PROGRESS SOFTWARE CORP (PRGS) Stock Fundamental Analysis
USA - NASDAQ:PRGS - US7433121008 - Common Stock
39.79 USD
-2.23 (-5.31%)
39.79 USD
0 (0%)
PRGS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 281 industry peers in the Software industry. While PRGS has a great profitability rating, there are quite some concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on PRGS.
1. Profitability
1.1 Basic Checks
In the past year PRGS was profitable.
In the past year PRGS had a positive cash flow from operations.
PRGS had positive earnings in each of the past 5 years.
PRGS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PRGS has a better Return On Assets (2.00%) than 62.99% of its industry peers.
The Return On Equity of PRGS (10.16%) is better than 76.16% of its industry peers.
With an excellent Return On Invested Capital value of 8.52%, PRGS belongs to the best of the industry, outperforming 81.49% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PRGS is below the industry average of 12.07%.
The 3 year average ROIC (7.93%) for PRGS is below the current ROIC(8.52%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2% | ||
| ROE | 10.16% | ||
| ROIC | 8.52% |
ROA(3y)4.61%
ROA(5y)5.45%
ROE(3y)18.24%
ROE(5y)19.35%
ROIC(3y)7.93%
ROIC(5y)9.13%
1.3 Margins
The Profit Margin of PRGS (5.16%) is better than 65.84% of its industry peers.
In the last couple of years the Profit Margin of PRGS has grown nicely.
The Operating Margin of PRGS (18.62%) is better than 85.05% of its industry peers.
In the last couple of years the Operating Margin of PRGS has grown nicely.
PRGS has a better Gross Margin (81.11%) than 85.05% of its industry peers.
PRGS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.62% | ||
| PM (TTM) | 5.16% | ||
| GM | 81.11% |
OM growth 3Y-4.3%
OM growth 5Y3.62%
PM growth 3Y-14.93%
PM growth 5Y7.3%
GM growth 3Y-1.01%
GM growth 5Y0.21%
2. Health
2.1 Basic Checks
PRGS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for PRGS has been reduced compared to 1 year ago.
The number of shares outstanding for PRGS has been reduced compared to 5 years ago.
The debt/assets ratio for PRGS is higher compared to a year ago.
2.2 Solvency
PRGS has an Altman-Z score of 1.05. This is a bad value and indicates that PRGS is not financially healthy and even has some risk of bankruptcy.
PRGS has a Altman-Z score of 1.05. This is in the lower half of the industry: PRGS underperforms 61.92% of its industry peers.
PRGS has a debt to FCF ratio of 7.64. This is a slightly negative value and a sign of low solvency as PRGS would need 7.64 years to pay back of all of its debts.
PRGS has a Debt to FCF ratio (7.64) which is in line with its industry peers.
A Debt/Equity ratio of 2.22 is on the high side and indicates that PRGS has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.22, PRGS is doing worse than 80.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.22 | ||
| Debt/FCF | 7.64 | ||
| Altman-Z | 1.05 |
ROIC/WACC0.89
WACC9.54%
2.3 Liquidity
A Current Ratio of 0.44 indicates that PRGS may have some problems paying its short term obligations.
With a Current ratio value of 0.44, PRGS is not doing good in the industry: 93.24% of the companies in the same industry are doing better.
PRGS has a Quick Ratio of 0.44. This is a bad value and indicates that PRGS is not financially healthy enough and could expect problems in meeting its short term obligations.
PRGS has a Quick ratio of 0.44. This is amonst the worse of the industry: PRGS underperforms 92.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.44 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
PRGS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.91%, which is quite good.
The Earnings Per Share has been growing by 12.88% on average over the past years. This is quite good.
Looking at the last year, PRGS shows a very strong growth in Revenue. The Revenue has grown by 31.41%.
PRGS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.76% yearly.
EPS 1Y (TTM)19.91%
EPS 3Y8.4%
EPS 5Y12.88%
EPS Q2Q%19.05%
Revenue 1Y (TTM)31.41%
Revenue growth 3Y12.35%
Revenue growth 5Y12.76%
Sales Q2Q%39.8%
3.2 Future
Based on estimates for the next years, PRGS will show a small growth in Earnings Per Share. The EPS will grow by 5.77% on average per year.
Based on estimates for the next years, PRGS will show a small growth in Revenue. The Revenue will grow by 6.24% on average per year.
EPS Next Y14.36%
EPS Next 2Y8.4%
EPS Next 3Y5.77%
EPS Next 5YN/A
Revenue Next Year30.47%
Revenue Next 2Y15.04%
Revenue Next 3Y10.3%
Revenue Next 5Y6.24%
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
PRGS is valuated cheaply with a Price/Earnings ratio of 7.18.
91.46% of the companies in the same industry are more expensive than PRGS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of PRGS to the average of the S&P500 Index (25.89), we can say PRGS is valued rather cheaply.
PRGS is valuated cheaply with a Price/Forward Earnings ratio of 6.87.
92.53% of the companies in the same industry are more expensive than PRGS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, PRGS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.18 | ||
| Fwd PE | 6.87 |
4.2 Price Multiples
PRGS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PRGS is cheaper than 89.32% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PRGS is valued cheaper than 92.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.2 | ||
| EV/EBITDA | 9.81 |
4.3 Compensation for Growth
PRGS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PRGS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.5
PEG (5Y)0.56
EPS Next 2Y8.4%
EPS Next 3Y5.77%
5. Dividend
5.1 Amount
PRGS has a Yearly Dividend Yield of 1.31%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 42.42, PRGS pays a better dividend. On top of this PRGS pays more dividend than 92.17% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, PRGS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
5.2 History
The dividend of PRGS has a limited annual growth rate of 3.19%.
PRGS has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)3.19%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
PRGS pays out 15.77% of its income as dividend. This is a sustainable payout ratio.
The dividend of PRGS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP15.77%
EPS Next 2Y8.4%
EPS Next 3Y5.77%
39.79
-2.23 (-5.31%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners116.63%
Inst Owner Change-11.75%
Ins Owners1.73%
Ins Owner Change5.85%
Market Cap1.71B
Revenue(TTM)940.13M
Net Income(TTM)48.54M
Analysts86.67
Price Target69.7 (75.17%)
Short Float %11.89%
Short Ratio5.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend0.72
Dividend Growth(5Y)3.19%
DP15.77%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.42%
Min EPS beat(2)5.42%
Max EPS beat(2)13.41%
EPS beat(4)4
Avg EPS beat(4)11.91%
Min EPS beat(4)5.42%
Max EPS beat(4)21.52%
EPS beat(8)8
Avg EPS beat(8)10.74%
EPS beat(12)12
Avg EPS beat(12)9.93%
EPS beat(16)16
Avg EPS beat(16)10.12%
Revenue beat(2)1
Avg Revenue beat(2)-0.02%
Min Revenue beat(2)-2.03%
Max Revenue beat(2)1.99%
Revenue beat(4)1
Avg Revenue beat(4)-0.31%
Min Revenue beat(4)-2.03%
Max Revenue beat(4)1.99%
Revenue beat(8)2
Avg Revenue beat(8)-0.06%
Revenue beat(12)4
Avg Revenue beat(12)-0.12%
Revenue beat(16)6
Avg Revenue beat(16)-0.03%
PT rev (1m)-2.38%
PT rev (3m)-2.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.01%
EPS NY rev (1m)3.72%
EPS NY rev (3m)3.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.18 | ||
| Fwd PE | 6.87 | ||
| P/S | 1.82 | ||
| P/FCF | 9.2 | ||
| P/OCF | 8.92 | ||
| P/B | 3.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.81 |
EPS(TTM)5.54
EY13.92%
EPS(NY)5.79
Fwd EY14.56%
FCF(TTM)4.33
FCFY10.87%
OCF(TTM)4.46
OCFY11.21%
SpS21.91
BVpS11.13
TBVpS-33.81
PEG (NY)0.5
PEG (5Y)0.56
Graham Number37.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2% | ||
| ROE | 10.16% | ||
| ROCE | 10.6% | ||
| ROIC | 8.52% | ||
| ROICexc | 9.06% | ||
| ROICexgc | N/A | ||
| OM | 18.62% | ||
| PM (TTM) | 5.16% | ||
| GM | 81.11% | ||
| FCFM | 19.75% |
ROA(3y)4.61%
ROA(5y)5.45%
ROE(3y)18.24%
ROE(5y)19.35%
ROIC(3y)7.93%
ROIC(5y)9.13%
ROICexc(3y)9.33%
ROICexc(5y)10.7%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)9.87%
ROCE(5y)11.36%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-17.49%
ROICexc growth 5Y-12.26%
OM growth 3Y-4.3%
OM growth 5Y3.62%
PM growth 3Y-14.93%
PM growth 5Y7.3%
GM growth 3Y-1.01%
GM growth 5Y0.21%
F-Score5
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.22 | ||
| Debt/FCF | 7.64 | ||
| Debt/EBITDA | 3.33 | ||
| Cap/Depr | 3.99% | ||
| Cap/Sales | 0.61% | ||
| Interest Coverage | 3.01 | ||
| Cash Conversion | 60.13% | ||
| Profit Quality | 382.52% | ||
| Current Ratio | 0.44 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 1.05 |
F-Score5
WACC9.54%
ROIC/WACC0.89
Cap/Depr(3y)6.21%
Cap/Depr(5y)9.24%
Cap/Sales(3y)0.84%
Cap/Sales(5y)0.97%
Profit Quality(3y)245.65%
Profit Quality(5y)226.43%
High Growth Momentum
Growth
EPS 1Y (TTM)19.91%
EPS 3Y8.4%
EPS 5Y12.88%
EPS Q2Q%19.05%
EPS Next Y14.36%
EPS Next 2Y8.4%
EPS Next 3Y5.77%
EPS Next 5YN/A
Revenue 1Y (TTM)31.41%
Revenue growth 3Y12.35%
Revenue growth 5Y12.76%
Sales Q2Q%39.8%
Revenue Next Year30.47%
Revenue Next 2Y15.04%
Revenue Next 3Y10.3%
Revenue Next 5Y6.24%
EBIT growth 1Y25.44%
EBIT growth 3Y7.51%
EBIT growth 5Y16.84%
EBIT Next Year28.15%
EBIT Next 3Y10.6%
EBIT Next 5YN/A
FCF growth 1Y6.22%
FCF growth 3Y5.88%
FCF growth 5Y10.63%
OCF growth 1Y5.74%
OCF growth 3Y5.82%
OCF growth 5Y10.48%
PROGRESS SOFTWARE CORP / PRGS FAQ
What is the ChartMill fundamental rating of PROGRESS SOFTWARE CORP (PRGS) stock?
ChartMill assigns a fundamental rating of 5 / 10 to PRGS.
What is the valuation status for PRGS stock?
ChartMill assigns a valuation rating of 9 / 10 to PROGRESS SOFTWARE CORP (PRGS). This can be considered as Undervalued.
Can you provide the profitability details for PROGRESS SOFTWARE CORP?
PROGRESS SOFTWARE CORP (PRGS) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for PRGS stock?
The Price/Earnings (PE) ratio for PROGRESS SOFTWARE CORP (PRGS) is 7.18 and the Price/Book (PB) ratio is 3.57.
Is the dividend of PROGRESS SOFTWARE CORP sustainable?
The dividend rating of PROGRESS SOFTWARE CORP (PRGS) is 5 / 10 and the dividend payout ratio is 15.77%.