This is a step-by-step stock review to answer the question, is Agilysys (AGYS) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, then you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI), which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Therefore, Consider looking at other stocks due to Agilysys low score.
Table of Contents
- Agilysys Company History
- MOS
- Meaning
- Moat
- Management
- 4M Summary
- Is Agilysys (AGYS) stock a good buy?
1. Agilysys Company History
When investing in stocks, it’s important to know the company’s history. This helps us understand the various revenue streams, if they acquired other companies, how they grew through difficult times, and how they separated themselves from the competition.
- Established in 1963, Agilysys boasts a 50-year legacy of technological innovation.
- Originally named Pioneer-Standard Electronics, the company began supplying electronic components before rebranding as Agilysys in 2003.
- Agilysys swiftly became a leader in the hospitality sector, introducing groundbreaking solutions like InfoGenesis POS.
- This flagship product revolutionized point-of-sale systems, enhancing operational efficiency and guest satisfaction.
- Agilysys expanded its offerings with products such as rGuest® Express and rGuest® Pay, catering to diverse industry needs.
- In the retail sector, Agilysys provides cutting-edge solutions to optimize operations and elevate customer experiences.
- By leveraging cloud-based technology, Agilysys offers scalable solutions adaptable to the digital age.
- Today, Agilysys remains at the forefront of hospitality and retail technology, empowering businesses to thrive in an ever-evolving marketplace.
2. MOS (Margin of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: Watch
- Score: 50
- MOS: 80%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Agilysys makes money:
- Software Sales: Tailored software for hospitality and retail, including POS systems, property management, inventory, and analytics tools.
- Subscription Services: Cloud-based software comes with subscription plans, offering updates and support.
- Implementation Services: Help integrating software, earning revenue from consulting and service contracts.
- Maintenance Support: Technical support and updates offered through annual maintenance contracts.
- Hardware Sales: POS terminals, tablets, and peripherals sold, sometimes bundled with software.
- Training: Programs and resources help customers use the software effectively, generating revenue through fees and certifications.
- Transaction Fees: Revenue from transaction processing, particularly for payment and online ordering solutions.
Here are a few of the other companies that Agilysys has acquired over the years. This is important because a company will use a “Buy before build” philosophy to go to market faster and add additional streams of revenue. A company with more revenue streams has a more stable business model. Keep in mind, that most companies don’t build new software because it takes too long to go to market and generate revenue.
- Visual One Systems (2015)
- Eatec Corporation (2017)
- InfoGenesis (2017)
- Harbortouch (2020)
- INTELITY (2020)
- Raima (2021)
- STAYNTOUCH (2021)
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Agilysys stacks up against other companies.
- Descartes Systems Group (DSGX) – 83/100
- Karooooo (KARO) – 83/100
- OppFi (OPFI) – 78/100
- Immersion Corporation (IMMR) – 78/100
- Agilysys (AGYS) – 50/100
- Lightspeed Commerce (LSPD) – 39/100
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- Strategic Leadership:
- As CEO, Ramesh Srinivasan provided strategic direction and leadership, guiding Agilysys through a period of significant growth and transformation.
- Financial Performance:
- Under Srinivasan’s leadership, Agilysys achieved strong financial performance, with notable increases in revenue, profitability, and market capitalization.
- Expansion of Product Portfolio:
- Srinivasan oversaw the expansion of Agilysys’ product portfolio through strategic acquisitions, including Visual One Systems, Eatec Corporation, and InfoGenesis, enhancing the company’s offerings for the hospitality and retail industries.
- Focus on Innovation:
- Srinivasan emphasized innovation, driving the development and launch of new cloud-based software platforms, mobile applications, and data analytics tools to meet the evolving needs of customers.
- Customer Success:
- Under Srinivasan’s leadership, Agilysys maintained a strong focus on customer success, delivering exceptional service and support to thousands of clients worldwide.
- Market Leadership:
- Through Srinivasan’s efforts, Agilysys solidified its position as a market leader in hospitality and retail technology solutions, gaining recognition for its innovation, reliability, and customer satisfaction.
- Expansion into New Markets:
- Srinivasan spearheaded Agilysys’ expansion into new markets, including international regions, diversifying the company’s revenue streams and broadening its global footprint.
- Culture of Excellence:
- Srinivasan made Agilysys a great place to work. He encouraged people to do their best and come up with new ideas. This helped the company grow and do well.
- Recognition and Awards:
- Under Srinivasan’s leadership, Agilysys received numerous industry awards and accolades for its products, services, and corporate performance, further solidifying its reputation as a leading technology provider.
6. 4M Summary
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Agilysys is 50/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Agilysys (AGYS) stock a good buy?
Some of the top questions investors can have is Agilysys (AGYS) stock a good buy or should I buy Agilysys (AGYS) stock?
Investing in Agilysys means aiming for growth and good returns. As a leader in hospitality and gaming tech, Agilysys drives innovation, offering state-of-the-art solutions. It’s a reliable beacon of excellence.
Why choose Agilysys? It’s a tech powerhouse. Their suite of software solutions streamlines operations, boosts guest experiences, and fuels revenue growth. From cutting-edge POS systems to robust property management tools, Agilysys meets market needs.
Agilysys isn’t just about great products. They’re forward-thinking, constantly pushing boundaries in R&D, staying ahead in a changing landscape. Investing in Agilysys means investing in the future.
Agilysys is financially sound, with steady growth and profitability. It’s a stable choice in uncertain times, consistently delivering value to shareholders.
In short, Agilysys isn’t just a good investment—it’s essential. With innovation, success, and financial strength, Agilysys promises significant returns in hospitality and gaming tech.
—
To truly know if Agilysys (AGYS) is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
If you found this stock review interesting, you may also like this review on Casey’s.