 of fiscal 2025 was the best sales quarter ever, with POS sales 27% higher than Q3 and 16% higher than Q2. It was also the best sales quarter for managed food services (FSM) vertical.
Record Revenue and Subscription Growth
Fiscal 2025 fourth quarter revenue was a record $74.3 million, up 19.4% from the prior year. Subscription revenue grew by 42.7% in Q4, contributing to the 13th consecutive record revenue quarter.
International Sales Growth
International sales are beginning to show positive signs of consistent growth, contributing to the company’s overall sales momentum.
Successful User Conference
The Inspire user conference featured eight customer-led sessions, highlighting the benefits of Agilysys' accelerating product innovation.
Positive Future Outlook
Agilysys expects fiscal 2026 revenue to be in the range of $308 million to $312 million, driven by a projected 25% year-over-year growth in subscription revenue.
Negative Updates
Challenges with POS Sales Transition
The transition from old to new POS platforms had previously led to complications, but the company has now turned the corner with the modernized and unified POS platform.
Product Revenue Decline
There was a 16% decline in one-time product revenue in fiscal 2025, though this was not unexpected due to the business transformation towards a cloud and subscription-based model.
Dependence on Large Wins in International Markets
Though international sales are growing, they are still too dependent on 'home run' big wins, indicating potential instability in this growth segment.
Company Guidance
During the Agilysys 2025 Fourth Quarter and Full Fiscal Year Conference Call, the company provided guidance for fiscal year 2026, forecasting revenue to be in the range of $308 million to $312 million. This projection is driven, among other factors, by anticipated year-over-year subscription revenue growth of 25%, despite assuming no material contribution from the Marriott PMS project. Adjusted EBITDA is expected to be 20% of revenue. Fiscal 2025 was noted as a record year for global sales across multiple verticals and product categories, with subscription SaaS software and services showing significant growth. The fourth quarter alone saw a 19.4% increase in revenue to $74.3 million compared to the prior year, marking the 13th consecutive record revenue quarter. Subscription revenue grew by 42.7% year-over-year, reaching a record $29.8 million, while services revenue also hit a record $17.8 million. The evolving sales momentum and strong pipeline suggest continued growth, with the company emphasizing ongoing investments in product innovation and market expansion.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.