Agilysys (AGYS) AI Stock Analysis

• Market Cap: $3.11B
• Dividend Yield: N/A
• Average Volume (3M): 310.65K
• Price to Earnings (P/E): 132.7
• Beta (1Y): 0.76
• Revenue Growth: 15.53%
• EPS Growth: -75.45%
• Country: US
• Employees: 1,900
• Sector: Technology
• Sector Strength: 78
• Industry: Software - Application
• EPS (TTM): 0.54
• Shares Outstanding: 28,017,311
• 10 Day Avg. Volume: 278,492
• 30 Day Avg. Volume: 310,652
• PEG Ratio: 1.51
• Price to Book (P/B): 14.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 74.84
• Enterprise Value/Market Cap: 0.62
• Enterprise Value/Revenue: 2.01
• Enterprise Value/Gross Profit: 15.43
• Enterprise Value/Ebitda: 16.94
• 1Y Price Target: $118.00
• Price Target Upside: 7.96% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 68 Neutral
• Price Target: ―

Agilysys demonstrates strong financial performance with impressive growth metrics and solid fundamentals, contributing positively to its stock score. However, technical analysis suggests bearish momentum, and the high P/E ratio raises concerns about overvaluation. The earnings call provided mixed signals with strong subscription growth offset by challenges in POS sales. The recent acquisition of Book4Time is a strategic positive, enhancing market presence. Overall, while there are significant strengths, caution is advised due to valuation concerns and technical indicators.

Positive Factors

Financial Performance

Agilysys reported strong fiscal fourth-quarter results, indicating robust company performance.

Growth Potential

Agilysys is set up well to deliver over 25% organic subscription revenue growth on a multi-year basis while expanding EBITDA margins.

Market Position

Agilysys is exceptionally well positioned to leverage its best-in-class product catalog to capture market share, especially as it builds its reputation from successfully serving marquee customers, like Marriott.

Negative Factors

Guidance and Expectations

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

Revenue Performance

AGYS' revenue segments came in softer than expected due to ongoing POS sales pressures and project implementations getting delayed.

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 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 displays impressive growth and profitability metrics, supported by a stable balance sheet and robust cash flow generation. The company is well-positioned within the software industry, exhibiting strong fundamentals and efficient financial management. However, there remains room for improvement in net profit margins to match industry leaders.

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.

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.

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.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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
	EBIT
22.59M	15.75M	12.88M	9.08M	-18.23M
	EBITDA
22.59M	25.95M	19.28M	10.39M	-16.40M
	Net Income Common Stockholders
23.23M	86.19M	14.58M	6.48M	-21.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	144.89M	112.84M	96.97M	99.18M
	Total Assets
434.37M	350.43M	243.04M	214.16M	189.87M
	Total Debt
0.00	23.89M	16.74M	10.70M	13.63M
	Net Debt
0.00	-121.00M	-96.10M	-86.27M	-85.55M
	Total Liabilities
0.00	113.95M	98.27M	81.36M	74.54M
	Stockholders Equity
0.00	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: 109.30
• 50DMA: Positive
• 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 Positive. The current price of 109.3 is above the 20-day moving average (MA) of 105.44, above the 50-day MA of 86.47, and above the 200-day MA of 101.67, indicating a bullish trend. The MACD of 7.33 indicates Positive momentum. The RSI at 67.34 is Neutral, neither overbought nor oversold. The STOCH value of 56.66 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
FORTY	71 Outperform	$1.57B	19.08	12.47%	1.84%	3.51%	18.34%
AGYS	68 Neutral	$3.11B	132.68	9.25%	―	15.53%	-75.45%
TDC	67 Neutral	$2.12B	15.12	130.19%	―	-6.53%	240.56%
FORM	66 Neutral	$2.59B	48.61	5.74%	―	15.33%	-47.04%
EVCM	64 Neutral	$1.79B	―	-3.09%	―	-1.96%	19.43%
NATL	62 Neutral	$2.04B	17.36	41.58%	―	-0.19%	―
Sector *	62 Neutral	$11.80B	10.08	-7.46%	2.99%	7.37%	-8.21%

Agilysys Corporate Events

Agilysys Acquires Book4Time, Expands Spa Software Reach

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.