PROGRESS SOFTWARE CORP (PRGS) Fundamental Analysis & Valuation

NASDAQ:PRGS • US7433121008

Current stock price

27.23 USD
-0.23 (-0.84%)
At close:
27.23 USD
0 (0%)
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.
  • PRGS had positive earnings in each of the past 5 years.
  • PRGS had a positive operating cash flow in each of the past 5 years.
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

  • With a decent Return On Assets value of 3.55%, PRGS is doing good in the industry, outperforming 67.28% of the companies in the same industry.
  • With an excellent Return On Equity value of 17.04%, PRGS belongs to the best of the industry, outperforming 83.82% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 9.14%, PRGS belongs to the top of the industry, outperforming 83.82% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for PRGS is below the industry average of 10.92%.
  • The last Return On Invested Capital (9.14%) for PRGS is above the 3 year average (7.72%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.55%
ROE 17.04%
ROIC 9.14%
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

  • The Profit Margin of PRGS (8.61%) is better than 69.49% of its industry peers.
  • In the last couple of years the Profit Margin of PRGS has declined.
  • With an excellent Operating Margin value of 18.34%, PRGS belongs to the best of the industry, outperforming 86.40% of the companies in the same industry.
  • PRGS's Operating Margin has declined in the last couple of years.
  • With an excellent Gross Margin value of 81.25%, PRGS belongs to the best of the industry, outperforming 84.93% 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 18.34%
PM (TTM) 8.61%
GM 81.25%
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) just above the Cost of Capital (WACC), PRGS is creating some value.
  • PRGS has less shares outstanding than it did 1 year ago.
  • PRGS has less shares outstanding than it did 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

  • Based on the Altman-Z score of 0.89, we must say that PRGS is in the distress zone and has some risk of bankruptcy.
  • PRGS has a Altman-Z score of 0.89. This is in the lower half of the industry: PRGS underperforms 62.50% of its industry peers.
  • PRGS has a debt to FCF ratio of 5.20. This is a neutral value as PRGS would need 5.20 years to pay back of all of its debts.
  • The Debt to FCF ratio of PRGS (5.20) is comparable to the rest of the industry.
  • A Debt/Equity ratio of 1.97 is on the high side and indicates that PRGS has dependencies on debt financing.
  • PRGS has a Debt to Equity ratio of 1.97. This is amonst the worse of the industry: PRGS underperforms 82.72% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.97
Debt/FCF 5.2
Altman-Z 0.89
ROIC/WACC1.02
WACC8.96%
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 0.47 indicates that PRGS may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.47, PRGS is doing worse than 94.12% of the companies in the same industry.
  • PRGS has a Quick Ratio of 0.47. This is a bad value and indicates that PRGS is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Quick ratio of PRGS (0.47) is worse than 93.75% of its industry peers.
Industry RankSector Rank
Current Ratio 0.47
Quick Ratio 0.47
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 20.44%, which is quite impressive.
  • The Earnings Per Share has been growing by 13.18% on average over the past years. This is quite good.
  • The Revenue has grown by 22.42% in the past year. This is a very strong growth!
  • 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)20.44%
EPS 3Y11.47%
EPS 5Y13.18%
EPS Q2Q%22.14%
Revenue 1Y (TTM)22.42%
Revenue growth 3Y17.55%
Revenue growth 5Y17.2%
Sales Q2Q%4.11%

3.2 Future

  • The Earnings Per Share is expected to grow by 3.20% on average over the next years.
  • PRGS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.12% yearly.
EPS Next Y6.66%
EPS Next 2Y3.95%
EPS Next 3Y3.2%
EPS Next 5YN/A
Revenue Next Year1.64%
Revenue Next 2Y1.36%
Revenue Next 3Y1.65%
Revenue Next 5Y1.12%

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.
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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9

4. PRGS Valuation Analysis

4.1 Price/Earnings Ratio

  • PRGS is valuated cheaply with a Price/Earnings ratio of 4.53.
  • PRGS's Price/Earnings ratio is rather cheap when compared to the industry. PRGS is cheaper than 95.96% of the companies in the same industry.
  • PRGS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.42.
  • The Price/Forward Earnings ratio is 4.41, which indicates a rather cheap valuation of PRGS.
  • Based on the Price/Forward Earnings ratio, PRGS is valued cheaper than 94.85% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 22.24. PRGS is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 4.53
Fwd PE 4.41
PRGS Price Earnings VS Forward Price EarningsPRGS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 92.28% of the companies in the same industry are more expensive than PRGS, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, PRGS is valued cheaper than 98.53% of the companies in the same industry.
Industry RankSector Rank
P/FCF 4.44
EV/EBITDA 7.18
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

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • PRGS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.68
PEG (5Y)0.34
EPS Next 2Y3.95%
EPS Next 3Y3.2%

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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.
  • In the last 3 months the price of PRGS has falen by -35.82%. 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 0.67, PRGS pays a better dividend. On top of this PRGS pays more dividend than 93.75% of the companies listed in the same industry.
  • Compared to the average S&P500 Dividend Yield of 1.81, 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

  • 0.74% of the earnings are spent on dividend by PRGS. This is a low number and sustainable payout ratio.
DP0.74%
EPS Next 2Y3.95%
EPS Next 3Y3.2%
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 (4/24/2026, 8:02:58 PM)

After market: 27.23 0 (0%)

27.23

-0.23 (-0.84%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-30
Earnings (Next)06-29
Inst Owners111.8%
Inst Owner Change0.22%
Ins Owners2.04%
Ins Owner Change2.77%
Market Cap1.15B
Revenue(TTM)987.62M
Net Income(TTM)85.00M
Analysts87.69
Price Target52.78 (93.83%)
Short Float %9.7%
Short Ratio3.34
Dividend
Industry RankSector Rank
Dividend Yield 1.31%
Yearly Dividend0.02
Dividend Growth(5Y)-51.33%
DP0.74%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.42%
Min EPS beat(2)0.03%
Max EPS beat(2)12.81%
EPS beat(4)4
Avg EPS beat(4)7.92%
Min EPS beat(4)0.03%
Max EPS beat(4)13.41%
EPS beat(8)8
Avg EPS beat(8)10.14%
EPS beat(12)12
Avg EPS beat(12)9.97%
EPS beat(16)16
Avg EPS beat(16)8.75%
Revenue beat(2)0
Avg Revenue beat(2)-1.72%
Min Revenue beat(2)-2.04%
Max Revenue beat(2)-1.4%
Revenue beat(4)1
Avg Revenue beat(4)-0.87%
Min Revenue beat(4)-2.04%
Max Revenue beat(4)1.99%
Revenue beat(8)2
Avg Revenue beat(8)-0.39%
Revenue beat(12)3
Avg Revenue beat(12)-0.09%
Revenue beat(16)4
Avg Revenue beat(16)-0.36%
PT rev (1m)-19.55%
PT rev (3m)-23.34%
EPS NQ rev (1m)5.97%
EPS NQ rev (3m)8.65%
EPS NY rev (1m)1.81%
EPS NY rev (3m)5.59%
Revenue NQ rev (1m)0.62%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.3%
Valuation
Industry RankSector Rank
PE 4.53
Fwd PE 4.41
P/S 1.16
P/FCF 4.44
P/OCF 4.33
P/B 2.3
P/tB N/A
EV/EBITDA 7.18
EPS(TTM)6.01
EY22.07%
EPS(NY)6.18
Fwd EY22.7%
FCF(TTM)6.13
FCFY22.5%
OCF(TTM)6.3
OCFY23.12%
SpS23.48
BVpS11.86
TBVpS-32.33
PEG (NY)0.68
PEG (5Y)0.34
Graham Number40.0408 (47.05%)
Profitability
Industry RankSector Rank
ROA 3.55%
ROE 17.04%
ROCE 11.28%
ROIC 9.14%
ROICexc 9.84%
ROICexgc N/A
OM 18.34%
PM (TTM) 8.61%
GM 81.25%
FCFM 26.1%
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 Turnover0.41
Health
Industry RankSector Rank
Debt/Equity 1.97
Debt/FCF 5.2
Debt/EBITDA 2.97
Cap/Depr 4.76%
Cap/Sales 0.72%
Interest Coverage 3.03
Cash Conversion 80.13%
Profit Quality 303.23%
Current Ratio 0.47
Quick Ratio 0.47
Altman-Z 0.89
F-Score7
WACC8.96%
ROIC/WACC1.02
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)20.44%
EPS 3Y11.47%
EPS 5Y13.18%
EPS Q2Q%22.14%
EPS Next Y6.66%
EPS Next 2Y3.95%
EPS Next 3Y3.2%
EPS Next 5YN/A
Revenue 1Y (TTM)22.42%
Revenue growth 3Y17.55%
Revenue growth 5Y17.2%
Sales Q2Q%4.11%
Revenue Next Year1.64%
Revenue Next 2Y1.36%
Revenue Next 3Y1.65%
Revenue Next 5Y1.12%
EBIT growth 1Y12.4%
EBIT growth 3Y11.05%
EBIT growth 5Y8.29%
EBIT Next Year23.64%
EBIT Next 3Y-0.77%
EBIT Next 5YN/A
FCF growth 1Y34.14%
FCF growth 3Y7.23%
FCF growth 5Y10.66%
OCF growth 1Y34.03%
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 9 / 10 to PROGRESS SOFTWARE CORP (PRGS). This can be considered as Undervalued.


What is the profitability of PRGS stock?

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


What are the PE and PB ratios of PROGRESS SOFTWARE CORP (PRGS) stock?

The Price/Earnings (PE) ratio for PROGRESS SOFTWARE CORP (PRGS) is 4.53 and the Price/Book (PB) ratio is 2.3.


What is the expected EPS growth for PROGRESS SOFTWARE CORP (PRGS) stock?

The Earnings per Share (EPS) of PROGRESS SOFTWARE CORP (PRGS) is expected to grow by 6.66% in the next year.