41.41 USD
-0.25 (-0.6%)
41.41 USD
0 (0%)
Taking everything into account, PRGS scores 5 out of 10 in our fundamental rating. PRGS was compared to 278 industry peers in the Software industry. PRGS has an excellent profitability rating, but there are 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.
- PRGS had a positive operating cash flow in the past year.
- 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
- PRGS has a better Return On Assets (2.98%) than 65.47% of its industry peers.
- Looking at the Return On Equity, with a value of 15.29%, PRGS belongs to the top of the industry, outperforming 82.37% of the companies in the same industry.
- PRGS has a better Return On Invested Capital (8.59%) than 80.94% of its industry peers.
- PRGS had an Average Return On Invested Capital over the past 3 years of 7.72%. This is below the industry average of 10.76%.
- The last Return On Invested Capital (8.59%) for PRGS is above the 3 year average (7.72%), which is a sign of increasing profitability.
| 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
- With a decent Profit Margin value of 7.48%, PRGS is doing good in the industry, outperforming 67.63% of the companies in the same industry.
- PRGS's Profit Margin has declined in the last couple of years.
- The Operating Margin of PRGS (17.84%) is better than 84.89% of its industry peers.
- PRGS's Operating Margin has declined in the last couple of years.
- PRGS has a better Gross Margin (80.82%) than 83.45% 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 | 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 1.05. This is a bad value and indicates that PRGS is not financially healthy and even has some risk of bankruptcy.
- PRGS has a worse Altman-Z score (1.05) than 63.31% of its industry peers.
- The Debt to FCF ratio of PRGS is 6.10, which is on the high side as it means it would take PRGS, 6.10 years of fcf income to pay off all of its debts.
- PRGS's Debt to FCF ratio of 6.10 is in line compared to the rest of the industry. PRGS outperforms 53.60% of its industry peers.
- A Debt/Equity ratio of 2.18 is on the high side and indicates that PRGS has dependencies on debt financing.
- PRGS has a Debt to Equity ratio of 2.18. This is amonst the worse of the industry: PRGS underperforms 82.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.18 | ||
| Debt/FCF | 6.1 | ||
| Altman-Z | 1.05 |
ROIC/WACC0.84
WACC10.19%
2.3 Liquidity
- A Current Ratio of 0.49 indicates that PRGS may have some problems paying its short term obligations.
- With a Current ratio value of 0.49, PRGS is not doing good in the industry: 93.88% of the companies in the same industry are doing better.
- A Quick Ratio of 0.49 indicates that PRGS may have some problems paying its short term obligations.
- With a Quick ratio value of 0.49, PRGS is not doing good in the industry: 93.53% of the companies in the same industry are doing better.
| 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.
- The Revenue has grown by 29.79% in the past year. This is a very strong growth!
- Measured over the past years, PRGS shows a quite strong growth in Revenue. The Revenue has been growing by 17.20% on average per year.
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.
- Based on estimates for the next years, PRGS will show a small growth in Revenue. The Revenue will grow by 0.99% on average per year.
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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- The Price/Earnings ratio is 7.24, which indicates a rather cheap valuation of PRGS.
- PRGS's Price/Earnings ratio is rather cheap when compared to the industry. PRGS is cheaper than 91.01% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, PRGS is valued rather cheaply.
- With a Price/Forward Earnings ratio of 7.17, the valuation of PRGS can be described as very cheap.
- 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.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. PRGS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.24 | ||
| Fwd PE | 7.17 |
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 cheaply inside the industry as 94.96% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.74 | ||
| EV/EBITDA | 9.48 |
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)7.14
PEG (5Y)0.55
EPS Next 2Y1%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.31%, PRGS has a reasonable but not impressive dividend return.
- 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.
- Compared to the average S&P500 Dividend Yield of 1.82, PRGS is paying slightly less dividend.
| 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.