Agilysys Profitability Analysis

AGYS Stock  USD 79.67  0.67  0.83%   
Based on Agilysys' profitability indicators, Agilysys is performing very good at the present time. It has a good chance of reporting better profitability numbers in March. Profitability indicators assess Agilysys' ability to earn profits and add value for shareholders.
 
Net Income
First Reported
1989-06-30
Previous Quarter
4.1 M
Current Value
76.9 M
Quarterly Volatility
24.8 M
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Agilysys' Price to Sales Ratio is comparatively stable as compared to the past year. Return on Sales is likely to gain to 0.08 in 2024, whereas Sales per Share is likely to drop 8.21 in 2024. At this time, Agilysys' Consolidated Income is comparatively stable as compared to the past year. Net Income is likely to gain to about 14.2 M in 2024, whereas Accumulated Other Comprehensive Income is likely to drop (3.7 M) in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Return on Equity0.120.11
Significantly Up
Very volatile
Return on Assets0.05340.0495
Significantly Up
Very volatile
Profit Margin0.06220.0576
Significantly Up
Very volatile
Gross Margin0.70.7
Steady
Slightly volatile
For Agilysys profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Agilysys to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Agilysys utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Agilysys's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Agilysys over time as well as its relative position and ranking within its peers.
  
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Is Agilysys' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Agilysys. If investors know Agilysys will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Agilysys listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
20.923
Earnings Share
3.24
Revenue Per Share
9.072
Quarterly Revenue Growth
0.213
Return On Assets
0.0334
The market value of Agilysys is measured differently than its book value, which is the value of Agilysys that is recorded on the company's balance sheet. Investors also form their own opinion of Agilysys' value that differs from its market value or its book value, called intrinsic value, which is Agilysys' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Agilysys' market value can be influenced by many factors that don't directly affect Agilysys' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Agilysys' value and its price as these two are different measures arrived at by different means. Investors typically determine if Agilysys is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Agilysys' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Agilysys Beta vs. Number Of Employees Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Agilysys's current stock value. Our valuation model uses many indicators to compare Agilysys value to that of its competitors to determine the firm's financial worth.
Agilysys is rated second in number of employees category among related companies. It is rated third in beta category among related companies . The ratio of Number Of Employees to Beta for Agilysys is about  2,299 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Agilysys by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Agilysys' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Agilysys' earnings, one of the primary drivers of an investment's value.

Agilysys Number Of Employees vs. Competition

Agilysys is rated second in number of employees category among related companies. The total workforce of Information Technology industry is presently estimated at about 13,262. Agilysys retains roughly 1,600 in number of employees claiming about 12% of equities under Information Technology industry.

Agilysys Beta vs. Number Of Employees

Number of Employees shows the total number of permanent full time and part time employees working for a given company and processed through its payroll.

Agilysys

Number of Employees

 = 

Full Time

+

Part Time

 = 
1.6 K
Employee typically refers to an individual working under a contract of employment, whether oral or written, express or implied, and has recognized his or her rights and duties. Most officers of corporations are included as employees and contractors are generally excluded.
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it will be expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.

Agilysys

Beta

 = 

Covariance

Variance

 = 
0.7
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.

Agilysys Beta Comparison

Agilysys is currently under evaluation in beta category among related companies.

Agilysys Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Agilysys, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Agilysys will eventually generate negative long term returns. The profitability progress is the general direction of Agilysys' change in net profit over the period of time. It can combine multiple indicators of Agilysys, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.

Agilysys Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Agilysys. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Agilysys position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Agilysys' important profitability drivers and their relationship over time.

Agilysys Profitability Trends

Agilysys profitability trend refers to the progression of profit or loss within a business. An upward trend means that Agilysys' profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Agilysys' gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Agilysys Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Agilysys different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Agilysys in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Agilysys' future profitability.

Use Agilysys in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Agilysys position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Agilysys will appreciate offsetting losses from the drop in the long position's value.

Agilysys Pair Trading

Agilysys Pair Trading Analysis

The ability to find closely correlated positions to Agilysys could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Agilysys when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Agilysys - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Agilysys to buy it.
The correlation of Agilysys is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Agilysys moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Agilysys moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Agilysys can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Agilysys position

In addition to having Agilysys in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Absolute Returns ETFs
Absolute Returns ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Absolute Returns ETFs theme has 44 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Absolute Returns ETFs Theme or any other thematic opportunities.
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When determining whether Agilysys is a strong investment it is important to analyze Agilysys' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Agilysys' future performance. For an informed investment choice regarding Agilysys Stock, refer to the following important reports:
Check out Trending Equities.
For more information on how to buy Agilysys Stock please use our How to Invest in Agilysys guide.
You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.

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To fully project Agilysys' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Agilysys at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Agilysys' income statement, its balance sheet, and the statement of cash flows.
Potential Agilysys investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Agilysys investors may work on each financial statement separately, they are all related. The changes in Agilysys's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Agilysys's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.