PROGRESS SOFTWARE CORP (PRGS) Stock Fundamental Analysis
USA - NASDAQ:PRGS - US7433121008 - Common Stock
46.01 USD
+0.94 (+2.09%)
46.01 USD
0 (0%)
Taking everything into account, PRGS scores 5 out of 10 in our fundamental rating. PRGS was compared to 285 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.
PRGS had a positive operating cash flow in the past year.
PRGS had positive earnings in each of the past 5 years.
In the past 5 years PRGS always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 2.00%, PRGS is doing good in the industry, outperforming 64.56% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.16%, PRGS is in the better half of the industry, outperforming 77.89% of the companies in the same industry.
PRGS has a better Return On Invested Capital (8.48%) than 80.70% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PRGS is below the industry average of 11.88%.
The last Return On Invested Capital (8.48%) 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 | 8.48% |
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 Profit Margin of 5.16%. This is in the better half of the industry: PRGS outperforms 68.07% of its industry peers.
PRGS's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 18.55%, PRGS belongs to the best of the industry, outperforming 85.61% of the companies in the same industry.
PRGS's Operating Margin has improved in the last couple of years.
PRGS has a Gross Margin of 81.11%. This is amongst the best in the industry. PRGS outperforms 84.21% of its industry peers.
PRGS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.55% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PRGS 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 1.09. This is a bad value and indicates that PRGS is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.09, PRGS is doing worse than 64.21% of the companies in the same industry.
PRGS has a debt to FCF ratio of 7.62. This is a slightly negative value and a sign of low solvency as PRGS would need 7.62 years to pay back of all of its debts.
PRGS's Debt to FCF ratio of 7.62 is in line compared to the rest of the industry. PRGS outperforms 52.98% 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.
With a Debt to Equity ratio value of 2.22, PRGS is not doing good in the industry: 80.35% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.22 | ||
| Debt/FCF | 7.62 | ||
| Altman-Z | 1.09 |
ROIC/WACC0.88
WACC9.63%
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.
PRGS's Current ratio of 0.44 is on the low side compared to the rest of the industry. PRGS is outperformed by 91.93% of its industry peers.
A Quick Ratio of 0.44 indicates that PRGS may have some problems paying its short term obligations.
PRGS has a Quick ratio of 0.44. This is amonst the worse of the industry: PRGS underperforms 91.23% 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.
Measured over the past years, PRGS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.88% on average per year.
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
PRGS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.67% yearly.
PRGS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.24% yearly.
EPS Next Y10.26%
EPS Next 2Y7.78%
EPS Next 3Y5.67%
EPS Next 5YN/A
Revenue Next Year30.21%
Revenue Next 2Y15.04%
Revenue Next 3Y10.12%
Revenue Next 5Y6.24%
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
A Price/Earnings ratio of 8.31 indicates a reasonable valuation of PRGS.
Based on the Price/Earnings ratio, PRGS is valued cheaper than 92.98% of the companies in the same industry.
When comparing the Price/Earnings ratio of PRGS to the average of the S&P500 Index (26.91), we can say PRGS is valued rather cheaply.
The Price/Forward Earnings ratio is 8.03, which indicates a very decent valuation of PRGS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PRGS indicates a rather cheap valuation: PRGS is cheaper than 94.74% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of PRGS to the average of the S&P500 Index (22.92), we can say PRGS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.31 | ||
| Fwd PE | 8.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRGS is valued cheaper than 90.53% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PRGS is valued cheaply inside the industry as 94.39% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.6 | ||
| EV/EBITDA | 10.25 |
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 excellent profitability rating of PRGS may justify a higher PE ratio.
PEG (NY)0.81
PEG (5Y)0.64
EPS Next 2Y7.78%
EPS Next 3Y5.67%
5. Dividend
5.1 Amount
PRGS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
46.01
+0.94 (+2.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners116.63%
Inst Owner Change0.22%
Ins Owners1.73%
Ins Owner Change3.21%
Market Cap1.97B
Revenue(TTM)940.13M
Net Income(TTM)48.53M
Analysts83.33
Price Target71.4 (55.18%)
Short Float %12.33%
Short Ratio5.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.72
Dividend Growth(5Y)3.19%
DP17.1%
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)-3.89%
EPS NQ rev (1m)-0.53%
EPS NQ rev (3m)-1.49%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)-0.43%
Revenue NQ rev (1m)0.44%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)0.92%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.31 | ||
| Fwd PE | 8.03 | ||
| P/S | 2.1 | ||
| P/FCF | 10.6 | ||
| P/OCF | 10.28 | ||
| P/B | 4.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.25 |
EPS(TTM)5.54
EY12.04%
EPS(NY)5.73
Fwd EY12.45%
FCF(TTM)4.34
FCFY9.44%
OCF(TTM)4.48
OCFY9.73%
SpS21.91
BVpS11.13
TBVpS-33.81
PEG (NY)0.81
PEG (5Y)0.64
Graham Number37.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2% | ||
| ROE | 10.16% | ||
| ROCE | 10.56% | ||
| ROIC | 8.48% | ||
| ROICexc | 9.02% | ||
| ROICexgc | N/A | ||
| OM | 18.55% | ||
| PM (TTM) | 5.16% | ||
| GM | 81.11% | ||
| FCFM | 19.82% |
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 | 7.62 | ||
| Debt/EBITDA | 3.34 | ||
| Cap/Depr | 3.99% | ||
| Cap/Sales | 0.61% | ||
| Interest Coverage | 3.01 | ||
| Cash Conversion | 60.46% | ||
| Profit Quality | 383.89% | ||
| Current Ratio | 0.44 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 1.09 |
F-Score5
WACC9.63%
ROIC/WACC0.88
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 Y10.26%
EPS Next 2Y7.78%
EPS Next 3Y5.67%
EPS Next 5YN/A
Revenue 1Y (TTM)31.41%
Revenue growth 3Y12.35%
Revenue growth 5Y12.76%
Sales Q2Q%39.8%
Revenue Next Year30.21%
Revenue Next 2Y15.04%
Revenue Next 3Y10.12%
Revenue Next 5Y6.24%
EBIT growth 1Y24.65%
EBIT growth 3Y7.51%
EBIT growth 5Y16.84%
EBIT Next Year28.15%
EBIT Next 3Y10.6%
EBIT Next 5YN/A
FCF growth 1Y6.59%
FCF growth 3Y5.88%
FCF growth 5Y10.63%
OCF growth 1Y6.1%
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 8 / 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 8.31 and the Price/Book (PB) ratio is 4.13.
Is the dividend of PROGRESS SOFTWARE CORP sustainable?
The dividend rating of PROGRESS SOFTWARE CORP (PRGS) is 0 / 10 and the dividend payout ratio is 17.1%.