PEGASYSTEMS INC (PEGA) Stock Fundamental Analysis
USA - NASDAQ:PEGA - US7055731035 - Common Stock
60.07 USD
-0.97 (-1.59%)
PEGA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 284 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
PEGA had positive earnings in the past year.
In the past year PEGA had a positive cash flow from operations.
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
The Return On Assets of PEGA (21.50%) is better than 95.07% of its industry peers.
Looking at the Return On Equity, with a value of 46.57%, PEGA belongs to the top of the industry, outperforming 95.42% of the companies in the same industry.
The Return On Invested Capital of PEGA (30.62%) is better than 96.83% 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
PEGA has a better Profit Margin (16.05%) than 80.28% of its industry peers.
With an excellent Operating Margin value of 17.49%, PEGA belongs to the best of the industry, outperforming 84.51% of the companies in the same industry.
PEGA's Gross Margin of 75.74% is fine compared to the rest of the industry. PEGA outperforms 69.37% of its industry peers.
In the last couple of years the Gross Margin of PEGA has grown nicely.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PEGA is creating value.
The number of shares outstanding for PEGA has been increased compared to 1 year ago.
PEGA has more shares outstanding than it did 5 years ago.
PEGA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 11.57 indicates that PEGA is not in any danger for bankruptcy at the moment.
PEGA's Altman-Z score of 11.57 is amongst the best of the industry. PEGA outperforms 87.68% of its industry peers.
There is no outstanding debt for PEGA. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 11.57 |
ROIC/WACC2.83
WACC10.83%
2.3 Liquidity
A Current Ratio of 1.36 indicates that PEGA should not have too much problems paying its short term obligations.
PEGA has a Current ratio of 1.36. This is comparable to the rest of the industry: PEGA outperforms 43.31% of its industry peers.
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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
PEGA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.52%.
PEGA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 137.43% yearly.
PEGA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.00%.
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)-20.52%
EPS 3Y137.43%
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
The Earnings Per Share is expected to grow by 2.07% on average over the next years.
PEGA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.82% yearly.
EPS Next Y16.59%
EPS Next 2Y11.24%
EPS Next 3Y8.99%
EPS Next 5Y2.07%
Revenue Next Year15.59%
Revenue Next 2Y10.89%
Revenue Next 3Y9.36%
Revenue Next 5Y5.82%
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
With a Price/Earnings ratio of 27.94, PEGA can be considered very expensive at the moment.
66.90% of the companies in the same industry are more expensive than PEGA, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of PEGA to the average of the S&P500 Index (26.03), we can say PEGA is valued inline with the index average.
A Price/Forward Earnings ratio of 27.90 indicates a quite expensive valuation of PEGA.
Based on the Price/Forward Earnings ratio, PEGA is valued a bit cheaper than 63.03% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PEGA to the average of the S&P500 Index (22.27), we can say PEGA is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.94 | ||
| Fwd PE | 27.9 |
4.2 Price Multiples
73.24% of the companies in the same industry are more expensive than PEGA, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, PEGA is valued a bit cheaper than the industry average as 77.11% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.86 | ||
| EV/EBITDA | 31.23 |
4.3 Compensation for Growth
PEGA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of PEGA may justify a higher PE ratio.
PEG (NY)1.68
PEG (5Y)N/A
EPS Next 2Y11.24%
EPS Next 3Y8.99%
5. Dividend
5.1 Amount
PEGA has a yearly dividend return of 0.19%, which is pretty low.
Compared to an average industry Dividend Yield of 36.32, PEGA pays a better dividend. On top of this PEGA pays more dividend than 88.38% of the companies listed in the same industry.
With a Dividend Yield of 0.19, PEGA pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
5.2 History
The dividend of PEGA decreases each year by -12.97%.
PEGA has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-12.97%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
4.63% of the earnings are spent on dividend by PEGA. This is a low number and sustainable payout ratio.
DP4.63%
EPS Next 2Y11.24%
EPS Next 3Y8.99%
NASDAQ:PEGA (11/5/2025, 10:43:20 AM)
60.07
-0.97 (-1.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners56.2%
Inst Owner Change2.12%
Ins Owners46.28%
Ins Owner Change-0.76%
Market Cap10.28B
Revenue(TTM)1.73B
Net Income(TTM)277.95M
Analysts82
Price Target71.53 (19.08%)
Short Float %6.99%
Short Ratio4.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
Yearly Dividend0.06
Dividend Growth(5Y)-12.97%
DP4.63%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)33.28%
Min EPS beat(2)19.23%
Max EPS beat(2)47.32%
EPS beat(4)4
Avg EPS beat(4)70.31%
Min EPS beat(4)8.02%
Max EPS beat(4)206.69%
EPS beat(8)8
Avg EPS beat(8)59.22%
EPS beat(12)10
Avg EPS beat(12)794.69%
EPS beat(16)11
Avg EPS beat(16)564.85%
Revenue beat(2)2
Avg Revenue beat(2)6.14%
Min Revenue beat(2)3.99%
Max Revenue beat(2)8.29%
Revenue beat(4)4
Avg Revenue beat(4)11.32%
Min Revenue beat(4)2.23%
Max Revenue beat(4)30.76%
Revenue beat(8)6
Avg Revenue beat(8)7.35%
Revenue beat(12)8
Avg Revenue beat(12)5.91%
Revenue beat(16)9
Avg Revenue beat(16)2.14%
PT rev (1m)11.07%
PT rev (3m)30.36%
EPS NQ rev (1m)-1.48%
EPS NQ rev (3m)-1.48%
EPS NY rev (1m)0%
EPS NY rev (3m)3.05%
Revenue NQ rev (1m)-0.59%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.94 | ||
| Fwd PE | 27.9 | ||
| P/S | 5.93 | ||
| P/FCF | 23.86 | ||
| P/OCF | 23.25 | ||
| P/B | 17.22 | ||
| P/tB | 20.01 | ||
| EV/EBITDA | 31.23 |
EPS(TTM)2.15
EY3.58%
EPS(NY)2.15
Fwd EY3.58%
FCF(TTM)2.52
FCFY4.19%
OCF(TTM)2.58
OCFY4.3%
SpS10.13
BVpS3.49
TBVpS3
PEG (NY)1.68
PEG (5Y)N/A
Graham Number12.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.5% | ||
| ROE | 46.57% | ||
| ROCE | 43.57% | ||
| ROIC | 30.62% | ||
| ROICexc | 61.91% | ||
| ROICexgc | 81.67% | ||
| OM | 17.49% | ||
| PM (TTM) | 16.05% | ||
| GM | 75.74% | ||
| FCFM | 24.87% |
ROA(3y)-5.12%
ROA(5y)-4.63%
ROE(3y)-76.04%
ROE(5y)-50.92%
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
ROICexgc growth 3YN/A
ROICexgc 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 3Y0.76%
GM growth 5Y2.29%
F-Score9
Asset Turnover1.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 82.25% | ||
| Cap/Sales | 0.65% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 139.6% | ||
| Profit Quality | 154.97% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 11.57 |
F-Score9
WACC10.83%
ROIC/WACC2.83
Cap/Depr(3y)107.22%
Cap/Depr(5y)95.53%
Cap/Sales(3y)1.46%
Cap/Sales(5y)1.55%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-20.52%
EPS 3Y137.43%
EPS 5YN/A
EPS Q2Q%53.85%
EPS Next Y16.59%
EPS Next 2Y11.24%
EPS Next 3Y8.99%
EPS Next 5Y2.07%
Revenue 1Y (TTM)17%
Revenue growth 3Y7.31%
Revenue growth 5Y10.44%
Sales Q2Q%17.32%
Revenue Next Year15.59%
Revenue Next 2Y10.89%
Revenue Next 3Y9.36%
Revenue Next 5Y5.82%
EBIT growth 1Y75.98%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year53.54%
EBIT Next 3Y23.62%
EBIT Next 5Y6.1%
FCF growth 1Y194.63%
FCF growth 3Y127.83%
FCF growth 5YN/A
OCF growth 1Y154.62%
OCF growth 3Y106.83%
OCF growth 5YN/A
PEGASYSTEMS INC / PEGA FAQ
What is the ChartMill fundamental rating of PEGASYSTEMS INC (PEGA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to PEGA.
Can you provide the valuation status for PEGASYSTEMS INC?
ChartMill assigns a valuation rating of 4 / 10 to PEGASYSTEMS INC (PEGA). This can be considered as Fairly Valued.
What is the profitability of PEGA stock?
PEGASYSTEMS INC (PEGA) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for PEGA stock?
The Earnings per Share (EPS) of PEGASYSTEMS INC (PEGA) is expected to grow by 16.59% in the next year.
Can you provide the dividend sustainability for PEGA stock?
The dividend rating of PEGASYSTEMS INC (PEGA) is 4 / 10 and the dividend payout ratio is 4.63%.