43.69 USD
-0.93 (-2.08%)
At close: Jan 30, 2026
43.5 USD
-0.19 (-0.43%)
After Hours: 1/30/2026, 8:12:40 PM
We assign a fundamental rating of 6 out of 10 to PEGA. PEGA was compared to 278 industry peers in the Software industry. PEGA is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. PEGA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- PEGA had positive earnings in the past year.
- PEGA had a positive operating cash flow in the past year.
- In multiple years PEGA reported negative net income over the last 5 years.
- Of the past 5 years PEGA 4 years had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 21.50%, PEGA belongs to the best of the industry, outperforming 96.40% of the companies in the same industry.
- PEGA has a better Return On Equity (46.57%) than 95.68% of its industry peers.
- The Return On Invested Capital of PEGA (30.62%) is better than 97.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.5% | ||
| ROE | 46.57% | ||
| ROIC | 30.62% |
ROA(3y)-5.12%
ROA(5y)-4.63%
ROE(3y)-76.04%
ROE(5y)-50.92%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of PEGA (16.05%) is better than 78.42% of its industry peers.
- PEGA has a better Operating Margin (17.49%) than 84.17% of its industry peers.
- With a decent Gross Margin value of 75.74%, PEGA is doing good in the industry, outperforming 68.70% of the companies in the same industry.
- PEGA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.49% | ||
| PM (TTM) | 16.05% | ||
| GM | 75.74% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.76%
GM growth 5Y2.29%
2. Health
2.1 Basic Checks
- PEGA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for PEGA has been increased compared to 1 year ago.
- Compared to 5 years ago, PEGA has more shares outstanding
- PEGA has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 8.96 indicates that PEGA is not in any danger for bankruptcy at the moment.
- PEGA has a Altman-Z score of 8.96. This is amongst the best in the industry. PEGA outperforms 89.57% of its industry peers.
- PEGA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 8.96 |
ROIC/WACC2.85
WACC10.73%
2.3 Liquidity
- PEGA has a Current Ratio of 1.36. This is a normal value and indicates that PEGA is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of PEGA (1.36) is comparable to the rest of the industry.
- PEGA has a Quick Ratio of 1.36. This is a normal value and indicates that PEGA is financially healthy and should not expect problems in meeting its short term obligations.
- PEGA has a Quick ratio (1.36) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
- PEGA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.08%, which is quite impressive.
- The Earnings Per Share has been growing by 184.70% on average over the past years. This is a very strong growth
- The Revenue has grown by 17.00% in the past year. This is quite good.
- Measured over the past years, PEGA shows a quite strong growth in Revenue. The Revenue has been growing by 10.44% on average per year.
EPS 1Y (TTM)36.08%
EPS 3Y184.7%
EPS 5YN/A
EPS Q2Q%53.85%
Revenue 1Y (TTM)17%
Revenue growth 3Y7.31%
Revenue growth 5Y10.44%
Sales Q2Q%17.32%
3.2 Future
- Based on estimates for the next years, PEGA will show a small growth in Earnings Per Share. The EPS will grow by 5.26% on average per year.
- Based on estimates for the next years, PEGA will show a small growth in Revenue. The Revenue will grow by 6.01% on average per year.
EPS Next Y41.66%
EPS Next 2Y22.77%
EPS Next 3Y16.8%
EPS Next 5Y5.26%
Revenue Next Year17.58%
Revenue Next 2Y12.26%
Revenue Next 3Y10.57%
Revenue Next 5Y6.01%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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 20.32, which indicates a rather expensive current valuation of PEGA.
- Based on the Price/Earnings ratio, PEGA is valued a bit cheaper than the industry average as 71.94% of the companies are valued more expensively.
- PEGA is valuated rather cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 19.32, PEGA is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, PEGA is valued a bit cheaper than 70.50% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. PEGA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.32 | ||
| Fwd PE | 19.32 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PEGA is valued a bit cheaper than 73.02% of the companies in the same industry.
- 79.50% of the companies in the same industry are more expensive than PEGA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.21 | ||
| EV/EBITDA | 21.67 |
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.
- PEGA has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as PEGA's earnings are expected to grow with 16.80% in the coming years.
PEG (NY)0.49
PEG (5Y)N/A
EPS Next 2Y22.77%
EPS Next 3Y16.8%
5. Dividend
5.1 Amount
- PEGA has a yearly dividend return of 0.27%, which is pretty low.
- The stock price of PEGA dropped by -31.36% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- Compared to an average industry Dividend Yield of 0.56, PEGA pays a better dividend. On top of this PEGA pays more dividend than 88.85% of the companies listed in the same industry.
- With a Dividend Yield of 0.27, PEGA pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.27% |
5.2 History
- The dividend of PEGA decreases each year by -12.97%.
- PEGA has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-12.97%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- PEGA pays out 4.63% of its income as dividend. This is a sustainable payout ratio.
DP4.63%
EPS Next 2Y22.77%
EPS Next 3Y16.8%
PEGASYSTEMS INC / PEGA FAQ
What is the ChartMill fundamental rating of PEGASYSTEMS INC (PEGA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to PEGA.
What is the valuation status for PEGA stock?
ChartMill assigns a valuation rating of 6 / 10 to PEGASYSTEMS INC (PEGA). This can be considered as Fairly Valued.
Can you provide the profitability details for PEGASYSTEMS INC?
PEGASYSTEMS INC (PEGA) has a profitability rating of 6 / 10.
What is the valuation of PEGASYSTEMS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for PEGASYSTEMS INC (PEGA) is 20.32 and the Price/Book (PB) ratio is 12.42.
What is the expected EPS growth for PEGASYSTEMS INC (PEGA) stock?
The Earnings per Share (EPS) of PEGASYSTEMS INC (PEGA) is expected to grow by 41.66% in the next year.