PEGASYSTEMS INC (PEGA) Stock Fundamental Analysis
USA - NASDAQ:PEGA - US7055731035 - Common Stock
59.68 USD
0 (0%)
59.68 USD
0 (0%)
PEGA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 281 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 correct valuation and a medium 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.
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
PEGA has a better Return On Assets (16.63%) than 92.53% of its industry peers.
Looking at the Return On Equity, with a value of 35.26%, PEGA belongs to the top of the industry, outperforming 93.59% of the companies in the same industry.
PEGA's Return On Invested Capital of 27.09% is amongst the best of the industry. PEGA outperforms 95.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.63% | ||
| ROE | 35.26% | ||
| ROIC | 27.09% |
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 (13.14%) is better than 76.16% of its industry peers.
PEGA has a better Operating Margin (16.66%) than 83.27% of its industry peers.
PEGA's Gross Margin of 75.47% is fine compared to the rest of the industry. PEGA outperforms 68.68% of its industry peers.
In the last couple of years the Gross Margin of PEGA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.66% | ||
| PM (TTM) | 13.14% | ||
| GM | 75.47% |
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.
PEGA has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, PEGA has more shares outstanding
The debt/assets ratio for PEGA has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 11.14 indicates that PEGA is not in any danger for bankruptcy at the moment.
PEGA has a better Altman-Z score (11.14) than 87.19% 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 | 11.14 |
ROIC/WACC2.49
WACC10.87%
2.3 Liquidity
PEGA has a Current Ratio of 1.41. This is a normal value and indicates that PEGA is financially healthy and should not expect problems in meeting its short term obligations.
PEGA's Current ratio of 1.41 is in line compared to the rest of the industry. PEGA outperforms 46.98% of its industry peers.
A Quick Ratio of 1.41 indicates that PEGA should not have too much problems paying its short term obligations.
PEGA has a Quick ratio of 1.41. This is comparable to the rest of the industry: PEGA outperforms 46.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
PEGA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -30.68%.
The Earnings Per Share has been growing by 137.43% on average over the past years. This is a very strong growth
Looking at the last year, PEGA shows a quite strong growth in Revenue. The Revenue has grown by 12.47% in the last year.
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)-30.68%
EPS 3Y137.43%
EPS 5YN/A
EPS Q2Q%7.69%
Revenue 1Y (TTM)12.47%
Revenue growth 3Y7.31%
Revenue growth 5Y10.44%
Sales Q2Q%9.5%
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 2.07% on average per year.
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
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.
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
PEGA is valuated quite expensively with a Price/Earnings ratio of 29.11.
Based on the Price/Earnings ratio, PEGA is valued a bit cheaper than the industry average as 67.97% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.38, PEGA is valued at the same level.
PEGA is valuated quite expensively with a Price/Forward Earnings ratio of 27.72.
Based on the Price/Forward Earnings ratio, PEGA is valued a bit cheaper than 65.48% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.86. PEGA is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.11 | ||
| Fwd PE | 27.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PEGA is valued a bit cheaper than 73.31% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PEGA is valued a bit cheaper than 76.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.13 | ||
| EV/EBITDA | 32.57 |
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)1.75
PEG (5Y)N/A
EPS Next 2Y11.24%
EPS Next 3Y8.99%
5. Dividend
5.1 Amount
With a yearly dividend of 0.10%, 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 40.43. PEGA pays more dividend than 88.97% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, PEGA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.1% |
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
PEGA pays out 4.67% of its income as dividend. This is a sustainable payout ratio.
DP4.67%
EPS Next 2Y11.24%
EPS Next 3Y8.99%
59.68
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners50.35%
Inst Owner Change112.81%
Ins Owners46.92%
Ins Owner Change-0.79%
Market Cap10.21B
Analysts82
Price Target64.4 (7.91%)
Short Float %6.33%
Short Ratio3.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.1% |
Yearly Dividend0.06
Dividend Growth(5Y)-12.97%
DP4.67%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)112.96%
Min EPS beat(2)19.23%
Max EPS beat(2)206.69%
EPS beat(4)4
Avg EPS beat(4)60.07%
Min EPS beat(4)6.36%
Max EPS beat(4)206.69%
EPS beat(8)8
Avg EPS beat(8)1119.24%
EPS beat(12)9
Avg EPS beat(12)789.6%
EPS beat(16)10
Avg EPS beat(16)559.2%
Revenue beat(2)2
Avg Revenue beat(2)17.37%
Min Revenue beat(2)3.99%
Max Revenue beat(2)30.76%
Revenue beat(4)3
Avg Revenue beat(4)8.75%
Min Revenue beat(4)-1.97%
Max Revenue beat(4)30.76%
Revenue beat(8)6
Avg Revenue beat(8)7.68%
Revenue beat(12)7
Avg Revenue beat(12)4.69%
Revenue beat(16)8
Avg Revenue beat(16)1.1%
PT rev (1m)0%
PT rev (3m)-38.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-49.41%
EPS NY rev (1m)0%
EPS NY rev (3m)-48.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.11 | ||
| Fwd PE | 27.72 | ||
| P/S | 6.09 | ||
| P/FCF | 25.13 | ||
| P/OCF | 24.53 | ||
| P/B | 16.35 | ||
| P/tB | 18.89 | ||
| EV/EBITDA | 32.57 |
EPS(TTM)2.05
EY3.43%
EPS(NY)2.15
Fwd EY3.61%
FCF(TTM)2.37
FCFY3.98%
OCF(TTM)2.43
OCFY4.08%
SpS9.8
BVpS3.65
TBVpS3.16
PEG (NY)1.75
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.63% | ||
| ROE | 35.26% | ||
| ROCE | 38.53% | ||
| ROIC | 27.09% | ||
| ROICexc | 62.68% | ||
| ROICexgc | 85.64% | ||
| OM | 16.66% | ||
| PM (TTM) | 13.14% | ||
| GM | 75.47% | ||
| FCFM | 24.24% |
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
ROICexcg growth 3YN/A
ROICexcg 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 Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 65.4% | ||
| Cap/Sales | 0.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 141.37% | ||
| Profit Quality | 184.52% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 11.14 |
F-Score9
WACC10.87%
ROIC/WACC2.49
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)-30.68%
EPS 3Y137.43%
EPS 5YN/A
EPS Q2Q%7.69%
EPS Next Y16.59%
EPS Next 2Y11.24%
EPS Next 3Y8.99%
EPS Next 5Y2.07%
Revenue 1Y (TTM)12.47%
Revenue growth 3Y7.31%
Revenue growth 5Y10.44%
Sales Q2Q%9.5%
Revenue Next Year15.59%
Revenue Next 2Y10.89%
Revenue Next 3Y9.36%
Revenue Next 5Y5.82%
EBIT growth 1Y48.31%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year53.54%
EBIT Next 3Y23.62%
EBIT Next 5Y6.1%
FCF growth 1Y291.43%
FCF growth 3Y127.83%
FCF growth 5YN/A
OCF growth 1Y194.74%
OCF growth 3Y106.83%
OCF growth 5YN/A