Agilysys Inc. Common Stock (DE) (AGYS)
Fast GrowerFairStock Score: 50/100 — MIXED
Key Financials
| Current Price | $67.34 |
| Market Cap | $1.8B |
| P/E Ratio | 49.15 |
| ROE | 13.09% |
| Dividend Yield | —% |
| Sector | Technology |
Strengths
- Generates $44 million in annual free cash flow (2.5% yield on market cap)
- Solid return on equity of 10.7% above cost of capital
- Conservative balance sheet with debt-to-equity of just 0.06, providing financial flexibility
- Altman Z-Score of 7.5 confirms minimal bankruptcy risk and strong solvency
- Revenue growth of 15.6% demonstrates strong top-line momentum
Concerns
- Trades significantly above Graham Number ($16) with negative 288% margin of safety—limited downside protection
AI Analysis
Agilysys Inc. Common Stock (DE) is a micro-cap technology company valued at $1.8 billion. The business generates $311 million in annual revenue with a 3.2% net margin and $44 million in free cash flow. From a quality standpoint, Agilysys shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 7.5 confirms fortress-level solvency. On valuation, the stock is commanding a steep 59.0x multiple, with trades far above its Graham Number ($16) with no margin of safety. Growth dynamics show revenue growing at 15.6% and profit growth of 158.4%. Our composite FairStock Score of 50/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.
Bull Case
Agilysys's 16% revenue growth trajectory could accelerate as it captures additional market share in the technology sector. With $44 million in annual free cash flow (2.5% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.
Bear Case
At 59x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.
Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer