40.375 USD
+0.66 (+1.67%)
Last: Jan 30, 2026, 10:18 AM
PRGS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 278 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.
- In the past year PRGS had a positive cash flow from operations.
- Each year in the past 5 years PRGS has been profitable.
- Each year in the past 5 years PRGS had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 2.98%, PRGS is doing good in the industry, outperforming 65.47% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 15.29%, PRGS belongs to the top of the industry, outperforming 82.73% of the companies in the same industry.
- PRGS has a better Return On Invested Capital (8.59%) than 80.94% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for PRGS is below the industry average of 10.73%.
- The 3 year average ROIC (7.72%) for PRGS is below the current ROIC(8.59%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.98% | ||
| ROE | 15.29% | ||
| ROIC | 8.59% |
ROA(3y)3.35%
ROA(5y)4.51%
ROE(3y)15.39%
ROE(5y)17.81%
ROIC(3y)7.72%
ROIC(5y)8.49%
1.3 Margins
- Looking at the Profit Margin, with a value of 7.48%, PRGS is in the better half of the industry, outperforming 67.27% of the companies in the same industry.
- PRGS's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 17.84%, PRGS belongs to the top of the industry, outperforming 84.89% of the companies in the same industry.
- PRGS's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 80.82%, PRGS belongs to the top of the industry, outperforming 83.45% 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 | 17.84% | ||
| PM (TTM) | 7.48% | ||
| GM | 80.82% |
OM growth 3Y-5.53%
OM growth 5Y-7.61%
PM growth 3Y-22.06%
PM growth 5Y-16.13%
GM growth 3Y-1.4%
GM growth 5Y-1.22%
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
- The number of shares outstanding for PRGS has been reduced compared to 5 years ago.
- The debt/assets ratio for PRGS has been reduced compared to a year ago.
2.2 Solvency
- PRGS has an Altman-Z score of 1.02. 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 (1.02) is worse than 61.51% of its industry peers.
- PRGS has a debt to FCF ratio of 6.10. This is a slightly negative value and a sign of low solvency as PRGS would need 6.10 years to pay back of all of its debts.
- PRGS has a Debt to FCF ratio (6.10) which is in line with its industry peers.
- PRGS has a Debt/Equity ratio of 2.18. This is a high value indicating a heavy dependency on external financing.
- PRGS has a worse Debt to Equity ratio (2.18) than 82.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.18 | ||
| Debt/FCF | 6.1 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.85
WACC10.16%
2.3 Liquidity
- PRGS has a Current Ratio of 0.49. This is a bad value and indicates that PRGS is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.49, PRGS is doing worse than 93.88% of the companies in the same industry.
- A Quick Ratio of 0.49 indicates that PRGS may have some problems paying its short term obligations.
- PRGS has a Quick ratio of 0.49. This is amonst the worse of the industry: PRGS underperforms 93.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.49 |
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.
- PRGS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.18% yearly.
- Looking at the last year, PRGS shows a very strong growth in Revenue. The Revenue has grown by 29.79%.
- PRGS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.20% yearly.
EPS 1Y (TTM)16.02%
EPS 3Y11.47%
EPS 5Y13.18%
EPS Q2Q%13.53%
Revenue 1Y (TTM)29.79%
Revenue growth 3Y17.55%
Revenue growth 5Y17.2%
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.
- 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 Year1.34%
Revenue Next 2Y1.36%
Revenue Next 3Y1.65%
Revenue Next 5Y0.99%
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 7.06.
- Based on the Price/Earnings ratio, PRGS is valued cheaply inside the industry as 91.37% of the companies are valued more expensively.
- PRGS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.39.
- A Price/Forward Earnings ratio of 6.99 indicates a rather cheap valuation of PRGS.
- PRGS's Price/Forward Earnings ratio is rather cheap when compared to the industry. PRGS is cheaper than 92.45% of the companies in the same industry.
- PRGS is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.06 | ||
| Fwd PE | 6.99 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PRGS is valued cheaper than 89.21% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, PRGS is valued cheaper than 94.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.55 | ||
| EV/EBITDA | 9.23 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PRGS does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of PRGS may justify a higher PE ratio.
PEG (NY)6.97
PEG (5Y)0.54
EPS Next 2Y1%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- PRGS has a Yearly Dividend Yield of 1.31%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.54, PRGS pays a better dividend. On top of this PRGS pays more dividend than 93.53% 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 decreases each year by -51.33%.
- PRGS has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-51.33%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- PRGS pays out 1.07% of its income as dividend. This is a sustainable payout ratio.
DP1.07%
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 5 / 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 2 / 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.