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AGYS vs AVGO

AGYS
Agilysys, Inc.
BEARISH
Price
$68.49
Market Cap
$1.93B
Sector
Technology
AI Confidence
85%
AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
AGYS
64.01
AVGO
68.48
Forward P/E
AGYS
31.5
AVGO
19.65
P/B Ratio
AGYS
6.13
AVGO
20.79
P/S Ratio
AGYS
6.2
AVGO
24.35
EV/EBITDA
AGYS
50.32
AVGO
46.0

Profitability

Gross Margin
AGYS
61.67%
AVGO
76.73%
Operating Margin
AGYS
10.78%
AVGO
44.94%
Profit Margin
AGYS
9.79%
AVGO
36.57%
ROE
AGYS
10.68%
AVGO
33.37%
ROA
AGYS
4.01%
AVGO
10.66%

Growth

Revenue Growth
AGYS
15.6%
AVGO
29.5%
Earnings Growth
AGYS
152.8%
AVGO
31.6%

Financial Health

Debt/Equity
AGYS
0.06
AVGO
0.83
Current Ratio
AGYS
1.31
AVGO
1.9
Quick Ratio
AGYS
1.17
AVGO
1.67

Dividends

Dividend Yield
AGYS
--
AVGO
0.74%
Payout Ratio
AGYS
0.0%
AVGO
47.17%

AI Verdict

AGYS BEARISH

AGYS exhibits strong deterministic health with a Piotroski F-Score of 7/9, indicating solid operational and financial stability, though the absence of an Altman Z-Score raises concern about bankruptcy risk assessment. The stock trades at a premium valuation with a current P/E of 64.01 and forward P/E of 31.50, significantly above the sector average of 77.74, suggesting high growth expectations are already priced in. Despite robust revenue and earnings growth (15.6% and 152.8% YoY respectively), the 6-month price decline of 35.3% and 1-month drop of 20.0% reflect strong bearish technical momentum. The Graham Number of $16.4 and intrinsic value of $31.57 suggest deep undervaluation, but the current price of $68.49 implies a substantial growth premium, making the stock vulnerable to downward revisions if growth slows.

Strengths
Piotroski F-Score of 7/9 indicates strong financial and operational health
High gross margin of 61.67% reflects strong pricing power and cost control
Low debt/equity ratio of 0.06 signals minimal financial leverage risk
Risks
Current price of $68.49 is nearly 4.2x the Graham Number ($16.4), indicating extreme overvaluation unless sustained high growth is guaranteed
Forward P/E of 31.50 is high relative to historical and sector norms, increasing downside risk if earnings fail to meet expectations
Technical trend score of 0/100 reflects strong bearish momentum, with 6-month and 1-month price declines of 35.3% and 20.0% respectively
AVGO NEUTRAL

Broadcom exhibits a dichotomy between elite operational performance and poor deterministic value metrics. While the Piotroski F-Score of 4/9 indicates stable health, the stock trades at a massive premium to its Graham Number ($44.08) and Intrinsic Value ($151.04). This valuation gap is partially justified by a very attractive PEG ratio (0.68) and strong forward P/E (19.65), suggesting high growth expectations. However, aggressive insider selling by the CEO and CFO, combined with a bearish technical trend, offsets the strong analyst 'strong_buy' consensus.

Strengths
Exceptional profitability with 76.73% gross margins and 44.94% operating margins
Strong growth trajectory with ~30% YoY increases in both revenue and earnings
Impressive earnings track record with consistent beats over 25 quarters
Risks
Severe overvaluation relative to defensive fair value (Graham Number)
Strong bearish insider sentiment with 14 sell transactions and 0 buys
Technical trend is currently 0/100 (Bearish)

Compare Another Pair

AGYS vs AVGO: Head-to-Head Comparison

This page compares Agilysys, Inc. (AGYS) and Broadcom Inc. (AVGO) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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