57 USD
+2.28 (+4.17%)
57.3 USD
+0.3 (+0.53%)
PEGA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 281 industry peers in the Software industry. While PEGA has a great health rating, its profitability is only average at the moment. PEGA has a correct valuation and a medium 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.
The reported net income has been mixed in the past 5 years: PEGA reported negative net income in multiple years.
Of the past 5 years PEGA 4 years had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 21.50%, PEGA belongs to the best of the industry, outperforming 95.73% of the companies in the same industry.
The Return On Equity of PEGA (46.57%) is better than 95.73% of its industry peers.
With an excellent Return On Invested Capital value of 30.62%, PEGA belongs to the best of the industry, outperforming 96.80% of the companies in the same industry.
| 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
The Profit Margin of PEGA (16.05%) is better than 79.36% of its industry peers.
Looking at the Operating Margin, with a value of 17.49%, PEGA belongs to the top of the industry, outperforming 84.34% of the companies in the same industry.
The Gross Margin of PEGA (75.74%) is better than 69.04% 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
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
The number of shares outstanding for PEGA has been increased compared to 5 years ago.
The debt/assets ratio for PEGA has been reduced compared to a year ago.
2.2 Solvency
PEGA has an Altman-Z score of 10.91. This indicates that PEGA is financially healthy and has little risk of bankruptcy at the moment.
PEGA has a better Altman-Z score (10.91) than 88.26% 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 | 10.91 |
ROIC/WACC2.9
WACC10.56%
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.
Looking at the Current ratio, with a value of 1.36, PEGA is in line with its industry, outperforming 41.64% of the companies in the same industry.
A Quick Ratio of 1.36 indicates that PEGA should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.36, PEGA perfoms like the industry average, outperforming 41.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
PEGA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.52%.
The Earnings Per Share has been growing by 137.43% on average over the past years. This is a very strong growth
Looking at the last year, PEGA shows a quite strong growth in Revenue. The Revenue has grown by 17.00% in the last year.
The Revenue has been growing by 10.44% on average over the past years. This is quite good.
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
Based on estimates for the next years, PEGA will show a small growth in Earnings Per Share. The EPS will grow by 2.18% on average per year.
PEGA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.01% yearly.
EPS Next Y22.18%
EPS Next 2Y14.48%
EPS Next 3Y11.68%
EPS Next 5Y2.18%
Revenue Next Year17.52%
Revenue Next 2Y11.96%
Revenue Next 3Y10.13%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 26.51, which means the current valuation is very expensive for PEGA.
Compared to the rest of the industry, the Price/Earnings ratio of PEGA indicates a somewhat cheap valuation: PEGA is cheaper than 66.55% of the companies listed in the same industry.
PEGA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 25.00, PEGA is valued on the expensive side.
Based on the Price/Forward Earnings ratio, PEGA is valued a bit cheaper than 65.48% of the companies in the same industry.
PEGA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.51 | ||
| Fwd PE | 25 |
4.2 Price Multiples
PEGA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PEGA is cheaper than 71.53% of the companies in the same industry.
76.51% 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 | 22.46 | ||
| EV/EBITDA | 28.8 |
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)1.2
PEG (5Y)N/A
EPS Next 2Y14.48%
EPS Next 3Y11.68%
5. Dividend
5.1 Amount
PEGA has a yearly dividend return of 0.22%, which is pretty low.
PEGA's Dividend Yield is rather good when compared to the industry average which is at 59.20. PEGA pays more dividend than 88.26% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, PEGA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
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 2Y14.48%
EPS Next 3Y11.68%
57
+2.28 (+4.17%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners56.2%
Inst Owner Change5.97%
Ins Owners46.28%
Ins Owner Change-0.82%
Market Cap9.67B
Revenue(TTM)1.73B
Net Income(TTM)277.95M
Analysts83
Price Target71.53 (25.49%)
Short Float %6.93%
Short Ratio4.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.22% |
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)0%
PT rev (3m)11.07%
EPS NQ rev (1m)0.58%
EPS NQ rev (3m)-0.9%
EPS NY rev (1m)4.79%
EPS NY rev (3m)4.79%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)1.66%
Revenue NY rev (3m)1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.51 | ||
| Fwd PE | 25 | ||
| P/S | 5.58 | ||
| P/FCF | 22.46 | ||
| P/OCF | 21.89 | ||
| P/B | 16.21 | ||
| P/tB | 18.84 | ||
| EV/EBITDA | 28.8 |
EPS(TTM)2.15
EY3.77%
EPS(NY)2.28
Fwd EY4%
FCF(TTM)2.54
FCFY4.45%
OCF(TTM)2.6
OCFY4.57%
SpS10.21
BVpS3.52
TBVpS3.03
PEG (NY)1.2
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 | 10.91 |
F-Score9
WACC10.56%
ROIC/WACC2.9
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 Y22.18%
EPS Next 2Y14.48%
EPS Next 3Y11.68%
EPS Next 5Y2.18%
Revenue 1Y (TTM)17%
Revenue growth 3Y7.31%
Revenue growth 5Y10.44%
Sales Q2Q%17.32%
Revenue Next Year17.52%
Revenue Next 2Y11.96%
Revenue Next 3Y10.13%
Revenue Next 5Y6.01%
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 6 / 10 to PEGA.
Can you provide the valuation status for PEGASYSTEMS INC?
ChartMill assigns a valuation rating of 5 / 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 22.18% 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%.