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Fundamental analysis: American Software, Inc. (AMSWA)

Awarener score: 6.5

Conclusion

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: 6.5

• Business has been shrinking. It's been substantially worse when measured against peer companies.
• American Software, Inc. business trend is extremely stable, which is best. It looks better than most rivals.

Margins score: 6.7

• 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 sufficient. It's more than average in relation to competitors.
• Profits on sales made -available to repay debt and purchase properties- are usually sufficient. They remain in good shape compared to peers.
• Earnings -before income taxes and interests on loans taken- tend to be sufficient 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: 6.3

• American Software, Inc. profit -on goods and services sold- has been growing at a very low pace. It's been in a weak position compared to competitors.
• In recent years, earnings -on operations- have been growing at a good step, which has been somewhat better than comparable firms.
• Profits -available to repay debt and purchase properties- have been growing at a very low pace, which compares below average when measured against peer enterprises.
• Earnings -before income taxes and interests on loans taken- have been growing at a good tempo. It turns to be rather normal in relation to similar stocks.
• In past years, profits -before income taxes- grew at a very good speed. It was somewhat better than rivals.
• In the previous years, growth trend on total net profit has been good, and similar to peer companies.
• Earnings per share have grown at a good rhythm in past years. It's been close to average when 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 slightly better than peers.
• Research and development expenses consume a moderate portion of revenues. It's encouraging 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: 7.0

• 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 more than average in relation to competitors.
• In the past, got 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 well ranked 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 worse than most comparable companies.
• The company somewhat enlarges a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains in good shape 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: 6.6

• 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 well ranked against similar enterprises.
• Usually, sales are on somewhat more than three months credit. It still ranks weak when measured against peers.
• Normally has no inventories. It comes up as impressive in relation to competitors.
• On average, it takes higher than three months from the purchase to charging customers. It happens to be mediocre against peers.
• On average pays suppliers before a month since the purchase. It ranks almost average when measured against industry peers.
• The company pays its suppliers roughly two months before charging its customers, so there's some 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 in good shape compared 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 somewhat better than peer companies.

Valuation score: 5.5

• American Software, Inc. looks expensive in relation to profits and financial position. It happens to be more than average in relation 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 a slight improvement compared to peers.
• In the past twelve months, the company neither generated nor consumed funds. Whatever funds it could generate, it reinvested in the business, which stands somewhat better than similar companies.
• The company usually generates 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, at the current price the share might be interesting. It's still great when measured against industry firms.
• In the past twelve months, the company has barely rewarded investors, considering both dividends and share on the pie of earnings. It came up excellent in relation to peer ventures.
• This company is a cash hoarder. It might be well poised to substantially increase stockholder payments, or to fund new business projects. It looks better than most 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 encouraging in relation to peer companies.
• Comparing the current stock price with the past twelve-months revenues gives a high relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks rather normal in relation 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 better 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: 6.2

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Awarener score: 6.5

Conclusion

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