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Agilysys
(NASDAQ:AGYS)
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Rating:76Outperform
Price Target:
$117.00
▲(18.73% Upside)
Action:Reiterated
Date:07/28/26
Score is driven primarily by strong financial quality (high margins, robust free cash flow, low leverage) and supportive earnings-call guidance for continued subscription-led growth and margin expansion. Offsetting factors are stretched valuation (high P/E) and only mixed near-term technical positioning (below the 20-day DMA despite being above longer-term averages), alongside execution/timing risks highlighted for large rollouts and near-term profitability cadence.
Positive Factors
Strong cash generation & conservative balance sheet
Consistent high free cash flow and a very low leverage profile give Agilysys durable financial flexibility. Strong cash conversion (~97% of net income) funds product development, strategic investments and cushioning against rollout timing, lowering refinancing and liquidity risk over months to years.
Negative Factors
Marriott PMS rollout timing & visibility risk
A multi-year enterprise rollout can materially shift revenue and margin timing. Execution variance or slower rollout cadence would delay recognition of subscription and services economics, causing quarter-to-quarter volatility and creating visibility risk for the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation & conservative balance sheet
Consistent high free cash flow and a very low leverage profile give Agilysys durable financial flexibility. Strong cash conversion (~97% of net income) funds product development, strategic investments and cushioning against rollout timing, lowering refinancing and liquidity risk over months to years.
Read all positive factors
Agilysys Key Performance Indicators (KPIs)
Any
Gross Profit by Type
Breaks gross profit into categories such as software, services, maintenance, and hardware to show which business lines are most profitable. Highlights margin drivers and whether Agilysys is moving toward higher-margin, scalable revenue (like recurring software/SaaS) or relying on lower-margin services and hardware.
Breaks gross profit into categories such as software, services, maintenance, and hardware to show which business lines are most profitable. Highlights margin drivers and whether Agilysys is moving toward higher-margin, scalable revenue (like recurring software/SaaS) or relying on lower-margin services and hardware.
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The Fly
The FlyAgilysys (AGYS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.97B
Dividend YieldN/A
Average Volume (3M)345.06K
Price to Earnings (P/E)68.7
Beta (1Y)0.58
Revenue Growth14.38%
EPS Growth203.15%
CountryUS
Employees2,413
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)1.53
Shares Outstanding28,205,788
10 Day Avg. Volume279,193
30 Day Avg. Volume345,062
Financial Highlights & Ratios
PEG Ratio-1.16
Price to Book (P/B)7.51
Price to Sales (P/S)7.24
P/FCF Ratio38.13
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$133.40Price Target Upside35.38% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)2.45
Revenue Forecast (FY)$370.82M
Agilysys Business Overview & Revenue Model
Company Description
Agilysys, Inc. operates as a developer and marketer of software-enabled solutions and services to the hospitality industry in North America, Europe, the Asia-Pacific, and India. The company offers software solutions fully integrated with third par...
How the Company Makes Money
Agilysys makes money primarily by licensing and subscribing customers to its hospitality software platforms and by providing services tied to deploying and supporting those systems. Key revenue streams include: (1) Subscription/SaaS and maintenanc...
Agilysys Earnings Call Summary
Earnings Call Date:May 18, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call highlights broad-based, multi-quarter and multi-product momentum with record sales, strong subscription and recurring revenue growth, margin expansion, improved cash generation and a clear AI-driven product roadmap. Management provided constructive FY2027 guidance (revenue $365M–$370M, subscription growth ≥30%, adjusted EBITDA to 24% with a high exit rate), while acknowledging short-term timing and rollout risks (notably the multi-year Marriott PMS rollout), flat one-time product revenue, and Q1 seasonality/one-time costs. Overall, positives (record results, strong trends, robust cash and margins, solid guidance and AI-enabled product launches) outweigh the manageable near-term execution and timing risks.Positive Updates
Record Quarterly and Annual Revenue
Q4 fiscal 2026 revenue hit a record $82.9M (17th consecutive record quarter). Full fiscal year 2026 revenue was $319.3M, up 15.9% year-over-year.
Negative Updates
Flat One-Time Product Revenue
Onetime product revenue (perpetual licenses and hardware resales) remained flat YoY at $41.2M for FY2026. Management frames this as a sign of SaaS transition, but it limits non-recurring revenue growth in the near term.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Quarterly and Annual Revenue
Q4 fiscal 2026 revenue hit a record $82.9M (17th consecutive record quarter). Full fiscal year 2026 revenue was $319.3M, up 15.9% year-over-year.
Read all positive updates
Company Guidance
Management guided fiscal 2027 revenue of $365–$370 million, with product revenue expected to remain flat at about $40M annually (~$10M/quarter), professional services growth of 5–10%, recurring revenue growth around 20% (with subscription revenue growth north of 30% — the third consecutive year of ≥30% subscription growth), and Q1 subscription growth expected near the Q4 exit rate of ~24% with acceleration through the year; adjusted EBITDA is expected to rise from 21.2% in FY26 to 24% for FY27 (Q1 profitability at 16–17% due to one‑time costs, exiting the year near ~30%), stock‑based compensation running ~5–7% of revenue, product development (ex‑SBC) falling to the high‑teens, and gross margin and operating leverage expected to expand (exit gross margin in the mid‑to‑high‑60% range), with free cash flow and adjusted EBITDA remaining comparable proxies after normalizing CapEx.Agilysys Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 330.31M | 319.31M | 275.62M | 237.46M | 198.06M | 162.64M |
| Gross Profit | 205.86M | 197.50M | 171.99M | 144.26M | 120.82M | 101.53M |
| EBITDA | 64.43M | 58.60M | 35.16M | 25.95M | 19.43M | 10.39M |
| Net Income | 42.89M | 38.79M | 23.23M | 86.19M | 14.58M | 6.48M |
Balance Sheet | ||||||
| Total Assets | 472.85M | 481.53M | 434.37M | 350.43M | 243.04M | 214.16M |
| Cash, Cash Equivalents and Short-Term Investments | 123.71M | 116.89M | 73.04M | 144.89M | 112.84M | 96.97M |
| Total Debt | 18.44M | 19.04M | 46.96M | 23.89M | 16.74M | 10.70M |
| Total Liabilities | 134.52M | 154.74M | 168.48M | 113.95M | 98.27M | 81.36M |
| Stockholders Equity | 338.33M | 326.79M | 265.89M | 236.48M | 144.77M | 132.80M |
Cash Flow | ||||||
| Free Cash Flow | 80.44M | 68.15M | 52.34M | 40.06M | 27.23M | 27.28M |
| Operating Cash Flow | 82.18M | 70.00M | 55.13M | 48.19M | 34.46M | 28.48M |
| Investing Cash Flow | -1.74M | -1.85M | -148.57M | -7.60M | -6.87M | -25.68M |
| Financing Cash Flow | -11.96M | -24.47M | 21.93M | -8.56M | -11.09M | -4.90M |
Agilysys Technical Analysis
Positive
98.54
Price Trends
99.09
Positive
84.28
Positive
95.88
Positive
Market Momentum
2.85
Positive
53.92
Neutral
67.28
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 98.54 is below the 20-day moving average (MA) of 106.17, below the 50-day MA of 99.09, and above the 200-day MA of 95.88, indicating a bullish trend. The MACD of 2.85 indicates Positive momentum. The RSI at 53.92 is Neutral, neither overbought nor oversold. The STOCH value of 67.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AGYS.
Agilysys Risk Analysis
Agilysys disclosed 34 risk factors in its most recent earnings report. Agilysys reported the most risks in the "Tech & Innovation" 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $3.26B | 17.72 | 19.50% | ― | 15.92% | ― | |
76 Outperform | $2.97B | 68.73 | 13.46% | ― | 14.38% | 203.15% | |
69 Neutral | $2.81B | -22.25 | -20.29% | ― | 26.95% | -11.66% | |
62 Neutral | $3.47B | 19.84 | 47.60% | ― | 4.37% | 64.80% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $2.50B | 23.66 | 10.59% | ― | 5.44% | ― | |
55 Neutral | $699.12M | -9.02 | -9.11% | ― | 23.94% | -630.81% |
* Technology Sector Average
AGYS
Agilysys
107.58
-5.15
-4.57%
PAR
Par Technology
17.12
-40.91
-70.50%
FRSH
Freshworks
11.59
-1.36
-10.50%
BRZE
Braze
25.71
-0.48
-1.83%
DBD
Diebold Nixdorf Inc
74.56
14.56
24.27%
NATL
NCR Atleos, LLC
46.54
9.16
24.51%
Agilysys Corporate Events
Executive/Board Changes
Agilysys Extends CEO Contract with New Incentive Plan
Positive
Jun 22, 2026
On June 18, 2026, Agilysys, Inc. signed a new three-year employment agreement with Chief Executive Officer and President Ramesh Srinivasan, under which he will continue leading the company with an automatically renewing term. His compensation pack...
Business Operations and StrategyFinancial Disclosures
Agilysys Details AI-Driven Hospitality Strategy and Growth Outlook
Positive
Jun 3, 2026
Agilysys released an investor presentation for its fourth quarter and full fiscal year 2026, outlining its hospitality-only strategy, global footprint and AI-first product roadmap, as well as detailed operating metrics for the twelve months ended ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.