PEGASYSTEMS INC (PEGA) Stock Fundamental Analysis

NASDAQ:PEGA • US7055731035

44.46 USD
-0.22 (-0.49%)
Last: Feb 19, 2026, 02:38 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

Overall PEGA gets a fundamental rating of 7 out of 10. We evaluated PEGA against 276 industry peers in the Software industry. PEGA gets an excellent profitability rating and is at the same time showing great financial health properties. PEGA has a correct valuation and a medium growth rate. This makes PEGA very considerable for quality investing!


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year PEGA was profitable.
  • PEGA had a positive operating cash flow in the past year.
  • In multiple years PEGA reported negative net income over the last 5 years.
  • Each year in the past 5 years PEGA had a positive operating cash flow.
PEGA Yearly Net Income VS EBIT VS OCF VS FCFPEGA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M

1.2 Ratios

  • The Return On Assets of PEGA (24.11%) is better than 97.10% of its industry peers.
  • PEGA has a Return On Equity of 49.97%. This is amongst the best in the industry. PEGA outperforms 96.01% of its industry peers.
  • With an excellent Return On Invested Capital value of 22.12%, PEGA belongs to the best of the industry, outperforming 94.93% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for PEGA is above the industry average of 10.64%.
  • The 3 year average ROIC (15.39%) for PEGA is below the current ROIC(22.12%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 24.11%
ROE 49.97%
ROIC 22.12%
ROA(3y)11.4%
ROA(5y)0.96%
ROE(3y)28.69%
ROE(5y)-38.66%
ROIC(3y)15.39%
ROIC(5y)N/A
PEGA Yearly ROA, ROE, ROICPEGA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -100 -200

1.3 Margins

  • The Profit Margin of PEGA (22.54%) is better than 86.59% of its industry peers.
  • Looking at the Operating Margin, with a value of 16.29%, PEGA belongs to the top of the industry, outperforming 82.25% of the companies in the same industry.
  • PEGA has a Gross Margin of 75.86%. This is in the better half of the industry: PEGA outperforms 68.84% of its industry peers.
  • In the last couple of years the Gross Margin of PEGA has grown nicely.
Industry RankSector Rank
OM 16.29%
PM (TTM) 22.54%
GM 75.86%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.74%
GM growth 5Y1.78%
PEGA Yearly Profit, Operating, Gross MarginsPEGA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 60

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

9

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PEGA is creating value.
  • PEGA has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for PEGA has been increased compared to 5 years ago.
  • PEGA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
PEGA Yearly Shares OutstandingPEGA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
PEGA Yearly Total Debt VS Total AssetsPEGA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

2.2 Solvency

  • An Altman-Z score of 7.61 indicates that PEGA is not in any danger for bankruptcy at the moment.
  • PEGA has a better Altman-Z score (7.61) than 87.32% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 7.61
ROIC/WACC2.05
WACC10.8%
PEGA Yearly LT Debt VS Equity VS FCFPEGA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M

2.3 Liquidity

  • A Current Ratio of 1.33 indicates that PEGA should not have too much problems paying its short term obligations.
  • PEGA has a Current ratio (1.33) which is comparable to the rest of the industry.
  • A Quick Ratio of 1.33 indicates that PEGA should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.33, PEGA is in line with its industry, outperforming 40.94% of the companies in the same industry.
  • The current and quick ratio evaluation for PEGA is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 1.33
Quick Ratio 1.33
PEGA Yearly Current Assets VS Current LiabilitesPEGA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

3.1 Past

  • PEGA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.33%, which is quite impressive.
  • PEGA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 82.73% yearly.
  • PEGA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.61%.
  • Measured over the past years, PEGA shows a quite strong growth in Revenue. The Revenue has been growing by 11.40% on average per year.
EPS 1Y (TTM)40.33%
EPS 3Y82.73%
EPS 5YN/A
EPS Q2Q%-5.59%
Revenue 1Y (TTM)16.61%
Revenue growth 3Y9.83%
Revenue growth 5Y11.4%
Sales Q2Q%2.75%

3.2 Future

  • PEGA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.54% yearly.
  • Based on estimates for the next years, PEGA will show a small growth in Revenue. The Revenue will grow by 3.97% on average per year.
EPS Next Y7.41%
EPS Next 2Y6.55%
EPS Next 3Y-5.71%
EPS Next 5Y0.54%
Revenue Next Year13.71%
Revenue Next 2Y12.63%
Revenue Next 3Y12.78%
Revenue Next 5Y3.97%

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.
PEGA Yearly Revenue VS EstimatesPEGA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 500M 1B 1.5B 2B 2.5B
PEGA Yearly EPS VS EstimatesPEGA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 0 1 2 3

More info and screens

Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 21.07, the valuation of PEGA can be described as rather expensive.
  • PEGA's Price/Earnings ratio is a bit cheaper when compared to the industry. PEGA is cheaper than 68.48% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of PEGA to the average of the S&P500 Index (27.27), we can say PEGA is valued slightly cheaper.
  • A Price/Forward Earnings ratio of 19.66 indicates a rather expensive valuation of PEGA.
  • PEGA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PEGA is cheaper than 64.86% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.16, PEGA is valued a bit cheaper.
Industry RankSector Rank
PE 21.07
Fwd PE 19.66
PEGA Price Earnings VS Forward Price EarningsPEGA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • 69.57% 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 79.35% of the companies in the same industry.
Industry RankSector Rank
P/FCF 15.38
EV/EBITDA 23.29
PEGA Per share dataPEGA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • PEGA has an outstanding profitability rating, which may justify a higher PE ratio.
  • A cheap valuation may be justified as PEGA's earnings are expected to decrease with -5.71% in the coming years.
PEG (NY)2.84
PEG (5Y)N/A
EPS Next 2Y6.55%
EPS Next 3Y-5.71%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. Dividend

5.1 Amount

  • With a yearly dividend of 0.27%, 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 0.60. PEGA pays more dividend than 89.13% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.85, PEGA's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.27%

5.2 History

  • The dividend of PEGA decreases each year by -5.53%.
  • PEGA has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-5.53%
Div Incr Years0
Div Non Decr Years0
PEGA Yearly Dividends per sharePEGA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.02 0.04 0.06 0.08

5.3 Sustainability

  • PEGA pays out 3.92% of its income as dividend. This is a sustainable payout ratio.
DP3.92%
EPS Next 2Y6.55%
EPS Next 3Y-5.71%
PEGA Yearly Income VS Free CF VS DividendPEGA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M
PEGA Dividend Payout.PEGA Dividend Payout, showing the Payout Ratio.PEGA Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

PEGASYSTEMS INC

NASDAQ:PEGA (2/19/2026, 2:38:07 PM)

44.46

-0.22 (-0.49%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-10
Earnings (Next)04-20
Inst Owners59.08%
Inst Owner Change1.09%
Ins Owners46.23%
Ins Owner Change-1.6%
Market Cap7.55B
Revenue(TTM)1.75B
Net Income(TTM)393.44M
Analysts83.16
Price Target72.59 (63.27%)
Short Float %6.4%
Short Ratio3.22
Dividend
Industry RankSector Rank
Dividend Yield 0.27%
Yearly Dividend0.09
Dividend Growth(5Y)-5.53%
DP3.92%
Div Incr Years0
Div Non Decr Years0
Ex-Date01-02
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)24.35%
Min EPS beat(2)1.37%
Max EPS beat(2)47.32%
EPS beat(4)4
Avg EPS beat(4)68.65%
Min EPS beat(4)1.37%
Max EPS beat(4)206.69%
EPS beat(8)8
Avg EPS beat(8)50.18%
EPS beat(12)10
Avg EPS beat(12)741.26%
EPS beat(16)12
Avg EPS beat(16)569.07%
Revenue beat(2)2
Avg Revenue beat(2)4.16%
Min Revenue beat(2)0.03%
Max Revenue beat(2)8.29%
Revenue beat(4)4
Avg Revenue beat(4)10.77%
Min Revenue beat(4)0.03%
Max Revenue beat(4)30.76%
Revenue beat(8)6
Avg Revenue beat(8)5.8%
Revenue beat(12)8
Avg Revenue beat(12)4.54%
Revenue beat(16)10
Avg Revenue beat(16)2.8%
PT rev (1m)0%
PT rev (3m)1.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.06%
Valuation
Industry RankSector Rank
PE 21.07
Fwd PE 19.66
P/S 4.32
P/FCF 15.38
P/OCF 14.94
P/B 9.58
P/tB 10.71
EV/EBITDA 23.29
EPS(TTM)2.11
EY4.75%
EPS(NY)2.26
Fwd EY5.09%
FCF(TTM)2.89
FCFY6.5%
OCF(TTM)2.98
OCFY6.7%
SpS10.29
BVpS4.64
TBVpS4.15
PEG (NY)2.84
PEG (5Y)N/A
Graham Number14.84
Profitability
Industry RankSector Rank
ROA 24.11%
ROE 49.97%
ROCE 31.81%
ROIC 22.12%
ROICexc 42.23%
ROICexgc 51.29%
OM 16.29%
PM (TTM) 22.54%
GM 75.86%
FCFM 28.11%
ROA(3y)11.4%
ROA(5y)0.96%
ROE(3y)28.69%
ROE(5y)-38.66%
ROIC(3y)15.39%
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)22.13%
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 3Y1.74%
GM growth 5Y1.78%
F-Score9
Asset Turnover1.07
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 105.88%
Cap/Sales 0.83%
Interest Coverage 162.14
Cash Conversion 169.49%
Profit Quality 124.73%
Current Ratio 1.33
Quick Ratio 1.33
Altman-Z 7.61
F-Score9
WACC10.8%
ROIC/WACC2.05
Cap/Depr(3y)79.75%
Cap/Depr(5y)92.85%
Cap/Sales(3y)0.84%
Cap/Sales(5y)1.21%
Profit Quality(3y)254.05%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)40.33%
EPS 3Y82.73%
EPS 5YN/A
EPS Q2Q%-5.59%
EPS Next Y7.41%
EPS Next 2Y6.55%
EPS Next 3Y-5.71%
EPS Next 5Y0.54%
Revenue 1Y (TTM)16.61%
Revenue growth 3Y9.83%
Revenue growth 5Y11.4%
Sales Q2Q%2.75%
Revenue Next Year13.71%
Revenue Next 2Y12.63%
Revenue Next 3Y12.78%
Revenue Next 5Y3.97%
EBIT growth 1Y76.85%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year14.53%
EBIT Next 3Y3.6%
EBIT Next 5Y-0.44%
FCF growth 1Y45.09%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y46.05%
OCF growth 3Y182.96%
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 7 / 10 to PEGA.


What is the valuation status for PEGA stock?

ChartMill assigns a valuation rating of 5 / 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 8 / 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 21.07 and the Price/Book (PB) ratio is 9.58.


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 7.41% in the next year.