PROS HOLDINGS INC (PRO) Stock Fundamental Analysis
NYSE:PRO - New York Stock Exchange, Inc. - US74346Y1038 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to PRO. PRO was compared to 284 industry peers in the Software industry. PRO has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, PRO is valued expensive at the moment.
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
PRO has a Return On Assets (-4.88%) which is in line with its industry peers.
| 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
PRO's Gross Margin of 65.70% is in line compared to the rest of the industry. PRO outperforms 46.74% of its industry peers.
PRO's Gross Margin has improved in the last couple of years.
PRO does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| 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.
PRO has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, PRO has more shares outstanding
PRO has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.07, we must say that PRO is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of PRO (0.07) is worse than 71.74% of its industry peers.
PRO has a debt to FCF ratio of 10.35. This is a negative value and a sign of low solvency as PRO would need 10.35 years to pay back of all of its debts.
PRO has a Debt to FCF ratio (10.35) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 10.35 | ||
| Altman-Z | 0.07 |
ROIC/WACCN/A
WACC13.52%
2.3 Liquidity
PRO has a Current 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.
Looking at the Current ratio, with a value of 1.28, PRO is doing worse than 60.87% of the companies in the same industry.
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's Quick ratio of 1.28 is in line compared to the rest of the industry. PRO outperforms 40.22% of 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.
PRO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.78%.
The Revenue has been growing slightly by 5.71% on average over the past years.
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
PRO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.23% yearly.
The Revenue is expected to grow by 10.78% on average over the next years. This is quite good.
EPS Next Y39.18%
EPS Next 2Y47.23%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.34%
Revenue Next 2Y10.78%
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
With a Price/Earnings ratio of 62.61, PRO can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as PRO.
PRO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 29.63.
Based on the Price/Forward Earnings ratio of 44.98, the valuation of PRO can be described as expensive.
PRO's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.68. PRO is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.61 | ||
| Fwd PE | 44.98 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PRO indicates a somewhat cheap valuation: PRO is cheaper than 63.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.51 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PRO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PRO's earnings are expected to grow with 47.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.6
PEG (5Y)N/A
EPS Next 2Y47.23%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PRO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
25.67
-0.66 (-2.51%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners95.64%
Inst Owner Change-0.52%
Ins Owners3.96%
Ins Owner Change1.07%
Market Cap1.22B
Analysts81.67
Price Target32.39 (26.18%)
Short Float %6.7%
Short Ratio6.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)-2.04%
PT rev (3m)-16.67%
EPS NQ rev (1m)-2.78%
EPS NQ rev (3m)3.44%
EPS NY rev (1m)10.78%
EPS NY rev (3m)10.78%
Revenue NQ rev (1m)0.86%
Revenue NQ rev (3m)-4.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.61 | ||
| Fwd PE | 44.98 | ||
| P/S | 3.68 | ||
| P/FCF | 46.51 | ||
| P/OCF | 44.43 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.41
EY1.6%
EPS(NY)0.57
Fwd EY2.22%
FCF(TTM)0.55
FCFY2.15%
OCF(TTM)0.58
OCFY2.25%
SpS6.97
BVpS-1.45
TBVpS-3.86
PEG (NY)1.6
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 | 0.07 |
F-Score7
WACC13.52%
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 Y39.18%
EPS Next 2Y47.23%
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 Year9.34%
Revenue Next 2Y10.78%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y62.41%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year51.97%
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%