Agilysys (AGYS) AI Stock Analysis

• Market Cap: $3.04B
• Dividend Yield: N/A
• Average Volume (3M): 195.93K
• Price to Earnings (P/E): 223.3
• Beta (1Y): 0.69
• Revenue Growth: 17.91%
• EPS Growth: -86.60%
• Country: US
• Employees: 1,900
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Application
• EPS (TTM): 0.33
• Shares Outstanding: 28,042,795
• 10 Day Avg. Volume: 153,955
• 30 Day Avg. Volume: 195,928
• 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: 1.06
• Enterprise Value/Revenue: 11.15
• Enterprise Value/Gross Profit: 17.96
• Enterprise Value/Ebitda: 94.28
• 1Y Price Target: $128.00
• Price Target Upside: 15.77% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 74 Outperform
• Price Target: $121.00 ▲(9.44% Upside)

Agilysys scores well due to strong financial performance and a positive earnings call outlook, highlighting robust sales and subscription growth. However, the high P/E ratio and mixed technical indicators suggest caution. The company's financial stability and growth potential are strong, but valuation concerns and short-term technical weakness temper the overall score.

Positive Factors

Market Opportunities

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.

New Contracts

With the backlog up 26% Y/Y, 16 new logo wins in 4Q, and AGYS announcing that Boyd Gaming signed a deal to implement its POS across 28 properties, the bias to the initial guide and estimates is to the upside.

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.

Future Guidance

Management's guidance for fiscal 2026 was slightly below consensus on revenue, reflecting cautious future expectations.

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: Positive
• Last Price: 110.56
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 110.56 is above the 20-day moving average (MA) of 107.73, below the 50-day MA of 112.25, and above the 200-day MA of 102.37, indicating a neutral trend. The MACD of -0.83 indicates Negative momentum. The RSI at 52.37 is Neutral, neither overbought nor oversold. The STOCH value of 55.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AGYS.

Agilysys Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGYS	74 Outperform	$3.04B	223.26	5.21%	―	17.91%	-86.60%
BL	65 Neutral	$3.28B	43.13	23.79%	―	7.99%	-28.47%
SPT	62 Neutral	$874.59M	―	-32.50%	―	14.79%	27.52%
Sector *	61 Neutral	$35.52B	8.84	-11.06%	1.87%	8.55%	-8.14%
BLKB	53 Neutral	$3.22B	78.53	-85.12%	―	0.11%	-817.49%
ALIT	46 Neutral	$2.06B	―	-29.09%	4.23%	-19.48%	-398.43%
OCFT	44 Neutral	$285.13M	50.30	-24.21%	―	-48.61%	-2291.48%

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.

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.