Agilysys (AGYS) AI Stock Analysis

• Market Cap: $3.41B
• Dividend Yield: N/A
• Average Volume (3M): 151.10K
• Price to Earnings (P/E): 141.4
• Beta (1Y): 0.71
• Revenue Growth: 17.77%
• EPS Growth: -76.05%
• Country: US
• Employees: 1,900
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.40
• Shares Outstanding: 28,042,507
• 10 Day Avg. Volume: 142,474
• 30 Day Avg. Volume: 151,098
• 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: 0.87
• Enterprise Value/Revenue: 9.84
• Enterprise Value/Gross Profit: 15.93
• Enterprise Value/Ebitda: 65.69
• 1Y Price Target: $142.00
• Price Target Upside: 16.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 1.66
• Revenue Forecast (FY): $316.54M

• Rating: 73 Outperform
• Price Target: $136.00 ▲(11.94% Upside)

Agilysys's overall stock score is driven by strong financial performance and positive earnings call sentiment, reflecting robust revenue growth and strategic advancements. However, the high P/E ratio suggests overvaluation, and technical indicators provide mixed signals, slightly tempering the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth over multiple quarters indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Subscription Revenue Growth

High growth in subscription revenue strengthens recurring revenue streams, enhancing financial predictability and stability.

AI-Driven Competitive Advantages

Integration of AI into products fosters innovation and operational efficiency, providing a sustainable competitive edge in the market.

Negative Factors

Profitability Margin Pressure

Decreasing profit margins can impact overall profitability, requiring management to address cost efficiencies to maintain financial health.

Customer Implementation Delays

Delays in customer implementations can affect revenue recognition and customer satisfaction, potentially impacting future sales.

Seasonal Impact on Services Revenue

Seasonal revenue fluctuations can lead to uneven cash flow, necessitating careful financial planning to manage operational costs.

Agilysys Business Overview & Revenue Model

Company Description

Agilysys, Inc. is a leading provider of software solutions for the hospitality industry, focusing on property management, point-of-sale (POS) systems, and inventory and procurement management. The company serves a diverse range of sectors including hotels, resorts, casinos, and restaurants, offering innovative technology solutions designed to enhance operational efficiency and guest experience. Agilysys' core products include its flagship property management system, rGuest, and various POS solutions that facilitate streamlined transactions and better inventory control.

How the Company Makes Money

Agilysys generates revenue primarily through software sales, subscription fees, and service contracts related to its hospitality management software solutions. The company employs a recurring revenue model, particularly through SaaS (Software as a Service) offerings, which provide ongoing monthly or annual subscription revenues. Key revenue streams include licensing fees for on-premise solutions, subscription fees for cloud-based services, and maintenance and support services for existing clients. Additionally, Agilysys benefits from partnerships with various hospitality organizations and technology providers, which enhance its market reach and allow for bundled services, further driving revenue growth.

Agilysys Financial Statement Overview

Summary

Agilysys exhibits solid financial performance with consistent revenue growth and strong cash flow generation. The company maintains a low leverage position, enhancing financial stability. While profitability margins have faced some pressure, the overall financial health remains robust, positioning Agilysys well for future growth.

Income Statement

Agilysys has demonstrated consistent revenue growth with a TTM growth rate of 3.82% and a strong gross profit margin of 62.13%. However, the net profit margin has decreased to 4.85% in the TTM, indicating some pressure on profitability. The EBIT and EBITDA margins are stable, reflecting efficient operational management.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.08, indicating low leverage and financial stability. The return on equity has decreased to 5.26% in the TTM, suggesting a need for improved profitability. The equity ratio remains healthy, supporting long-term financial health.

Cash Flow

Agilysys shows robust cash flow management with a significant free cash flow growth rate of 19.21% in the TTM. The operating cash flow to net income ratio is strong at 0.51, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio is high, reflecting strong cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	299.81M	275.62M	237.46M	198.06M	162.64M	137.18M
Gross Profit	185.17M	171.99M	144.26M	120.82M	101.53M	89.38M
EBITDA	44.91M	35.16M	25.95M	19.43M	10.39M	-16.40M
Net Income	24.36M	23.23M	86.19M	14.58M	6.48M	-21.00M
Balance Sheet
Total Assets	425.57M	434.37M	350.43M	243.04M	214.16M	189.87M
Cash, Cash Equivalents and Short-Term Investments	59.34M	73.04M	144.89M	112.84M	96.97M	99.18M
Total Debt	20.64M	46.96M	23.89M	16.74M	10.70M	13.63M
Total Liabilities	128.82M	168.48M	113.95M	98.27M	81.36M	74.54M
Stockholders Equity	296.75M	265.89M	236.48M	144.77M	132.80M	115.33M
Cash Flow
Free Cash Flow	56.19M	52.34M	40.06M	27.23M	27.28M	27.02M
Operating Cash Flow	58.31M	55.13M	48.19M	34.46M	28.48M	28.41M
Investing Cash Flow	-2.95M	-148.57M	-7.60M	-6.87M	-25.68M	-1.39M
Financing Cash Flow	-50.72M	21.93M	-8.56M	-11.09M	-4.90M	25.32M

Agilysys Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 121.49
• 50DMA: Negative
• 100DMA: Positive
• 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 Neutral. The current price of 121.49 is below the 20-day moving average (MA) of 123.94, below the 50-day MA of 122.25, and above the 200-day MA of 104.05, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 46.24 is Neutral, neither overbought nor oversold. The STOCH value of 17.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AGYS.

Agilysys Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGYS	73 Outperform	$3.41B	141.38	8.74%	―	17.77%	-76.05%
BL	71 Outperform	$3.44B	52.81	21.85%	―	7.36%	-40.62%
BLKB	70 Outperform	$3.04B	-12.23	-78.53%	―	-1.17%	-597.89%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	61 Neutral	$672.62M	-14.04	-26.69%	―	13.09%	32.34%
OCFT	47 Neutral	$308.31M	-3.06	-24.21%	―	-48.61%	-2291.48%
ALIT	47 Neutral	$1.03B	-0.48	-66.86%	8.25%	-12.37%	-754.18%

Agilysys Corporate Events

Agilysys Raises Fiscal Year 2026 Revenue Guidance

Agilysys has raised its fiscal year 2026 revenue guidance, projecting annual revenue between $315 million and $318 million, with a 20% adjusted EBITDA margin. The company has experienced significant growth, with a 29% year-over-year revenue increase and a 41% growth in subscription revenue. This positive outlook reflects Agilysys’s strategic focus on hospitality solutions and its ability to maintain strong sales levels and integrate acquisitions effectively.