59.72 USD
-1.6 (-2.61%)
59.72 USD
0 (0%)
PEGA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 276 industry peers in the Software industry. PEGA has an excellent financial health rating, but there are some minor concerns on its 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.
PEGA had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: PEGA reported negative net income in multiple years.
PEGA had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
PEGA has a Return On Assets of 21.50%. This is amongst the best in the industry. PEGA outperforms 96.38% of its industry peers.
PEGA's Return On Equity of 46.57% is amongst the best of the industry. PEGA outperforms 95.65% of its industry peers.
PEGA has a better Return On Invested Capital (30.62%) than 97.10% 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
Looking at the Profit Margin, with a value of 16.05%, PEGA is in the better half of the industry, outperforming 78.62% of the companies in the same industry.
PEGA has a Operating Margin of 17.49%. This is amongst the best in the industry. PEGA outperforms 84.06% of its industry peers.
The Gross Margin of PEGA (75.74%) is better than 68.84% of its industry peers.
In the last couple of years the Gross Margin of PEGA has grown nicely.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PEGA is creating value.
PEGA has more shares outstanding than it did 1 year ago.
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 11.30 indicates that PEGA is not in any danger for bankruptcy at the moment.
PEGA has a better Altman-Z score (11.30) than 90.94% 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 | 11.3 |
ROIC/WACC2.85
WACC10.73%
2.3 Liquidity
A Current Ratio of 1.36 indicates that PEGA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.36, PEGA is in line with its industry, outperforming 41.30% of the companies in the same industry.
PEGA has a Quick 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.
Looking at the Quick ratio, with a value of 1.36, PEGA is in line with its industry, outperforming 42.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 36.08% over the past year.
Measured over the past years, PEGA shows a very strong growth in Earnings Per Share. The EPS has been growing by 184.70% on average per year.
PEGA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.00%.
Measured over the past years, PEGA shows a quite strong growth in Revenue. The Revenue has been growing by 10.44% on average per year.
EPS 1Y (TTM)36.08%
EPS 3Y184.7%
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
The Earnings Per Share is expected to grow by 5.26% on average over the next years.
Based on estimates for the next years, PEGA will show a small growth in Revenue. The Revenue will grow by 6.01% on average per year.
EPS Next Y41.66%
EPS Next 2Y22.77%
EPS Next 3Y16.8%
EPS Next 5Y5.26%
Revenue Next Year17.58%
Revenue Next 2Y12.26%
Revenue Next 3Y10.57%
Revenue Next 5Y6.01%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
PEGA is valuated quite expensively with a Price/Earnings ratio of 27.78.
PEGA's Price/Earnings ratio is a bit cheaper when compared to the industry. PEGA is cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of PEGA to the average of the S&P500 Index (26.51), we can say PEGA is valued inline with the index average.
With a Price/Forward Earnings ratio of 26.41, PEGA can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, PEGA is valued a bit cheaper than the industry average as 64.49% of the companies are valued more expensively.
PEGA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.78 | ||
| Fwd PE | 26.41 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PEGA indicates a somewhat cheap valuation: PEGA is cheaper than 68.84% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PEGA indicates a somewhat cheap valuation: PEGA is cheaper than 75.72% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.53 | ||
| EV/EBITDA | 30.26 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 16.80% in the coming years.
PEG (NY)0.67
PEG (5Y)N/A
EPS Next 2Y22.77%
EPS Next 3Y16.8%
5. Dividend
5.1 Amount
With a yearly dividend of 0.19%, PEGA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.51, PEGA pays a better dividend. On top of this PEGA pays more dividend than 89.13% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, PEGA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
5.2 History
The dividend of PEGA decreases each year by -12.97%.
PEGA has paid a dividend for at least 10 years, which is 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 2Y22.77%
EPS Next 3Y16.8%
59.72
-1.6 (-2.61%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners59.01%
Inst Owner Change5.98%
Ins Owners46.47%
Ins Owner Change-1.57%
Market Cap10.14B
Revenue(TTM)1.73B
Net Income(TTM)277.95M
Analysts83
Price Target72.59 (21.55%)
Short Float %6.07%
Short Ratio4.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
Yearly Dividend0.06
Dividend Growth(5Y)-12.97%
DP4.63%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)794.68%
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)1.48%
PT rev (3m)12.71%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)-1.17%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)4.74%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)-0.11%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.78 | ||
| Fwd PE | 26.41 | ||
| P/S | 5.85 | ||
| P/FCF | 23.53 | ||
| P/OCF | 22.93 | ||
| P/B | 16.98 | ||
| P/tB | 19.73 | ||
| EV/EBITDA | 30.26 |
EPS(TTM)2.15
EY3.6%
EPS(NY)2.26
Fwd EY3.79%
FCF(TTM)2.54
FCFY4.25%
OCF(TTM)2.6
OCFY4.36%
SpS10.21
BVpS3.52
TBVpS3.03
PEG (NY)0.67
PEG (5Y)N/A
Graham Number13.04
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 | 11.3 |
F-Score9
WACC10.73%
ROIC/WACC2.85
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)36.08%
EPS 3Y184.7%
EPS 5YN/A
EPS Q2Q%53.85%
EPS Next Y41.66%
EPS Next 2Y22.77%
EPS Next 3Y16.8%
EPS Next 5Y5.26%
Revenue 1Y (TTM)17%
Revenue growth 3Y7.31%
Revenue growth 5Y10.44%
Sales Q2Q%17.32%
Revenue Next Year17.58%
Revenue Next 2Y12.26%
Revenue Next 3Y10.57%
Revenue Next 5Y6.01%
EBIT growth 1Y75.98%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year59.91%
EBIT Next 3Y26.63%
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.
What is the valuation status for PEGA stock?
ChartMill assigns a valuation rating of 5 / 10 to PEGASYSTEMS INC (PEGA). This can be considered as Fairly Valued.
Can you provide the profitability details for PEGASYSTEMS INC?
PEGASYSTEMS INC (PEGA) has a profitability rating of 6 / 10.
What is the valuation of PEGASYSTEMS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for PEGASYSTEMS INC (PEGA) is 27.78 and the Price/Book (PB) ratio is 16.98.
What is the expected EPS growth for PEGASYSTEMS INC (PEGA) stock?
The Earnings per Share (EPS) of PEGASYSTEMS INC (PEGA) is expected to grow by 41.66% in the next year.