43.69 USD
-0.93 (-2.08%)
At close: Jan 30, 2026
43.5 USD
-0.19 (-0.43%)
After Hours: 1/30/2026, 8:12:40 PM
Taking everything into account, PEGA scores 6 out of 10 in our fundamental rating. PEGA was compared to 278 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 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.
- Of the past 5 years PEGA 4 years had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of PEGA (21.50%) is better than 96.40% 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 95.68% of the companies in the same industry.
- The Return On Invested Capital of PEGA (30.62%) is better than 97.12% 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
- PEGA's Profit Margin of 16.05% is fine compared to the rest of the industry. PEGA outperforms 78.42% of its industry peers.
- Looking at the Operating Margin, with a value of 17.49%, PEGA belongs to the top of the industry, outperforming 84.17% of the companies in the same industry.
- PEGA has a better Gross Margin (75.74%) than 68.70% 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PEGA 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
- PEGA has an Altman-Z score of 9.09. This indicates that PEGA is financially healthy and has little risk of bankruptcy at the moment.
- PEGA has a Altman-Z score of 9.09. This is amongst the best in the industry. PEGA outperforms 89.57% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 9.09 |
ROIC/WACC2.85
WACC10.73%
2.3 Liquidity
- PEGA has a Current 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.
- The Current ratio of PEGA (1.36) is comparable to the rest of the industry.
- A Quick Ratio of 1.36 indicates that PEGA should not have too much problems paying its short term obligations.
- PEGA has a Quick ratio of 1.36. This is comparable to the rest of the industry: PEGA outperforms 42.09% 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.
- 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
- PEGA is valuated rather expensively with a Price/Earnings ratio of 20.32.
- PEGA's Price/Earnings ratio is a bit cheaper when compared to the industry. PEGA is cheaper than 71.58% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.30. PEGA is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 19.32, the valuation of PEGA can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of PEGA indicates a somewhat cheap valuation: PEGA is cheaper than 70.86% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of PEGA to the average of the S&P500 Index (25.57), we can say PEGA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.32 | ||
| Fwd PE | 19.32 |
4.2 Price Multiples
- PEGA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PEGA is cheaper than 73.02% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, PEGA is valued a bit cheaper than the industry average as 79.14% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.21 | ||
| EV/EBITDA | 22.17 |
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.
- PEGA's earnings are expected to grow with 16.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.49
PEG (5Y)N/A
EPS Next 2Y22.77%
EPS Next 3Y16.8%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.27%, PEGA is not a good candidate for dividend investing.
- The stock price of PEGA dropped by -31.36% 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.
- PEGA's Dividend Yield is rather good when compared to the industry average which is at 0.54. PEGA pays more dividend than 88.85% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, PEGA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.27% |
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
- 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%
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 6 / 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 20.32 and the Price/Book (PB) ratio is 12.42.
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.