62.13 USD
-0.5 (-0.8%)
62.13 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to PEGA. PEGA was compared to 278 industry peers in the Software industry. PEGA has an excellent financial health rating, but there are some minor concerns on its profitability. 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.
PEGA had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: PEGA reported negative net income in multiple years.
PEGA had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of PEGA (21.50%) is better than 96.04% of its industry peers.
The Return On Equity of PEGA (46.57%) is better than 95.68% of its industry peers.
PEGA has a better Return On Invested Capital (30.62%) 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
PEGA has a better Profit Margin (16.05%) than 79.50% of its industry peers.
Looking at the Operating Margin, with a value of 17.49%, PEGA belongs to the top of the industry, outperforming 84.17% of the companies in the same industry.
PEGA has a better Gross Margin (75.74%) than 69.06% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PEGA 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
Compared to 1 year ago, PEGA has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 11.73 indicates that PEGA is not in any danger for bankruptcy at the moment.
PEGA has a Altman-Z score of 11.73. This is amongst the best in the industry. PEGA outperforms 89.21% 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 | 11.73 |
ROIC/WACC2.84
WACC10.8%
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.
A Quick Ratio of 1.36 indicates that PEGA should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.36, PEGA is in line with its industry, outperforming 42.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 36.08% over the past year.
Measured over the past years, PEGA shows a very strong growth in Earnings Per Share. The EPS has been growing by 184.70% on average per year.
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.
PEGA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.01% yearly.
EPS Next Y41.72%
EPS Next 2Y23.3%
EPS Next 3Y17.34%
EPS Next 5Y5.26%
Revenue Next Year17.52%
Revenue Next 2Y11.96%
Revenue Next 3Y10.13%
Revenue Next 5Y6.01%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 28.90 indicates a quite expensive valuation of PEGA.
Compared to the rest of the industry, the Price/Earnings ratio of PEGA indicates a somewhat cheap valuation: PEGA is cheaper than 64.39% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.50, PEGA is valued at the same level.
The Price/Forward Earnings ratio is 27.24, which means the current valuation is very expensive for PEGA.
Based on the Price/Forward Earnings ratio, PEGA is valued a bit cheaper than the industry average as 62.23% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.93. PEGA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.9 | ||
| Fwd PE | 27.24 |
4.2 Price Multiples
PEGA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PEGA is cheaper than 68.35% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PEGA is valued a bit cheaper than the industry average as 75.54% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.48 | ||
| EV/EBITDA | 31.82 |
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.
The decent profitability rating of PEGA may justify a higher PE ratio.
A more expensive valuation may be justified as PEGA's earnings are expected to grow with 17.34% in the coming years.
PEG (NY)0.69
PEG (5Y)N/A
EPS Next 2Y23.3%
EPS Next 3Y17.34%
5. Dividend
5.1 Amount
With a yearly dividend of 0.20%, PEGA is not a good candidate for dividend investing.
PEGA's Dividend Yield is rather good when compared to the industry average which is at 0.52. PEGA pays more dividend than 88.49% of the companies in the same industry.
With a Dividend Yield of 0.20, PEGA pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
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 2Y23.3%
EPS Next 3Y17.34%
62.13
-0.5 (-0.8%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners59.01%
Inst Owner Change5.98%
Ins Owners46.47%
Ins Owner Change-0.88%
Market Cap10.54B
Revenue(TTM)1.73B
Net Income(TTM)277.95M
Analysts83
Price TargetN/A
Short Float %7.2%
Short Ratio5.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.2% |
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)794.68%
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)0%
PT rev (3m)11.07%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)-1.17%
EPS NY rev (1m)0%
EPS NY rev (3m)4.79%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)-0.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.9 | ||
| Fwd PE | 27.24 | ||
| P/S | 6.09 | ||
| P/FCF | 24.48 | ||
| P/OCF | 23.86 | ||
| P/B | 17.67 | ||
| P/tB | 20.53 | ||
| EV/EBITDA | 31.82 |
EPS(TTM)2.15
EY3.46%
EPS(NY)2.28
Fwd EY3.67%
FCF(TTM)2.54
FCFY4.08%
OCF(TTM)2.6
OCFY4.19%
SpS10.21
BVpS3.52
TBVpS3.03
PEG (NY)0.69
PEG (5Y)N/A
Graham Number13.04
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 | 11.73 |
F-Score9
WACC10.8%
ROIC/WACC2.84
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)36.08%
EPS 3Y184.7%
EPS 5YN/A
EPS Q2Q%53.85%
EPS Next Y41.72%
EPS Next 2Y23.3%
EPS Next 3Y17.34%
EPS Next 5Y5.26%
Revenue 1Y (TTM)17%
Revenue growth 3Y7.31%
Revenue growth 5Y10.44%
Sales Q2Q%17.32%
Revenue Next Year17.52%
Revenue Next 2Y11.96%
Revenue Next 3Y10.13%
Revenue Next 5Y6.01%
EBIT growth 1Y75.98%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year60.17%
EBIT Next 3Y26.63%
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 6 / 10 to PEGA.
Can you provide the valuation status for PEGASYSTEMS INC?
ChartMill assigns a valuation rating of 5 / 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 41.72% 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%.