Stock Analysis

Stock Analysis · Agilysys Inc (AGYS)

Overview

Agilysys Inc. (AGYS) is a software company focused on technology for the hospitality industry. Its products are used by hotels, resorts, casinos, cruise lines, and other venues to run day-to-day operations such as property management (front desk and reservations), point-of-sale (food & beverage and retail), payments, and related guest-facing services. In simple terms, Agilysys sells the software that helps hospitality businesses manage guests, staff workflows, and transactions in one connected system.

From an economic standpoint, the business model typically blends ongoing software subscriptions and support with professional services (implementation, training) and, in some cases, hardware or third-party software resales tied to installing a full on-site solution. The long-term investment question often comes down to whether the company can keep shifting its mix toward recurring revenue (subscription-like) while maintaining customer retention and controlling costs.

Main revenue sources (most common categories used in company filings; exact percentages can vary by period):

Subscription / SaaS and support (recurring) — ongoing fees to use cloud software and receive support/maintenance
Professional services — implementation, configuration, training, and related services
Hardware and other — equipment and incidental items related to deployments (where applicable)

Looking at the multi-year income flow, total revenue has expanded meaningfully from fiscal 2021 to fiscal 2025, and the company moved from operating losses to operating income. A notable item appears in fiscal 2024 net income, where the income tax line is unusually large and negative versus other years; this can create a one-time-looking spike in net income that is not purely explained by day-to-day operations.

Key Figures

Metric	Value	Industry ⓘ
Date	Feb 08, 2026
Context
Sector	Technology
Industry	Software - Application
Market Cap ⓘ	$2.42B
Beta ⓘ	0.33
Fundamental
P/E Ratio ⓘ	80.38	27.79
Profit Margin ⓘ	9.79%	6.02%
Revenue Growth ⓘ	15.60%	15.80%
Debt to Equity ⓘ	11.24%	25.15%
PEG ⓘ	-2.19
Free Cash Flow ⓘ	$59.19M

Agilysys has a market capitalization of about $2.4B and a low beta of about 0.33, which describes how much the stock has historically moved relative to the overall market (lower can mean less sensitivity, though it can change over time). The company’s P/E ratio is about 80.4, well above the listed industry median of about 27.8, indicating the market is pricing in higher expected growth and/or higher future profitability than a typical peer.

Profitability is currently positive, with a profit margin of about 9.8% versus an industry median around 6.0%. Revenue growth year-over-year is about 15.6%, close to the industry median shown (~15.8%). Balance-sheet leverage appears modest: debt-to-equity is about 11.2%, below the listed industry median (~25.2%). Free cash flow over the trailing twelve months is about $59.2M, suggesting the business has recently been converting a portion of its earnings into cash.

Growth (Medium)

Agilysys operates in hospitality technology, an area supported by long-term trends such as digital check-in, mobile ordering, integrated payments, and a push by hotels and resorts to modernize older “on-premise” systems. These trends are structural: once a property standardizes on an operating platform (property management + POS + payments + integrations), switching can be disruptive, which can support multi-year customer relationships.

Strategically, Agilysys’ growth logic is straightforward: win new properties, expand product usage within existing customers (for example, adding modules like payments, POS outlets, or guest engagement features), and increase the share of revenue that is recurring through subscriptions and support. That approach generally aligns with how enterprise software businesses scale—by building a base of contracted recurring revenue and then layering expansions over time.

The year-over-year growth pattern shows sustained double-digit expansion across many quarters, with growth often in the mid-teens to 20%+ range. The latest reading around 15–16% suggests continued growth, though not at an extreme pace. For long-term context, the key is whether the company can keep growing while maintaining customer satisfaction and controlling operating costs.

Free cash flow has trended upward over the last several fiscal years (roughly from the high-$20M range to above $50M). For long-term business durability, this matters because cash generation can support product investment, resilience in downturns, and flexibility without relying heavily on borrowing.