40.09 USD
-0.83 (-2.03%)
40.09 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to PRGS. 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on PRGS.
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.
- In the past 5 years PRGS has always been profitable.
- PRGS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of PRGS (2.00%) is better than 62.32% of its industry peers.
- The Return On Equity of PRGS (10.16%) is better than 73.91% of its industry peers.
- With an excellent Return On Invested Capital value of 8.52%, PRGS belongs to the best of the industry, outperforming 80.80% of the companies in the same industry.
- 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 last Return On Invested Capital (8.52%) 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 | 8.52% |
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 64.13% of the companies in the same industry.
- PRGS's Profit Margin has improved in the last couple of years.
- PRGS's Operating Margin of 18.62% is amongst the best of the industry. PRGS outperforms 85.14% of its industry peers.
- In the last couple of years the Operating Margin of PRGS has grown nicely.
- The Gross Margin of PRGS (81.11%) is better than 85.14% 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 | 18.62% | ||
| 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.
- Compared to 1 year ago, PRGS has less shares outstanding
- Compared to 5 years ago, PRGS has less shares outstanding
- The debt/assets ratio for PRGS is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.03, we must say that PRGS is in the distress zone and has some risk of bankruptcy.
- PRGS has a Altman-Z score of 1.03. This is in the lower half of the industry: PRGS underperforms 62.68% of its industry peers.
- 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 has a Debt to FCF ratio (7.64) which is in line with its industry peers.
- A Debt/Equity ratio of 2.22 is on the high side and indicates that PRGS has dependencies on debt financing.
- PRGS has a Debt to Equity ratio of 2.22. This is amonst the worse of the industry: PRGS underperforms 82.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.22 | ||
| Debt/FCF | 7.64 | ||
| Altman-Z | 1.03 |
ROIC/WACC0.9
WACC9.47%
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 94.20% of its industry peers.
- A Quick Ratio of 0.44 indicates that PRGS may have some problems paying its short term obligations.
- PRGS's Quick ratio of 0.44 is on the low side compared to the rest of the industry. PRGS is outperformed by 93.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.44 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
- PRGS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.91%, 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 12.88% yearly.
- 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
- PRGS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.77% yearly.
- 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
- 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
- Based on the Price/Earnings ratio of 7.24, the valuation of PRGS can be described as very cheap.
- 91.67% 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 27.47, PRGS is valued rather cheaply.
- With a Price/Forward Earnings ratio of 6.92, 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 92.39% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of PRGS to the average of the S&P500 Index (24.26), we can say PRGS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.24 | ||
| Fwd PE | 6.92 |
4.2 Price Multiples
- PRGS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PRGS is cheaper than 88.77% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, PRGS is valued cheaply inside the industry as 93.12% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.27 | ||
| EV/EBITDA | 9.66 |
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 excellent profitability rating of PRGS may justify a higher PE ratio.
PEG (NY)0.5
PEG (5Y)0.56
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.
- 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.
- Compared to the average S&P500 Dividend Yield of 1.89, 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.
- 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%
40.09
-0.83 (-2.03%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)09-29 2025-09-29/amc
Earnings (Next)01-20 2026-01-20/amc
Inst Owners112.82%
Inst Owner Change0.01%
Ins Owners1.79%
Ins Owner Change1.36%
Market Cap1.72B
Revenue(TTM)940.13M
Net Income(TTM)48.54M
Analysts86.67
Price Target69.7 (73.86%)
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 | 7.24 | ||
| Fwd PE | 6.92 | ||
| P/S | 1.83 | ||
| P/FCF | 9.27 | ||
| P/OCF | 8.99 | ||
| P/B | 3.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.66 |
EPS(TTM)5.54
EY13.82%
EPS(NY)5.79
Fwd EY14.45%
FCF(TTM)4.33
FCFY10.79%
OCF(TTM)4.46
OCFY11.13%
SpS21.91
BVpS11.13
TBVpS-33.81
PEG (NY)0.5
PEG (5Y)0.56
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 | 1.03 |
F-Score5
WACC9.47%
ROIC/WACC0.9
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.