PROGRESS SOFTWARE CORP (PRGS) Stock Fundamental Analysis
USA - NASDAQ:PRGS - US7433121008 - Common Stock
42.64 USD
+0.81 (+1.94%)
42.64 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to PRGS. PRGS was compared to 285 industry peers in the Software industry. While PRGS has a great profitability rating, there are quite some concerns on its financial health. PRGS scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
In the past 5 years PRGS always reported a positive cash flow from operatings.
1.2 Ratios
PRGS has a better Return On Assets (2.00%) than 64.56% of its industry peers.
PRGS's Return On Equity of 10.16% is fine compared to the rest of the industry. PRGS outperforms 77.89% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.48%, PRGS belongs to the top of the industry, outperforming 81.05% 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 11.84%.
The last Return On Invested Capital (8.48%) 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 | 8.48% |
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 68.07% of its industry peers.
PRGS's Profit Margin has improved in the last couple of years.
PRGS has a better Operating Margin (18.55%) than 85.61% of its industry peers.
PRGS's Operating Margin has improved in the last couple of years.
PRGS's Gross Margin of 81.11% is amongst the best of the industry. PRGS outperforms 84.56% of its industry peers.
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 | 18.55% | ||
| 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
PRGS has an Altman-Z score of 1.04. 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 (1.04) is worse than 63.51% of its industry peers.
The Debt to FCF ratio of PRGS is 7.62, which is on the high side as it means it would take PRGS, 7.62 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 7.62, PRGS perfoms like the industry average, outperforming 52.98% 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: 80.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.22 | ||
| Debt/FCF | 7.62 | ||
| Altman-Z | 1.04 |
ROIC/WACC0.89
WACC9.54%
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.
Looking at the Current ratio, with a value of 0.44, PRGS is doing worse than 91.93% of the companies in the same industry.
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.
The Quick ratio of PRGS (0.44) is worse than 91.58% 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!
The Revenue has been growing by 12.76% on average over the past years. This is quite good.
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.
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
PRGS is valuated cheaply with a Price/Earnings ratio of 7.70.
92.98% of the companies in the same industry are more expensive than PRGS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.10, PRGS is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.36, the valuation of PRGS can be described as very cheap.
Based on the Price/Forward Earnings ratio, PRGS is valued cheaper than 94.39% 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 22.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.7 | ||
| Fwd PE | 7.36 |
4.2 Price Multiples
90.53% of the companies in the same industry are more expensive than PRGS, based on the Enterprise Value to EBITDA ratio.
94.74% of the companies in the same industry are more expensive than PRGS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.82 | ||
| EV/EBITDA | 9.81 |
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%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 1.31, PRGS pays less dividend than the S&P500 average, which is at 2.37.
| 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
17.10% 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.
DP17.1%
EPS Next 2Y8.4%
EPS Next 3Y5.77%
42.64
+0.81 (+1.94%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners116.63%
Inst Owner Change0.29%
Ins Owners1.73%
Ins Owner Change3.27%
Market Cap1.83B
Revenue(TTM)940.13M
Net Income(TTM)48.53M
Analysts83.33
Price Target69.7 (63.46%)
Short Float %11.89%
Short Ratio5.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend0.72
Dividend Growth(5Y)3.19%
DP17.1%
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)-2.33%
EPS NQ rev (1m)-0.53%
EPS NQ rev (3m)-1.49%
EPS NY rev (1m)3.72%
EPS NY rev (3m)3.28%
Revenue NQ rev (1m)0.44%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)1.12%
Revenue NY rev (3m)1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.7 | ||
| Fwd PE | 7.36 | ||
| P/S | 1.95 | ||
| P/FCF | 9.82 | ||
| P/OCF | 9.53 | ||
| P/B | 3.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.81 |
EPS(TTM)5.54
EY12.99%
EPS(NY)5.79
Fwd EY13.59%
FCF(TTM)4.34
FCFY10.18%
OCF(TTM)4.48
OCFY10.5%
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 | 10.56% | ||
| ROIC | 8.48% | ||
| ROICexc | 9.02% | ||
| ROICexgc | N/A | ||
| OM | 18.55% | ||
| PM (TTM) | 5.16% | ||
| GM | 81.11% | ||
| FCFM | 19.82% |
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 | 7.62 | ||
| Debt/EBITDA | 3.34 | ||
| Cap/Depr | 3.99% | ||
| Cap/Sales | 0.61% | ||
| Interest Coverage | 3.01 | ||
| Cash Conversion | 60.46% | ||
| Profit Quality | 383.89% | ||
| Current Ratio | 0.44 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 1.04 |
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 1Y24.65%
EBIT growth 3Y7.51%
EBIT growth 5Y16.84%
EBIT Next Year28.15%
EBIT Next 3Y10.6%
EBIT Next 5YN/A
FCF growth 1Y6.59%
FCF growth 3Y5.88%
FCF growth 5Y10.63%
OCF growth 1Y6.1%
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 7.7 and the Price/Book (PB) ratio is 3.83.
Is the dividend of PROGRESS SOFTWARE CORP sustainable?
The dividend rating of PROGRESS SOFTWARE CORP (PRGS) is 0 / 10 and the dividend payout ratio is 17.1%.