PROGRESS SOFTWARE CORP (PRGS) Stock Fundamental Analysis
USA - NASDAQ:PRGS - US7433121008 - Common Stock
43.905 USD
+1.3 (+3.04%)
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 belongs to the best of the industry regarding profitability, there are 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's Return On Assets of 2.39% is fine compared to the rest of the industry. PRGS outperforms 66.55% of its industry peers.
With a decent Return On Equity value of 12.72%, PRGS is doing good in the industry, outperforming 79.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.29%, PRGS is in the better half of the industry, outperforming 79.72% of the companies in the same industry.
PRGS had an Average Return On Invested Capital over the past 3 years of 7.93%. This is below the industry average of 11.95%.
The 3 year average ROIC (7.93%) for PRGS is below the current ROIC(8.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.39% | ||
| ROE | 12.72% | ||
| ROIC | 8.29% |
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 (6.63%) is better than 70.11% of its industry peers.
In the last couple of years the Profit Margin of PRGS has grown nicely.
Looking at the Operating Margin, with a value of 19.74%, PRGS belongs to the top of the industry, outperforming 86.12% of the companies in the same industry.
In the last couple of years the Operating Margin of PRGS has grown nicely.
With an excellent Gross Margin value of 81.69%, PRGS belongs to the best of the industry, outperforming 87.19% of the companies in the same industry.
PRGS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.74% | ||
| PM (TTM) | 6.63% | ||
| GM | 81.69% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PRGS is destroying value.
PRGS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, PRGS has less shares outstanding
Compared to 1 year ago, PRGS has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.02, we must say that PRGS is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.02, PRGS is not doing good in the industry: 64.41% of the companies in the same industry are doing better.
PRGS has a debt to FCF ratio of 8.55. This is a slightly negative value and a sign of low solvency as PRGS would need 8.55 years to pay back of all of its debts.
PRGS has a Debt to FCF ratio (8.55) which is comparable to the rest of the industry.
PRGS has a Debt/Equity ratio of 2.43. This is a high value indicating a heavy dependency on external financing.
PRGS has a worse Debt to Equity ratio (2.43) than 80.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.43 | ||
| Debt/FCF | 8.55 | ||
| Altman-Z | 1.02 |
ROIC/WACC0.84
WACC9.86%
2.3 Liquidity
PRGS has a Current Ratio of 0.43. 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 Current ratio, with a value of 0.43, PRGS is doing worse than 91.46% of the companies in the same industry.
PRGS has a Quick Ratio of 0.43. 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 Quick ratio of 0.43 is on the low side compared to the rest of the industry. PRGS is outperformed by 90.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.43 | ||
| Quick Ratio | 0.43 |
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.
The Revenue has grown by 8.49% in the past year. This is quite good.
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)8.49%
Revenue growth 3Y12.35%
Revenue growth 5Y12.76%
Sales Q2Q%39.8%
3.2 Future
The Earnings Per Share is expected to grow by 5.67% on average over the next years.
PRGS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.07% yearly.
EPS Next Y10.26%
EPS Next 2Y7.78%
EPS Next 3Y5.67%
EPS Next 5YN/A
Revenue Next Year29.03%
Revenue Next 2Y14.59%
Revenue Next 3Y10.12%
Revenue Next 5Y7.07%
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
A Price/Earnings ratio of 7.93 indicates a rather cheap valuation of PRGS.
93.59% of the companies in the same industry are more expensive than PRGS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.67. PRGS is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 7.67, the valuation of PRGS can be described as very cheap.
PRGS's Price/Forward Earnings ratio is rather cheap when compared to the industry. PRGS is cheaper than 96.44% of the companies in the same industry.
PRGS is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.93 | ||
| Fwd PE | 7.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PRGS is valued cheaply inside the industry as 90.39% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PRGS indicates a rather cheap valuation: PRGS is cheaper than 94.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.1 | ||
| EV/EBITDA | 10.72 |
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)0.77
PEG (5Y)0.62
EPS Next 2Y7.78%
EPS Next 3Y5.67%
5. Dividend
5.1 Amount
No dividends for PRGS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:PRGS (9/30/2025, 1:08:54 PM)
43.905
+1.3 (+3.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners116.63%
Inst Owner Change91.17%
Ins Owners1.73%
Ins Owner Change3.37%
Market Cap1.89B
Analysts83.33
Price Target71.4 (62.62%)
Short Float %13.51%
Short Ratio6.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.72
Dividend Growth(5Y)3.19%
DP27.77%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.47%
Min EPS beat(2)5.42%
Max EPS beat(2)21.52%
EPS beat(4)4
Avg EPS beat(4)10.7%
Min EPS beat(4)5.42%
Max EPS beat(4)21.52%
EPS beat(8)8
Avg EPS beat(8)9.79%
EPS beat(12)12
Avg EPS beat(12)8.88%
EPS beat(16)16
Avg EPS beat(16)11.82%
Revenue beat(2)0
Avg Revenue beat(2)-1.5%
Min Revenue beat(2)-2.03%
Max Revenue beat(2)-0.97%
Revenue beat(4)0
Avg Revenue beat(4)-0.91%
Min Revenue beat(4)-2.03%
Max Revenue beat(4)-0.24%
Revenue beat(8)1
Avg Revenue beat(8)-0.39%
Revenue beat(12)3
Avg Revenue beat(12)-0.29%
Revenue beat(16)6
Avg Revenue beat(16)0.49%
PT rev (1m)0%
PT rev (3m)-3.89%
EPS NQ rev (1m)-0.41%
EPS NQ rev (3m)-0.16%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)0.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.93 | ||
| Fwd PE | 7.67 | ||
| P/S | 2.18 | ||
| P/FCF | 11.1 | ||
| P/OCF | 10.74 | ||
| P/B | 4.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.72 |
EPS(TTM)5.54
EY12.62%
EPS(NY)5.73
Fwd EY13.04%
FCF(TTM)3.96
FCFY9.01%
OCF(TTM)4.09
OCFY9.31%
SpS20.16
BVpS10.5
TBVpS-34.6
PEG (NY)0.77
PEG (5Y)0.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.39% | ||
| ROE | 12.72% | ||
| ROCE | 10.32% | ||
| ROIC | 8.29% | ||
| ROICexc | 8.83% | ||
| ROICexgc | N/A | ||
| OM | 19.74% | ||
| PM (TTM) | 6.63% | ||
| GM | 81.69% | ||
| FCFM | 19.62% |
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%
ROICexcg growth 3YN/A
ROICexcg 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-Score6
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.43 | ||
| Debt/FCF | 8.55 | ||
| Debt/EBITDA | 3.69 | ||
| Cap/Depr | 4.54% | ||
| Cap/Sales | 0.66% | ||
| Interest Coverage | 3.64 | ||
| Cash Conversion | 59.18% | ||
| Profit Quality | 296.12% | ||
| Current Ratio | 0.43 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 1.02 |
F-Score6
WACC9.86%
ROIC/WACC0.84
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)8.49%
Revenue growth 3Y12.35%
Revenue growth 5Y12.76%
Sales Q2Q%39.8%
Revenue Next Year29.03%
Revenue Next 2Y14.59%
Revenue Next 3Y10.12%
Revenue Next 5Y7.07%
EBIT growth 1Y33.68%
EBIT growth 3Y7.51%
EBIT growth 5Y16.84%
EBIT Next Year28.15%
EBIT Next 3Y10.6%
EBIT Next 5YN/A
FCF growth 1Y1.26%
FCF growth 3Y5.88%
FCF growth 5Y10.63%
OCF growth 1Y1%
OCF growth 3Y5.82%
OCF growth 5Y10.48%