56.14 USD
-1.4 (-2.43%)
56.3 USD
+0.16 (+0.29%)
We assign a fundamental rating of 6 out of 10 to PEGA. PEGA was compared to 276 industry peers in the Software industry. While PEGA has a great health rating, its profitability is only average at the moment. PEGA is not valued too expensively and it also shows a decent growth rate.
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.
- In multiple years PEGA reported negative net income over the last 5 years.
- PEGA had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 21.50%, PEGA belongs to the best of the industry, outperforming 96.38% of the companies in the same industry.
- PEGA has a Return On Equity of 46.57%. This is amongst the best in the industry. PEGA outperforms 95.65% of its industry peers.
- PEGA has a better Return On Invested Capital (30.62%) than 97.10% 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
- Looking at the Profit Margin, with a value of 16.05%, PEGA is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
- PEGA has a Operating Margin of 17.49%. This is amongst the best in the industry. PEGA outperforms 84.06% of its industry peers.
- Looking at the Gross Margin, with a value of 75.74%, PEGA is in the better half of the industry, outperforming 68.84% of the companies in the same industry.
- 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.
- The number of shares outstanding for PEGA has been increased compared to 1 year ago.
- Compared to 5 years ago, PEGA has more shares outstanding
- PEGA has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 10.98 indicates that PEGA is not in any danger for bankruptcy at the moment.
- The Altman-Z score of PEGA (10.98) is better than 90.94% of its industry peers.
- There is no outstanding debt for PEGA. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 10.98 |
ROIC/WACC2.85
WACC10.74%
2.3 Liquidity
- A Current Ratio of 1.36 indicates that PEGA should not have too much problems paying its short term obligations.
- PEGA has a Current ratio (1.36) which is comparable to the rest of the 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's Quick ratio of 1.36 is in line compared to the rest of the industry. PEGA outperforms 42.03% of its industry peers.
| 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.
- PEGA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 184.70% yearly.
- Looking at the last year, PEGA shows a quite strong growth in Revenue. The Revenue has grown by 17.00% in the last year.
- Measured over the past years, PEGA shows a quite strong growth in Revenue. The Revenue has been growing by 10.44% on average per year.
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 Y41.66%
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
- 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
- A Price/Earnings ratio of 26.11 indicates a quite expensive valuation of PEGA.
- Based on the Price/Earnings ratio, PEGA is valued a bit cheaper than the industry average as 68.12% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of PEGA to the average of the S&P500 Index (27.33), we can say PEGA is valued inline with the index average.
- With a Price/Forward Earnings ratio of 24.83, PEGA is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, PEGA is valued a bit cheaper than 64.49% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of PEGA to the average of the S&P500 Index (24.12), we can say PEGA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.11 | ||
| Fwd PE | 24.83 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PEGA is valued a bit cheaper than the industry average as 70.29% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, PEGA is valued a bit cheaper than the industry average as 76.09% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.12 | ||
| EV/EBITDA | 29.09 |
4.3 Compensation for Growth
- PEGA's 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 16.80% in the coming years.
PEG (NY)0.63
PEG (5Y)N/A
EPS Next 2Y22.77%
EPS Next 3Y16.8%
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 0.52. PEGA pays more dividend than 88.77% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.91, PEGA's dividend is way lower than the S&P500 average.
| 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
- 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%
56.14
-1.4 (-2.43%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)10-21 2025-10-21/amc
Earnings (Next)02-10 2026-02-10/amc
Inst Owners59.08%
Inst Owner Change0.32%
Ins Owners46.23%
Ins Owner Change-1.4%
Market Cap9.53B
Revenue(TTM)1.73B
Net Income(TTM)277.95M
Analysts83.16
Price Target72.59 (29.3%)
Short Float %6.07%
Short Ratio4.25
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-Date01-02 2026-01-02 (0.03)
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)1.48%
PT rev (3m)12.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.17%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)4.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.11%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.11 | ||
| Fwd PE | 24.83 | ||
| P/S | 5.5 | ||
| P/FCF | 22.12 | ||
| P/OCF | 21.56 | ||
| P/B | 15.96 | ||
| P/tB | 18.55 | ||
| EV/EBITDA | 29.09 |
EPS(TTM)2.15
EY3.83%
EPS(NY)2.26
Fwd EY4.03%
FCF(TTM)2.54
FCFY4.52%
OCF(TTM)2.6
OCFY4.64%
SpS10.21
BVpS3.52
TBVpS3.03
PEG (NY)0.63
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 | 10.98 |
F-Score9
WACC10.74%
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 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 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 26.11 and the Price/Book (PB) ratio is 15.96.
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.