📊 AGYS Key Takeaways
Is Agilysys Inc. (AGYS) a Good Investment?
AGYS demonstrates solid fundamental strength with 16.1% revenue growth, robust 62% gross margins, and strong free cash flow generation of $32.7M. The company maintains a fortress balance sheet with zero long-term debt, substantial cash reserves of $81.5M, and excellent interest coverage, positioning it well for future investments or shareholder returns.
Agilysys shows strong underlying fundamentals with double-digit revenue growth, high gross margins, and solid free cash flow generation, supported by a debt-free balance sheet and meaningful cash reserves. Growth quality appears good because operating income and free cash flow remain positive at healthy margins, although flat net income and a sharp diluted EPS decline suggest dilution or other below-the-line pressure that needs monitoring.
Why Buy Agilysys Inc. Stock? AGYS Key Strengths
- Strong revenue growth of 16.1% YoY indicates solid market demand and business expansion
- Excellent gross margin of 62% reflects pricing power and operational efficiency in services segment
- High-quality earnings with FCF of $32.7M and FCF margin of 13.9%, demonstrating cash generation capability
- Zero debt and $81.5M cash balance provides significant financial flexibility and balance sheet strength
- Healthy operating metrics with 1.31x current ratio and 1.25x quick ratio supporting liquidity position
- Revenue grew 16.1% year over year while maintaining a strong 62.0% gross margin
- Debt-free balance sheet with $81.45M in cash supports flexibility and lowers financial risk
- Free cash flow of $32.74M and a 13.9% FCF margin indicate good cash conversion and operating discipline
AGYS Stock Risks: Agilysys Inc. Investment Risks
- Diluted EPS declined 74.1% YoY despite flat net income, suggesting significant share dilution from stock issuances or options
- Modest net margin of 11.2% and ROE of 8.5% indicate moderate return on equity despite growth
- Operating margin of 12.9% leaves limited cushion for margin compression if competitive pressures increase
- Form 4 insider activity (4 filings) requires monitoring to assess management's confidence in company trajectory
- Growth deceleration risk if 16.1% revenue growth rate cannot be sustained in competitive services market
- Net income was flat year over year despite revenue growth, suggesting margin expansion is not fully reaching the bottom line
- Diluted EPS fell 74.1% year over year, which may indicate significant share dilution or changing capital structure effects
- Liquidity is adequate but not especially strong, with a 1.31x current ratio leaving less room if working capital needs rise
Key Metrics to Watch
- Revenue growth sustainability and gross margin stability in future quarters
- Free cash flow conversion ratio relative to net income to ensure quality of earnings
- Share dilution impact on per-share metrics going forward
- Operating margin expansion opportunities to improve return on equity beyond 8.5%
- Balance sheet deployment strategy for $81.5M cash position
- Operating margin and net income conversion as revenue continues to scale
- Diluted share count and free cash flow growth relative to revenue growth
Agilysys Inc. (AGYS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Agilysys Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
AGYS Profit Margin, ROE & Profitability Analysis
AGYS vs Technology Sector: How Agilysys Inc. Compares
How Agilysys Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Agilysys Inc. Stock Overvalued? AGYS Valuation Analysis 2026
Based on fundamental analysis, Agilysys Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Agilysys Inc. Balance Sheet: AGYS Debt, Cash & Liquidity
AGYS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Agilysys Inc.'s revenue has grown significantly by 71% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.49 reflects profitable operations.
AGYS Revenue Growth, EPS Growth & YoY Performance
AGYS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $69.6M | $3.8M | $0.14 |
| Q2 2025 | $68.3M | $1.4M | $0.05 |
| Q1 2025 | $63.5M | $4.9M | $0.17 |
| Q3 2024 | $60.6M | $3.8M | $0.14 |
| Q2 2024 | $58.6M | $1.4M | $0.05 |
| Q1 2024 | $56.1M | $1.5M | $0.04 |
| Q3 2023 | $49.9M | $3.9M | $0.13 |
| Q2 2023 | $47.7M | $3.6M | $0.12 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Agilysys Inc. Dividends, Buybacks & Capital Allocation
AGYS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Agilysys Inc. (CIK: 0000078749)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AGYS
What is the AI rating for AGYS?
Agilysys Inc. (AGYS) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AGYS's key strengths?
Claude: Strong revenue growth of 16.1% YoY indicates solid market demand and business expansion. Excellent gross margin of 62% reflects pricing power and operational efficiency in services segment. ChatGPT: Revenue grew 16.1% year over year while maintaining a strong 62.0% gross margin. Debt-free balance sheet with $81.45M in cash supports flexibility and lowers financial risk.
What are the risks of investing in AGYS?
Claude: Diluted EPS declined 74.1% YoY despite flat net income, suggesting significant share dilution from stock issuances or options. Modest net margin of 11.2% and ROE of 8.5% indicate moderate return on equity despite growth. ChatGPT: Net income was flat year over year despite revenue growth, suggesting margin expansion is not fully reaching the bottom line. Diluted EPS fell 74.1% year over year, which may indicate significant share dilution or changing capital structure effects.
What is AGYS's revenue and growth?
Agilysys Inc. reported revenue of $236.4M.
Does AGYS pay dividends?
Agilysys Inc. pays dividends, with $1.4M distributed to shareholders in the trailing twelve months.
Where can I find AGYS SEC filings?
Official SEC filings for Agilysys Inc. (CIK: 0000078749) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AGYS's EPS?
Agilysys Inc. has a diluted EPS of $0.93.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is AGYS a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Agilysys Inc. has a BUY rating with 80% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is AGYS stock overvalued or undervalued?
Valuation metrics for AGYS: ROE of 8.5% (sector avg: 22%), net margin of 11.2% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy AGYS stock in 2026?
Our dual AI analysis gives Agilysys Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is AGYS's free cash flow?
Agilysys Inc.'s operating cash flow is $34.2M, with capital expenditures of $1.4M. FCF margin is 13.9%.
How does AGYS compare to other Technology stocks?
Vs Technology sector averages: Net margin 11.2% (avg: 18%), ROE 8.5% (avg: 22%), current ratio 1.31 (avg: 2.5).