📊 AGYS Key Takeaways
Is Agilysys Inc. (AGYS) a Good Investment?
AGYS demonstrates strong operational fundamentals with 15.9% revenue growth, pristine debt-free balance sheet, and exceptional free cash flow generation ($68.1M FCF, 21.3% FCF margin). However, net income stagnation (+0.0% YoY) despite strong top-line growth reveals margin compression from rising operating expenses, which requires monitoring to ensure sustainability of the growth model.
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.
Agilysys Inc. Key Strengths (AGYS)
- Pristine balance sheet with zero long-term debt and $116.9M cash providing strategic flexibility
- Exceptional free cash flow generation ($68.1M, 21.3% FCF margin) demonstrating high-quality earnings conversion
- Strong gross margin of 62.6% indicating pricing power and operational efficiency in services segment
- Solid revenue growth of 15.9% YoY in competitive computer systems design market
- Capital-light business model with minimal capex ($1.8M) enabling high cash returns
- Strong liquidity position with 1.47x current ratio and 1.41x quick ratio
- 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
- Net income growth flat (+0.0% YoY) despite 15.9% revenue growth indicates margin compression from accelerating operating expenses
- EPS growth of 67.1% driven by share count reduction/buybacks rather than operating leverage—not sustainable long-term
- Operating margin of 13.5% is modest and appears to be declining as percentage of revenue, suggesting operational deleverage
- Modest ROE of 11.9% indicates suboptimal capital deployment efficiency relative to equity base
- Insider activity minimal (2 Form 4 filings in 90 days) provides limited management commitment signal
- 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
- Operating expense ratio trend—critical to confirm if pace of expense growth is moderating
- Operating margin sustainability—must stabilize or expand to validate revenue growth quality
- Free cash flow conversion sustainability—ensure OCF continues exceeding net income
- Revenue growth rate sustainability in competitive services market
- 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
The 21.3% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
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 96% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.17 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 Grade of A from Claude (A) and ChatGPT (A) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AGYS's key strengths?
Claude: Pristine balance sheet with zero long-term debt and $116.9M cash providing strategic flexibility. Exceptional free cash flow generation ($68.1M, 21.3% FCF margin) demonstrating high-quality earnings conversion. 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: Net income growth flat (+0.0% YoY) despite 15.9% revenue growth indicates margin compression from accelerating operating expenses. EPS growth of 67.1% driven by share count reduction/buybacks rather than operating leverage—not sustainable long-term. 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 $319.3M.
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 $1.37.
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 grade reflects both perspectives for balanced insights.
What is AGYS's fundamental grade?
Based on our AI fundamental analysis in June 2026, Agilysys Inc. has a A grade with 78% 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 11.9% (sector avg: 22%), net margin of 12.1% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is AGYS's AI grade for 2026?
Our dual AI analysis gives Agilysys Inc. a combined A grade 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 $70.0M, with capital expenditures of $1.8M. FCF margin is 21.3%.
How does AGYS compare to other Technology stocks?
Vs Technology sector averages: Net margin 12.1% (avg: 18%), ROE 11.9% (avg: 22%), current ratio 1.47 (avg: 2.5).