For those who appreciate growth without the sticker shock, NASDAQ:PEGA is worth considering.

Our stock screener has singled out PEGASYSTEMS INC (NASDAQ:PEGA) as an attractive growth opportunity. NASDAQ:PEGA is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

Growth Insights: NASDAQ:PEGA

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:PEGA boasts a 8 out of 10:

• The Earnings Per Share has grown by an impressive 255.07% over the past year.
• PEGA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.80% yearly.
• PEGA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.71%.
• PEGA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.95% yearly.
• The Earnings Per Share is expected to grow by 14.56% on average over the next years. This is quite good.
• The Revenue is expected to grow by 12.56% on average over the next years. This is quite good.
• 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.

Valuation Insights: NASDAQ:PEGA

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:PEGA has received a 5 out of 10:

• Compared to the rest of the industry, the Price/Earnings ratio of PEGA indicates a rather cheap valuation: PEGA is cheaper than 80.66% of the companies listed in the same industry.
• Based on the Price/Forward Earnings ratio, PEGA is valued cheaply inside the industry as 82.48% of the companies are valued more expensively.
• Based on the Enterprise Value to EBITDA ratio, PEGA is valued a bit cheaper than the industry average as 73.36% of the companies are valued more expensively.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of PEGA indicates a rather cheap valuation: PEGA is cheaper than 82.85% of the companies listed in the same industry.
• PEGA has a very decent profitability rating, which may justify a higher PE ratio.
• PEGA's earnings are expected to grow with 15.19% in the coming years. This may justify a more expensive valuation.

Health Assessment of NASDAQ:PEGA

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:PEGA, the assigned 5 reflects its health status:

• An Altman-Z score of 4.09 indicates that PEGA is not in any danger for bankruptcy at the moment.
• PEGA has a better Altman-Z score (4.09) than 63.50% of its industry peers.
• PEGA has a debt to FCF ratio of 2.48. This is a good value and a sign of high solvency as PEGA would need 2.48 years to pay back of all of its debts.
• PEGA's Debt to FCF ratio of 2.48 is fine compared to the rest of the industry. PEGA outperforms 68.61% of its industry peers.
• Even though the debt/equity ratio score it not favorable for PEGA, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.

What does the Profitability looks like for NASDAQ:PEGA

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:PEGA scores a 6 out of 10:

• PEGA has a Return On Assets of 4.49%. This is in the better half of the industry: PEGA outperforms 79.56% of its industry peers.
• PEGA has a Return On Equity of 19.15%. This is amongst the best in the industry. PEGA outperforms 90.51% of its industry peers.
• With an excellent Return On Invested Capital value of 7.81%, PEGA belongs to the best of the industry, outperforming 85.77% of the companies in the same industry.
• The Profit Margin of PEGA (4.73%) is better than 75.91% of its industry peers.
• PEGA's Profit Margin has improved in the last couple of years.
• The Operating Margin of PEGA (7.17%) is better than 78.83% of its industry peers.
• PEGA has a better Gross Margin (73.58%) than 64.96% of its industry peers.
• PEGA's Gross Margin has improved in the last couple of years.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Check the latest full fundamental report of PEGA for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.