58.38 USD
-1.25 (-2.1%)
58.38 USD
0 (0%)
PEGA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 280 industry peers in the Software industry. While PEGA has a great health rating, its profitability is only average at the moment. 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.
In multiple years PEGA reported negative net income over the last 5 years.
Of the past 5 years PEGA 4 years had a positive operating cash flow.
1.2 Ratios
PEGA has a better Return On Assets (21.50%) than 96.07% of its industry peers.
PEGA's Return On Equity of 46.57% is amongst the best of the industry. PEGA outperforms 95.71% of its industry peers.
PEGA has a Return On Invested Capital of 30.62%. This is amongst the best in the industry. PEGA outperforms 97.14% 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
PEGA has a better Profit Margin (16.05%) than 79.64% of its industry peers.
PEGA's Operating Margin of 17.49% is amongst the best of the industry. PEGA outperforms 84.29% of its industry peers.
PEGA has a better Gross Margin (75.74%) than 68.93% of its industry peers.
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
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.
Compared to 5 years ago, PEGA has more shares outstanding
Compared to 1 year ago, PEGA has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 11.11 indicates that PEGA is not in any danger for bankruptcy at the moment.
PEGA has a Altman-Z score of 11.11. This is amongst the best in the industry. PEGA outperforms 89.29% 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 | 0 | ||
| Altman-Z | 11.11 |
ROIC/WACC2.86
WACC10.7%
2.3 Liquidity
A Current Ratio of 1.36 indicates that PEGA should not have too much problems paying its short term obligations.
With a Current ratio value of 1.36, PEGA perfoms like the industry average, outperforming 41.79% of the companies in the same 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 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.
The Revenue has grown by 17.00% in the past year. This is quite good.
PEGA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.44% yearly.
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
Based on estimates for the next years, PEGA will show a small growth in Earnings Per Share. The EPS will grow by 5.26% on average per year.
The Revenue is expected to grow by 6.01% on average over the next years.
EPS Next Y41.72%
EPS Next 2Y23.3%
EPS Next 3Y17.34%
EPS Next 5Y5.26%
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.
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 27.15.
PEGA's Price/Earnings ratio is a bit cheaper when compared to the industry. PEGA is cheaper than 66.07% of the companies in the same industry.
When comparing the Price/Earnings ratio of PEGA to the average of the S&P500 Index (26.55), we can say PEGA is valued inline with the index average.
A Price/Forward Earnings ratio of 25.60 indicates a quite expensive valuation of PEGA.
Based on the Price/Forward Earnings ratio, PEGA is valued a bit cheaper than 65.36% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.78. PEGA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.15 | ||
| Fwd PE | 25.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PEGA is valued a bit cheaper than 69.64% of the companies 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 76.79% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23 | ||
| EV/EBITDA | 29.54 |
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.
PEGA has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as PEGA's earnings are expected to grow with 17.34% in the coming years.
PEG (NY)0.65
PEG (5Y)N/A
EPS Next 2Y23.3%
EPS Next 3Y17.34%
5. Dividend
5.1 Amount
PEGA has a yearly dividend return of 0.20%, which is pretty low.
PEGA's Dividend Yield is rather good when compared to the industry average which is at 1.91. PEGA pays more dividend than 88.57% of the companies in the same industry.
With a Dividend Yield of 0.20, PEGA pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
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 2Y23.3%
EPS Next 3Y17.34%
58.38
-1.25 (-2.1%)
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-0.81%
Market Cap9.91B
Revenue(TTM)1.73B
Net Income(TTM)277.95M
Analysts83
Price Target71.53 (22.52%)
Short Float %6.93%
Short Ratio4.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
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)794.68%
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)0%
PT rev (3m)11.07%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)-1.17%
EPS NY rev (1m)0%
EPS NY rev (3m)4.79%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)-0.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.15 | ||
| Fwd PE | 25.6 | ||
| P/S | 5.72 | ||
| P/FCF | 23 | ||
| P/OCF | 22.42 | ||
| P/B | 16.6 | ||
| P/tB | 19.29 | ||
| EV/EBITDA | 29.54 |
EPS(TTM)2.15
EY3.68%
EPS(NY)2.28
Fwd EY3.91%
FCF(TTM)2.54
FCFY4.35%
OCF(TTM)2.6
OCFY4.46%
SpS10.21
BVpS3.52
TBVpS3.03
PEG (NY)0.65
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 | 11.11 |
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)36.08%
EPS 3Y184.7%
EPS 5YN/A
EPS Q2Q%53.85%
EPS Next Y41.72%
EPS Next 2Y23.3%
EPS Next 3Y17.34%
EPS Next 5Y5.26%
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 Year60.17%
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.
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 41.72% 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%.