PEGASYSTEMS INC (PEGA) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:PEGA • US7055731035

40.11 USD
+1.91 (+5%)
Last: Feb 6, 2026, 03:51 PM
Fundamental Rating

6

Taking everything into account, PEGA scores 6 out of 10 in our fundamental rating. PEGA was compared to 278 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.


Dividend Valuation Growth Profitability Health

6

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.
  • Of the past 5 years PEGA 4 years had a positive operating cash flow.
PEGA Yearly Net Income VS EBIT VS OCF VS FCFPEGA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M

1.2 Ratios

  • The Return On Assets of PEGA (21.50%) is better than 96.76% of its industry peers.
  • The Return On Equity of PEGA (46.57%) is better than 95.68% of its industry peers.
  • The Return On Invested Capital of PEGA (30.62%) is better than 97.12% of its industry peers.
Industry RankSector 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
PEGA Yearly ROA, ROE, ROICPEGA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -50 -100 -150 -200 -250

1.3 Margins

  • PEGA has a Profit Margin of 16.05%. This is in the better half of the industry: PEGA outperforms 78.78% of its industry peers.
  • With an excellent Operating Margin value of 17.49%, PEGA belongs to the best of the industry, outperforming 84.17% of the companies in the same industry.
  • PEGA has a Gross Margin of 75.74%. This is in the better half of the industry: PEGA outperforms 68.70% of its industry peers.
  • In the last couple of years the Gross Margin of PEGA has grown nicely.
Industry RankSector 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%
PEGA Yearly Profit, Operating, Gross MarginsPEGA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

7

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.
  • Compared to 1 year ago, PEGA has an improved debt to assets ratio.
PEGA Yearly Shares OutstandingPEGA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
PEGA Yearly Total Debt VS Total AssetsPEGA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.2 Solvency

  • PEGA has an Altman-Z score of 8.15. This indicates that PEGA is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 8.15, PEGA belongs to the top of the industry, outperforming 89.21% of the companies in the same industry.
  • PEGA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 8.15
ROIC/WACC2.85
WACC10.73%
PEGA Yearly LT Debt VS Equity VS FCFPEGA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M

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.
  • The Current ratio of PEGA (1.36) 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.
  • PEGA has a Quick ratio (1.36) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.36
Quick Ratio 1.36
PEGA Yearly Current Assets VS Current LiabilitesPEGA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 36.08% over the past year.
  • The Earnings Per Share has been growing by 184.70% on average over the past years. This is a very strong growth
  • 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)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

  • PEGA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.26% yearly.
  • The Revenue is expected to grow by 6.01% on average over the next years.
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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
PEGA Yearly Revenue VS EstimatesPEGA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 500M 1B 1.5B 2B 2.5B
PEGA Yearly EPS VS EstimatesPEGA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 0 1 2 3

More info and screens

Find the best growth stocksShow best growing peers

6

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 18.66, the valuation of PEGA can be described as rather expensive.
  • PEGA's Price/Earnings ratio is a bit cheaper when compared to the industry. PEGA is cheaper than 74.46% of the companies in the same industry.
  • PEGA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.67.
  • A Price/Forward Earnings ratio of 17.74 indicates a rather expensive valuation of PEGA.
  • Based on the Price/Forward Earnings ratio, PEGA is valued a bit cheaper than the industry average as 72.66% of the companies are valued more expensively.
  • PEGA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 27.20, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 18.66
Fwd PE 17.74
PEGA Price Earnings VS Forward Price EarningsPEGA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, PEGA is valued a bit cheaper than 74.46% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, PEGA is valued cheaper than 80.94% of the companies in the same industry.
Industry RankSector Rank
P/FCF 15.8
EV/EBITDA 18.73
PEGA Per share dataPEGA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

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)0.45
PEG (5Y)N/A
EPS Next 2Y22.77%
EPS Next 3Y16.8%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. Dividend

5.1 Amount

  • PEGA has a yearly dividend return of 0.27%, which is pretty low.
  • In the last 3 months the price of PEGA has falen by -35.35%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • PEGA's Dividend Yield is rather good when compared to the industry average which is at 0.56. PEGA pays more dividend than 88.85% of the companies in the same industry.
  • With a Dividend Yield of 0.27, PEGA pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.27%

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
PEGA Yearly Dividends per sharePEGA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.02 0.04 0.06 0.08

5.3 Sustainability

  • PEGA pays out 4.63% of its income as dividend. This is a sustainable payout ratio.
DP4.63%
EPS Next 2Y22.77%
EPS Next 3Y16.8%
PEGA Yearly Income VS Free CF VS DividendPEGA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M
PEGA Dividend Payout.PEGA Dividend Payout, showing the Payout Ratio.PEGA Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

PEGASYSTEMS INC

NASDAQ:PEGA (2/6/2026, 3:51:07 PM)

40.11

+1.91 (+5%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)10-21
Earnings (Next)02-10
Inst Owners59.08%
Inst Owner Change-0.37%
Ins Owners46.23%
Ins Owner Change-1.76%
Market Cap6.81B
Revenue(TTM)1.73B
Net Income(TTM)277.95M
Analysts83.16
Price Target72.59 (80.98%)
Short Float %6.23%
Short Ratio4.35
Dividend
Industry RankSector Rank
Dividend Yield 0.27%
Yearly Dividend0.06
Dividend Growth(5Y)-12.97%
DP4.63%
Div Incr Years0
Div Non Decr Years0
Ex-Date01-02
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)1.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.31%
EPS NY rev (1m)0%
EPS NY rev (3m)4.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.72%
Valuation
Industry RankSector Rank
PE 18.66
Fwd PE 17.74
P/S 3.93
P/FCF 15.8
P/OCF 15.4
P/B 11.41
P/tB 13.25
EV/EBITDA 18.73
EPS(TTM)2.15
EY5.36%
EPS(NY)2.26
Fwd EY5.64%
FCF(TTM)2.54
FCFY6.33%
OCF(TTM)2.6
OCFY6.49%
SpS10.21
BVpS3.52
TBVpS3.03
PEG (NY)0.45
PEG (5Y)N/A
Graham Number13.04
Profitability
Industry RankSector 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 RankSector 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 8.15
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 6 / 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 18.66 and the Price/Book (PB) ratio is 11.41.


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.