50.38 USD
+0.25 (+0.5%)
50.38 USD
0 (0%)
Overall PEGA gets a fundamental rating of 6 out of 10. We evaluated PEGA against 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
- 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.
- 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 96.40% of the companies in the same industry.
- 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.
- With an excellent Return On Invested Capital value of 30.62%, PEGA belongs to the best of the industry, outperforming 97.12% 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 78.42% of its industry peers.
- PEGA's Operating Margin of 17.49% is amongst the best of the industry. PEGA outperforms 84.17% of its industry peers.
- With a decent Gross Margin value of 75.74%, PEGA is doing good in the industry, outperforming 68.70% 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.
- PEGA has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, PEGA has more shares outstanding
- The debt/assets ratio for PEGA has been reduced compared to a year ago.
2.2 Solvency
- PEGA has an Altman-Z score of 9.94. This indicates that PEGA is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 9.94, PEGA belongs to the best of the industry, outperforming 90.29% of the companies in the same industry.
- 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 | 9.94 |
ROIC/WACC2.84
WACC10.79%
2.3 Liquidity
- A Current Ratio of 1.36 indicates that PEGA should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.36, PEGA is in line with its industry, outperforming 41.37% 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 42.09% of the companies in the same industry.
| 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.
- Measured over the past years, PEGA shows a very strong growth in Earnings Per Share. The EPS has been growing by 184.70% on average per year.
- 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
- PEGA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.26% yearly.
- 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
- A Price/Earnings ratio of 23.43 indicates a rather expensive valuation of PEGA.
- PEGA's Price/Earnings ratio is a bit cheaper when compared to the industry. PEGA is cheaper than 69.42% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. PEGA is around the same levels.
- The Price/Forward Earnings ratio is 22.28, which indicates a rather expensive current valuation of PEGA.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of PEGA indicates a somewhat cheap valuation: PEGA is cheaper than 67.99% 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 (25.98), we can say PEGA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.43 | ||
| Fwd PE | 22.28 |
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 72.66% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of PEGA indicates a somewhat cheap valuation: PEGA is cheaper than 77.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.85 | ||
| EV/EBITDA | 25.25 |
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.
- The decent profitability rating of PEGA 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)0.56
PEG (5Y)N/A
EPS Next 2Y22.77%
EPS Next 3Y16.8%
5. Dividend
5.1 Amount
- PEGA has a yearly dividend return of 0.24%, which is pretty low.
- In the last 3 months the price of PEGA has falen by -23.98%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- Compared to an average industry Dividend Yield of 0.54, PEGA pays a better dividend. On top of this PEGA pays more dividend than 88.85% of the companies listed in the same industry.
- With a Dividend Yield of 0.24, PEGA pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.24% |
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 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 23.43 and the Price/Book (PB) ratio is 14.33.
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.