42.19 USD
-1.64 (-3.74%)
42.19 USD
0 (0%)
Taking everything into account, PRGS scores 5 out of 10 in our fundamental rating. PRGS was compared to 276 industry peers in the Software industry. While PRGS belongs to the best of the industry regarding profitability, 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.
Each year in the past 5 years PRGS has been profitable.
In the past 5 years PRGS always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 2.00%, PRGS is doing good in the industry, outperforming 62.32% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.16%, PRGS is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
PRGS's Return On Invested Capital of 8.52% is amongst the best of the industry. PRGS outperforms 80.80% of its industry peers.
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
PRGS has a Profit Margin of 5.16%. This is in the better half of the industry: PRGS outperforms 64.13% of its industry peers.
PRGS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 18.62%, PRGS belongs to the top of the industry, outperforming 85.14% of the companies in the same industry.
In the last couple of years the Operating Margin of PRGS has grown nicely.
PRGS's Gross Margin of 81.11% is amongst the best of the industry. PRGS outperforms 85.14% of its industry peers.
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
PRGS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
PRGS has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.07, we must say that PRGS is in the distress zone and has some risk of bankruptcy.
PRGS has a Altman-Z score of 1.07. This is in the lower half of the industry: PRGS underperforms 63.41% 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.
The Debt to FCF ratio of PRGS (7.64) is comparable to the rest of the industry.
PRGS has a Debt/Equity ratio of 2.22. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.22, PRGS is doing worse than 82.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.22 | ||
| Debt/FCF | 7.64 | ||
| Altman-Z | 1.07 |
ROIC/WACC0.89
WACC9.54%
2.3 Liquidity
A Current Ratio of 0.44 indicates that PRGS may have some problems paying its short term obligations.
With a Current ratio value of 0.44, PRGS is not doing good in the industry: 94.20% of the companies in the same industry are doing better.
A Quick Ratio of 0.44 indicates that PRGS may have some problems paying its short term obligations.
With a Quick ratio value of 0.44, PRGS is not doing good in the industry: 93.84% 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 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.
PRGS shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.41%.
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
The Earnings Per Share is expected to grow by 5.77% on average over the next years.
Based on estimates for the next years, PRGS will show a small growth in Revenue. The Revenue will grow by 6.24% on average per year.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
PRGS is valuated cheaply with a Price/Earnings ratio of 7.62.
Based on the Price/Earnings ratio, PRGS is valued cheaply inside the industry as 91.30% of the companies are valued more expensively.
PRGS is valuated cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
PRGS is valuated cheaply with a Price/Forward Earnings ratio of 7.28.
PRGS's Price/Forward Earnings ratio is rather cheap when compared to the industry. PRGS is cheaper than 91.67% of the companies in the same industry.
PRGS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.62 | ||
| Fwd PE | 7.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRGS is valued cheaply inside the industry as 89.13% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PRGS is valued cheaper than 93.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.75 | ||
| EV/EBITDA | 10.06 |
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)0.53
PEG (5Y)0.59
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 93.48% of the companies in the same industry.
PRGS's Dividend Yield is slightly below the S&P500 average, which is at 1.92.
| 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.
PRGS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP15.77%
EPS Next 2Y8.4%
EPS Next 3Y5.77%
42.19
-1.64 (-3.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners112.82%
Inst Owner Change0.01%
Ins Owners1.79%
Ins Owner Change1.36%
Market Cap1.81B
Revenue(TTM)940.13M
Net Income(TTM)48.54M
Analysts86.67
Price Target69.7 (65.21%)
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)0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.62 | ||
| Fwd PE | 7.28 | ||
| P/S | 1.93 | ||
| P/FCF | 9.75 | ||
| P/OCF | 9.46 | ||
| P/B | 3.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.06 |
EPS(TTM)5.54
EY13.13%
EPS(NY)5.79
Fwd EY13.73%
FCF(TTM)4.33
FCFY10.26%
OCF(TTM)4.46
OCFY10.57%
SpS21.91
BVpS11.13
TBVpS-33.81
PEG (NY)0.53
PEG (5Y)0.59
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 | 1.07 |
F-Score5
WACC9.54%
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.