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AGYS vs FORTY

AGYS
Agilysys, Inc.
BEARISH
Price
$68.49
Market Cap
$1.93B
Sector
Technology
AI Confidence
85%
FORTY
Formula Systems (1985) Ltd.
BEARISH
Price
$124.45
Market Cap
$1.91B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
AGYS
64.01
FORTY
54.11
Forward P/E
AGYS
31.5
FORTY
--
P/B Ratio
AGYS
6.13
FORTY
1.4
P/S Ratio
AGYS
6.2
FORTY
0.73
EV/EBITDA
AGYS
50.32
FORTY
6.83

Profitability

Gross Margin
AGYS
61.67%
FORTY
19.76%
Operating Margin
AGYS
10.78%
FORTY
5.87%
Profit Margin
AGYS
9.79%
FORTY
23.09%
ROE
AGYS
10.68%
FORTY
6.88%
ROA
AGYS
4.01%
FORTY
3.71%

Growth

Revenue Growth
AGYS
15.6%
FORTY
2.4%
Earnings Growth
AGYS
152.8%
FORTY
2645.3%

Financial Health

Debt/Equity
AGYS
0.06
FORTY
0.33
Current Ratio
AGYS
1.31
FORTY
1.63
Quick Ratio
AGYS
1.17
FORTY
1.54

Dividends

Dividend Yield
AGYS
--
FORTY
1.98%
Payout Ratio
AGYS
0.0%
FORTY
107.08%

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
FORTY BEARISH

FORTY exhibits significant financial fragility, highlighted by a weak Piotroski F-Score of 2/9, indicating deteriorating fundamental health. The stock is trading at a substantial premium, with a current price of $124.45 nearly double its Graham Number ($67.88) and Intrinsic Value ($67.85). While the company maintains a low Debt/Equity ratio, the unsustainable dividend payout ratio of 107.08% and a bearish technical trend (0/100) suggest a high risk of price correction. Extreme volatility in earnings growth and stagnant revenue growth (2.4% YoY) further undermine the current valuation.

Strengths
Low Debt/Equity ratio (0.33) indicating manageable leverage
Strong net profit margin of 23.09%
Low Price-to-Sales ratio (0.73) relative to sector
Risks
Severe fundamental weakness indicated by Piotroski F-Score of 2/9
Significant overvaluation relative to Graham and Intrinsic value estimates
Unsustainable dividend payout ratio (107.08%) exceeding earnings

Compare Another Pair

AGYS vs FORTY: Head-to-Head Comparison

This page compares Agilysys, Inc. (AGYS) and Formula Systems (1985) Ltd. (FORTY) 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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