42.96 USD
-0.49 (-1.13%)
42.96 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to PRGS. PRGS was compared to 276 industry peers in the Software industry. PRGS has an excellent profitability rating, but there are concerns on its financial health. PRGS may be a bit undervalued, certainly considering the very reasonable score on growth
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.
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
Looking at the Return On Assets, with a value of 2.00%, PRGS is in the better half of the industry, outperforming 62.68% of the companies in the same industry.
The Return On Equity of PRGS (10.16%) is better than 74.28% of its industry peers.
PRGS has a better Return On Invested Capital (8.52%) than 80.80% of its industry peers.
PRGS had an Average Return On Invested Capital over the past 3 years of 7.93%. This is below the industry average of 10.78%.
The last Return On Invested Capital (8.52%) for PRGS is above the 3 year average (7.93%), which is a sign of increasing profitability.
| 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
PRGS has a better Profit Margin (5.16%) than 64.49% of its industry peers.
PRGS's Profit Margin has improved in the last couple of years.
PRGS's Operating Margin of 18.62% is amongst the best of the industry. PRGS outperforms 85.14% of its industry peers.
PRGS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 81.11%, PRGS belongs to the top of the industry, outperforming 85.14% of the companies in the same industry.
PRGS's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PRGS is destroying value.
Compared to 1 year ago, PRGS has less shares outstanding
Compared to 5 years ago, PRGS has less shares outstanding
The debt/assets ratio for PRGS is higher compared to a year ago.
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.
PRGS's Altman-Z score of 1.06 is on the low side compared to the rest of the industry. PRGS is outperformed by 62.68% of its industry peers.
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 of 7.64. This is comparable to the rest of the industry: PRGS outperforms 52.17% of its industry peers.
A Debt/Equity ratio of 2.22 is on the high side and indicates that PRGS has dependencies on debt financing.
PRGS's Debt to Equity ratio of 2.22 is on the low side compared to the rest of the industry. PRGS is outperformed by 82.25% of its industry peers.
| 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.
PRGS has a Current ratio of 0.44. This is amonst the worse of the industry: PRGS underperforms 93.84% of its industry peers.
A Quick Ratio of 0.44 indicates that PRGS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.44, PRGS is doing worse than 93.48% of the companies in the same industry.
| 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.
PRGS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.88% yearly.
Looking at the last year, PRGS shows a very strong growth in Revenue. The Revenue has grown by 31.41%.
PRGS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.76% yearly.
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.
PRGS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.24% yearly.
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
With a Price/Earnings ratio of 7.75, the valuation of PRGS can be described as very cheap.
PRGS's Price/Earnings ratio is rather cheap when compared to the industry. PRGS is cheaper than 90.94% of the companies in the same industry.
PRGS is valuated cheaply when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.42, the valuation of PRGS can be described as very cheap.
92.39% of the companies in the same industry are more expensive than PRGS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of PRGS to the average of the S&P500 Index (23.13), we can say PRGS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.75 | ||
| Fwd PE | 7.42 |
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 89.13% of the companies listed in the same industry.
PRGS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PRGS is cheaper than 92.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.93 | ||
| EV/EBITDA | 9.94 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.54
PEG (5Y)0.6
EPS Next 2Y8.4%
EPS Next 3Y5.77%
5. Dividend
5.1 Amount
PRGS has a Yearly Dividend Yield of 1.31%.
Compared to an average industry Dividend Yield of 0.51, PRGS pays a better dividend. On top of this PRGS pays more dividend than 93.84% of the companies listed in the same industry.
PRGS's Dividend Yield is slightly below the S&P500 average, which is at 2.00.
| 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.
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%
42.96
-0.49 (-1.13%)
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 Cap1.84B
Revenue(TTM)940.13M
Net Income(TTM)48.54M
Analysts86.67
Price Target69.7 (62.24%)
Short Float %10.93%
Short Ratio8.64
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)3.72%
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 | 7.75 | ||
| Fwd PE | 7.42 | ||
| P/S | 1.96 | ||
| P/FCF | 9.93 | ||
| P/OCF | 9.63 | ||
| P/B | 3.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.94 |
EPS(TTM)5.54
EY12.9%
EPS(NY)5.79
Fwd EY13.49%
FCF(TTM)4.33
FCFY10.07%
OCF(TTM)4.46
OCFY10.38%
SpS21.91
BVpS11.13
TBVpS-33.81
PEG (NY)0.54
PEG (5Y)0.6
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 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.
Can you provide the profitability details for PROGRESS SOFTWARE CORP?
PROGRESS SOFTWARE CORP (PRGS) has a profitability rating of 8 / 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 14.36% in the next year.