Last Updated: 16 Sep 2024
Executive Summary
American Software Inc. (AMSWA) is a software development company with a market capitalization of $388.51 million. The company has a strong financial position with an EBITDA of $9.73 million and a net income of $5.04 million. AMSWA's stock price is currently trading at $10.95, which is below its 52-week high of $12.01. The company's fundamentals are strong, and its technical analysis indicates that the stock is undervalued. AMSWA is a good investment for both short-term and long-term investors.
Company Overview
American Software Inc. is a leading provider of business application software products and services. The company's products are used by a wide range of businesses, including Fortune 500 companies. AMSWA has a strong track record of innovation and has been recognized for its customer service. The company is headquartered in Atlanta, Georgia, and has operations in the United States and internationally.
Fundamental Analysis
AMSWA's financial statements show that the company is in a strong financial position. The company has a healthy balance sheet with $102.81 million in cash and equivalents and $10.28 million in debt. AMSWA's income statement shows that the company has been profitable in recent years. The company's net income has grown from $4.5 million in 2020 to $5.04 million in 2023.
AMSWA's valuation metrics are attractive. The company's trailing PE ratio is 40.56, which is below the industry average of 45.46. The company's forward PE ratio is not available, but it is likely to be below the industry average as well. AMSWA's price-to-sales ratio is 3.779, which is also below the industry average of 4.23.
Technical Analysis
AMSWA's technical analysis indicates that the stock is undervalued. The stock's 50-day moving average is $10.34, and its 200-day moving average is $10.58. The stock is currently trading below both of these moving averages, which indicates that it is in a downtrend. However, the stock's relative strength index (RSI) is 45.87, which indicates that it is oversold. This suggests that the stock is due for a rebound.
Short Term Outlook
AMSWA's short-term outlook is positive. The company's fundamentals are strong, and its technical analysis indicates that the stock is undervalued. The stock is likely to rebound in the short term.
Long Term Outlook
AMSWA's long-term outlook is also positive. The company is a leader in the software industry, and its products are used by a wide range of businesses. The company is well-positioned to continue to grow in the future.
Analyst Recommendations
Analysts are bullish on AMSWA. The consensus analyst rating is "buy," and the average analyst target price is $16.00. This suggests that analysts believe that the stock has the potential to appreciate by more than 50% in the next 12 months.
