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  5. AGYS: 4-5 years ago you gave the edge to LSPD between these two. [Agilysys Inc.]
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Q: 4-5 years ago you gave the edge to LSPD between these two. Is that still your view? What are your thoughts and analysis of AGYS, many thanks.
Asked by MG on March 28, 2024
5i Research Answer:

We would give the edge to AGYS today. We recently published a flash report on LSPD and highlighted some of the operational inefficiencies the company is suffering from while also being struggling to acheive sustainable profitability. Looking at AGYS, while being relatively flat over the last year, it has done quite well in the last five years. It is more expensive than LSPD on a forward earnings basis at 67x but the premium makes sense given the superior performance. AGYS has sustained profitability since 2022, and even expanded its margins and grown revenue nicely over that period. AGYS also has a solid balance sheet with essentially no debt. We like AGYS here due to uncertainty and lagging profitability from LSPD making it now a more uncertain name.