NasdaqGS:PEGA

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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


Snowflake Analysis

Reasonable growth potential 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.1%

PEGA

-0.6%

US Software

0.4%

US Market


1 Year Return

71.9%

PEGA

56.1%

US Software

17.8%

US Market

Return vs Industry: PEGA exceeded the US Software industry which returned 56.1% over the past year.

Return vs Market: PEGA exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

PEGAIndustryMarket
7 Day0.1%-0.6%0.4%
30 Day8.9%5.2%6.1%
90 Day24.0%12.9%8.9%
1 Year72.1%71.9%57.2%56.1%20.5%17.8%
3 Year130.2%129.0%139.8%131.8%42.3%32.9%
5 Year365.0%359.3%254.4%233.7%84.2%63.4%

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?

18.7x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: PEGA ($134.23) is trading above our estimate of fair value ($123.95)

Significantly Below Fair Value: 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 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 (19.4x) compared to the US Software industry average (7.1x).


Next Steps

Future Growth

How is Pegasystems forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

69.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PEGA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: PEGA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PEGA's is expected to become profitable in the next 3 years.

Revenue vs Market: PEGA's revenue (16.2% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: PEGA's revenue (16.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PEGA's Return on Equity is forecast to be low in 3 years time (13.6%).


Next Steps

Past Performance

How has Pegasystems performed over the past 5 years?

-50.2%

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 50.2% 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 (14.4%).


Return on Equity

High ROE: PEGA has a negative Return on Equity (-13.58%), 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 ($969.9M) exceed its short term liabilities ($356.1M).

Long Term Liabilities: PEGA's short term assets ($969.9M) exceed its long term liabilities ($583.9M).


Debt to Equity History and Analysis

Debt Level: PEGA's debt to equity ratio (91.6%) 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?

0.092%

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 (1.63%).

High Dividend: PEGA's dividend (0.089%) is low compared to the top 25% of dividend payers in the US market (4.56%).


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?

5.4yrs

Average management tenure


CEO

Alan Trefler (64 yo)

37.75yrs

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 ($USD5.93M) is below average for companies of similar size in the US market ($USD11.16M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Alan Trefler
Founder37.75yrsUS$5.93m49.51%
$ 5.2b
Kenneth Stillwell
Senior VP4.25yrsUS$1.86m0.0081%
$ 839.6k
Michael Pyle
Senior Vice President of Engineering & Product Developmentno dataUS$1.22m0.014%
$ 1.4m
Douglas Kra
Senior Vice President of Global Client Success10.75yrsUS$1.57m0.050%
$ 5.2m
Leon Trefler
Senior Vice President of Global Client Success6.25yrsUS$1.86m0.015%
$ 1.5m
Efstathios Kouninis
Chief Accounting Officer12.42yrsno datano data
Don Schuerman
CTO & VP of Product Marketing4.58yrsno datano data
Peter Welburn
Vice President of Investor Relationsno datano datano data
Matthew Cushing
VP, Chief Commercial Officer3.58yrsno datano data
Lisa Pintchman
Vice President of Corporate Communications6.33yrsno datano data
Tom Libretto
Chief Marketing Officer & Senior VP4yrsno datano data
Jeff Farley
Vice President of Global Sales Operations2.17yrsno datano data

5.4yrs

Average Tenure

57.5yo

Average Age

Experienced Management: PEGA's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alan Trefler
Founder37.75yrsUS$5.93m49.51%
$ 5.2b
Peter Gyenes
Independent Director11.58yrsUS$270.00k0.043%
$ 4.4m
Richard Jones
Independent Director19.92yrsUS$263.00k0.73%
$ 75.6m
Ronald Hovsepian
Independent Director1.75yrsUS$338.30k0.0044%
$ 461.9k
Sharon Rowlands
Independent Director4.5yrsUS$274.00k0.020%
$ 2.1m
Lawrence Weber
Independent Director8.17yrsUS$268.00k0.0046%
$ 477.5k
Christopher Lafond
Independent Director1.5yrsUS$297.26k0.0032%
$ 335.0k
Dianne Ledingham
Independent Director4.08yrsUS$263.00k0.012%
$ 1.3m

6.3yrs

Average Tenure

62.5yo

Average Age

Experienced Board: PEGA's board of directors are considered experienced (6.3 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$10.404b
  • Shares outstanding: 80.42m
  • Website: https://www.pega.com

Number of Employees


Location

  • Pegasystems Inc.
  • One Rogers Street
  • Cambridge
  • Massachusetts
  • 02142-1209
  • 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, rest of the Americas, the United Kingdom, rest of Europe, the Middle East, Africa, and the ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 23:50
End of Day Share Price2020/10/26 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.