PEGASYSTEMS INC (PEGA) Stock Fundamental Analysis

NASDAQ:PEGA • US7055731035

45.01 USD
+0.39 (+0.87%)
At close: Mar 3, 2026
44.94 USD
-0.07 (-0.16%)
After Hours: 3/3/2026, 8:00:01 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

Taking everything into account, PEGA scores 7 out of 10 in our fundamental rating. PEGA was compared to 276 industry peers in the Software industry. Both the health and profitability get an excellent rating, making PEGA a very profitable company, without any liquidiy or solvency issues. PEGA has a correct valuation and a medium growth rate. This makes PEGA very considerable for quality investing!


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year PEGA was profitable.
  • 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.
  • 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

  • PEGA has a Return On Assets of 24.11%. This is amongst the best in the industry. PEGA outperforms 97.10% of its industry peers.
  • PEGA has a better Return On Equity (49.97%) than 95.65% of its industry peers.
  • PEGA has a better Return On Invested Capital (22.12%) than 94.93% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for PEGA is above the industry average of 10.79%.
  • The 3 year average ROIC (15.39%) for PEGA is below the current ROIC(22.12%), indicating increased profibility in the last year.
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

  • The Profit Margin of PEGA (22.54%) is better than 88.41% of its industry peers.
  • The Operating Margin of PEGA (16.29%) is better than 83.70% of its industry peers.
  • The Gross Margin of PEGA (75.86%) is better than 68.84% 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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

9

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.
  • The number of shares outstanding for PEGA has been reduced compared to 1 year ago.
  • 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 7.60 indicates that PEGA is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 7.60, PEGA belongs to the top of the industry, outperforming 86.96% 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 7.6
ROIC/WACC2.06
WACC10.72%
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 has a Current ratio (1.33) which is in line with 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.
  • PEGA's Quick ratio of 1.33 is in line compared to the rest of the industry. PEGA outperforms 41.67% of its industry peers.
  • 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

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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

  • PEGA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.33%, which is quite impressive.
  • The Earnings Per Share has been growing by 82.73% on average over the past years. This is a very strong growth
  • PEGA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.61%.
  • The Revenue has been growing by 11.40% on average over the past years. This is quite good.
EPS 1Y (TTM)40.33%
EPS 3Y82.73%
EPS 5YN/A
EPS Q2Q%-5.59%
Revenue 1Y (TTM)16.61%
Revenue growth 3Y9.83%
Revenue growth 5Y11.4%
Sales Q2Q%2.75%

3.2 Future

  • PEGA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.54% yearly.
  • PEGA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.97% yearly.
EPS Next Y7.41%
EPS Next 2Y6.55%
EPS Next 3Y-5.71%
EPS Next 5Y0.54%
Revenue Next Year13.71%
Revenue Next 2Y12.63%
Revenue Next 3Y12.78%
Revenue Next 5Y3.97%

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.
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

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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • PEGA is valuated rather expensively with a Price/Earnings ratio of 21.33.
  • PEGA's Price/Earnings ratio is a bit cheaper when compared to the industry. PEGA is cheaper than 69.57% of the companies in the same industry.
  • PEGA is valuated rather cheaply when we compare the Price/Earnings ratio to 26.83, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 19.91, which indicates a rather expensive current valuation of PEGA.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of PEGA indicates a somewhat cheap valuation: PEGA is cheaper than 65.22% of the companies listed in the same industry.
  • PEGA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.95.
Industry RankSector Rank
PE 21.33
Fwd PE 19.91
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

  • 71.38% of the companies in the same industry are more expensive than PEGA, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, PEGA is valued cheaply inside the industry as 80.43% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 15.57
EV/EBITDA 23.26
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 high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • PEGA has an outstanding profitability rating, which may justify a higher PE ratio.
  • A cheap valuation may be justified as PEGA's earnings are expected to decrease with -5.71% in the coming years.
PEG (NY)2.88
PEG (5Y)N/A
EPS Next 2Y6.55%
EPS Next 3Y-5.71%

More info and screens

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

4

5. Dividend

5.1 Amount

  • With a yearly dividend of 0.26%, PEGA is not a good candidate for dividend investing.
  • The stock price of PEGA dropped by -25.12% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
  • Compared to an average industry Dividend Yield of 0.57, PEGA pays a better dividend. On top of this PEGA pays more dividend than 88.77% of the companies listed in the same industry.
  • With a Dividend Yield of 0.26, PEGA pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.26%

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.
Dividend Growth(5Y)-5.53%
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

  • 3.92% of the earnings are spent on dividend by PEGA. This is a low number and sustainable payout ratio.
DP3.92%
EPS Next 2Y6.55%
EPS Next 3Y-5.71%
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

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Find the best dividend stocksShow peers with best dividend

PEGASYSTEMS INC

NASDAQ:PEGA (3/3/2026, 8:00:01 PM)

After market: 44.94 -0.07 (-0.16%)

45.01

+0.39 (+0.87%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-10
Earnings (Next)04-20
Inst Owners59.08%
Inst Owner Change3.3%
Ins Owners46.23%
Ins Owner Change-1.66%
Market Cap7.64B
Revenue(TTM)1.75B
Net Income(TTM)393.44M
Analysts83.16
Price Target58.97 (31.02%)
Short Float %7.4%
Short Ratio3.21
Dividend
Industry RankSector Rank
Dividend Yield 0.26%
Yearly Dividend0.09
Dividend Growth(5Y)-5.53%
DP3.92%
Div Incr Years0
Div Non Decr Years0
Ex-Date01-02
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)-18.76%
PT rev (3m)-17.56%
EPS NQ rev (1m)10.79%
EPS NQ rev (3m)16.45%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.85%
Revenue NQ rev (1m)-1.92%
Revenue NQ rev (3m)-1.92%
Revenue NY rev (1m)6.11%
Revenue NY rev (3m)6.67%
Valuation
Industry RankSector Rank
PE 21.33
Fwd PE 19.91
P/S 4.38
P/FCF 15.57
P/OCF 15.12
P/B 9.7
P/tB 10.84
EV/EBITDA 23.26
EPS(TTM)2.11
EY4.69%
EPS(NY)2.26
Fwd EY5.02%
FCF(TTM)2.89
FCFY6.42%
OCF(TTM)2.98
OCFY6.61%
SpS10.29
BVpS4.64
TBVpS4.15
PEG (NY)2.88
PEG (5Y)N/A
Graham Number14.84
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 7.6
F-Score9
WACC10.72%
ROIC/WACC2.06
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)40.33%
EPS 3Y82.73%
EPS 5YN/A
EPS Q2Q%-5.59%
EPS Next Y7.41%
EPS Next 2Y6.55%
EPS Next 3Y-5.71%
EPS Next 5Y0.54%
Revenue 1Y (TTM)16.61%
Revenue growth 3Y9.83%
Revenue growth 5Y11.4%
Sales Q2Q%2.75%
Revenue Next Year13.71%
Revenue Next 2Y12.63%
Revenue Next 3Y12.78%
Revenue Next 5Y3.97%
EBIT growth 1Y76.85%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year32.8%
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 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 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 8 / 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 21.33 and the Price/Book (PB) ratio is 9.7.


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 7.41% in the next year.