PEGASYSTEMS INC (PEGA) Stock Fundamental Analysis
USA - NASDAQ:PEGA - US7055731035 - Common Stock
59.09 USD
+0.13 (+0.22%)
59.09 USD
0 (0%)
PEGA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 284 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.
Of the past 5 years PEGA 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 21.50%, PEGA belongs to the top of the industry, outperforming 95.07% of the companies in the same industry.
PEGA has a better Return On Equity (46.57%) than 95.42% of its industry peers.
PEGA's Return On Invested Capital of 30.62% is amongst the best of the industry. PEGA outperforms 96.83% 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 79.93% of its industry peers.
The Operating Margin of PEGA (17.49%) is better than 84.51% of its industry peers.
PEGA has a Gross Margin of 75.74%. This is in the better half of the industry: PEGA outperforms 69.37% of its industry peers.
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.
PEGA has more shares outstanding than it did 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 11.26 indicates that PEGA is not in any danger for bankruptcy at the moment.
PEGA has a Altman-Z score of 11.26. This is amongst the best in the industry. PEGA outperforms 88.38% 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 | 11.26 |
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 in line with its industry peers.
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 of 1.36. This is comparable to the rest of the industry: PEGA outperforms 43.66% 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 for PEGA have decreased strongly by -20.52% in the last year.
The Earnings Per Share has been growing by 137.43% 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 17.00%.
PEGA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.44% yearly.
EPS 1Y (TTM)-20.52%
EPS 3Y137.43%
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 2.07% 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 5.82% on average per year.
EPS Next Y16.59%
EPS Next 2Y11.24%
EPS Next 3Y8.99%
EPS Next 5Y2.07%
Revenue Next Year15.59%
Revenue Next 2Y10.89%
Revenue Next 3Y9.36%
Revenue Next 5Y5.82%
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
A Price/Earnings ratio of 27.48 indicates a quite expensive valuation of PEGA.
Based on the Price/Earnings ratio, PEGA is valued a bit cheaper than 67.25% of the companies in the same industry.
PEGA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.83.
The Price/Forward Earnings ratio is 27.44, which means the current valuation is very expensive for PEGA.
Based on the Price/Forward Earnings ratio, PEGA is valued a bit cheaper than the industry average as 63.73% of the companies are valued more expensively.
PEGA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 32.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.48 | ||
| Fwd PE | 27.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PEGA is valued a bit cheaper than 72.89% of the companies in the same industry.
77.46% 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 | 23.47 | ||
| EV/EBITDA | 30.11 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of PEGA may justify a higher PE ratio.
PEG (NY)1.66
PEG (5Y)N/A
EPS Next 2Y11.24%
EPS Next 3Y8.99%
5. Dividend
5.1 Amount
With a yearly dividend of 0.20%, PEGA is not a good candidate for dividend investing.
PEGA's Dividend Yield is rather good when compared to the industry average which is at 36.34. PEGA pays more dividend than 88.38% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, 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 2Y11.24%
EPS Next 3Y8.99%
59.09
+0.13 (+0.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners56.2%
Inst Owner Change2.12%
Ins Owners46.28%
Ins Owner Change-0.76%
Market Cap10.11B
Revenue(TTM)1.73B
Net Income(TTM)277.95M
Analysts83
Price Target71.53 (21.05%)
Short Float %6.99%
Short Ratio4.71
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-Date
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)794.69%
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)11.07%
PT rev (3m)30.36%
EPS NQ rev (1m)-1.48%
EPS NQ rev (3m)-1.48%
EPS NY rev (1m)0%
EPS NY rev (3m)3.05%
Revenue NQ rev (1m)-0.59%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.48 | ||
| Fwd PE | 27.44 | ||
| P/S | 5.84 | ||
| P/FCF | 23.47 | ||
| P/OCF | 22.87 | ||
| P/B | 16.94 | ||
| P/tB | 19.68 | ||
| EV/EBITDA | 30.11 |
EPS(TTM)2.15
EY3.64%
EPS(NY)2.15
Fwd EY3.64%
FCF(TTM)2.52
FCFY4.26%
OCF(TTM)2.58
OCFY4.37%
SpS10.13
BVpS3.49
TBVpS3
PEG (NY)1.66
PEG (5Y)N/A
Graham Number12.99
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 | 11.26 |
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)-20.52%
EPS 3Y137.43%
EPS 5YN/A
EPS Q2Q%53.85%
EPS Next Y16.59%
EPS Next 2Y11.24%
EPS Next 3Y8.99%
EPS Next 5Y2.07%
Revenue 1Y (TTM)17%
Revenue growth 3Y7.31%
Revenue growth 5Y10.44%
Sales Q2Q%17.32%
Revenue Next Year15.59%
Revenue Next 2Y10.89%
Revenue Next 3Y9.36%
Revenue Next 5Y5.82%
EBIT growth 1Y75.98%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year53.54%
EBIT Next 3Y23.62%
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 5 / 10 to PEGA.
Can you provide the valuation status for PEGASYSTEMS INC?
ChartMill assigns a valuation rating of 4 / 10 to PEGASYSTEMS INC (PEGA). This can be considered as Fairly Valued.
What is the profitability of PEGA stock?
PEGASYSTEMS INC (PEGA) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for PEGA stock?
The Earnings per Share (EPS) of PEGASYSTEMS INC (PEGA) is expected to grow by 16.59% in the next year.
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 4.63%.