42.75 USD
+0.05 (+0.12%)
42.7 USD
-0.05 (-0.12%)
Taking everything into account, PRGS scores 4 out of 10 in our fundamental rating. PRGS was compared to 277 industry peers in the Software industry. PRGS has an excellent profitability rating, but there are concerns on its financial health. PRGS is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year PRGS was profitable.
- In the past year PRGS had a positive cash flow from operations.
- Of the past 5 years PRGS 4 years were profitable.
- Of the past 5 years PRGS 4 years had a positive operating cash flow.
1.2 Ratios
- PRGS has a better Return On Assets (2.00%) than 62.45% of its industry peers.
- PRGS's Return On Equity of 10.16% is fine compared to the rest of the industry. PRGS outperforms 74.01% of its industry peers.
- PRGS has a Return On Invested Capital of 8.52%. This is amongst the best in the industry. PRGS outperforms 80.87% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for PRGS is below the industry average of 10.78%.
- The 3 year average ROIC (7.93%) for PRGS is below the current ROIC(8.52%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2% | ||
| ROE | 10.16% | ||
| ROIC | 8.52% |
ROA(3y)4.61%
ROA(5y)5.45%
ROE(3y)18.24%
ROE(5y)19.35%
ROIC(3y)7.93%
ROIC(5y)9.13%
1.3 Margins
- Looking at the Profit Margin, with a value of 5.16%, PRGS is in the better half of the industry, outperforming 64.26% of the companies in the same industry.
- In the last couple of years the Profit Margin of PRGS has grown nicely.
- PRGS has a better Operating Margin (18.62%) than 85.20% of its industry peers.
- PRGS's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 81.11%, PRGS belongs to the best of the industry, outperforming 84.84% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.62% | ||
| PM (TTM) | 5.16% | ||
| GM | 81.11% |
OM growth 3Y-4.3%
OM growth 5Y3.62%
PM growth 3Y-14.93%
PM growth 5Y7.3%
GM growth 3Y-1.01%
GM growth 5Y0.21%
2. Health
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.
- PRGS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- PRGS has an Altman-Z score of 1.06. This is a bad value and indicates that PRGS is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.06, PRGS is doing worse than 62.82% of the companies in the same industry.
- The Debt to FCF ratio of PRGS is 7.64, which is on the high side as it means it would take PRGS, 7.64 years of fcf income to pay off all of its debts.
- PRGS has a Debt to FCF ratio (7.64) which is in line with its industry peers.
- PRGS has a Debt/Equity ratio of 2.22. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 2.22, PRGS is not doing good in the industry: 82.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.22 | ||
| Debt/FCF | 7.64 | ||
| Altman-Z | 1.06 |
ROIC/WACC0.89
WACC9.57%
2.3 Liquidity
- PRGS has a Current Ratio of 0.44. 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 Current ratio value of 0.44, PRGS is not doing good in the industry: 94.22% of the companies in the same industry are doing better.
- PRGS has a Quick Ratio of 0.44. This is a bad value and indicates that PRGS is not financially healthy enough and could expect problems in meeting its short term obligations.
- PRGS has a worse Quick ratio (0.44) than 93.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.44 | ||
| Quick Ratio | 0.44 |
3. Growth
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.
EPS 1Y (TTM)16.02%
EPS 3Y11.47%
EPS 5Y13.18%
EPS Q2Q%13.53%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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 1.00% yearly.
- The Revenue is expected to grow by 0.99% on average over the next years.
EPS Next Y1.01%
EPS Next 2Y1%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.44%
Revenue Next 2Y1.8%
Revenue Next 3Y0.91%
Revenue Next 5Y0.99%
3.3 Evolution
- The EPS 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
- Based on the Price/Earnings ratio of 7.47, the valuation of PRGS can be described as very cheap.
- Compared to the rest of the industry, the Price/Earnings ratio of PRGS indicates a rather cheap valuation: PRGS is cheaper than 91.34% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.30, PRGS is valued rather cheaply.
- With a Price/Forward Earnings ratio of 7.40, the valuation of PRGS can be described as very cheap.
- 92.06% of the companies in the same industry are more expensive than PRGS, based on the Price/Forward Earnings ratio.
- PRGS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.47 | ||
| Fwd PE | 7.4 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PRGS is valued cheaper than 88.81% of the companies in the same industry.
- PRGS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PRGS is cheaper than 92.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.88 | ||
| EV/EBITDA | 9.91 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of PRGS may justify a higher PE ratio.
PEG (NY)7.38
PEG (5Y)0.57
EPS Next 2Y1%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- PRGS has a Yearly Dividend Yield of 1.31%.
- Compared to an average industry Dividend Yield of 0.52, PRGS pays a better dividend. On top of this PRGS pays more dividend than 93.50% of the companies listed in the same industry.
- PRGS's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
5.2 History
- The dividend of PRGS has a limited annual growth rate of 3.19%.
- PRGS has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)3.19%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- PRGS pays out 15.77% of its income as dividend. This is a sustainable payout ratio.
- PRGS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP15.77%
EPS Next 2Y1%
EPS Next 3YN/A
PROGRESS SOFTWARE CORP / PRGS FAQ
What is the ChartMill fundamental rating of PROGRESS SOFTWARE CORP (PRGS) stock?
ChartMill assigns a fundamental rating of 4 / 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 1 / 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 1.01% in the next year.