Agilysys Inc. Common Stock (DE) (AGYS)

FairStock Score: 50/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses with durable advantages, honest accounting, and a price that leaves room for error. Agilysys sells software to the hospitality industry, a niche where property-management, point-of-sale, and guest systems can become embedded and create switching costs. The numbers show a growing concern: revenue rose from $275.6M in fiscal year 2025 to $319.3M in fiscal year 2026, and in fiscal Q1 2027, the quarter ended 2026-06-30, revenue was $87.7M with net income of $9.0M and diluted EPS of $0.32. Net income rose from $4.9M in fiscal Q1 2026, the quarter ended 2025-06-30, to $9.0M in fiscal Q1 2027, though quarterly profits have been uneven. The balance sheet is conservative; FairStock calculates debt/equity at 0.05 and an Altman Z-Score of 14.81. Trailing free cash flow is $80.4M, but FairStock's FCF yield is only 2.6%, so the cash flow is not offered at a bargain. The price is the problem. At the 2026-10-13 close of $109.26, FairStock calculates a P/E of 71.88, P/B of 9.08, EV/EBITDA of 45.92, and a Graham Number of $20.26, leaving a margin of safety of -439.29%. That is not Graham's margin of safety; it is the opposite. The PEG ratio of 0.86 and the FairStock FAST GROWER classification, based on profit growth of 56.4% a year over four years and revenue growth of 18.4%, show the market expects the growth to continue. FairStock calculates ROE of 13.8% and ROCE of 5.5%, which are not exceptional. I would watch recurring revenue, margins, and whether profit growth converts into free cash flow. A good business, but the stock already discounts much success.

In plain English: Agilysys sells software and services to hotels, casinos, restaurants, and other hospitality businesses. Sales are growing and the company carries very little debt, but profits have been uneven and the stock price is very high compared with its current earnings and accounting value. On those measures the price looks expensive, even though fast profit growth gives some support.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-06-30) · fiscal Q3 2026 10-Q (period ended 2025-12-31) · fiscal Q2 2026 10-Q (period ended 2025-09-30) · fiscal Q1 2026 10-Q (period ended 2025-06-30) · FY2026 10-K (period ended 2026-03-31) · FY2025 10-K (period ended 2025-03-31) · FY2024 10-K (period ended 2024-03-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer