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 reasonable growth potential.


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

-0.6%

NasdaqGS:PEGA

-1.1%

US Software

-1.9%

US Market


1 Year Return

11.4%

NasdaqGS:PEGA

13.8%

US Software

-3.3%

US Market

PEGA underperformed the Software industry which returned 13.9% over the past year.

PEGA outperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

PEGAIndustryMarket
7 Day-0.6%-1.1%-1.9%
30 Day-11.6%-7.2%-6.2%
90 Day-5.3%1.6%0.3%
1 Year11.6%11.4%15.4%13.8%-1.1%-3.3%
3 Year170.5%168.5%110.9%102.6%37.9%28.9%
5 Year219.3%213.8%156.4%137.9%50.8%34.1%

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 based on future cash flows and its price relative to the stock market?

9.89x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Pegasystems's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Pegasystems's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Pegasystems is loss making, we can't compare its value to the US Software industry average.

Pegasystems is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Pegasystems, we can't assess if its growth is good value.


Price Based on Value of Assets

Pegasystems is overvalued based on assets compared to the US Software industry average.


Next Steps

Future Growth

How is Pegasystems expected 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 Estimates


Future Annual Growth Analysis

Pegasystems's revenue is expected to grow by 14.3% yearly, however this is not considered high growth (20% yearly).

Pegasystems's earnings are expected to grow significantly at over 20% yearly.

Pegasystems's revenue growth is expected to exceed the United States of America market average.

Pegasystems's earnings growth is expected to exceed the United States of America market average.

Pegasystems's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Pegasystems will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

Pegasystems does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Pegasystems's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Pegasystems's 1-year growth to the US Software industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Pegasystems has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Pegasystems has efficiently used its assets last year compared to the US Software industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Pegasystems improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Pegasystems's financial position?


Financial Position Analysis

Pegasystems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Pegasystems's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Pegasystems has no debt.

Pegasystems has not taken on any debt in the past 5 years.

Pegasystems has no debt, it does not need to be covered by operating cash flow.

Pegasystems has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Pegasystems has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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

0.17%

Current Dividend Yield


Dividend Yield and Payments Analysis

Pegasystems's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

Pegasystems's dividend is below the markets top 25% of dividend payers in United States of America (3.93%).

Pegasystems is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.

Pegasystems is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Pegasystems's dividends as it is not paying a notable one for United States of America.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

Alan Trefler (63yo)

36.6yrs

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

Alan's remuneration is lower than average for companies of similar size in United States of America.

Alan's compensation has increased whilst company is loss making.


Management Age and Tenure

5.1yrs

Average Tenure

57yo

Average Age

The average tenure for the Pegasystems management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.2yrs

Average Tenure

61.5yo

Average Age

The tenure for the Pegasystems board of directors is about average.


Insider Trading

Pegasystems individual insiders have only sold shares in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

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
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
SellUS$11,15919 Sep 18
Stathis Kouninis
EntityIndividual
Shares173
Max PriceUS$64.50
SellUS$96,00014 Sep 18
Jones Family Foundation, Endowment Arm
EntityCompany
Shares1,500
Max PriceUS$64.00
SellUS$480,00014 Sep 18
Richard Jones
EntityIndividual
Shares7,500
Max PriceUS$64.00
SellUS$16,26214 Sep 18
Stathis Kouninis
EntityIndividual
Shares249
Max PriceUS$65.31
SellUS$32,00013 Sep 18
Jones Family Foundation, Endowment Arm
EntityCompany
Shares500
Max PriceUS$64.00
SellUS$160,00013 Sep 18
Richard Jones
EntityIndividual
Shares2,500
Max PriceUS$64.00
SellUS$3,39211 Sep 18
Stathis Kouninis
EntityIndividual
Shares53
Max PriceUS$64.00
SellUS$21,29410 Sep 18
Stathis Kouninis
EntityIndividual
Shares338
Max PriceUS$63.00
SellUS$183,72806 Sep 18
Leon Trefler
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Global Customer Success
Shares2,914
Max PriceUS$63.05
SellUS$628,70029 Aug 18
Richard Jones
EntityIndividual
Shares10,000
Max PriceUS$62.87
SellUS$18,79529 Aug 18
Lawrence Weber
EntityIndividual
Role
Member of the Board of Directors
Director
Shares300
Max PriceUS$62.65

Ownership Breakdown


Management Team

  • Alan Trefler (63yo)

    Founder

    • Tenure: 36.6yrs
    • Compensation: US$981.25k
  • Mike Pyle (64yo)

    Senior Vice President of Engineering & Product Development

    • Tenure: 0.0yrs
    • Compensation: US$922.94k
  • Efstathios Kouninis (57yo)

    Chief Accounting Officer

    • Tenure: 11.3yrs
  • Ken Stillwell (48yo)

    SVP, Chief Administrative Officer & CFO

    • Tenure: 3.1yrs
    • Compensation: US$1.74m
  • Douglas Kra (56yo)

    Senior Vice President of Global Customer Success

    • Tenure: 9.6yrs
    • Compensation: US$1.55m
  • Matt Cushing (49yo)

    VP, Chief Commercial Officer

    • Tenure: 2.4yrs
  • Leon Trefler (58yo)

    Senior Vice President of Global Customer Success

    • Tenure: 5.1yrs
    • Compensation: US$1.69m
  • Lisa Pintchman

    Vice President of Corporate Communications

    • Tenure: 5.2yrs
  • Peter Welburn

    Vice President of Investor Relations

    • Tenure: 0.0yrs
  • Don Schuerman

    CTO & VP of Product Marketing

    • Tenure: 3.4yrs

Board Members

  • Peter Gyenes (74yo)

    Director

    • Tenure: 10.4yrs
    • Compensation: US$190.00k
  • Alan Trefler (63yo)

    Founder

    • Tenure: 36.6yrs
    • Compensation: US$981.25k
  • James O'Halloran (86yo)

    Director

    • Tenure: 20.6yrs
    • Compensation: US$200.00k
  • Ron Hovsepian (58yo)

    Director

    • Tenure: 0.6yrs
  • Sharon Rowlands (60yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$188.00k
  • Larry Weber (63yo)

    Director

    • Tenure: 7.0yrs
    • Compensation: US$191.00k
  • Chris Lafond (53yo)

    Director

    • Tenure: 0.3yrs
  • Dianne Ledingham (56yo)

    Director

    • Tenure: 2.9yrs
    • 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$5.512b
  • 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 Analysis2019/08/25 23:40
End of Day Share Price2019/08/23 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.