American Software, Inc.
American Software, Inc. Fundamental Analysis
American Software, Inc. (AMSWA) shows weak financial fundamentals with a PE ratio of 32.44, profit margin of 11.09%, and ROE of 8.43%. The company generates $0.1B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze AMSWA's fundamental strength across five key dimensions:
Efficiency Score
WeakAMSWA struggles to generate sufficient returns from assets.
Valuation Score
ModerateAMSWA shows balanced valuation metrics.
Growth Score
ModerateAMSWA shows steady but slowing expansion.
Financial Health Score
ExcellentAMSWA maintains a strong and stable balance sheet.
Profitability Score
WeakAMSWA struggles to sustain strong margins.
Key Financial Metrics
Is AMSWA Expensive or Cheap?
P/E Ratio
AMSWA trades at 32.44 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, AMSWA's PEG of -0.31 indicates potential undervaluation.
Price to Book
The market values American Software, Inc. at 2.83 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 55.38 times EBITDA. This signals the market has high growth expectations.
How Well Does AMSWA Make Money?
Net Profit Margin
For every $100 in sales, American Software, Inc. keeps $11.09 as profit after all expenses.
Operating Margin
Core operations generate 3.56 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.43 in profit for every $100 of shareholder equity.
ROA
American Software, Inc. generates $5.91 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
American Software, Inc. produces operating cash flow of $15.64M, showing steady but balanced cash generation.
Free Cash Flow
American Software, Inc. generates strong free cash flow of $15.04M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.42 in free cash annually.
FCF Yield
AMSWA converts 3.68% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
32.44
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.31
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.83
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.79
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.93
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How AMSWA Stacks Against Its Sector Peers
| Metric | AMSWA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 32.44 | 36.88 | Better (Cheaper) |
| ROE | 8.43% | 973.00% | Weak |
| Net Margin | 11.09% | 5938967200.00% | Weak |
| Debt/Equity | 0.00 | 0.40 | Strong (Low Leverage) |
| Current Ratio | 1.93 | 4.94 | Neutral |
| ROA | 5.91% | -296063.00% (disorted) | Weak |
AMSWA outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews American Software, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta