PEGASYSTEMS INC (PEGA)
US7055731035 - Common Stock
Taking everything into account, PEGA scores 5 out of 10 in our fundamental rating. PEGA was compared to 279 industry peers in the Software industry. PEGA has only an average score on both its financial health and profitability. PEGA has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
PEGA had positive earnings in the past year.
In the past year PEGA had a positive cash flow from operations.
PEGA had negative earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: PEGA reported negative operating cash flow in multiple years.
1.2 Ratios
With an excellent Return On Assets value of 7.77%, PEGA belongs to the best of the industry, outperforming 82.44% of the companies in the same industry.
With an excellent Return On Equity value of 25.95%, PEGA belongs to the best of the industry, outperforming 89.61% of the companies in the same industry.
PEGA's Return On Invested Capital of 22.05% is amongst the best of the industry. PEGA outperforms 94.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.77% | ||
| ROE | 25.95% | ||
| ROIC | 22.05% |
ROA(3y)-8.31%
ROA(5y)-7.59%
ROE(3y)-86.73%
ROE(5y)-57.66%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 8.29%, PEGA is doing good in the industry, outperforming 75.99% of the companies in the same industry.
PEGA's Profit Margin has improved in the last couple of years.
PEGA has a better Operating Margin (11.63%) than 79.21% of its industry peers.
With a decent Gross Margin value of 74.40%, PEGA is doing good in the industry, outperforming 64.52% of the companies in the same industry.
PEGA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.63% | ||
| PM (TTM) | 8.29% | ||
| GM | 74.4% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5Y31.83%
GM growth 3Y1.95%
GM growth 5Y2.15%
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.
The number of shares outstanding for PEGA has been increased compared to 1 year ago.
The number of shares outstanding for PEGA has been increased compared to 5 years ago.
PEGA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.77 indicates that PEGA is not in any danger for bankruptcy at the moment.
The Altman-Z score of PEGA (5.77) is better than 65.59% of its industry peers.
PEGA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.55 | ||
| Altman-Z | 5.77 |
ROIC/WACC1.93
WACC11.4%
2.3 Liquidity
PEGA has a Current Ratio of 1.09. This is a normal value and indicates that PEGA is financially healthy and should not expect problems in meeting its short term obligations.
PEGA's Current ratio of 1.09 is on the low side compared to the rest of the industry. PEGA is outperformed by 72.76% of its industry peers.
A Quick Ratio of 1.09 indicates that PEGA should not have too much problems paying its short term obligations.
PEGA has a worse Quick ratio (1.09) than 71.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
PEGA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 110.67%, which is quite impressive.
Measured over the past years, PEGA shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.80% on average per year.
The Revenue has grown by 9.28% in the past year. This is quite good.
Measured over the past years, PEGA shows a quite strong growth in Revenue. The Revenue has been growing by 9.95% on average per year.
EPS 1Y (TTM)110.67%
EPS 3YN/A
EPS 5Y30.8%
EPS Q2Q%-11.36%
Revenue 1Y (TTM)9.28%
Revenue growth 3Y12.08%
Revenue growth 5Y9.95%
Sales Q2Q%-2.87%
3.2 Future
PEGA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.34% yearly.
The Revenue is expected to grow by 5.70% on average over the next years.
EPS Next Y19.95%
EPS Next 2Y15.88%
EPS Next 3Y12.55%
EPS Next 5Y4.34%
Revenue Next Year7.86%
Revenue Next 2Y7.47%
Revenue Next 3Y7.5%
Revenue Next 5Y5.7%
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
Based on the Price/Earnings ratio of 30.14, the valuation of PEGA can be described as expensive.
Based on the Price/Earnings ratio, PEGA is valued a bit cheaper than the industry average as 73.12% of the companies are valued more expensively.
PEGA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 28.95, which means the current valuation is very expensive for PEGA.
PEGA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PEGA is cheaper than 68.82% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.83. PEGA is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.14 | ||
| Fwd PE | 28.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PEGA is valued a bit cheaper than the industry average as 71.33% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PEGA is valued a bit cheaper than the industry average as 79.93% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.27 | ||
| EV/EBITDA | 39.74 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as PEGA's earnings are expected to grow with 12.55% in the coming years.
PEG (NY)1.51
PEG (5Y)0.98
EPS Next 2Y15.88%
EPS Next 3Y12.55%
5. Dividend
5.1 Amount
PEGA has a yearly dividend return of 0.13%, which is pretty low.
Compared to an average industry Dividend Yield of 13.26, PEGA pays a better dividend. On top of this PEGA pays more dividend than 89.61% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, PEGA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.13% |
5.2 History
The dividend of PEGA decreases each year by -0.03%.
PEGA has been paying a dividend for at least 10 years, so it has a reliable track record.
PEGA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.03%
Div Incr Years0
Div Non Decr Years15
5.3 Sustainability
PEGA pays out 8.22% of its income as dividend. This is a sustainable payout ratio.
DP8.22%
EPS Next 2Y15.88%
EPS Next 3Y12.55%
PEGASYSTEMS INC
NASDAQ:PEGA (12/20/2024, 8:00:00 PM)
After market: 95.237 0 (0%)95.24
+1.11 (+1.18%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners39.64%
Inst Owner Change-1.68%
Ins Owners47.48%
Ins Owner Change0.01%
Market Cap8.17B
Analysts82.35
Price Target94.75 (-0.51%)
Short Float %1.52%
Short Ratio1.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.13% |
Dividend Growth(5Y)-0.03%
DP8.22%
Div Incr Years0
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)54.15%
Min EPS beat(2)6.36%
Max EPS beat(2)101.94%
EPS beat(4)4
Avg EPS beat(4)48.13%
Min EPS beat(4)6.36%
Max EPS beat(4)101.94%
EPS beat(8)6
Avg EPS beat(8)1156.87%
EPS beat(12)7
Avg EPS beat(12)729.7%
EPS beat(16)9
Avg EPS beat(16)569.22%
Revenue beat(2)1
Avg Revenue beat(2)2.48%
Min Revenue beat(2)-1.97%
Max Revenue beat(2)6.93%
Revenue beat(4)2
Avg Revenue beat(4)3.38%
Min Revenue beat(4)-3.84%
Max Revenue beat(4)12.41%
Revenue beat(8)4
Avg Revenue beat(8)3.2%
Revenue beat(12)5
Avg Revenue beat(12)-0.92%
Revenue beat(16)7
Avg Revenue beat(16)-0.54%
PT rev (1m)10.09%
PT rev (3m)11.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.86%
EPS NY rev (1m)0%
EPS NY rev (3m)1.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.14 | ||
| Fwd PE | 28.95 | ||
| P/S | 5.52 | ||
| P/FCF | 25.27 | ||
| P/OCF | 24.7 | ||
| P/B | 17.27 | ||
| P/tB | 21.11 | ||
| EV/EBITDA | 39.74 |
EPS(TTM)3.16
EY3.32%
EPS(NY)3.29
Fwd EY3.45%
FCF(TTM)3.77
FCFY3.96%
OCF(TTM)3.86
OCFY4.05%
SpS17.27
BVpS5.52
TBVpS4.51
PEG (NY)1.51
PEG (5Y)0.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.77% | ||
| ROE | 25.95% | ||
| ROCE | 31.03% | ||
| ROIC | 22.05% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 11.63% | ||
| PM (TTM) | 8.29% | ||
| GM | 74.4% | ||
| FCFM | 21.83% |
ROA(3y)-8.31%
ROA(5y)-7.59%
ROE(3y)-86.73%
ROE(5y)-57.66%
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
ROICexcg growth 3YN/A
ROICexcg 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 5Y31.83%
GM growth 3Y1.95%
GM growth 5Y2.15%
F-Score6
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.55 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 41.5% | ||
| Cap/Sales | 0.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 174.01% | ||
| Profit Quality | 263.25% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 5.77 |
F-Score6
WACC11.4%
ROIC/WACC1.93
Cap/Depr(3y)104.84%
Cap/Depr(5y)96.66%
Cap/Sales(3y)1.57%
Cap/Sales(5y)1.68%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)110.67%
EPS 3YN/A
EPS 5Y30.8%
EPS Q2Q%-11.36%
EPS Next Y19.95%
EPS Next 2Y15.88%
EPS Next 3Y12.55%
EPS Next 5Y4.34%
Revenue 1Y (TTM)9.28%
Revenue growth 3Y12.08%
Revenue growth 5Y9.95%
Sales Q2Q%-2.87%
Revenue Next Year7.86%
Revenue Next 2Y7.47%
Revenue Next 3Y7.5%
Revenue Next 5Y5.7%
EBIT growth 1Y5638.07%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year100.33%
EBIT Next 3Y37.1%
EBIT Next 5Y30.81%
FCF growth 1Y5997.74%
FCF growth 3YN/A
FCF growth 5Y16.79%
OCF growth 1Y966.39%
OCF growth 3YN/A
OCF growth 5Y15.84%