Pegasystems
Market Cap
US$10.8b
Last Updated
2021/01/17 23:19 UTC
Data Sources
Company Financials +
Executive Summary
Pegasystems Inc. develops, markets, licenses, and supports enterprise software applications in the United States, rest of the Americas, the United Kingdom, rest of Europe, the Middle East, Africa, and the Asia-Pacific. More Details
Rewards
Risk Analysis
Snowflake Analysis
Slightly overvalued with imperfect balance sheet.
Similar Companies
Share Price & News
How has Pegasystems's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: PEGA is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: PEGA's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-1.4%
PEGA
-2.3%
US Software
-1.0%
US Market
1 Year Return
55.2%
PEGA
38.5%
US Software
19.6%
US Market
Return vs Industry: PEGA exceeded the US Software industry which returned 38.5% over the past year.
Return vs Market: PEGA exceeded the US Market which returned 19.6% over the past year.
Shareholder returns
| PEGA | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.4% | -2.3% | -1.0% |
| 30 Day | 0.6% | -3.0% | 2.3% |
| 90 Day | 3.8% | 2.8% | 13.1% |
| 1 Year | 55.4%55.2% | 39.4%38.5% | 22.3%19.6% |
| 3 Year | 159.3%158.0% | 124.9%117.7% | 45.3%35.7% |
| 5 Year | 458.1%451.7% | 251.5%233.2% | 124.8%99.8% |
Long-Term Price Volatility Vs. Market
How volatile is Pegasystems's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall St
Would Pegasystems (NASDAQ:PEGA) Be Better Off With Less Debt?3 weeks ago | Simply Wall St
How Much Are Pegasystems Inc. (NASDAQ:PEGA) Insiders Taking Off The Table?2 months ago | Simply Wall St
When Should You Buy Pegasystems Inc. (NASDAQ:PEGA)?Valuation
Is Pegasystems undervalued compared to its fair value and its price relative to the market?
36.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PEGA ($134.17) is trading below our estimate of fair value ($209.58)
Significantly Below Fair Value: PEGA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: PEGA is unprofitable, so we can't compare its PE Ratio to the US Software industry average.
PE vs Market: PEGA is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate PEGA's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: PEGA is overvalued based on its PB Ratio (20.5x) compared to the US Software industry average (9.5x).
Next Steps
Future Growth
How is Pegasystems forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
57.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PEGA is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: PEGA is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: PEGA is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: PEGA's revenue (16.1% per year) is forecast to grow faster than the US market (10.3% per year).
High Growth Revenue: PEGA's revenue (16.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: PEGA is forecast to be unprofitable in 3 years.
Next Steps
Past Performance
How has Pegasystems performed over the past 5 years?
-54.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PEGA is currently unprofitable.
Growing Profit Margin: PEGA is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: PEGA is unprofitable, and losses have increased over the past 5 years at a rate of 54.5% per year.
Accelerating Growth: Unable to compare PEGA's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: PEGA is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (14.3%).
Return on Equity
High ROE: PEGA has a negative Return on Equity (-12.18%), as it is currently unprofitable.
Next Steps
Financial Health
How is Pegasystems's financial position?
Financial Position Analysis
Short Term Liabilities: PEGA's short term assets ($904.2M) exceed its short term liabilities ($356.3M).
Long Term Liabilities: PEGA's short term assets ($904.2M) exceed its long term liabilities ($601.7M).
Debt to Equity History and Analysis
Debt Level: PEGA's debt to equity ratio (97.1%) is considered high.
Reducing Debt: Insufficient data to determine if PEGA's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: PEGA's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: Insufficient data to determine if PEGA's interest payments on its debt are well covered by EBIT.
Balance Sheet
Next Steps
Dividend
What is Pegasystems's current dividend yield, its reliability and sustainability?
0.089%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PEGA's dividend (0.089%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.39%).
High Dividend: PEGA's dividend (0.089%) is low compared to the top 25% of dividend payers in the US market (3.85%).
Stability and Growth of Payments
Stable Dividend: PEGA is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: PEGA is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: PEGA is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of PEGA's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.7yrs
Average management tenure
CEO
Alan Trefler (64 yo)
38yrs
Tenure
US$5,933,824
Compensation
Mr. Alan Trefler founded Pegasystems Inc. in 1983 and has been its Chairman of the Board and Chief Executive Officer since 1983. Mr. Trefler has been Director of Pegasystems, Inc. since 1983. Mr. Trefler s...
CEO Compensation Analysis
Compensation vs Market: Alan's total compensation ($USD5.93M) is below average for companies of similar size in the US market ($USD10.56M).
Compensation vs Earnings: Alan's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 38yrs | US$5.93m | 49.33% $ 5.3b | |
| Senior VP | 4.5yrs | US$1.86m | 0.0077% $ 832.6k | |
| Senior Vice President of Engineering & Product Development | no data | US$1.22m | 0.014% $ 1.5m | |
| Senior Vice President of Global Client Success | 11yrs | US$1.57m | 0.051% $ 5.5m | |
| Senior Vice President of Global Client Success | 6.5yrs | US$1.86m | 0.014% $ 1.5m | |
| Chief Accounting Officer | 12.67yrs | no data | no data | |
| CTO & VP of Product Marketing | 4.83yrs | no data | no data | |
| Vice President of Investor Relations | no data | no data | no data | |
| VP, Chief Commercial Officer | 3.83yrs | no data | no data | |
| Vice President of Corporate Communications | 6.58yrs | no data | no data | |
| Chief Marketing Officer & Senior VP | 4.25yrs | no data | no data | |
| Vice President of Global Sales Operations | 2.42yrs | no data | no data |
5.7yrs
Average Tenure
57.5yo
Average Age
Experienced Management: PEGA's management team is seasoned and experienced (5.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 38yrs | US$5.93m | 49.33% $ 5.3b | |
| Independent Director | 11.83yrs | US$270.00k | 0.043% $ 4.6m | |
| Independent Director | 20.17yrs | US$263.00k | 0.72% $ 78.4m | |
| Independent Director | 2yrs | US$338.30k | 0.0044% $ 479.6k | |
| Independent Director | 4.75yrs | US$274.00k | 0.020% $ 2.1m | |
| Independent Director | 8.42yrs | US$268.00k | 0.0046% $ 495.9k | |
| Independent Director | 1.75yrs | US$297.26k | 0.0032% $ 346.5k | |
| Independent Director | 4.33yrs | US$263.00k | 0.012% $ 1.3m |
6.6yrs
Average Tenure
62.5yo
Average Age
Experienced Board: PEGA's board of directors are considered experienced (6.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: PEGA insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Pegasystems Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Pegasystems Inc.
- Ticker: PEGA
- Exchange: NasdaqGS
- Founded: 1983
- Industry: Application Software
- Sector: Software
- Market Cap: US$10.827b
- Shares outstanding: 80.70m
- Website: https://www.pega.com
Number of Employees
Location
- Pegasystems Inc.
- One Rogers Street
- Cambridge
- Massachusetts
- 02142-1209
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PEGA | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Jul 1996 |
| PEA | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jul 1996 |
| 0KGS | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jul 1996 |
Biography
Pegasystems Inc. develops, markets, licenses, and supports enterprise software applications in the United States, rest of the Americas, the United Kingdom, rest of Europe, the Middle East, Africa, and the ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/17 23:19 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.