Logility Supply Chain Solutions (LGTY) AI Stock Analysis

• Market Cap: $481.42M
• Dividend Yield: 3.08%
• Average Volume (3M): 697.27K
• Price to Earnings (P/E): 147.6
• Beta (1Y): 0.28
• Revenue Growth: -7.65%
• EPS Growth: -67.06%
• Country: US
• Employees: 320
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Application
• EPS (TTM): 0.10
• Shares Outstanding: 29,545,000
• 10 Day Avg. Volume: 802,863
• 30 Day Avg. Volume: 697,272
• PEG Ratio: -7.61
• Price to Book (P/B): 3.68
• Price to Sales (P/S): 4.71
• P/FCF Ratio: 444.92
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $14.30
• Price Target Upside: 0.07% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

Logility Supply Chain Solutions has a strong financial foundation with no debt and solid equity. The stock shows bullish technical momentum. However, its high P/E ratio indicates overvaluation concerns. The recent acquisition by Aptean is a positive development, suggesting enhanced strategic positioning. Overall, the stock is stable but operational and growth improvements are necessary.

Positive Factors

Business Growth

The Subscription (cloud) segment – the primary business focus – grew 5.0% in F3Q25 y/y and accounted for 59.3% of total revenue.

Financial Performance

Adjusted EBITDA of $4.3M, up 7.5% y/y, was above analyst estimates and consensus.

Financial Stability

The balance sheet remains strong with $79.3M in cash and investments and no debt, allowing flexibility.

Negative Factors

Market Reaction

Analyst believes the pre-Market indicated 14% sell-off is an overreaction and maintains a Buy rating.

Revenue Decline

Revenue of $25.0M was down 2.1% y/y, slightly missing consensus and analyst estimates.

Stock Rating

With shares trading closing 1.3% of the announced deal price, analysts lower the rating to Hold, from Buy, and remove the prior price target due to the view that upside from the proposed acquisition price is unlikely.

Logility Supply Chain Solutions Business Overview & Revenue Model

Company Description

Logility Supply Chain Solutions (LGTY) is a leading provider of advanced supply chain management software designed to help businesses optimize their operations. The company operates within the technology sector, focusing on delivering innovative solutions that address various aspects of supply chain management, including demand planning, inventory optimization, and transportation management. Logility's core products and services are tailored to enhance efficiency, reduce costs, and improve the overall performance of supply chain networks for enterprises across diverse industries.

How the Company Makes Money

Logility makes money primarily through the sale of its software solutions and related services. The company's revenue model is centered around software licensing, subscription fees, and professional services. Key revenue streams include one-time licensing fees for on-premise software, recurring subscription fees for cloud-based solutions, and fees for implementation, consulting, and support services. Additionally, Logility may engage in strategic partnerships with technology providers and consulting firms to expand its market reach and enhance its service offerings. These partnerships can contribute to revenue by facilitating access to new customers and markets.

Logility Supply Chain Solutions Financial Statement Overview

Summary

Logility Supply Chain Solutions demonstrates a robust balance sheet with no debt and a high equity ratio. However, the income statement shows challenges in growth and operational efficiency, and the cash flow statement indicates potential issues with cash generation.

Income Statement

Logility Supply Chain Solutions shows a mixed performance in its income statement. The TTM Gross Profit Margin is approximately 65.6%, indicating solid profitability. However, the TTM Net Profit Margin of 9.8% and decreasing revenue growth over the past year suggest some challenges in maintaining growth momentum. The EBIT and EBITDA margins are relatively low at 4.3% and 8.9% respectively, reflecting a need for improvement in operational efficiency.

Balance Sheet

The balance sheet of Logility Supply Chain Solutions is strong, with no debt and a high equity ratio of 72.1%. This indicates stable financial health and low leverage, which minimizes financial risk. The Return on Equity (ROE) is moderate at 7.7%, suggesting decent returns for shareholders, though there is room for improvement. Overall, the balance sheet displays solid stability and a strong equity position.

Cash Flow

The cash flow statement highlights some concerns. Although the company maintains positive free cash flow, the Free Cash Flow Growth Rate has declined significantly from past periods. The Operating Cash Flow to Net Income ratio is below 1, showing potential challenges in converting income to cash. These factors suggest a need for attention to cash management and operational cash generation.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
102.40M	102.52M	108.25M	106.52M	111.41M	115.47M
	Gross Profit
67.14M	66.42M	71.23M	71.24M	60.98M	63.16M
	EBIT
4.37M	4.11M	9.89M	11.55M	4.36M	6.05M
	EBITDA
9.15M	8.70M	13.05M	15.69M	9.97M	8.28M
	Net Income Common Stockholders
10.05M	11.37M	10.31M	12.80M	8.09M	6.74M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
56.18M	83.77M	114.15M	127.52M	104.66M	93.97M
	Total Assets
126.66M	192.44M	194.87M	192.84M	177.16M	171.29M
	Total Debt
0.00	0.00	476.00K	1.00M	1.56M	2.19M
	Net Debt
-40.60M	-59.51M	-90.22M	-109.69M	-87.10M	-77.63M
	Total Liabilities
36.35M	61.96M	57.31M	59.86M	54.77M	51.87M
	Stockholders Equity
90.31M	130.48M	137.56M	132.98M	122.39M	119.42M
Cash Flow		Free Cash Flow
1.08M	16.24M	-4.30M	28.09M	16.46M	25.56M
	Operating Cash Flow
1.44M	16.81M	-380.00K	29.02M	17.76M	25.98M
	Investing Cash Flow
294.00K	-23.12M	-10.42M	-934.00K	-1.30M	-3.59M
	Financing Cash Flow
-20.11M	-24.87M	-9.19M	-6.05M	-7.61M	-3.87M

Logility Supply Chain Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LGTY, the sentiment is Positive. The current price of 14.29 is above the 20-day moving average (MA) of 14.25, above the 50-day MA of 14.10, and above the 200-day MA of 11.32, indicating a bullish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 78.71 is Negative, neither overbought nor oversold. The STOCH value of 80.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LGTY.

Logility Supply Chain Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ORCL	81 Outperform	$456.95B	38.29	108.79%	1.04%	6.23%	12.37%
SAP	79 Outperform	$342.75B	55.00	12.81%	0.60%	9.39%	201.10%
LGTY	74 Outperform	$481.42M	147.62	2.61%	3.08%	-7.65%	-67.06%
SNOW	72 Outperform	$60.54B	―	-31.43%	―	29.21%	-51.47%
MANH	71 Outperform	$11.79B	55.05	89.60%	―	9.18%	14.35%
INFA	68 Neutral	$6.73B	4,125.53	0.09%	―	2.28%	―
Sector *	60 Neutral	$11.64B	10.63	-6.94%	2.93%	7.63%	-11.15%

Logility Supply Chain Solutions Corporate Events

Logility Acquired by Aptean, Delists from Nasdaq

On April 4, 2025, Logility Supply Chain Solutions announced the completion of its acquisition by Aptean, Inc. for $14.30 per share in cash. The acquisition, initially announced on January 24, 2025, and approved by shareholders on April 3, 2025, results in Logility’s delisting from the Nasdaq Global Select Market. This merger signifies a strategic shift for Logility, potentially enhancing its market positioning by integrating with Aptean’s global enterprise software solutions.

Logility Withdraws Unsolicited Bid, Supports Aptean Deal

On March 10, 2025, Logility Supply Chain Solutions announced the withdrawal of an unsolicited proposal to acquire all outstanding shares of its common stock, which had been made on March 7, 2025. The company continues to support its definitive agreement to be acquired by Aptean, Inc. for $14.30 per share in an all-cash transaction, urging shareholders to vote in favor of this transaction. The withdrawal of the unsolicited bid and the reaffirmation of the Aptean deal are significant for Logility’s strategic direction and shareholder interests.

Logility Supply Chain Solutions Merges with Aptean, Inc.

Logility Supply Chain Solutions, Inc., a Georgia-based company, has entered into a merger agreement with Aptean, Inc., a Delaware corporation, under which Aptean will acquire Logility through a merger with a subsidiary of Aptean. The merger, approved by Logility’s board, will convert each Logility share into $14.30 in cash and lead to the company’s delisting from the Nasdaq Global Select Market. The transaction is expected to close in the second quarter of 2025, subject to shareholder and regulatory approvals. The agreement includes the conversion of stock options and restricted stock units into cash payments, with specific payouts outlined for Logility’s executives. The merger aims to enhance Logility’s market position by integrating with Aptean’s resources, though it is subject to various conditions including regulatory approvals and shareholder consent.