American Software Stock Price and Value Analysis

Should you buy American Software stock? (NasdaqGS:AMSWA). Let's see how it does in our automated value investing analysis system.

AMSWA Free Cash Flow Trend

Free Cash Flow trendline for AMSWA
Free Cash Flow trendline for American Software

Based on historical returns, we believe that American Software can grow its free cash at a rate of about 1%. That's positive!

AdvantagesDisadvantages
  • This company has an average dividend yield.
  • This company has fluctuating growth.
  • This company is solid.
  • This stock looks overpriced.
  • This company is making money at a modest rate.

Inside the AMSWA Numbers

AMSWA Price
(American Software stock price per share)
$20.05
[?] AMSWA Fair Price
(based on intrinsic value)
$7.00
[?] AMSWA Safety Price (based on a variable margin of safety) $4.55
[?] PE Ratio versus Sector 612% higher than other Technology stocks
[?] PE Ratio versus Industry 0% lower than other Unknown stocks
[?] Cash Yield 2.42%
[?] Free Cash Flow Jitter 25%
[?] Dividend Yield 2%
Shares Shorted 641,562

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 641,562 shares shorted. With 28,603,010 shares available for purchase and an average trading volume over the past 10 trading days of 152,900, it would take at least 4.196 days for all of the short holders to cover their shorts.

Is American Software Stock on Sale?

We believe that American Software may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

American Software looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy AMSWA Stock?

Does American Software have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.