American Software, Inc. (AMSWA) | Investment Case

1. Company Snapshot

1.a. Company Description

American Software, Inc.develops, markets, and supports a range of computer business application software products in the United States and internationally.The company operates in three segments: Supply Chain Management (SCM), Information Technology Consulting (IT Consulting), and Other.

The SCM segment offers Logility Digital Supply Chain Platform, a cloud-architected supply chain management platform that helps manage seven critical planning processes, such as product, demand, inventory, supply, deploy, integrated business planning, and supply chain data management.The IT Consulting segment provides IT staffing and consulting services, such as software enhancement, documentation, update, customer education, consulting, systems integration, maintenance, and support services.The Other segment offers American Software ERP, which provides purchasing and materials management, customer order processing, financial, e-commerce, and traditional manufacturing solutions.

It also provides ongoing support and maintenance services; cloud hosting and managed services; and implementation and training services.The company markets its products through direct and indirect sales channels to the apparel and other soft goods, food and beverage, consumer packaged goods, consumer durable goods, wholesale distribution, specialty chemicals, and other process manufacturing industries.American Software, Inc.

was incorporated in 1970 and is headquartered in Atlanta, Georgia.

Show Full description

1.b. Last Insights on AMSWA

American Software's recent performance was driven by strong Q1 2025 earnings and revenue beats, with earnings per share (EPS) of 12 cents, surpassing the Zacks Consensus Estimate of 7 cents. The company's CFO, Vince Klinges, highlighted the success of its AI-first supply chain planning software, while President and CEO Allan Dow emphasized the company's growth prospects. Additionally, the company's name change to Logility Supply Chain Solutions, Inc. and updated NASDAQ ticker symbol to LGTY, aligning with its brand and industry recognition, further solidified its position in the market.

1.c. Company Highlights

Last Price	10.95
Change Percentage	-2.14%
Open	11.23
Previous Close	11.19
Market Cap ( Millions)	389
Volume	113503
Year High	12.27
Year Low	8.41
M A 50	10.72
M A 200	10.59

FCF Yield	-1.50%
Dividend Yield	0.77%
ROE	2.91%
Debt / Equity	0.00%
Net Debt / EBIDTA	-852.07%
Price To Book	3.69
Price Earnings Ratio	126.45
Price To FCF	-66.76
Price To sales	9.86
EV / EBITDA	88.45

2. Transcript Summary

Unfortunately this company is not part of our coverage yet. But as part of your subscription plan you can request it by clicking just below and we'll process.

Request Coverage

3. NewsRoom

American Software, Inc. Changes Name to Logility Supply Chain Solutions, Inc. and Updates NASDAQ Ticker Symbol to LGTY

Oct -01

Source: businesswire.com

Logility Client Named Recipient of 2024 Women in Supply Chain Award

Sep -17

Source: businesswire.com

Here's Why Momentum in American Software (AMSWA) Should Keep going

Sep -02

Source: zacks.com

American Software (AMSWA) Upgraded to Buy: Here's What You Should Know

Aug -28

Source: zacks.com

American Software, Inc. (AMSWA) Q1 2025 Earnings Call Transcript

Aug -23

Source: seekingalpha.com

AMSWA Stock Earnings: American Software Beats EPS, Beats Revenue for Q1 2025

Aug -23

Source: investorplace.com

American Software (AMSWA) Q1 Earnings and Revenues Beat Estimates

Aug -22

Source: zacks.com

Logility Teams with Worldly to Leverage Comprehensive ESG Data for Supply Chain Transparency

Jun -17

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.41%)

6. Segments

Supply Chain Management

Expected Growth: 10.43%

American Software, Inc.'s 10.43% growth in Supply Chain Management is driven by increasing adoption of cloud-based solutions, rising demand for digital transformation in logistics and transportation, and growing need for real-time visibility and analytics in supply chain operations.

Information Technology Consulting

Expected Growth: 10.27%

American Software, Inc.'s 10.27% growth in Information Technology Consulting is driven by increasing demand for digital transformation, cloud adoption, and cybersecurity services. Additionally, the company's focus on providing innovative solutions, expanding its customer base, and strategic partnerships have contributed to its growth momentum.

Other

Expected Growth: 10.4%

American Software's 10.4% growth in 'Other' segment is driven by increasing demand for its cloud-based supply chain and logistics solutions, coupled with growing adoption of its artificial intelligence and machine learning-based analytics platform. Additionally, strategic partnerships and acquisitions have expanded its customer base and enhanced its product offerings.

7. Detailed Products

Logility

A comprehensive digital supply chain platform that enables companies to optimize their supply chain operations, from sourcing to delivery.

Demand Solutions

A demand planning and forecasting solution that helps companies predict and manage demand, reducing stockouts and overstocking.

NGC (New Generation Computing)

A comprehensive Andon and shop floor control system that helps manufacturers optimize production, reduce waste, and improve quality.

Infor SCE (Supply Chain Execution)

A warehouse management system that helps companies optimize their warehouse operations, from receiving to shipping.

Infor Rhythm

A cloud-based platform that provides real-time visibility and collaboration across the entire supply chain.

8. American Software, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for American Software, Inc. is medium because while there are some alternative software solutions available, they are not yet widely adopted and do not pose a significant threat to the company's market share.

Bargaining Power Of Customers

The bargaining power of customers is low because American Software, Inc. has a diverse customer base and no single customer accounts for a significant portion of its revenue.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium because while American Software, Inc. relies on a few key suppliers for certain components, it has some flexibility to switch to alternative suppliers if needed.

Threat Of New Entrants

The threat of new entrants is high because the software industry is highly competitive and new companies are constantly emerging with innovative solutions that could potentially disrupt the market.

Intensity Of Rivalry

The intensity of rivalry is high because the software industry is highly competitive and companies are constantly competing for market share and customers.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	0.34%
Debt Cost	3.95%
Equity Weight	99.66%
Equity Cost	7.51%
WACC	7.50%
Leverage	0.34%

11. Quality Control: American Software, Inc. passed 4 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Red Violet

A-Score: 5.5/10

Value: 0.9

Growth: 8.7

Quality: 7.6

Yield: 1.0

Momentum: 9.5

Volatility: 5.0

1-Year Total Return ->

Daily Journal

A-Score: 4.4/10

Value: 5.0

Growth: 4.7

Quality: 8.0

Yield: 0.0

Momentum: 5.0

Volatility: 4.0

1-Year Total Return ->

Blend Labs

A-Score: 4.1/10

Value: 8.4

Growth: 6.2

Quality: 3.2

Yield: 0.0

Momentum: 5.0

Volatility: 2.0

1-Year Total Return ->

American Software

A-Score: 4.1/10

Value: 2.6

Growth: 3.0

Quality: 6.1

Yield: 5.0

Momentum: 5.0

Volatility: 2.7

1-Year Total Return ->

Viant Technology

A-Score: 3.9/10

Value: 6.2

Growth: 8.0

Quality: 5.3

Yield: 0.0

Momentum: 1.5

Volatility: 2.3

1-Year Total Return ->

Wag

A-Score: 3.8/10

Value: 10.0

Growth: 6.3

Quality: 6.5

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

34.99%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.50%

American Software, Inc. - US0296831094

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on AMSWA

1.c. Company Highlights

Higher Yield

Lower Growth

Better Quality

Earnings Beats

Revenues Beats

Weak Momentum

Expensive

Fairly Valued

Earnings Miss

Less Volatile

Medium Volatility

Average Growth

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.41%)

6. Segments

Supply Chain Management

Expected Growth: 10.43%

Information Technology Consulting

Expected Growth: 10.27%

Other

Expected Growth: 10.4%

7. Detailed Products

Logility

Demand Solutions

NGC (New Generation Computing)

Infor SCE (Supply Chain Execution)

Infor Rhythm

8. American Software, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: American Software, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

10.95$

Current Price

10.95$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA