PROGRESS SOFTWARE CORP (PRGS) Fundamental Analysis & Valuation

NASDAQ:PRGS • US7433121008

Current stock price

29.24 USD
-2.04 (-6.52%)
Last:

This PRGS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. PRGS Profitability Analysis

1.1 Basic Checks

  • PRGS had positive earnings in the past year.
  • In the past year PRGS had a positive cash flow from operations.
  • In the past 5 years PRGS has always been profitable.
  • Each year in the past 5 years PRGS had a positive operating cash flow.
PRGS Yearly Net Income VS EBIT VS OCF VS FCFPRGS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50M -50M 100M 150M 200M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 2.98%, PRGS is in the better half of the industry, outperforming 67.99% of the companies in the same industry.
  • PRGS has a better Return On Equity (15.29%) than 83.09% of its industry peers.
  • PRGS has a better Return On Invested Capital (8.59%) than 81.65% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for PRGS is below the industry average of 10.92%.
  • The 3 year average ROIC (7.72%) for PRGS is below the current ROIC(8.59%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 2.98%
ROE 15.29%
ROIC 8.59%
ROA(3y)3.35%
ROA(5y)4.51%
ROE(3y)15.39%
ROE(5y)17.81%
ROIC(3y)7.72%
ROIC(5y)8.49%
PRGS Yearly ROA, ROE, ROICPRGS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20

1.3 Margins

  • PRGS has a Profit Margin of 7.48%. This is in the better half of the industry: PRGS outperforms 69.42% of its industry peers.
  • PRGS's Profit Margin has declined in the last couple of years.
  • PRGS has a Operating Margin of 17.84%. This is amongst the best in the industry. PRGS outperforms 86.33% of its industry peers.
  • In the last couple of years the Operating Margin of PRGS has declined.
  • With an excellent Gross Margin value of 80.82%, PRGS belongs to the best of the industry, outperforming 84.17% of the companies in the same industry.
  • In the last couple of years the Gross Margin of PRGS has remained more or less at the same level.
Industry RankSector Rank
OM 17.84%
PM (TTM) 7.48%
GM 80.82%
OM growth 3Y-5.53%
OM growth 5Y-7.61%
PM growth 3Y-22.06%
PM growth 5Y-16.13%
GM growth 3Y-1.4%
GM growth 5Y-1.22%
PRGS Yearly Profit, Operating, Gross MarginsPRGS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60 80

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2

2. PRGS Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PRGS is destroying value.
  • Compared to 1 year ago, PRGS has less shares outstanding
  • The number of shares outstanding for PRGS has been reduced compared to 5 years ago.
  • Compared to 1 year ago, PRGS has an improved debt to assets ratio.
PRGS Yearly Shares OutstandingPRGS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M
PRGS Yearly Total Debt VS Total AssetsPRGS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

2.2 Solvency

  • PRGS has an Altman-Z score of 0.90. This is a bad value and indicates that PRGS is not financially healthy and even has some risk of bankruptcy.
  • PRGS has a Altman-Z score of 0.90. This is comparable to the rest of the industry: PRGS outperforms 40.29% of its industry peers.
  • PRGS has a debt to FCF ratio of 6.10. This is a slightly negative value and a sign of low solvency as PRGS would need 6.10 years to pay back of all of its debts.
  • PRGS has a Debt to FCF ratio (6.10) which is in line with its industry peers.
  • A Debt/Equity ratio of 2.18 is on the high side and indicates that PRGS has dependencies on debt financing.
  • PRGS has a Debt to Equity ratio of 2.18. This is amonst the worse of the industry: PRGS underperforms 81.65% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.18
Debt/FCF 6.1
Altman-Z 0.9
ROIC/WACC0.91
WACC9.43%
PRGS Yearly LT Debt VS Equity VS FCFPRGS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

2.3 Liquidity

  • A Current Ratio of 0.49 indicates that PRGS may have some problems paying its short term obligations.
  • With a Current ratio value of 0.49, PRGS is not doing good in the industry: 91.73% of the companies in the same industry are doing better.
  • PRGS has a Quick Ratio of 0.49. This is a bad value and indicates that PRGS is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Quick ratio value of 0.49, PRGS is not doing good in the industry: 91.01% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.49
Quick Ratio 0.49
PRGS Yearly Current Assets VS Current LiabilitesPRGS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. PRGS Growth Analysis

3.1 Past

  • PRGS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.02%, which is quite good.
  • Measured over the past years, PRGS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.18% on average per year.
  • PRGS shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.79%.
  • Measured over the past years, PRGS shows a quite strong growth in Revenue. The Revenue has been growing by 17.20% on average per year.
EPS 1Y (TTM)16.02%
EPS 3Y11.47%
EPS 5Y13.18%
EPS Q2Q%13.53%
Revenue 1Y (TTM)29.79%
Revenue growth 3Y17.55%
Revenue growth 5Y17.2%
Sales Q2Q%17.54%

3.2 Future

  • PRGS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.24% yearly.
  • Based on estimates for the next years, PRGS will show a small growth in Revenue. The Revenue will grow by 1.26% on average per year.
EPS Next Y4.77%
EPS Next 2Y3.07%
EPS Next 3Y3.24%
EPS Next 5YN/A
Revenue Next Year1.54%
Revenue Next 2Y1.41%
Revenue Next 3Y1.56%
Revenue Next 5Y1.26%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • 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.
PRGS Yearly Revenue VS EstimatesPRGS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 200M 400M 600M 800M 1B
PRGS Yearly EPS VS EstimatesPRGS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6

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8

4. PRGS Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 5.11, the valuation of PRGS can be described as very cheap.
  • Based on the Price/Earnings ratio, PRGS is valued cheaply inside the industry as 95.68% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 25.54. PRGS is valued rather cheaply when compared to this.
  • With a Price/Forward Earnings ratio of 4.88, the valuation of PRGS can be described as very cheap.
  • PRGS's Price/Forward Earnings ratio is rather cheap when compared to the industry. PRGS is cheaper than 92.81% of the companies in the same industry.
  • PRGS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.70.
Industry RankSector Rank
PE 5.11
Fwd PE 4.88
PRGS Price Earnings VS Forward Price EarningsPRGS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PRGS indicates a rather cheap valuation: PRGS is cheaper than 91.37% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, PRGS is valued cheaply inside the industry as 96.04% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 5.37
EV/EBITDA 8.04
PRGS Per share dataPRGS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20 -20 -30

4.3 Compensation for Growth

  • PRGS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The decent profitability rating of PRGS may justify a higher PE ratio.
PEG (NY)1.07
PEG (5Y)0.39
EPS Next 2Y3.07%
EPS Next 3Y3.24%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. PRGS Dividend Analysis

5.1 Amount

  • PRGS has a Yearly Dividend Yield of 1.31%. Purely for dividend investing, there may be better candidates out there.
  • The stock price of PRGS dropped by -28.14% 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.
  • PRGS's Dividend Yield is rather good when compared to the industry average which is at 0.64. PRGS pays more dividend than 93.53% of the companies in the same industry.
  • Compared to the average S&P500 Dividend Yield of 1.89, PRGS is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.31%

5.2 History

  • The dividend of PRGS decreases each year by -51.33%.
  • PRGS has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-51.33%
Div Incr Years0
Div Non Decr Years0
PRGS Yearly Dividends per sharePRGS Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6

5.3 Sustainability

  • 1.07% of the earnings are spent on dividend by PRGS. This is a low number and sustainable payout ratio.
DP1.07%
EPS Next 2Y3.07%
EPS Next 3Y3.24%
PRGS Yearly Income VS Free CF VS DividendPRGS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50M -50M 100M 150M 200M
PRGS Dividend Payout.PRGS Dividend Payout, showing the Payout Ratio.PRGS Dividend Payout.PayoutRetained Earnings

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PRGS Fundamentals: All Metrics, Ratios and Statistics

PROGRESS SOFTWARE CORP

NASDAQ:PRGS (3/24/2026, 2:00:38 PM)

29.24

-2.04 (-6.52%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)01-20
Earnings (Next)03-30
Inst Owners111.48%
Inst Owner Change-45.51%
Ins Owners1.95%
Ins Owner Change2.44%
Market Cap1.23B
Revenue(TTM)977.83M
Net Income(TTM)73.13M
Analysts87.69
Price Target65.6 (124.35%)
Short Float %10.6%
Short Ratio4.21
Dividend
Industry RankSector Rank
Dividend Yield 1.31%
Yearly Dividend0.02
Dividend Growth(5Y)-51.33%
DP1.07%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.11%
Min EPS beat(2)12.81%
Max EPS beat(2)13.41%
EPS beat(4)4
Avg EPS beat(4)13.29%
Min EPS beat(4)5.42%
Max EPS beat(4)21.52%
EPS beat(8)8
Avg EPS beat(8)11.08%
EPS beat(12)12
Avg EPS beat(12)10.91%
EPS beat(16)16
Avg EPS beat(16)9.52%
Revenue beat(2)1
Avg Revenue beat(2)-0.02%
Min Revenue beat(2)-2.04%
Max Revenue beat(2)1.99%
Revenue beat(4)1
Avg Revenue beat(4)-0.76%
Min Revenue beat(4)-2.04%
Max Revenue beat(4)1.99%
Revenue beat(8)2
Avg Revenue beat(8)-0.28%
Revenue beat(12)4
Avg Revenue beat(12)0.15%
Revenue beat(16)5
Avg Revenue beat(16)-0.2%
PT rev (1m)-1.81%
PT rev (3m)-5.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.09%
EPS NY rev (1m)0%
EPS NY rev (3m)3.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.1%
Valuation
Industry RankSector Rank
PE 5.11
Fwd PE 4.88
P/S 1.26
P/FCF 5.37
P/OCF 5.24
P/B 2.57
P/tB N/A
EV/EBITDA 8.04
EPS(TTM)5.72
EY19.56%
EPS(NY)5.99
Fwd EY20.5%
FCF(TTM)5.45
FCFY18.64%
OCF(TTM)5.59
OCFY19.1%
SpS23.22
BVpS11.36
TBVpS-33.6
PEG (NY)1.07
PEG (5Y)0.39
Graham Number38.24
Profitability
Industry RankSector Rank
ROA 2.98%
ROE 15.29%
ROCE 10.59%
ROIC 8.59%
ROICexc 9.11%
ROICexgc N/A
OM 17.84%
PM (TTM) 7.48%
GM 80.82%
FCFM 23.47%
ROA(3y)3.35%
ROA(5y)4.51%
ROE(3y)15.39%
ROE(5y)17.81%
ROIC(3y)7.72%
ROIC(5y)8.49%
ROICexc(3y)8.33%
ROICexc(5y)9.79%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)9.52%
ROCE(5y)10.47%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-9.62%
ROICexc growth 5Y-8.38%
OM growth 3Y-5.53%
OM growth 5Y-7.61%
PM growth 3Y-22.06%
PM growth 5Y-16.13%
GM growth 3Y-1.4%
GM growth 5Y-1.22%
F-Score7
Asset Turnover0.4
Health
Industry RankSector Rank
Debt/Equity 2.18
Debt/FCF 6.1
Debt/EBITDA 3.19
Cap/Depr 3.76%
Cap/Sales 0.58%
Interest Coverage 2.75
Cash Conversion 72.1%
Profit Quality 313.79%
Current Ratio 0.49
Quick Ratio 0.49
Altman-Z 0.9
F-Score7
WACC9.43%
ROIC/WACC0.91
Cap/Depr(3y)4.74%
Cap/Depr(5y)6.25%
Cap/Sales(3y)0.69%
Cap/Sales(5y)0.79%
Profit Quality(3y)285.01%
Profit Quality(5y)254.48%
High Growth Momentum
Growth
EPS 1Y (TTM)16.02%
EPS 3Y11.47%
EPS 5Y13.18%
EPS Q2Q%13.53%
EPS Next Y4.77%
EPS Next 2Y3.07%
EPS Next 3Y3.24%
EPS Next 5YN/A
Revenue 1Y (TTM)29.79%
Revenue growth 3Y17.55%
Revenue growth 5Y17.2%
Sales Q2Q%17.54%
Revenue Next Year1.54%
Revenue Next 2Y1.41%
Revenue Next 3Y1.56%
Revenue Next 5Y1.26%
EBIT growth 1Y10.77%
EBIT growth 3Y11.05%
EBIT growth 5Y8.29%
EBIT Next Year23.61%
EBIT Next 3Y-0.77%
EBIT Next 5YN/A
FCF growth 1Y11.25%
FCF growth 3Y7.23%
FCF growth 5Y10.66%
OCF growth 1Y11.2%
OCF growth 3Y6.96%
OCF growth 5Y10.19%

PROGRESS SOFTWARE CORP / PRGS Fundamental Analysis FAQ

What is the ChartMill fundamental rating of PROGRESS SOFTWARE CORP (PRGS) stock?

ChartMill assigns a fundamental rating of 5 / 10 to PRGS.


What is the valuation status of PROGRESS SOFTWARE CORP (PRGS) stock?

ChartMill assigns a valuation rating of 8 / 10 to PROGRESS SOFTWARE CORP (PRGS). This can be considered as Undervalued.


Can you provide the profitability details for PROGRESS SOFTWARE CORP?

PROGRESS SOFTWARE CORP (PRGS) has a profitability rating of 7 / 10.


How financially healthy is PROGRESS SOFTWARE CORP?

The financial health rating of PROGRESS SOFTWARE CORP (PRGS) is 2 / 10.


Can you provide the expected EPS growth for PRGS stock?

The Earnings per Share (EPS) of PROGRESS SOFTWARE CORP (PRGS) is expected to grow by 4.77% in the next year.