Check Before You Invest : AGS Transact Technologies Ltd

Snapshot

Q.1 Which industry/sub-sector does AGS Transact Technologies Ltd belong to?

AGS Transact Technologies Ltd belongs to the Miscellaneous sector, operating specifically within the Business Support segment.

Q.2 Is AGS Transact Technologies Ltd a good quality company?

AGS Transact Technologies Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is AGS Transact Technologies Ltd undervalued or overvalued?

AGS Transact Technologies Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is AGS Transact Technologies Ltd a good buy now?

AGS Transact Technologies Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of AGS Transact Technologies Ltd?

AGS Transact Technologies Ltd revenue growth is -13.8% for FY-2024, which is below its 5-year CAGR of -7.58%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of AGS Transact Technologies Ltd?

AGS Transact Technologies Ltd Return on capital employed is 0.28% for FY-2024, which is below its 5-year historical median of 11.37%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of AGS Transact Technologies Ltd?

AGS Transact Technologies Ltd Return on Asset is -3.45%, which is below its 5-year historical median of 0.71%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of AGS Transact Technologies Ltd?

AGS Transact Technologies Ltd Return on equity is -12.83% for FY-2024, which is below its 5-year historical median of 2.74%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of AGS Transact Technologies Ltd?

AGS Transact Technologies Ltd Cash conversion cycle is 36 days, above its 5-year historical median of 19 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.54	0.58
ROE	-12.83	2.74
ROCE	0.28	11.37
Cash Conversion Cycle	36 days	19 days

Q.6 Gross Profit margin of AGS Transact Technologies Ltd?

AGS Transact Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.4% for FY-2024, which is below its 5-year median of 15.8%, indicating decreasing margins.

Q.7 Operating Profit Margin of AGS Transact Technologies Ltd?

AGS Transact Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.66% for FY-2024, which is below its 5-year median of 24.44% indicating decreasing margins.

Q.8 Net Profit Margin of AGS Transact Technologies Ltd?

AGS Transact Technologies Ltd Net Profit Margin is -6.42% for FY-2024, is below with its 5-year median of 1.23%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	3.4	15.8
Operating Profit Margin	10.66	24.44
Net Profit Margin	-6.42	1.23

Q.9 Debt to Equity ratio of AGS Transact Technologies Ltd?

AGS Transact Technologies Ltd Debt-to-Equity ratio is 1.36, which is above with the industry average of 0.09, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of AGS Transact Technologies Ltd?

AGS Transact Technologies Ltd Debt to cash flow from operations is 2.22, which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of AGS Transact Technologies Ltd?

Promoters hold 26.48% of the AGS Transact Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of AGS Transact Technologies Ltd vs industry peers?

AGS Transact Technologies Ltd revenue CAGR is -7.58%, compared to the industry median CAGR of 11.02%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-13.8	11
Gross Profit Growth	-81.4	NAN
Operating Profit Growth	-60.8	14
Net Profit Growth	-550.2	17.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.54	0.32
ROE	-12.83	6.73
ROCE	0.28	12.12
Cash Conversion Cycle (days)	36.01	50

Valuation & price assessment

Q.1 Stock return of AGS Transact Technologies Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of -62.67% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-62.7%	-47.7%

Q.3 Valuation ratios of AGS Transact Technologies Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	-	62.16	26.08
Price to Book	0.07	1.36	2.53
Price to Sales	0.04	0.68	5.26
EV to EBITDA	8.51	8.51	11.21

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