NasdaqGS:PEGA

Stock Analysis Report

Executive Summary

Pegasystems Inc. develops, markets, licenses, and supports enterprise software applications in the United States, India, and internationally.

Snowflake

Fundamentals

Flawless balance sheet with concerning outlook.


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


Market Performance


7 Day Return

1.9%

PEGA

1.5%

US Software

1.3%

US Market


1 Year Return

40.8%

PEGA

23.1%

US Software

5.9%

US Market

Return vs Industry: PEGA exceeded the US Software industry which returned 23.1% over the past year.

Return vs Market: PEGA exceeded the US Market which returned 5.9% over the past year.


Shareholder returns

PEGAIndustryMarket
7 Day1.9%1.5%1.3%
30 Day6.9%-0.8%-1.9%
90 Day-0.8%-3.4%-1.8%
1 Year41.1%40.8%24.8%23.1%8.3%5.9%
3 Year160.4%158.7%122.8%114.1%45.6%36.2%
5 Year302.0%295.4%179.3%159.1%66.1%47.9%

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

Valuation

Is Pegasystems undervalued compared to its fair value and its price relative to the market?

10.78x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: PEGA ($75.92) is trading above our estimate of fair value ($46.4)

Significantly Undervalued: PEGA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PEGA is unprofitable, so we can't compare its PE Ratio to the 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

Low 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 (10.8x) compared to the US Software industry average (5.1x).


Next Steps

Future Growth

How is Pegasystems forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

81.1%

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 (14.3% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: PEGA's revenue (14.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if PEGA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Pegasystems performed over the past 5 years?

-16.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PEGA is unprofitable, and losses have increased over the past 5 years at a rate of -16.6% 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 (19.1%).


Return on Equity

High ROE: PEGA has a negative Return on Equity (-9.36%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: PEGA is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: PEGA is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Pegasystems's financial position?


Financial Position Analysis

Short Term Liabilities: PEGA's short term assets ($536.9M) exceeds its short term liabilities ($311.4M)

Long Term Liabilities: PEGA's short term assets (536.9M) exceeds its long term liabilities (71.9M)


Debt to Equity History and Analysis

Debt Level: PEGA is debt free.

Reducing Debt: PEGA has not had any debt for past 5 years.

Debt Coverage: PEGA has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: PEGA has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: PEGA has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if PEGA's debt is covered by short term assets.


Next Steps

Dividend

What is Pegasystems's current dividend yield, its reliability and sustainability?

0.16%

Current Dividend Yield


Dividend Yield vs Market

company0.2%marketbottom25%1.5%markettop25%3.8%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PEGA's dividend (0.16%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: PEGA's dividend (0.16%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 .


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

What is the CEO of Pegasystems's salary, the management and board of directors tenure and is there insider trading?

5.3yrs

Average management tenure


CEO

Alan Trefler (63yo)

36.8yrs

Tenure

US$981,250

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 ($USD981.25K) is about average for companies of similar size in the US market ($USD6.81M).

Compensation vs Earnings: Alan's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

5.3yrs

Average Tenure

57yo

Average Age

Experienced Management: PEGA's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

7.2yrs

Average Tenure

63yo

Average Age

Experienced Board: PEGA's board of directors are considered experienced (7.2 years average tenure).


Insider Trading

Insider Buying: PEGA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$17,22017 Sep 19
Stathis Kouninis
EntityIndividual
Shares240
Max PriceUS$71.75
SellUS$276,92011 Sep 19
Leon Trefler
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Global Customer Success
Shares3,956
Max PriceUS$70.00
SellUS$29,89028 Aug 19
Stathis Kouninis
EntityIndividual
Shares427
Max PriceUS$70.00
SellUS$20,84417 Jun 19
Stathis Kouninis
EntityIndividual
Shares293
Max PriceUS$71.25
SellUS$1,980,30012 Jun 19
The Trefler Foundation, Endowment Arm
EntityCompany
Shares30,000
Max PriceUS$66.01
SellUS$355,04610 Jun 19
Jones Family Foundation, Endowment Arm
EntityCompany
Shares5,000
Max PriceUS$71.59
SellUS$100,32824 May 19
Stathis Kouninis
EntityIndividual
Shares1,365
Max PriceUS$74.00
SellUS$35,00013 May 19
Stathis Kouninis
EntityIndividual
Shares500
Max PriceUS$70.00
SellUS$325,50018 Mar 19
Jones Family Foundation, Endowment Arm
EntityCompany
Shares5,000
Max PriceUS$65.10
SellUS$1,296,70018 Mar 19
Richard Jones
EntityIndividual
Role
Member of the Board of Directors
Director
Shares20,000
Max PriceUS$65.25
SellUS$32,75015 Mar 19
Stathis Kouninis
EntityIndividual
Shares500
Max PriceUS$65.50
SellUS$319,80008 Mar 19
Kenneth Stillwell
EntityIndividual
Role
Chief Financial Officer
SVP, Chief Administrative Officer & CFO
Shares5,000
Max PriceUS$63.96
SellUS$65,99027 Feb 19
Lawrence Weber
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceUS$65.99
SellUS$69,77904 Jan 19
Leon Trefler
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Global Customer Success
Shares1,474
Max PriceUS$47.34
SellUS$18,76004 Jan 19
Kenneth Stillwell
EntityIndividual
Role
Chief Financial Officer
SVP, Chief Administrative Officer & CFO
Shares400
Max PriceUS$46.90
SellUS$23,45004 Jan 19
Michael Pyle
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Engineering & Product Development
Shares500
Max PriceUS$46.90
SellUS$16,48219 Dec 18
Lawrence Weber
EntityIndividual
Role
Member of the Board of Directors
Director
Shares350
Max PriceUS$47.09
SellUS$26,72506 Dec 18
Lawrence Weber
EntityIndividual
Role
Member of the Board of Directors
Director
Shares500
Max PriceUS$53.45
SellUS$40,65013 Nov 18
Lawrence Weber
EntityIndividual
Role
Member of the Board of Directors
Director
Shares750
Max PriceUS$54.20

Ownership Breakdown


Management Team

  • Alan Trefler (63yo)

    Founder

    • Tenure: 36.8yrs
    • Compensation: US$981.25k
  • Mike Pyle (64yo)

    Senior Vice President of Engineering & Product Development

    • Tenure: 0yrs
    • Compensation: US$922.94k
  • Efstathios Kouninis (57yo)

    Chief Accounting Officer

    • Tenure: 11.4yrs
  • Ken Stillwell (48yo)

    SVP, Chief Administrative Officer & CFO

    • Tenure: 3.3yrs
    • Compensation: US$1.74m
  • Douglas Kra (56yo)

    Senior Vice President of Global Customer Success

    • Tenure: 9.8yrs
    • Compensation: US$1.55m
  • Matt Cushing (49yo)

    VP, Chief Commercial Officer

    • Tenure: 2.6yrs
  • Leon Trefler (58yo)

    Senior Vice President of Global Customer Success

    • Tenure: 5.3yrs
    • Compensation: US$1.69m
  • Lisa Pintchman

    Vice President of Corporate Communications

    • Tenure: 5.3yrs
  • Peter Welburn

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Don Schuerman

    CTO & VP of Product Marketing

    • Tenure: 3.6yrs

Board Members

  • Peter Gyenes (74yo)

    Director

    • Tenure: 10.6yrs
    • Compensation: US$190.00k
  • Alan Trefler (63yo)

    Founder

    • Tenure: 36.8yrs
    • Compensation: US$981.25k
  • Richard Jones (67yo)

    Director

    • Tenure: 18.9yrs
    • Compensation: US$186.00k
  • James O'Halloran (86yo)

    Director

    • Tenure: 20.8yrs
    • Compensation: US$200.00k
  • Ron Hovsepian (58yo)

    Director

    • Tenure: 0.8yrs
  • Sharon Rowlands (60yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: US$188.00k
  • Larry Weber (63yo)

    Director

    • Tenure: 7.2yrs
    • Compensation: US$191.00k
  • Chris Lafond (53yo)

    Director

    • Tenure: 0.5yrs
  • Dianne Ledingham (56yo)

    Director

    • Tenure: 3.1yrs
    • Compensation: US$186.00k

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$6.008b
  • Shares outstanding: 79.13m
  • Website: https://www.pega.com

Number of Employees


Location

  • Pegasystems Inc.
  • One Rogers Street
  • Cambridge
  • Massachusetts
  • 2142
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PEGANasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 1996
PEADB (Deutsche Boerse AG)YesCommon StockDEEURJul 1996
0KGSLSE (London Stock Exchange)YesCommon StockGBUSDJul 1996

Biography

Pegasystems Inc. develops, markets, licenses, and supports enterprise software applications in the United States, India, and internationally. It provides Pega Platform, an application development product f ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:41
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.