43.53 USD
+0.7 (+1.63%)
43.53 USD
0 (0%)
Overall PRGS gets a fundamental rating of 5 out of 10. We evaluated PRGS against 278 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, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
PRGS had positive earnings in the past year.
PRGS had a positive operating cash flow in the past year.
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.
1.2 Ratios
PRGS has a Return On Assets of 2.00%. This is in the better half of the industry: PRGS outperforms 62.59% of its industry peers.
With a decent Return On Equity value of 10.16%, PRGS is doing good in the industry, outperforming 74.82% of the companies in the same industry.
With an excellent Return On Invested Capital value of 8.52%, PRGS belongs to the best of the industry, outperforming 80.94% 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 10.78%.
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
The Profit Margin of PRGS (5.16%) is better than 65.11% of its industry peers.
In the last couple of years the Profit Margin of PRGS has grown nicely.
PRGS's Operating Margin of 18.62% is amongst the best of the industry. PRGS outperforms 85.25% of its industry peers.
In the last couple of years the Operating Margin of PRGS has grown nicely.
Looking at the Gross Margin, with a value of 81.11%, PRGS belongs to the top of the industry, outperforming 84.89% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PRGS is destroying 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 a worse debt to assets ratio.
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.
The Altman-Z score of PRGS (1.06) is worse than 62.95% of its industry peers.
PRGS has a debt to FCF ratio of 7.64. This is a slightly negative value and a sign of low solvency as PRGS would need 7.64 years to pay back of all of its debts.
With a Debt to FCF ratio value of 7.64, PRGS perfoms like the industry average, outperforming 52.16% of the companies in the same industry.
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: 82.73% 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
WACC9.52%
2.3 Liquidity
A Current Ratio of 0.44 indicates that PRGS may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.44, PRGS is doing worse than 93.88% of the companies in the same industry.
A Quick Ratio of 0.44 indicates that PRGS may have some problems paying its short term obligations.
PRGS has a worse Quick ratio (0.44) than 93.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.44 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.91% over the past year.
The Earnings Per Share has been growing by 12.88% on average over the past years. This is quite good.
The Revenue has grown by 31.41% 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 12.76% on average per year.
EPS 1Y (TTM)19.91%
EPS 3Y8.4%
EPS 5Y12.88%
EPS Q2Q%19.05%
Revenue 1Y (TTM)31.41%
Revenue growth 3Y12.35%
Revenue growth 5Y12.76%
Sales Q2Q%39.8%
3.2 Future
PRGS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.77% yearly.
The Revenue is expected to grow by 6.24% on average over the next years.
EPS Next Y14.36%
EPS Next 2Y8.4%
EPS Next 3Y5.77%
EPS Next 5YN/A
Revenue Next Year30.47%
Revenue Next 2Y15.04%
Revenue Next 3Y10.3%
Revenue Next 5Y6.24%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue 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
The Price/Earnings ratio is 7.86, which indicates a rather cheap valuation of PRGS.
91.37% of the companies in the same industry are more expensive than PRGS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.57. PRGS is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.51, which indicates a rather cheap valuation of PRGS.
Based on the Price/Forward Earnings ratio, PRGS is valued cheaply inside the industry as 92.09% of the companies are valued more expensively.
PRGS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.86 | ||
| Fwd PE | 7.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRGS is valued cheaper than 89.57% 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 93.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.06 | ||
| EV/EBITDA | 9.92 |
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.
The excellent profitability rating of PRGS may justify a higher PE ratio.
PEG (NY)0.55
PEG (5Y)0.61
EPS Next 2Y8.4%
EPS Next 3Y5.77%
5. Dividend
5.1 Amount
PRGS has a Yearly Dividend Yield of 1.31%.
PRGS's Dividend Yield is rather good when compared to the industry average which is at 0.52. PRGS pays more dividend than 92.81% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 1.88, PRGS is paying slightly less dividend.
| 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
15.77% of the earnings are spent on dividend by PRGS. This is a low number and sustainable payout ratio.
The dividend of PRGS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP15.77%
EPS Next 2Y8.4%
EPS Next 3Y5.77%
43.53
+0.7 (+1.63%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners112.83%
Inst Owner Change-11.4%
Ins Owners1.79%
Ins Owner Change2.41%
Market Cap1.87B
Revenue(TTM)940.13M
Net Income(TTM)48.54M
Analysts86.67
Price Target69.7 (60.12%)
Short Float %12.09%
Short Ratio8.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend0.72
Dividend Growth(5Y)3.19%
DP15.77%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.42%
Min EPS beat(2)5.42%
Max EPS beat(2)13.41%
EPS beat(4)4
Avg EPS beat(4)11.91%
Min EPS beat(4)5.42%
Max EPS beat(4)21.52%
EPS beat(8)8
Avg EPS beat(8)10.74%
EPS beat(12)12
Avg EPS beat(12)9.93%
EPS beat(16)16
Avg EPS beat(16)10.12%
Revenue beat(2)1
Avg Revenue beat(2)-0.02%
Min Revenue beat(2)-2.03%
Max Revenue beat(2)1.99%
Revenue beat(4)1
Avg Revenue beat(4)-0.31%
Min Revenue beat(4)-2.03%
Max Revenue beat(4)1.99%
Revenue beat(8)2
Avg Revenue beat(8)-0.06%
Revenue beat(12)4
Avg Revenue beat(12)-0.12%
Revenue beat(16)6
Avg Revenue beat(16)-0.03%
PT rev (1m)0%
PT rev (3m)-2.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.53%
EPS NY rev (1m)0%
EPS NY rev (3m)3.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.86 | ||
| Fwd PE | 7.51 | ||
| P/S | 1.99 | ||
| P/FCF | 10.06 | ||
| P/OCF | 9.76 | ||
| P/B | 3.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.92 |
EPS(TTM)5.54
EY12.73%
EPS(NY)5.79
Fwd EY13.31%
FCF(TTM)4.33
FCFY9.94%
OCF(TTM)4.46
OCFY10.25%
SpS21.91
BVpS11.13
TBVpS-33.81
PEG (NY)0.55
PEG (5Y)0.61
Graham Number37.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2% | ||
| ROE | 10.16% | ||
| ROCE | 10.6% | ||
| ROIC | 8.52% | ||
| ROICexc | 9.06% | ||
| ROICexgc | N/A | ||
| OM | 18.62% | ||
| PM (TTM) | 5.16% | ||
| GM | 81.11% | ||
| FCFM | 19.75% |
ROA(3y)4.61%
ROA(5y)5.45%
ROE(3y)18.24%
ROE(5y)19.35%
ROIC(3y)7.93%
ROIC(5y)9.13%
ROICexc(3y)9.33%
ROICexc(5y)10.7%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)9.87%
ROCE(5y)11.36%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-17.49%
ROICexc growth 5Y-12.26%
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%
F-Score5
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.22 | ||
| Debt/FCF | 7.64 | ||
| Debt/EBITDA | 3.33 | ||
| Cap/Depr | 3.99% | ||
| Cap/Sales | 0.61% | ||
| Interest Coverage | 3.01 | ||
| Cash Conversion | 60.13% | ||
| Profit Quality | 382.52% | ||
| Current Ratio | 0.44 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 1.06 |
F-Score5
WACC9.52%
ROIC/WACC0.89
Cap/Depr(3y)6.21%
Cap/Depr(5y)9.24%
Cap/Sales(3y)0.84%
Cap/Sales(5y)0.97%
Profit Quality(3y)245.65%
Profit Quality(5y)226.43%
High Growth Momentum
Growth
EPS 1Y (TTM)19.91%
EPS 3Y8.4%
EPS 5Y12.88%
EPS Q2Q%19.05%
EPS Next Y14.36%
EPS Next 2Y8.4%
EPS Next 3Y5.77%
EPS Next 5YN/A
Revenue 1Y (TTM)31.41%
Revenue growth 3Y12.35%
Revenue growth 5Y12.76%
Sales Q2Q%39.8%
Revenue Next Year30.47%
Revenue Next 2Y15.04%
Revenue Next 3Y10.3%
Revenue Next 5Y6.24%
EBIT growth 1Y25.44%
EBIT growth 3Y7.51%
EBIT growth 5Y16.84%
EBIT Next Year30.65%
EBIT Next 3Y10.66%
EBIT Next 5YN/A
FCF growth 1Y6.22%
FCF growth 3Y5.88%
FCF growth 5Y10.63%
OCF growth 1Y5.74%
OCF growth 3Y5.82%
OCF growth 5Y10.48%
PROGRESS SOFTWARE CORP / PRGS 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 for PRGS stock?
ChartMill assigns a valuation rating of 9 / 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 8 / 10.
Can you provide the PE and PB ratios for PRGS stock?
The Price/Earnings (PE) ratio for PROGRESS SOFTWARE CORP (PRGS) is 7.86 and the Price/Book (PB) ratio is 3.91.
Is the dividend of PROGRESS SOFTWARE CORP sustainable?
The dividend rating of PROGRESS SOFTWARE CORP (PRGS) is 5 / 10 and the dividend payout ratio is 15.77%.