54.42 USD
+2.04 (+3.89%)
54.42 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to PEGA. PEGA was compared to 281 industry peers in the Software industry. While PEGA has a great health rating, its profitability is only average at the moment. PEGA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
PEGA had positive earnings in the past year.
PEGA had a positive operating cash flow in the past year.
In multiple years PEGA reported negative net income over the last 5 years.
PEGA had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 21.50%, PEGA belongs to the top of the industry, outperforming 95.73% of the companies in the same industry.
The Return On Equity of PEGA (46.57%) is better than 96.09% of its industry peers.
PEGA has a Return On Invested Capital of 30.62%. This is amongst the best in the industry. PEGA outperforms 96.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.5% | ||
| ROE | 46.57% | ||
| ROIC | 30.62% |
ROA(3y)-5.12%
ROA(5y)-4.63%
ROE(3y)-76.04%
ROE(5y)-50.92%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of PEGA (16.05%) is better than 79.72% of its industry peers.
With an excellent Operating Margin value of 17.49%, PEGA belongs to the best of the industry, outperforming 84.70% of the companies in the same industry.
Looking at the Gross Margin, with a value of 75.74%, PEGA is in the better half of the industry, outperforming 69.39% of the companies in the same industry.
PEGA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.49% | ||
| PM (TTM) | 16.05% | ||
| GM | 75.74% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.76%
GM growth 5Y2.29%
2. Health
2.1 Basic Checks
PEGA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, PEGA has more shares outstanding
PEGA has more shares outstanding than it did 5 years ago.
The debt/assets ratio for PEGA has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 10.29 indicates that PEGA is not in any danger for bankruptcy at the moment.
PEGA's Altman-Z score of 10.29 is amongst the best of the industry. PEGA outperforms 89.32% of its industry peers.
There is no outstanding debt for PEGA. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 10.29 |
ROIC/WACC2.86
WACC10.7%
2.3 Liquidity
PEGA has a Current Ratio of 1.36. This is a normal value and indicates that PEGA is financially healthy and should not expect problems in meeting its short term obligations.
PEGA has a Current ratio (1.36) which is comparable to the rest of the industry.
A Quick Ratio of 1.36 indicates that PEGA should not have too much problems paying its short term obligations.
The Quick ratio of PEGA (1.36) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The earnings per share for PEGA have decreased strongly by -20.52% in the last year.
PEGA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 137.43% yearly.
Looking at the last year, PEGA shows a quite strong growth in Revenue. The Revenue has grown by 17.00% in the last year.
The Revenue has been growing by 10.44% on average over the past years. This is quite good.
EPS 1Y (TTM)-20.52%
EPS 3Y137.43%
EPS 5YN/A
EPS Q2Q%53.85%
Revenue 1Y (TTM)17%
Revenue growth 3Y7.31%
Revenue growth 5Y10.44%
Sales Q2Q%17.32%
3.2 Future
Based on estimates for the next years, PEGA will show a small growth in Earnings Per Share. The EPS will grow by 2.18% on average per year.
The Revenue is expected to grow by 6.01% on average over the next years.
EPS Next Y22.18%
EPS Next 2Y14.48%
EPS Next 3Y11.68%
EPS Next 5Y2.18%
Revenue Next Year17.52%
Revenue Next 2Y11.96%
Revenue Next 3Y10.13%
Revenue Next 5Y6.01%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
PEGA is valuated quite expensively with a Price/Earnings ratio of 25.31.
Compared to the rest of the industry, the Price/Earnings ratio of PEGA indicates a somewhat cheap valuation: PEGA is cheaper than 66.90% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PEGA to the average of the S&P500 Index (25.45), we can say PEGA is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 23.86, the valuation of PEGA can be described as rather expensive.
Based on the Price/Forward Earnings ratio, PEGA is valued a bit cheaper than the industry average as 67.97% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.46. PEGA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.31 | ||
| Fwd PE | 23.86 |
4.2 Price Multiples
PEGA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PEGA is cheaper than 73.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PEGA is valued a bit cheaper than the industry average as 77.94% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.61 | ||
| EV/EBITDA | 26.55 |
4.3 Compensation for Growth
PEGA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of PEGA may justify a higher PE ratio.
PEG (NY)1.14
PEG (5Y)N/A
EPS Next 2Y14.48%
EPS Next 3Y11.68%
5. Dividend
5.1 Amount
PEGA has a yearly dividend return of 0.23%, which is pretty low.
Compared to an average industry Dividend Yield of 42.63, PEGA pays a better dividend. On top of this PEGA pays more dividend than 88.26% of the companies listed in the same industry.
With a Dividend Yield of 0.23, PEGA pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
5.2 History
The dividend of PEGA decreases each year by -12.97%.
PEGA has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-12.97%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
4.63% of the earnings are spent on dividend by PEGA. This is a low number and sustainable payout ratio.
DP4.63%
EPS Next 2Y14.48%
EPS Next 3Y11.68%
54.42
+2.04 (+3.89%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners56.2%
Inst Owner Change6.36%
Ins Owners46.28%
Ins Owner Change-0.98%
Market Cap9.31B
Revenue(TTM)1.73B
Net Income(TTM)277.95M
Analysts83
Price Target71.53 (31.44%)
Short Float %7.6%
Short Ratio5.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.23% |
Yearly Dividend0.06
Dividend Growth(5Y)-12.97%
DP4.63%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)33.28%
Min EPS beat(2)19.23%
Max EPS beat(2)47.32%
EPS beat(4)4
Avg EPS beat(4)70.31%
Min EPS beat(4)8.02%
Max EPS beat(4)206.69%
EPS beat(8)8
Avg EPS beat(8)59.22%
EPS beat(12)10
Avg EPS beat(12)794.69%
EPS beat(16)11
Avg EPS beat(16)564.85%
Revenue beat(2)2
Avg Revenue beat(2)6.14%
Min Revenue beat(2)3.99%
Max Revenue beat(2)8.29%
Revenue beat(4)4
Avg Revenue beat(4)11.32%
Min Revenue beat(4)2.23%
Max Revenue beat(4)30.76%
Revenue beat(8)6
Avg Revenue beat(8)7.35%
Revenue beat(12)8
Avg Revenue beat(12)5.91%
Revenue beat(16)9
Avg Revenue beat(16)2.14%
PT rev (1m)11.07%
PT rev (3m)11.07%
EPS NQ rev (1m)-0.9%
EPS NQ rev (3m)-0.9%
EPS NY rev (1m)4.79%
EPS NY rev (3m)7.98%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)1.66%
Revenue NY rev (3m)2.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.31 | ||
| Fwd PE | 23.86 | ||
| P/S | 5.37 | ||
| P/FCF | 21.61 | ||
| P/OCF | 21.06 | ||
| P/B | 15.6 | ||
| P/tB | 18.13 | ||
| EV/EBITDA | 26.55 |
EPS(TTM)2.15
EY3.95%
EPS(NY)2.28
Fwd EY4.19%
FCF(TTM)2.52
FCFY4.63%
OCF(TTM)2.58
OCFY4.75%
SpS10.13
BVpS3.49
TBVpS3
PEG (NY)1.14
PEG (5Y)N/A
Graham Number12.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.5% | ||
| ROE | 46.57% | ||
| ROCE | 43.57% | ||
| ROIC | 30.62% | ||
| ROICexc | 61.91% | ||
| ROICexgc | 81.67% | ||
| OM | 17.49% | ||
| PM (TTM) | 16.05% | ||
| GM | 75.74% | ||
| FCFM | 24.87% |
ROA(3y)-5.12%
ROA(5y)-4.63%
ROE(3y)-76.04%
ROE(5y)-50.92%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.76%
GM growth 5Y2.29%
F-Score9
Asset Turnover1.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 82.25% | ||
| Cap/Sales | 0.65% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 139.6% | ||
| Profit Quality | 154.97% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 10.29 |
F-Score9
WACC10.7%
ROIC/WACC2.86
Cap/Depr(3y)107.22%
Cap/Depr(5y)95.53%
Cap/Sales(3y)1.46%
Cap/Sales(5y)1.55%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-20.52%
EPS 3Y137.43%
EPS 5YN/A
EPS Q2Q%53.85%
EPS Next Y22.18%
EPS Next 2Y14.48%
EPS Next 3Y11.68%
EPS Next 5Y2.18%
Revenue 1Y (TTM)17%
Revenue growth 3Y7.31%
Revenue growth 5Y10.44%
Sales Q2Q%17.32%
Revenue Next Year17.52%
Revenue Next 2Y11.96%
Revenue Next 3Y10.13%
Revenue Next 5Y6.01%
EBIT growth 1Y75.98%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year53.54%
EBIT Next 3Y23.62%
EBIT Next 5Y6.1%
FCF growth 1Y194.63%
FCF growth 3Y127.83%
FCF growth 5YN/A
OCF growth 1Y154.62%
OCF growth 3Y106.83%
OCF growth 5YN/A
PEGASYSTEMS INC / PEGA FAQ
What is the ChartMill fundamental rating of PEGASYSTEMS INC (PEGA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to PEGA.
Can you provide the valuation status for PEGASYSTEMS INC?
ChartMill assigns a valuation rating of 5 / 10 to PEGASYSTEMS INC (PEGA). This can be considered as Fairly Valued.
What is the profitability of PEGA stock?
PEGASYSTEMS INC (PEGA) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for PEGA stock?
The Earnings per Share (EPS) of PEGASYSTEMS INC (PEGA) is expected to grow by 22.18% in the next year.
Can you provide the dividend sustainability for PEGA stock?
The dividend rating of PEGASYSTEMS INC (PEGA) is 4 / 10 and the dividend payout ratio is 4.63%.