One-glance verdict
Within fair range
$146.04 our estimate vs market $107.65
Wall Street consensus: $133.67 (-8.5% lower than our fair-value estimate)
26% below our estimate
Fundamentals snapshot
Agilysys, Inc.
AGYS · NMS · Technology · Software - Application
Current price
$107.65
52-week range
$61.50 - $145.25
Market cap
$3.04B
Balance sheet
Healthy
87.79x Strong cushion
Net cash $105.27M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 3.4% last year.
- Reward Returns 13.8% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 9/10 years.
- Risk Insider ownership is only 4.4% (peer median: 5.6%).
What this company does
Agilysys, Inc.
Agilysys provides the crucial software that helps hospitality businesses like hotels, resorts, and restaurants run their daily operations, from managing guest check-ins to point-of-sale systems (the technology used to take customer orders and payments). The company makes most of its money selling these software solutions as subscriptions, creating predictable recurring revenue (income that comes in regularly, like a streaming service fee). This matters because as the travel industry modernizes its technology to improve the guest experience, Agilysys can grow by helping these businesses operate more efficiently.
How the company got here
Agilysys started in 1963 as Pioneer-Standard Electronics, a distributor of electronic parts. A major turning point came in 2003 when it changed its name to Agilysys and began shifting its focus to software and services. Over the next decade, the company sold off its electronics and retail divisions to concentrate exclusively on providing technology solutions for the hospitality industry, a process it completed by 2013. This transformation reshaped the company from a broad technology distributor into the specialized hospitality software provider it is today.
What it actually does
Agilysys provides the behind-the-scenes software that hotels, resorts, casinos, and restaurants use to manage their daily operations. Think of it as the digital backbone for a hotel: its software handles everything from booking a room and checking in, to ordering food at a restaurant, to managing inventory in the kitchen. Their products help these businesses streamline tasks for their staff and create a smoother experience for guests. The goal is to connect all the different services a guest might use—like the front desk, the spa, or a restaurant—into one seamless system.
Subscription and Maintenance Services
This is the company's largest and fastest-growing source of income, making up the majority of its revenue. Instead of a one-time purchase, customers like hotels and resorts pay a recurring fee, usually monthly or annually, to use Agilysys's cloud-based software. This model is known as Software-as-a-Service (SaaS). This fee also includes ongoing customer support and regular software updates, ensuring the technology stays current. This provides Agilysys with a steady and predictable stream of revenue.
Product Sales
This segment involves the one-time sale of software licenses and the physical hardware needed to run it. For example, a hotel might purchase Agilysys's software to install on its own computers, along with point-of-sale (POS) terminals (the cash registers and ordering screens you see in restaurants) and other necessary equipment. While still a significant part of the business, the company is strategically focused on growing its subscription-based income, which is more predictable than one-time sales.
Professional Services
This part of the business involves charging fees for helping clients install, set up, and learn how to use the software. When a large resort decides to use Agilysys systems, it needs experts to get everything running smoothly, transfer data from old systems, and train the staff. Agilysys provides these hands-on services for a fee, ensuring their customers can effectively use the technology they've purchased. This is an important supporting business that helps facilitate the main software sales.
What management is betting on now
Management's top priority is to continue growing its subscription revenue by moving more customers to its modern, cloud-based software. They are also focused on selling more modules and applications to existing customers, helping a hotel that already uses their check-in software to also adopt their spa or restaurant management tools. The company is also investing in new technologies like Artificial Intelligence (AI) to make its products smarter and more efficient for its clients. Expanding its business in international markets is another key area of focus for future growth.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q2
$5.94M
FY2025 Q3
$19.73M
FY2025 Q4
$26.45M
FY2026 Q1
$-4.98M
FY2026 Q2
$15.00M
FY2026 Q3
$22.72M
FY2026 Q4
$35.41M
FY2027 Q1
$7.31M
Revenue
$87.68M
Net income
$8.99M
Diluted EPS
0.32
Operating cash flow
$7.83M
Free cash flow
$7.31M
Fetching…
Sources
Revenue
$82.95M
Net income
$12.29M
Diluted EPS
0.44
Operating cash flow
$35.84M
Free cash flow
$35.41M
Fetching…
Sources
Revenue
$80.39M
Net income
$9.90M
Diluted EPS
0.35
Operating cash flow
$23.30M
Free cash flow
$22.72M
Fetching…
Sources
Revenue
$79.30M
Net income
$11.71M
Diluted EPS
0.41
Operating cash flow
$15.21M
Free cash flow
$15.00M
Fetching…
Sources
Revenue
$76.67M
Net income
$4.89M
Diluted EPS
0.17
Operating cash flow
$-4.35M
Free cash flow
$-4.98M
Fetching…
Sources
Revenue
$74.27M
Net income
$3.92M
Diluted EPS
0.13
Operating cash flow
$27.15M
Free cash flow
$26.45M
Fetching…
Sources
Revenue
$69.56M
Net income
$3.83M
Diluted EPS
0.14
Operating cash flow
$20.29M
Free cash flow
$19.73M
Fetching…
Sources
Revenue
$68.28M
Net income
$1.36M
Diluted EPS
0.05
Operating cash flow
$6.59M
Free cash flow
$5.94M
Fetching…
Sources
Is it cheap or expensive?
Fair value $146.04 vs current price $107.65
Wall Street consensus is the average analyst price target: $133.67 (-8.5% lower than our fair-value estimate).
Our most-likely fair value is $146.04 a share — about 35.7% away from today's price of $107.65, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $105.3M - more cash than debt. Interest coverage 87.8x.
Net debt
$-105.27M
Interest coverage
87.79x
Agilysys, Inc.'s profit covers its interest bill about 87.8 times over. which is stronger than every peer shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
AGYS
BASELINE
Agilysys, Inc.
Total debt $18.44M Interest coverage 87.79x This is the baseline the peer rows are being compared against.
Total debt $4.58B Interest coverage 1.77x -98% vs AGYS Carries about 49.5x less debt cushion than AGYS.
Total debt $17.00M Interest coverage 25.33x -71% vs AGYS Carries about 3.5x less debt cushion than AGYS.
Total debt $433.82M Interest coverage -11.36x -100% vs AGYS This peer has almost no interest-payment cushion compared with AGYS.
Total debt $1.32B Interest coverage 0.43x -100% vs AGYS Carries about 202.6x less debt cushion than AGYS.
Total debt $167.43B Interest coverage 4.88x -94% vs AGYS Carries about 18.0x less debt cushion than AGYS.
What you should know
The case for and against AGYS
3 Rewards
1 Risk
Rewards
-
Revenue grew 3.4% last year.
-
Returns 13.8% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
-
Insider ownership is only 4.4% (peer median: 5.6%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
74.76x
Forward P/E
33.63x
P/B
8.95x
P/S
9.19x
EV/EBITDA
59.97x
PEG ratio
2.56x
Profitability
How much profit each dollar creates
Gross margin
63.1%
Operating margin
11.1%
Net margin
13.0%
ROE
13.8%
ROA
5.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.05x
Current ratio
1.74x
Quick ratio
1.60x
Total debt
$18.44M
Total cash
$123.71M
Growth
How the business has been compounding
Revenue TTM
$330.31M
Revenue 5Y CAGR
18.4%
EPS TTM
1.44
EPS 5Y CAGR
40.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$82.18M
Free CF TTM
$68.15M
FCF margin
20.6%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2009-07-16