42.43 USD
-0.32 (-0.75%)
42.43 USD
0 (0%)
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. While PRGS has a great profitability rating, there are quite some concerns on its financial health. PRGS has a bad growth rate and is valued cheaply.
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 4 of the past 5 years.
- PRGS had a positive operating cash flow in 4 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 62.45% 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.
- 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 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.
- Looking at the Operating Margin, with a value of 18.62%, PRGS belongs to the top of the industry, outperforming 85.20% of the companies in the same industry.
- 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.
- 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.
- 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
- Based on the Altman-Z score of 1.06, we must say that PRGS is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 1.06, PRGS is not doing good in the industry: 62.82% of the companies in the same industry are doing better.
- 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's Debt to FCF ratio of 7.64 is in line compared to the rest of the industry. PRGS outperforms 51.99% of its industry peers.
- PRGS has a Debt/Equity ratio of 2.22. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of PRGS (2.22) is worse than 82.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.22 | ||
| Debt/FCF | 7.64 | ||
| Altman-Z | 1.06 |
ROIC/WACC0.89
WACC9.56%
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.
- The Current ratio of PRGS (0.44) is worse than 94.22% of its industry peers.
- 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.
- With a Quick ratio value of 0.44, PRGS is not doing good in the industry: 93.86% of the companies in the same industry are doing better.
| 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 16.02% over the past year.
- 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
- Based on estimates for the next years, PRGS will show a small growth in Earnings Per Share. The EPS will grow by 1.00% on average per year.
- PRGS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.99% yearly.
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
- PRGS is valuated cheaply with a Price/Earnings ratio of 7.42.
- Based on the Price/Earnings ratio, PRGS is valued cheaper than 91.34% of the companies in the same industry.
- When comparing the Price/Earnings ratio of PRGS to the average of the S&P500 Index (27.21), we can say PRGS is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 7.34, the valuation of PRGS can be described as very cheap.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of PRGS indicates a rather cheap valuation: PRGS is cheaper than 92.06% of the companies listed in the same industry.
- PRGS is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.42 | ||
| Fwd PE | 7.34 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of PRGS indicates a rather cheap valuation: PRGS is cheaper than 92.78% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.81 | ||
| 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)7.32
PEG (5Y)0.56
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 0.54, PRGS pays a better dividend. On top of this PRGS pays more dividend than 93.50% 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 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 the earnings are growing slower. 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.