PROGRESS SOFTWARE CORP (PRGS) Fundamental Analysis & Valuation

NASDAQ:PRGS • US7433121008

Current stock price

28.52 USD
-0.5 (-1.72%)
Last:

This PRGS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. PRGS Profitability Analysis

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.
PRGS Yearly Net Income VS EBIT VS OCF VS FCFPRGS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50M -50M 100M 150M 200M

1.2 Ratios

  • The Return On Assets of PRGS (3.55%) is better than 69.09% of its industry peers.
  • PRGS has a Return On Equity of 17.04%. This is amongst the best in the industry. PRGS outperforms 84.73% of its industry peers.
  • With an excellent Return On Invested Capital value of 9.14%, PRGS belongs to the best of the industry, outperforming 83.64% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for PRGS is below the industry average of 10.99%.
  • The 3 year average ROIC (7.72%) for PRGS is below the current ROIC(9.14%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.55%
ROE 17.04%
ROIC 9.14%
ROA(3y)3.35%
ROA(5y)4.51%
ROE(3y)15.39%
ROE(5y)17.81%
ROIC(3y)7.72%
ROIC(5y)8.49%
PRGS Yearly ROA, ROE, ROICPRGS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20

1.3 Margins

  • PRGS has a better Profit Margin (8.61%) than 71.27% of its industry peers.
  • PRGS's Profit Margin has declined in the last couple of years.
  • With an excellent Operating Margin value of 18.34%, PRGS belongs to the best of the industry, outperforming 86.55% 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 81.25%, PRGS belongs to the top of the industry, outperforming 84.36% of the companies in the same industry.
  • In the last couple of years the Gross Margin of PRGS has remained more or less at the same level.
Industry RankSector Rank
OM 18.34%
PM (TTM) 8.61%
GM 81.25%
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%
PRGS Yearly Profit, Operating, Gross MarginsPRGS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. PRGS Health Analysis

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.
  • Compared to 1 year ago, PRGS has an improved debt to assets ratio.
PRGS Yearly Shares OutstandingPRGS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M
PRGS Yearly Total Debt VS Total AssetsPRGS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

2.2 Solvency

  • PRGS has an Altman-Z score of 0.92. This is a bad value and indicates that PRGS is not financially healthy and even has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 0.92, PRGS is doing worse than 60.73% of the companies in the same industry.
  • The Debt to FCF ratio of PRGS is 5.20, which is a neutral value as it means it would take PRGS, 5.20 years of fcf income to pay off all of its debts.
  • PRGS has a Debt to FCF ratio (5.20) which is comparable to the rest of the industry.
  • A Debt/Equity ratio of 1.97 is on the high side and indicates that PRGS has dependencies on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 1.97, PRGS is doing worse than 80.73% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.97
Debt/FCF 5.2
Altman-Z 0.92
ROIC/WACC1
WACC9.17%
PRGS Yearly LT Debt VS Equity VS FCFPRGS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

2.3 Liquidity

  • A Current Ratio of 0.47 indicates that PRGS may have some problems paying its short term obligations.
  • With a Current ratio value of 0.47, PRGS is not doing good in the industry: 92.36% of the companies in the same industry are doing better.
  • PRGS has a Quick Ratio of 0.47. 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 0.47, PRGS is not doing good in the industry: 92.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.47
Quick Ratio 0.47
PRGS Yearly Current Assets VS Current LiabilitesPRGS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. PRGS Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 20.44% 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 13.18% yearly.
  • The Revenue has grown by 22.42% in the past year. This is a very strong growth!
  • 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)20.44%
EPS 3Y11.47%
EPS 5Y13.18%
EPS Q2Q%22.14%
Revenue 1Y (TTM)22.42%
Revenue growth 3Y17.55%
Revenue growth 5Y17.2%
Sales Q2Q%4.11%

3.2 Future

  • The Earnings Per Share is expected to grow by 3.20% 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 1.26% on average per year.
EPS Next Y6.66%
EPS Next 2Y3.95%
EPS Next 3Y3.2%
EPS Next 5YN/A
Revenue Next Year1.64%
Revenue Next 2Y1.36%
Revenue Next 3Y1.56%
Revenue Next 5Y1.26%

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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
PRGS Yearly Revenue VS EstimatesPRGS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 200M 400M 600M 800M 1B
PRGS Yearly EPS VS EstimatesPRGS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6

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9

4. PRGS Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 4.75, which indicates a rather cheap valuation of PRGS.
  • 96.00% of the companies in the same industry are more expensive than PRGS, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 26.21. PRGS is valued rather cheaply when compared to this.
  • PRGS is valuated cheaply with a Price/Forward Earnings ratio of 4.61.
  • Based on the Price/Forward Earnings ratio, PRGS is valued cheaply inside the industry as 93.82% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.10, PRGS is valued rather cheaply.
Industry RankSector Rank
PE 4.75
Fwd PE 4.61
PRGS Price Earnings VS Forward Price EarningsPRGS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, PRGS is valued cheaply inside the industry as 92.73% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of PRGS indicates a rather cheap valuation: PRGS is cheaper than 96.73% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 4.66
EV/EBITDA 7.41
PRGS Per share dataPRGS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20 -20 -30

4.3 Compensation for Growth

  • PRGS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent profitability rating of PRGS may justify a higher PE ratio.
PEG (NY)0.71
PEG (5Y)0.36
EPS Next 2Y3.95%
EPS Next 3Y3.2%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. PRGS Dividend Analysis

5.1 Amount

  • PRGS has a Yearly Dividend Yield of 1.31%.
  • In the last 3 months the price of PRGS has falen by -31.49%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • PRGS's Dividend Yield is rather good when compared to the industry average which is at 0.67. PRGS pays more dividend than 93.09% of the companies in the same industry.
  • PRGS's Dividend Yield is slightly below the S&P500 average, which is at 1.89.
Industry RankSector 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
PRGS Yearly Dividends per sharePRGS Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6

5.3 Sustainability

  • PRGS pays out 0.74% of its income as dividend. This is a sustainable payout ratio.
DP0.74%
EPS Next 2Y3.95%
EPS Next 3Y3.2%
PRGS Yearly Income VS Free CF VS DividendPRGS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50M -50M 100M 150M 200M
PRGS Dividend Payout.PRGS Dividend Payout, showing the Payout Ratio.PRGS Dividend Payout.PayoutRetained Earnings

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PRGS Fundamentals: All Metrics, Ratios and Statistics

PROGRESS SOFTWARE CORP

NASDAQ:PRGS (4/8/2026, 2:10:00 PM)

28.52

-0.5 (-1.72%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)03-30
Earnings (Next)06-29
Inst Owners111.48%
Inst Owner Change0%
Ins Owners1.95%
Ins Owner Change2.64%
Market Cap1.20B
Revenue(TTM)987.62M
Net Income(TTM)85.00M
Analysts87.69
Price Target65.6 (130.01%)
Short Float %10.47%
Short Ratio3.77
Dividend
Industry RankSector Rank
Dividend Yield 1.31%
Yearly Dividend0.02
Dividend Growth(5Y)-51.33%
DP0.74%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.42%
Min EPS beat(2)0.03%
Max EPS beat(2)12.81%
EPS beat(4)4
Avg EPS beat(4)7.92%
Min EPS beat(4)0.03%
Max EPS beat(4)13.41%
EPS beat(8)8
Avg EPS beat(8)10.14%
EPS beat(12)12
Avg EPS beat(12)9.97%
EPS beat(16)16
Avg EPS beat(16)8.75%
Revenue beat(2)0
Avg Revenue beat(2)-1.72%
Min Revenue beat(2)-2.04%
Max Revenue beat(2)-1.4%
Revenue beat(4)1
Avg Revenue beat(4)-0.87%
Min Revenue beat(4)-2.04%
Max Revenue beat(4)1.99%
Revenue beat(8)2
Avg Revenue beat(8)-0.39%
Revenue beat(12)3
Avg Revenue beat(12)-0.09%
Revenue beat(16)4
Avg Revenue beat(16)-0.36%
PT rev (1m)0%
PT rev (3m)-5.88%
EPS NQ rev (1m)5.97%
EPS NQ rev (3m)8.36%
EPS NY rev (1m)0%
EPS NY rev (3m)3.44%
Revenue NQ rev (1m)0.62%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.2%
Valuation
Industry RankSector Rank
PE 4.75
Fwd PE 4.61
P/S 1.21
P/FCF 4.66
P/OCF 4.53
P/B 2.41
P/tB N/A
EV/EBITDA 7.41
EPS(TTM)6.01
EY21.07%
EPS(NY)6.18
Fwd EY21.67%
FCF(TTM)6.13
FCFY21.48%
OCF(TTM)6.3
OCFY22.08%
SpS23.48
BVpS11.86
TBVpS-32.33
PEG (NY)0.71
PEG (5Y)0.36
Graham Number40.04
Profitability
Industry RankSector Rank
ROA 3.55%
ROE 17.04%
ROCE 11.28%
ROIC 9.14%
ROICexc 9.84%
ROICexgc N/A
OM 18.34%
PM (TTM) 8.61%
GM 81.25%
FCFM 26.1%
ROA(3y)3.35%
ROA(5y)4.51%
ROE(3y)15.39%
ROE(5y)17.81%
ROIC(3y)7.72%
ROIC(5y)8.49%
ROICexc(3y)8.33%
ROICexc(5y)9.79%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)9.52%
ROCE(5y)10.47%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-9.62%
ROICexc growth 5Y-8.38%
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%
F-Score7
Asset Turnover0.41
Health
Industry RankSector Rank
Debt/Equity 1.97
Debt/FCF 5.2
Debt/EBITDA 2.97
Cap/Depr 4.76%
Cap/Sales 0.72%
Interest Coverage 3.03
Cash Conversion 80.13%
Profit Quality 303.23%
Current Ratio 0.47
Quick Ratio 0.47
Altman-Z 0.92
F-Score7
WACC9.17%
ROIC/WACC1
Cap/Depr(3y)4.74%
Cap/Depr(5y)6.25%
Cap/Sales(3y)0.69%
Cap/Sales(5y)0.79%
Profit Quality(3y)285.01%
Profit Quality(5y)254.48%
High Growth Momentum
Growth
EPS 1Y (TTM)20.44%
EPS 3Y11.47%
EPS 5Y13.18%
EPS Q2Q%22.14%
EPS Next Y6.66%
EPS Next 2Y3.95%
EPS Next 3Y3.2%
EPS Next 5YN/A
Revenue 1Y (TTM)22.42%
Revenue growth 3Y17.55%
Revenue growth 5Y17.2%
Sales Q2Q%4.11%
Revenue Next Year1.64%
Revenue Next 2Y1.36%
Revenue Next 3Y1.56%
Revenue Next 5Y1.26%
EBIT growth 1Y12.4%
EBIT growth 3Y11.05%
EBIT growth 5Y8.29%
EBIT Next Year23.64%
EBIT Next 3Y-0.77%
EBIT Next 5YN/A
FCF growth 1Y34.14%
FCF growth 3Y7.23%
FCF growth 5Y10.66%
OCF growth 1Y34.03%
OCF growth 3Y6.96%
OCF growth 5Y10.19%

PROGRESS SOFTWARE CORP / PRGS Fundamental Analysis 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.


What is the profitability of PRGS stock?

PROGRESS SOFTWARE CORP (PRGS) has a profitability rating of 7 / 10.


What are the PE and PB ratios of PROGRESS SOFTWARE CORP (PRGS) stock?

The Price/Earnings (PE) ratio for PROGRESS SOFTWARE CORP (PRGS) is 4.75 and the Price/Book (PB) ratio is 2.41.


What is the expected EPS growth for PROGRESS SOFTWARE CORP (PRGS) stock?

The Earnings per Share (EPS) of PROGRESS SOFTWARE CORP (PRGS) is expected to grow by 6.66% in the next year.