59.505 USD
-1.92 (-3.13%)
We assign a fundamental rating of 6 out of 10 to PEGA. PEGA was compared to 280 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
In the past year PEGA was profitable.
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's Return On Assets of 21.50% is amongst the best of the industry. PEGA outperforms 95.71% of its industry peers.
Looking at the Return On Equity, with a value of 46.57%, PEGA belongs to the top of the industry, outperforming 95.71% of the companies in the same industry.
With an excellent Return On Invested Capital value of 30.62%, PEGA belongs to the best of the industry, outperforming 97.14% of the companies in the same industry.
| 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's Profit Margin of 16.05% is fine compared to the rest of the industry. PEGA outperforms 79.64% of its industry peers.
PEGA has a better Operating Margin (17.49%) than 84.64% 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
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.
PEGA has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PEGA has an improved debt to assets ratio.
2.2 Solvency
PEGA has an Altman-Z score of 11.55. This indicates that PEGA is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 11.55, PEGA belongs to the best of the industry, outperforming 88.93% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 11.55 |
ROIC/WACC2.87
WACC10.67%
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 42.50% 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.
PEGA has a Quick ratio of 1.36. This is comparable to the rest of the industry: PEGA outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
PEGA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.08%, which is quite impressive.
The Earnings Per Share has been growing by 184.70% on average over the past years. This is a very strong growth
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
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 Y41.72%
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
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 27.68, 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 66.43% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.76. PEGA is around the same levels.
Based on the Price/Forward Earnings ratio of 26.09, the valuation of PEGA can be described as expensive.
63.57% of the companies in the same industry are more expensive than PEGA, based on the Price/Forward Earnings ratio.
PEGA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.68 | ||
| Fwd PE | 26.09 |
4.2 Price Multiples
PEGA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PEGA is cheaper than 70.00% 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 | 23.45 | ||
| EV/EBITDA | 31.18 |
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.
PEGA's earnings are expected to grow with 17.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.66
PEG (5Y)N/A
EPS Next 2Y23.3%
EPS Next 3Y17.34%
5. Dividend
5.1 Amount
With a yearly dividend of 0.21%, PEGA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 60.83, PEGA pays a better dividend. On top of this PEGA pays more dividend than 88.57% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, PEGA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
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 2Y23.3%
EPS Next 3Y17.34%
NASDAQ:PEGA (12/12/2025, 3:47:57 PM)
59.505
-1.92 (-3.13%)
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 Cap10.10B
Revenue(TTM)1.73B
Net Income(TTM)277.95M
Analysts83
Price Target71.53 (20.21%)
Short Float %6.93%
Short Ratio4.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.21% |
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 | 27.68 | ||
| Fwd PE | 26.09 | ||
| P/S | 5.83 | ||
| P/FCF | 23.45 | ||
| P/OCF | 22.85 | ||
| P/B | 16.92 | ||
| P/tB | 19.66 | ||
| EV/EBITDA | 31.18 |
EPS(TTM)2.15
EY3.61%
EPS(NY)2.28
Fwd EY3.83%
FCF(TTM)2.54
FCFY4.27%
OCF(TTM)2.6
OCFY4.38%
SpS10.21
BVpS3.52
TBVpS3.03
PEG (NY)0.66
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 | 11.55 |
F-Score9
WACC10.67%
ROIC/WACC2.87
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%.