PROS HOLDINGS INC (PRO) Stock Fundamental Analysis
NYSE:PRO - New York Stock Exchange, Inc. - US74346Y1038 - Common Stock - Currency: USD
Taking everything into account, PRO scores 3 out of 10 in our fundamental rating. PRO was compared to 284 industry peers in the Software industry. Both the profitability and financial health of PRO have multiple concerns. PRO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
PRO had positive earnings in the past year.
PRO had a positive operating cash flow in the past year.
In the past 5 years PRO always reported negative net income.
In multiple years PRO reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -4.88%, PRO is in line with its industry, outperforming 48.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.88% | ||
| ROE | N/A | ||
| ROIC | N/A |
ROA(3y)-12.13%
ROA(5y)-13.42%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Gross Margin of PRO (65.70%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of PRO has grown nicely.
The Profit Margin and Operating Margin are not available for PRO so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 65.7% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.08%
GM growth 5Y1.69%
2. Health
2.1 Basic Checks
PRO does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for PRO has been increased compared to 1 year ago.
PRO has more shares outstanding than it did 5 years ago.
PRO has a better debt/assets ratio than last year.
2.2 Solvency
PRO has an Altman-Z score of -0.41. This is a bad value and indicates that PRO is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.41, PRO is doing worse than 70.77% of the companies in the same industry.
The Debt to FCF ratio of PRO is 10.35, which is on the high side as it means it would take PRO, 10.35 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.35, PRO is in line with its industry, outperforming 50.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 10.35 | ||
| Altman-Z | -0.41 |
ROIC/WACCN/A
WACC10.02%
2.3 Liquidity
A Current Ratio of 1.28 indicates that PRO should not have too much problems paying its short term obligations.
PRO has a worse Current ratio (1.28) than 60.21% of its industry peers.
PRO has a Quick Ratio of 1.28. This is a normal value and indicates that PRO is financially healthy and should not expect problems in meeting its short term obligations.
PRO has a Quick ratio (1.28) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 925.00% over the past year.
Looking at the last year, PRO shows a quite strong growth in Revenue. The Revenue has grown by 8.78% in the last year.
Measured over the past years, PRO shows a small growth in Revenue. The Revenue has been growing by 5.71% on average per year.
EPS 1Y (TTM)925%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%700%
Revenue 1Y (TTM)8.78%
Revenue growth 3Y9.53%
Revenue growth 5Y5.71%
Sales Q2Q%9.66%
3.2 Future
Based on estimates for the next years, PRO will show a very strong growth in Earnings Per Share. The EPS will grow by 47.09% on average per year.
The Revenue is expected to grow by 9.59% on average over the next years. This is quite good.
EPS Next Y50.97%
EPS Next 2Y47.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.08%
Revenue Next 2Y9.59%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 43.61, which means the current valuation is very expensive for PRO.
60.21% of the companies in the same industry are more expensive than PRO, based on the Price/Earnings ratio.
PRO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.79.
The Price/Forward Earnings ratio is 28.89, which means the current valuation is very expensive for PRO.
Based on the Price/Forward Earnings ratio, PRO is valued a bit cheaper than 66.20% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PRO to the average of the S&P500 Index (21.38), we can say PRO is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.61 | ||
| Fwd PE | 28.89 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, PRO is valued a bit cheaper than the industry average as 72.54% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.67 | ||
| EV/EBITDA | N/A |
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.
A more expensive valuation may be justified as PRO's earnings are expected to grow with 47.09% in the coming years.
PEG (NY)0.86
PEG (5Y)N/A
EPS Next 2Y47.09%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for PRO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.88
+0.48 (+2.76%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners95.64%
Inst Owner Change-43.23%
Ins Owners3.96%
Ins Owner Change1.12%
Market Cap854.66M
Analysts83.33
Price Target32.35 (80.93%)
Short Float %6.93%
Short Ratio6.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)38.87%
Min EPS beat(2)24.36%
Max EPS beat(2)53.37%
EPS beat(4)4
Avg EPS beat(4)198.1%
Min EPS beat(4)24.36%
Max EPS beat(4)362.05%
EPS beat(8)7
Avg EPS beat(8)128.89%
EPS beat(12)11
Avg EPS beat(12)103.53%
EPS beat(16)15
Avg EPS beat(16)85.59%
Revenue beat(2)0
Avg Revenue beat(2)-0.63%
Min Revenue beat(2)-0.73%
Max Revenue beat(2)-0.53%
Revenue beat(4)1
Avg Revenue beat(4)-0.35%
Min Revenue beat(4)-0.73%
Max Revenue beat(4)0.09%
Revenue beat(8)5
Avg Revenue beat(8)0.61%
Revenue beat(12)9
Avg Revenue beat(12)0.82%
Revenue beat(16)12
Avg Revenue beat(16)0.71%
PT rev (1m)-2.2%
PT rev (3m)3.56%
EPS NQ rev (1m)-6.82%
EPS NQ rev (3m)13.88%
EPS NY rev (1m)0%
EPS NY rev (3m)20.17%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.61 | ||
| Fwd PE | 28.89 | ||
| P/S | 2.59 | ||
| P/FCF | 32.67 | ||
| P/OCF | 31.21 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.41
EY2.29%
EPS(NY)0.62
Fwd EY3.46%
FCF(TTM)0.55
FCFY3.06%
OCF(TTM)0.57
OCFY3.2%
SpS6.91
BVpS-1.44
TBVpS-3.83
PEG (NY)0.86
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.88% | ||
| ROE | N/A | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 65.7% | ||
| FCFM | 7.92% |
ROA(3y)-12.13%
ROA(5y)-13.42%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.08%
GM growth 5Y1.69%
F-Score7
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 10.35 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 14.74% | ||
| Cap/Sales | 0.37% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | -0.41 |
F-Score7
WACC10.02%
ROIC/WACCN/A
Cap/Depr(3y)14.9%
Cap/Depr(5y)55.7%
Cap/Sales(3y)0.51%
Cap/Sales(5y)2.92%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)925%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%700%
EPS Next Y50.97%
EPS Next 2Y47.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)8.78%
Revenue growth 3Y9.53%
Revenue growth 5Y5.71%
Sales Q2Q%9.66%
Revenue Next Year9.08%
Revenue Next 2Y9.59%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y62.41%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year82.02%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y259.03%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y177.24%
OCF growth 3YN/A
OCF growth 5Y39.14%