PROGRESS SOFTWARE CORP (PRGS) Fundamental Analysis & Valuation

NASDAQ:PRGS • US7433121008

Current stock price

27.33 USD
-1.43 (-4.97%)
At close:
27.4 USD
+0.07 (+0.26%)
After Hours:

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

  • PRGS has a Return On Assets of 2.98%. This is in the better half of the industry: PRGS outperforms 67.99% of its industry peers.
  • PRGS has a better Return On Equity (15.29%) than 83.09% of its industry peers.
  • With an excellent Return On Invested Capital value of 8.59%, PRGS belongs to the best of the industry, outperforming 81.65% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for PRGS is below the industry average of 10.92%.
  • The last Return On Invested Capital (8.59%) for PRGS is above the 3 year average (7.72%), which is a sign of increasing profitability.
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.
  • Looking at the Gross Margin, with a value of 80.82%, PRGS belongs to the top of the industry, outperforming 84.17% of the companies in the same industry.
  • PRGS's Gross Margin has been stable in the last couple of years.
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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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. PRGS Health Analysis

2.1 Basic Checks

  • PRGS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
  • PRGS has a better debt/assets ratio than last year.
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 0.87. This is a bad value and indicates that PRGS is not financially healthy and even has some risk of bankruptcy.
  • With a Altman-Z score value of 0.87, PRGS perfoms like the industry average, outperforming 40.29% of the companies in the same industry.
  • The Debt to FCF ratio of PRGS is 6.10, which is on the high side as it means it would take PRGS, 6.10 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of PRGS (6.10) is comparable to the rest of the industry.
  • A Debt/Equity ratio of 2.18 is on the high side and indicates that PRGS has dependencies on debt financing.
  • With a Debt to Equity ratio value of 2.18, PRGS is not doing good in the industry: 81.65% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 2.18
Debt/FCF 6.1
Altman-Z 0.87
ROIC/WACC0.94
WACC9.14%
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.
  • PRGS has a worse Current ratio (0.49) than 91.73% of its industry peers.
  • A Quick Ratio of 0.49 indicates that PRGS may have some problems paying its short term obligations.
  • PRGS has a worse Quick ratio (0.49) than 91.01% of its industry peers.
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.
  • The Earnings Per Share has been growing by 13.18% on average over the past years. This is quite good.
  • PRGS shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.79%.
  • The Revenue has been growing by 17.20% on average over the past years. This is quite good.
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

  • Based on estimates for the next years, PRGS will show a small growth in Earnings Per Share. The EPS will grow by 3.24% on average per year.
  • 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

  • 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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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

  • The Price/Earnings ratio is 4.78, which indicates a rather cheap valuation of PRGS.
  • Compared to the rest of the industry, the Price/Earnings ratio of PRGS indicates a rather cheap valuation: PRGS is cheaper than 95.68% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of PRGS to the average of the S&P500 Index (25.50), we can say PRGS is valued rather cheaply.
  • The Price/Forward Earnings ratio is 4.56, which indicates a rather cheap valuation of PRGS.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of PRGS indicates a rather cheap valuation: PRGS is cheaper than 93.17% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 22.67. PRGS is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 4.78
Fwd PE 4.56
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

  • Based on the Enterprise Value to EBITDA ratio, PRGS is valued cheaper than 90.65% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, PRGS is valued cheaper than 96.04% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.01
EV/EBITDA 7.71
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.
  • PRGS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1
PEG (5Y)0.36
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%.
  • In the last 3 months the price of PRGS has falen by -33.93%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • 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.
  • PRGS's Dividend Yield is slightly below the S&P500 average, which is at 1.89.
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 (3/25/2026, 4:30:00 PM)

After market: 27.4 +0.07 (+0.26%)

27.33

-1.43 (-4.97%)

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 Cap1.15B
Revenue(TTM)977.83M
Net Income(TTM)73.13M
Analysts87.69
Price Target65.6 (140.03%)
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 4.78
Fwd PE 4.56
P/S 1.18
P/FCF 5.01
P/OCF 4.89
P/B 2.41
P/tB N/A
EV/EBITDA 7.71
EPS(TTM)5.72
EY20.93%
EPS(NY)5.99
Fwd EY21.93%
FCF(TTM)5.45
FCFY19.94%
OCF(TTM)5.59
OCFY20.44%
SpS23.22
BVpS11.36
TBVpS-33.6
PEG (NY)1
PEG (5Y)0.36
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 0.87
F-Score7
WACC9.14%
ROIC/WACC0.94
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.