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Fundamental analysis: American Software, Inc. (AMSWA)

Awarener score: 6.0

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Very good) and growth (Lacking), and the company's inclination to return cash to the stockholders (Average).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.0

  • Business has been slightly shrinking. It's been substantially worse when measured against peer companies.
  • American Software, Inc. business trend stability is very good. The higher the stability, the lower the risk. It looks better than most rivals.

Margins score: 7.2

  • AMSWA profit margins -on goods and services sold- are usually very good. They stand somewhat worse than rival companies.
  • Business profit on sales tends to be good. It's more than average in relation to competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually good. They remain excellent in relation to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be good in relation to total revenues. They're still better than most similar companies.
  • Profits -before income taxes- are usually good considering total sales, and remain great when measured against rivals.
  • Total net profit tends to be good when confronted to sales. Company stands great when measured against comparable firms.

Growth score: 3.7

  • American Software, Inc. profit -on goods and services sold- has been growing at a very low pace. It's been lacking compared to competitors.
  • In recent years, earnings -on operations- have been growing at a good step, which has been somewhat worse than comparable firms.
  • Profits -available to repay debt and purchase properties- tended to shrink, which compares substantially worse when measured against peer enterprises.
  • Growth on earnings -before income taxes and interests on loans taken- have been almost stagnant. It turns to be in a very weak position compared to similar stocks.
  • In past years, profits -before income taxes- grew at a very low speed. It was somewhat worse than rivals.
  • In the previous years, growth on total net profit has been almost null, and below average when measured against peer companies.
  • Earnings per share have been almost stagnant in past years. It's been lacking compared to industry peers.

Miscellaneous score: 6.0

  • AMSWA managed to pay little to no income taxes on profits made in the past years. It's been somewhat worse than peers.
  • Research and development expenses consume a moderate portion of revenues. It's more than average in relation to competitors.
  • The company grows very little in relation to research and development efforts. It stands in a very weak position compared to rival companies.

Profitability score: 7.2

  • American Software, Inc. usually gets very good returns on the resources it controls. It proves great when measured against peer firms.
  • The company normally gets good proceeds -on the resources directly invested in the business-. They remain excellent in relation to similar companies.
  • There's usually some profitability -in relation to owned resources-. It ranks great when measured against competitors.
  • In the past, got very good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's great when measured against comparable enterprises.

Usage of Funds score: 5.0

  • AMSWA usually uses a modest portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments isn't too high. It stands great when measured against rival firms.
  • The company is usually replacing some proportion of the property, plant, and equipment that gets old, saving part of the funds for something else, which is almost average when measured against industry peers.
  • In the past twelve months it paid good dividends, considering the current stock price. It came top-notch against competitors.
  • In recent years, has cut back dividend payments. It could be traversing challenging times. The company has behaved lacking compared to similar firms.
  • The company usually uses a large portion of genuine funds generated to pay dividends. There could be some concerns on sustainability if business takes a dive. Sustainability looks mediocre against comparable companies.
  • The company somewhat enlarges a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains a slight improvement compared to peer enterprises.
  • We are not sure on the effectiveness of the company when repurchasing shares, as there were not enough numbers to crunch. It stands unidentified against rivals.
  • We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 6.9

  • American Software, Inc. intangible assets (like brands and goodwill) represent a modest portion of resources controlled, according to accounting books. There could be some difficulties in liquidating them if the company ever gets in financial distress. It happens to be similar to peer companies.
  • The company has roughly triple short-term resources than short-term obligations. Liquidity concerns are most likely unimportant. It turns to be a slight improvement compared to similar firms.
  • Almost no resources controlled were provided for with financial debt. Financial strength is great. Company could significantly increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains better than most rival firms.
  • Resources controlled can be quickly made into cash, which is very good for liquidity and risk. It looks more than average in relation to rivals.
  • For every dollar of short-term obligations, the company has more than enough dollars in cash and short-term receivables. It's a slight improvement compared to peer firms.
  • For every dollar of short-term obligations, the company has enough dollars in cash and equivalents, which is somewhat better than similar enterprises.
  • Usually, sales are on a two-months credit. It still ranks below average when measured against peers.
  • Normally has no inventories. It comes up as impressive in relation to competitors.
  • On average, it takes less than three months from the purchase to charging customers. It happens to be somewhat worse than peers.
  • On average pays suppliers before a month from the purchase. It ranks below average when measured against industry peers.
  • The company pays its suppliers roughly one month before charging its customers, so there's sparse money invested in working capital. It's in a weak position compared to similar companies.
  • Company earns net interest income on its investments and therefore is in a quite comfortable financial position. It stands top-notch against rival firms.
  • Business earnings have usually been great when measured against loans taken. Debt might be repaid almost as soon as desired. It ranks top tier when measured against comparable enterprises.
  • Revenues are excellent in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements, allows the company to keep more money to reward stockholders in the long run. It looks excellent in relation to similar firms.
  • Resource exploitation is quite good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still well ranked against peer companies.

Valuation score: 5.3

  • American Software, Inc. looks very expensive in relation to profits and financial position. It happens to be similar to competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains rather normal in relation to peers.
  • In the past twelve months, the company generated some slightly better free funds in relation to the stock price, which stands better than most similar companies.
  • The company usually generates reasonably more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be fair. It's still great when measured against industry firms.
  • In the past twelve months, the company hasn't rewarded investors, considering both dividends and share on the pie of earnings. It came up in good shape compared to peer ventures.
  • The company has substantial more cash than debt. It might be poised to increase stockholder payments, or to fund new business projects. It looks well ranked against similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is very high. A lot of improvement expectations are already in the stock price, which is risky. It ranks almost average when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a very high relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks close to average when compared to rival firms.
  • The relation between the stock price and accounting book value is significantly high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains slightly worse than peer firms.
  • In the past twelve months, the operating business earned little money when compared to the current stock price and financial position. It happens to be great when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a modest earnings power ability when measured against the current stock price and financial position. It's still excellent in relation to peer companies.

Total score: 5.9


AMSWA logos

Company at a glance: American Software, Inc. (AMSWA)

Sector, industry: Technology, Software—Application

Market Cap: 0.54 billions

Revenues TTM: 0.13 billions

American Software, Inc. develops, markets, and supports a range of computer business application software products in the United States and internationally. The company operates in three segments: Supply Chain Management (SCM), Information Technology Consulting (IT Consulting), and Other. The SCM segment offers Logility Digital Supply Chain Platform, a cloud-architected supply chain management platform that helps manage seven critical planning processes, such as product, demand, inventory, supply, deploy, integrated business planning, and supply chain data management. The IT Consulting segment provides IT staffing and consulting services, such as software enhancement, documentation, update, customer education, consulting, systems integration, maintenance, and support services. The Other segment offers American Software ERP, which provides purchasing and materials management, customer order processing, financial, e-commerce, and traditional manufacturing solutions. It also provides ongoing support and maintenance services; cloud hosting and managed services; and implementation and training services. The company markets its products through direct and indirect sales channels to the apparel and other soft goods, food and beverage, consumer packaged goods, consumer durable goods, wholesale distribution, specialty chemicals, and other process manufacturing industries. American Software, Inc. was incorporated in 1970 and is headquartered in Atlanta, Georgia.

Awarener score: 6.0

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Very good) and growth (Lacking), and the company's inclination to return cash to the stockholders (Average).