PEGASYSTEMS INC (PEGA) Fundamental Analysis & Valuation

NASDAQ:PEGA • US7055731035

Current stock price

35.25 USD
-2.23 (-5.95%)
At close:
35.61 USD
+0.36 (+1.02%)
After Hours:

This PEGA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. PEGA Profitability Analysis

1.1 Basic Checks

  • PEGA had positive earnings in the past year.
  • In the past year PEGA had a positive cash flow from operations.
  • The reported net income has been mixed in the past 5 years: PEGA reported negative net income in multiple years.
  • Each year in the past 5 years PEGA 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 2025 0 200M -200M 400M

1.2 Ratios

  • The Return On Assets of PEGA (24.11%) is better than 97.06% of its industry peers.
  • Looking at the Return On Equity, with a value of 49.97%, PEGA belongs to the top of the industry, outperforming 95.59% of the companies in the same industry.
  • With an excellent Return On Invested Capital value of 22.12%, PEGA belongs to the best of the industry, outperforming 94.85% of the companies in the same industry.
  • PEGA had an Average Return On Invested Capital over the past 3 years of 15.39%. This is above the industry average of 10.91%.
  • The last Return On Invested Capital (22.12%) for PEGA is above the 3 year average (15.39%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 24.11%
ROE 49.97%
ROIC 22.12%
ROA(3y)11.4%
ROA(5y)0.96%
ROE(3y)28.69%
ROE(5y)-38.66%
ROIC(3y)15.39%
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 2025 0 -100 -200

1.3 Margins

  • PEGA's Profit Margin of 22.54% is amongst the best of the industry. PEGA outperforms 90.07% of its industry peers.
  • PEGA has a Operating Margin of 16.29%. This is amongst the best in the industry. PEGA outperforms 83.46% of its industry peers.
  • PEGA's Gross Margin of 75.86% is fine compared to the rest of the industry. PEGA outperforms 68.38% of its industry peers.
  • PEGA's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 16.29%
PM (TTM) 22.54%
GM 75.86%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.74%
GM growth 5Y1.78%
PEGA Yearly Profit, Operating, Gross MarginsPEGA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

9

2. PEGA Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PEGA is creating value.
  • Compared to 1 year ago, PEGA has less shares outstanding
  • The number of shares outstanding for PEGA has been increased compared to 5 years ago.
  • PEGA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
PEGA Yearly Shares OutstandingPEGA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 500M 1B 1.5B

2.2 Solvency

  • An Altman-Z score of 6.45 indicates that PEGA is not in any danger for bankruptcy at the moment.
  • PEGA has a Altman-Z score of 6.45. This is amongst the best in the industry. PEGA outperforms 81.99% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 6.45
ROIC/WACC2.12
WACC10.42%
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 2025 0 200M 400M 600M

2.3 Liquidity

  • A Current Ratio of 1.33 indicates that PEGA should not have too much problems paying its short term obligations.
  • PEGA's Current ratio of 1.33 is in line compared to the rest of the industry. PEGA outperforms 41.54% of its industry peers.
  • PEGA has a Quick Ratio of 1.33. 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 1.33, PEGA is in line with its industry, outperforming 42.28% of the companies in the same industry.
  • PEGA does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 1.33
Quick Ratio 1.33
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 2025 200M 400M 600M 800M 1B

More info and screens

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

4

3. PEGA Growth Analysis

3.1 Past

  • The earnings per share for PEGA have decreased strongly by -11.11% in the last year.
  • PEGA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 82.73% yearly.
  • The Revenue has grown by 16.61% 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 11.40% yearly.
EPS 1Y (TTM)-11.11%
EPS 3Y82.73%
EPS 5YN/A
EPS Q2Q%-39.87%
Revenue 1Y (TTM)16.61%
Revenue growth 3Y9.83%
Revenue growth 5Y11.4%
Sales Q2Q%-9.6%

3.2 Future

  • PEGA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.38% yearly.
  • The Revenue is expected to grow by 6.34% on average over the next years.
EPS Next Y31.85%
EPS Next 2Y20.78%
EPS Next 3Y14.75%
EPS Next 5Y1.38%
Revenue Next Year14.28%
Revenue Next 2Y13.08%
Revenue Next 3Y12.32%
Revenue Next 5Y6.34%

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 1B 2B 3B
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

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7

4. PEGA Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 19.58, the valuation of PEGA can be described as rather expensive.
  • Based on the Price/Earnings ratio, PEGA is valued a bit cheaper than 69.85% of the companies in the same industry.
  • PEGA is valuated rather cheaply when we compare the Price/Earnings ratio to 27.47, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 11.48, which indicates a very decent valuation of PEGA.
  • 80.88% of the companies in the same industry are more expensive than PEGA, based on the Price/Forward Earnings ratio.
  • PEGA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.62, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 19.58
Fwd PE 11.48
PEGA Price Earnings VS Forward Price EarningsPEGA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, PEGA is valued a bit cheaper than 75.37% of the companies in the same industry.
  • 84.93% of the companies in the same industry are more expensive than PEGA, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 12.14
EV/EBITDA 17.85
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.
  • PEGA has an outstanding profitability rating, which may justify a higher PE ratio.
  • PEGA's earnings are expected to grow with 14.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.61
PEG (5Y)N/A
EPS Next 2Y20.78%
EPS Next 3Y14.75%

More info and screens

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

4

5. PEGA Dividend Analysis

5.1 Amount

  • PEGA has a yearly dividend return of 0.34%, which is pretty low.
  • In the last 3 months the price of PEGA has falen by -30.03%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • Compared to an average industry Dividend Yield of 0.64, PEGA pays a better dividend. On top of this PEGA pays more dividend than 88.97% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, PEGA's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.34%

5.2 History

  • The dividend of PEGA decreases each year by -5.53%.
  • PEGA has paid a dividend for at least 10 years, which is a reliable track record.
  • The dividend of PEGA decreased recently.
Dividend Growth(5Y)-5.53%
Div Incr Years1
Div Non Decr Years1
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 3.92% of its income as dividend. This is a sustainable payout ratio.
DP3.92%
EPS Next 2Y20.78%
EPS Next 3Y14.75%
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 2025 0 200M -200M 400M
PEGA Dividend Payout.PEGA Dividend Payout, showing the Payout Ratio.PEGA Dividend Payout.PayoutRetained Earnings

More info and screens

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PEGA Fundamentals: All Metrics, Ratios and Statistics

PEGASYSTEMS INC

NASDAQ:PEGA (4/23/2026, 8:00:01 PM)

After market: 35.61 +0.36 (+1.02%)

35.25

-2.23 (-5.95%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)04-21
Earnings (Next)07-20
Inst Owners60.88%
Inst Owner Change-0.55%
Ins Owners46.34%
Ins Owner Change-1.53%
Market Cap5.96B
Revenue(TTM)1.75B
Net Income(TTM)393.44M
Analysts84.21
Price Target60.97 (72.96%)
Short Float %8.77%
Short Ratio3.22
Dividend
Industry RankSector Rank
Dividend Yield 0.34%
Yearly Dividend0.09
Dividend Growth(5Y)-5.53%
DP3.92%
Div Incr Years1
Div Non Decr Years1
Ex-Date04-01
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)24.35%
Min EPS beat(2)1.37%
Max EPS beat(2)47.32%
EPS beat(4)4
Avg EPS beat(4)68.65%
Min EPS beat(4)1.37%
Max EPS beat(4)206.69%
EPS beat(8)8
Avg EPS beat(8)50.18%
EPS beat(12)10
Avg EPS beat(12)741.26%
EPS beat(16)12
Avg EPS beat(16)569.07%
Revenue beat(2)2
Avg Revenue beat(2)4.16%
Min Revenue beat(2)0.03%
Max Revenue beat(2)8.29%
Revenue beat(4)4
Avg Revenue beat(4)10.77%
Min Revenue beat(4)0.03%
Max Revenue beat(4)30.76%
Revenue beat(8)6
Avg Revenue beat(8)5.8%
Revenue beat(12)8
Avg Revenue beat(12)4.54%
Revenue beat(16)10
Avg Revenue beat(16)2.8%
PT rev (1m)3.39%
PT rev (3m)-16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)10.79%
EPS NY rev (1m)0.28%
EPS NY rev (3m)22.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.64%
Valuation
Industry RankSector Rank
PE 19.58
Fwd PE 11.48
P/S 3.41
P/FCF 12.14
P/OCF 11.79
P/B 7.57
P/tB 8.46
EV/EBITDA 17.85
EPS(TTM)1.8
EY5.11%
EPS(NY)3.07
Fwd EY8.71%
FCF(TTM)2.9
FCFY8.24%
OCF(TTM)2.99
OCFY8.48%
SpS10.33
BVpS4.66
TBVpS4.17
PEG (NY)0.61
PEG (5Y)N/A
Graham Number13.7349 (-61.04%)
Profitability
Industry RankSector Rank
ROA 24.11%
ROE 49.97%
ROCE 31.81%
ROIC 22.12%
ROICexc 42.23%
ROICexgc 51.29%
OM 16.29%
PM (TTM) 22.54%
GM 75.86%
FCFM 28.11%
ROA(3y)11.4%
ROA(5y)0.96%
ROE(3y)28.69%
ROE(5y)-38.66%
ROIC(3y)15.39%
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)22.13%
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 3Y1.74%
GM growth 5Y1.78%
F-Score9
Asset Turnover1.07
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 105.88%
Cap/Sales 0.83%
Interest Coverage 162.14
Cash Conversion 169.49%
Profit Quality 124.73%
Current Ratio 1.33
Quick Ratio 1.33
Altman-Z 6.45
F-Score9
WACC10.42%
ROIC/WACC2.12
Cap/Depr(3y)79.75%
Cap/Depr(5y)92.85%
Cap/Sales(3y)0.84%
Cap/Sales(5y)1.21%
Profit Quality(3y)254.05%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-11.11%
EPS 3Y82.73%
EPS 5YN/A
EPS Q2Q%-39.87%
EPS Next Y31.85%
EPS Next 2Y20.78%
EPS Next 3Y14.75%
EPS Next 5Y1.38%
Revenue 1Y (TTM)16.61%
Revenue growth 3Y9.83%
Revenue growth 5Y11.4%
Sales Q2Q%-9.6%
Revenue Next Year14.28%
Revenue Next 2Y13.08%
Revenue Next 3Y12.32%
Revenue Next 5Y6.34%
EBIT growth 1Y76.85%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year28.19%
EBIT Next 3Y19.95%
EBIT Next 5Y-0.44%
FCF growth 1Y45.09%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y46.05%
OCF growth 3Y182.96%
OCF growth 5YN/A

PEGASYSTEMS INC / PEGA Fundamental Analysis FAQ

What is the ChartMill fundamental rating of PEGASYSTEMS INC (PEGA) stock?

ChartMill assigns a fundamental rating of 7 / 10 to PEGA.


What is the valuation status for PEGA stock?

ChartMill assigns a valuation rating of 7 / 10 to PEGASYSTEMS INC (PEGA). This can be considered as Undervalued.


How profitable is PEGASYSTEMS INC (PEGA) stock?

PEGASYSTEMS INC (PEGA) has a profitability rating of 8 / 10.


What are the PE and PB ratios of PEGASYSTEMS INC (PEGA) stock?

The Price/Earnings (PE) ratio for PEGASYSTEMS INC (PEGA) is 19.58 and the Price/Book (PB) ratio is 7.57.


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 3.92%.