51.9151 USD
-1.08 (-2.05%)
We assign a fundamental rating of 6 out of 10 to PEGA. PEGA was compared to 276 industry peers in the Software industry. PEGA is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. 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.
- The reported net income has been mixed in the past 5 years: PEGA reported negative net income in multiple 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 better Return On Equity (46.57%) than 95.65% of its industry peers.
- PEGA has a Return On Invested Capital of 30.62%. This is amongst the best in the industry. PEGA outperforms 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
- With a decent Profit Margin value of 16.05%, PEGA is doing good in 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.
- PEGA has a Gross Margin of 75.74%. This is in the better half of the industry: PEGA outperforms 68.84% of its industry peers.
- In the last couple of years the Gross Margin of PEGA has grown nicely.
| 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.
- Compared to 1 year ago, PEGA has more shares outstanding
- 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
- An Altman-Z score of 10.32 indicates that PEGA is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 10.32, PEGA belongs to the top of the industry, outperforming 90.94% 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 | 10.32 |
ROIC/WACC2.86
WACC10.7%
2.3 Liquidity
- A Current Ratio of 1.36 indicates that PEGA should not have too much problems paying its short term obligations.
- The Current ratio of PEGA (1.36) 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 has a Quick ratio (1.36) which is in line with 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.
- The Revenue has grown by 17.00% in the past year. This is quite good.
- 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
- 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.
- 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
- With a Price/Earnings ratio of 24.15, PEGA is valued on the expensive side.
- Compared to the rest of the industry, the Price/Earnings ratio of PEGA indicates a somewhat cheap valuation: PEGA is cheaper than 68.48% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.54, PEGA is valued at the same level.
- PEGA is valuated rather expensively with a Price/Forward Earnings ratio of 22.96.
- Based on the Price/Forward Earnings ratio, PEGA is valued a bit cheaper than the industry average as 66.30% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of PEGA to the average of the S&P500 Index (24.31), we can say PEGA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.15 | ||
| Fwd PE | 22.96 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PEGA indicates a somewhat cheap valuation: PEGA is cheaper than 71.38% of the companies listed in the same industry.
- 76.45% of the companies in the same industry are more expensive than PEGA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.46 | ||
| EV/EBITDA | 26.66 |
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)0.58
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.
- Compared to an average industry Dividend Yield of 0.52, PEGA pays a better dividend. On top of this PEGA pays more dividend than 88.77% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.92, 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 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 2Y22.77%
EPS Next 3Y16.8%
NASDAQ:PEGA (1/16/2026, 12:54:33 PM)
51.9151
-1.08 (-2.05%)
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 Cap8.81B
Revenue(TTM)1.73B
Net Income(TTM)277.95M
Analysts83.16
Price Target72.59 (39.82%)
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 | 24.15 | ||
| Fwd PE | 22.96 | ||
| P/S | 5.09 | ||
| P/FCF | 20.46 | ||
| P/OCF | 19.93 | ||
| P/B | 14.76 | ||
| P/tB | 17.16 | ||
| EV/EBITDA | 26.66 |
EPS(TTM)2.15
EY4.14%
EPS(NY)2.26
Fwd EY4.36%
FCF(TTM)2.54
FCFY4.89%
OCF(TTM)2.6
OCFY5.02%
SpS10.21
BVpS3.52
TBVpS3.03
PEG (NY)0.58
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 | 10.32 |
F-Score9
WACC10.7%
ROIC/WACC2.86
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 24.15 and the Price/Book (PB) ratio is 14.76.
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.