PROS HOLDINGS INC (PRO) Stock Fundamental Analysis
NYSE:PRO - New York Stock Exchange, Inc. - US74346Y1038 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to PRO. PRO was compared to 281 industry peers in the Software industry. Both the profitability and financial health of PRO have multiple concerns. PRO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
PRO had positive earnings in the past year.
PRO had a positive operating cash flow in the past year.
In the past 5 years PRO always reported negative net income.
The reported operating cash flow has been mixed in the past 5 years: PRO reported negative operating cash flow in multiple years.
1.2 Ratios
PRO has a Return On Assets of -4.88%. This is comparable to the rest of the industry: PRO outperforms 48.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.88% | ||
| ROE | N/A | ||
| ROIC | N/A |
ROA(3y)-12.13%
ROA(5y)-13.42%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
PRO has a Gross Margin of 65.70%. This is comparable to the rest of the industry: PRO outperforms 48.75% of its industry peers.
PRO's Gross Margin has improved in the last couple of years.
PRO does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 65.7% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.08%
GM growth 5Y1.69%
2. Health
2.1 Basic Checks
PRO does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for PRO has been increased compared to 1 year ago.
The number of shares outstanding for PRO has been increased compared to 5 years ago.
Compared to 1 year ago, PRO has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.47, we must say that PRO is in the distress zone and has some risk of bankruptcy.
PRO's Altman-Z score of -0.47 is on the low side compared to the rest of the industry. PRO is outperformed by 71.17% of its industry peers.
The Debt to FCF ratio of PRO is 10.35, which is on the high side as it means it would take PRO, 10.35 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 10.35, PRO perfoms like the industry average, outperforming 50.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 10.35 | ||
| Altman-Z | -0.47 |
ROIC/WACCN/A
WACC9.47%
2.3 Liquidity
PRO has a Current Ratio of 1.28. This is a normal value and indicates that PRO is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.28, PRO is not doing good in the industry: 60.50% of the companies in the same industry are doing better.
PRO has a Quick Ratio of 1.28. This is a normal value and indicates that PRO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.28, PRO is doing worse than 60.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 257.14% over the past year.
The Revenue has grown by 8.78% in the past year. This is quite good.
Measured over the past years, PRO shows a small growth in Revenue. The Revenue has been growing by 5.71% on average per year.
EPS 1Y (TTM)257.14%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%225%
Revenue 1Y (TTM)8.78%
Revenue growth 3Y9.53%
Revenue growth 5Y5.71%
Sales Q2Q%6.98%
3.2 Future
Based on estimates for the next years, PRO will show a very strong growth in Earnings Per Share. The EPS will grow by 47.09% on average per year.
Based on estimates for the next years, PRO will show a quite strong growth in Revenue. The Revenue will grow by 9.59% on average per year.
EPS Next Y50.97%
EPS Next 2Y47.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.08%
Revenue Next 2Y9.59%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 32.33, the valuation of PRO can be described as expensive.
PRO's Price/Earnings ratio is a bit cheaper when compared to the industry. PRO is cheaper than 65.48% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.75, PRO is valued at the same level.
With a Price/Forward Earnings ratio of 18.22, PRO is valued on the expensive side.
PRO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PRO is cheaper than 78.29% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PRO to the average of the S&P500 Index (20.49), we can say PRO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.33 | ||
| Fwd PE | 18.22 |
4.2 Price Multiples
PRO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PRO is cheaper than 72.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.54 | ||
| EV/EBITDA | N/A |
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.
PRO's earnings are expected to grow with 47.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.63
PEG (5Y)N/A
EPS Next 2Y47.09%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for PRO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:PRO (5/2/2025, 3:31:44 PM)
16.165
-0.69 (-4.07%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners95.64%
Inst Owner Change0.09%
Ins Owners3.96%
Ins Owner Change1.12%
Market Cap772.69M
Analysts83.33
Price Target32.35 (100.12%)
Short Float %6.31%
Short Ratio5.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)38.87%
Min EPS beat(2)24.36%
Max EPS beat(2)53.37%
EPS beat(4)4
Avg EPS beat(4)198.1%
Min EPS beat(4)24.36%
Max EPS beat(4)362.05%
EPS beat(8)7
Avg EPS beat(8)128.89%
EPS beat(12)11
Avg EPS beat(12)103.53%
EPS beat(16)15
Avg EPS beat(16)85.59%
Revenue beat(2)0
Avg Revenue beat(2)-0.63%
Min Revenue beat(2)-0.73%
Max Revenue beat(2)-0.53%
Revenue beat(4)1
Avg Revenue beat(4)-0.35%
Min Revenue beat(4)-0.73%
Max Revenue beat(4)0.09%
Revenue beat(8)5
Avg Revenue beat(8)0.61%
Revenue beat(12)9
Avg Revenue beat(12)0.82%
Revenue beat(16)12
Avg Revenue beat(16)0.71%
PT rev (1m)-2.2%
PT rev (3m)3.56%
EPS NQ rev (1m)-6.82%
EPS NQ rev (3m)13.88%
EPS NY rev (1m)0%
EPS NY rev (3m)20.17%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.33 | ||
| Fwd PE | 18.22 | ||
| P/S | 2.34 | ||
| P/FCF | 29.54 | ||
| P/OCF | 28.22 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.5
EY3.09%
EPS(NY)0.89
Fwd EY5.49%
FCF(TTM)0.55
FCFY3.39%
OCF(TTM)0.57
OCFY3.54%
SpS6.91
BVpS-1.44
TBVpS-3.83
PEG (NY)0.63
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.88% | ||
| ROE | N/A | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 65.7% | ||
| FCFM | 7.92% |
ROA(3y)-12.13%
ROA(5y)-13.42%
ROE(3y)N/A
ROE(5y)N/A
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 3Y4.08%
GM growth 5Y1.69%
F-Score7
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 10.35 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 14.74% | ||
| Cap/Sales | 0.37% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | -0.47 |
F-Score7
WACC9.47%
ROIC/WACCN/A
Cap/Depr(3y)14.9%
Cap/Depr(5y)55.7%
Cap/Sales(3y)0.51%
Cap/Sales(5y)2.92%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)257.14%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%225%
EPS Next Y50.97%
EPS Next 2Y47.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)8.78%
Revenue growth 3Y9.53%
Revenue growth 5Y5.71%
Sales Q2Q%6.98%
Revenue Next Year9.08%
Revenue Next 2Y9.59%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y62.41%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year82.02%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y259.03%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y177.24%
OCF growth 3YN/A
OCF growth 5Y39.14%