44.33 USD
+0.45 (+1.03%)
44.66 USD
+0.33 (+0.74%)
Overall PRGS gets a fundamental rating of 5 out of 10. We evaluated PRGS against 280 industry peers in the Software industry. While PRGS has a great profitability rating, there are quite some concerns on its financial health. PRGS scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
Each year in the past 5 years PRGS has been profitable.
PRGS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PRGS (2.00%) is better than 62.86% of its industry peers.
PRGS has a better Return On Equity (10.16%) than 75.00% of its industry peers.
PRGS's Return On Invested Capital of 8.52% is amongst the best of the industry. PRGS outperforms 80.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PRGS is below the industry average of 10.98%.
The last Return On Invested Capital (8.52%) for PRGS is above the 3 year average (7.93%), which is a sign of increasing profitability.
| 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
PRGS has a better Profit Margin (5.16%) than 65.00% of its industry peers.
In the last couple of years the Profit Margin of PRGS has grown nicely.
PRGS has a Operating Margin of 18.62%. This is amongst the best in the industry. PRGS outperforms 85.36% 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 85.36% 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.
PRGS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PRGS has a worse debt to assets ratio.
2.2 Solvency
PRGS has an Altman-Z score of 1.07. This is a bad value and indicates that PRGS is not financially healthy and even has some risk of bankruptcy.
PRGS's Altman-Z score of 1.07 is on the low side compared to the rest of the industry. PRGS is outperformed by 62.86% 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's Debt to FCF ratio of 7.64 is in line compared to the rest of the industry. PRGS outperforms 52.86% of its industry peers.
A Debt/Equity ratio of 2.22 is on the high side and indicates that PRGS has dependencies on debt financing.
PRGS's Debt to Equity ratio of 2.22 is on the low side compared to the rest of the industry. PRGS is outperformed by 81.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.22 | ||
| Debt/FCF | 7.64 | ||
| Altman-Z | 1.07 |
ROIC/WACC0.9
WACC9.48%
2.3 Liquidity
PRGS has a Current 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.
With a Current ratio value of 0.44, PRGS is not doing good in the industry: 94.29% 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.
Looking at the Quick ratio, with a value of 0.44, PRGS is doing worse than 93.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.44 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.91% over the past year.
The Earnings Per Share has been growing by 12.88% on average over the past years. This is quite good.
The Revenue has grown by 31.41% in the past year. This is a very strong growth!
The Revenue has been growing by 12.76% on average over the past years. This is quite good.
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.
The Revenue is expected to grow by 6.24% on average over the next years.
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
With a Price/Earnings ratio of 8.00, the valuation of PRGS can be described as very reasonable.
90.71% of the companies in the same industry are more expensive than PRGS, based on the Price/Earnings ratio.
PRGS is valuated cheaply when we compare the Price/Earnings ratio to 26.28, which is the current average of the S&P500 Index.
PRGS is valuated cheaply with a Price/Forward Earnings ratio of 7.65.
Based on the Price/Forward Earnings ratio, PRGS is valued cheaply inside the industry as 92.14% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.52. PRGS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8 | ||
| Fwd PE | 7.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRGS is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PRGS is valued cheaper than 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.25 | ||
| EV/EBITDA | 10.06 |
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)0.56
PEG (5Y)0.62
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 60.83, PRGS pays a better dividend. On top of this PRGS pays more dividend than 92.86% of the companies listed in the same industry.
With a Dividend Yield of 1.31, PRGS pays less dividend than the S&P500 average, which is at 2.31.
| 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.
PRGS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP15.77%
EPS Next 2Y8.4%
EPS Next 3Y5.77%
44.33
+0.45 (+1.03%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners112.83%
Inst Owner Change-11.4%
Ins Owners1.79%
Ins Owner Change2.41%
Market Cap1.90B
Revenue(TTM)940.13M
Net Income(TTM)48.54M
Analysts86.67
Price Target69.7 (57.23%)
Short Float %11.94%
Short Ratio6.15
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)0%
PT rev (3m)-2.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.01%
EPS NY rev (1m)0%
EPS NY rev (3m)3.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8 | ||
| Fwd PE | 7.65 | ||
| P/S | 2.02 | ||
| P/FCF | 10.25 | ||
| P/OCF | 9.94 | ||
| P/B | 3.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.06 |
EPS(TTM)5.54
EY12.5%
EPS(NY)5.79
Fwd EY13.07%
FCF(TTM)4.33
FCFY9.76%
OCF(TTM)4.46
OCFY10.06%
SpS21.91
BVpS11.13
TBVpS-33.81
PEG (NY)0.56
PEG (5Y)0.62
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 | 1.07 |
F-Score5
WACC9.48%
ROIC/WACC0.9
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 Year30.65%
EBIT Next 3Y10.66%
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 8 and the Price/Book (PB) ratio is 3.98.
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%.