Progress Software
Market Cap
US$1.7b
Last Updated
2020/10/21 00:20 UTC
Data Sources
Company Financials +
Executive Summary
Progress Software Corporation develops business applications. More Details
Rewards
Risk Analysis
Snowflake Analysis
Good value with proven track record.
Similar Companies
Share Price & News
How has Progress Software's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: PRGS has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-3.2%
PRGS
-2.5%
US Software
-1.3%
US Market
1 Year Return
-1.9%
PRGS
64.0%
US Software
18.5%
US Market
Return vs Industry: PRGS underperformed the US Software industry which returned 64% over the past year.
Return vs Market: PRGS underperformed the US Market which returned 18.5% over the past year.
Shareholder returns
| PRGS | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.2% | -2.5% | -1.3% |
| 30 Day | 8.7% | 8.4% | 5.3% |
| 90 Day | 9.1% | 10.2% | 7.5% |
| 1 Year | -0.2%-1.9% | 65.1%64.0% | 21.3%18.5% |
| 3 Year | -4.5%-8.8% | 147.7%139.5% | 42.4%32.9% |
| 5 Year | 66.7%56.5% | 254.0%233.3% | 84.2%63.5% |
Price Volatility Vs. Market
How volatile is Progress Software's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall St
Progress Software Corporation's (NASDAQ:PRGS) Intrinsic Value Is Potentially 54% Above Its Share Price2 weeks ago | Simply Wall St
CEO, President & Director Yogesh Gupta Just Bought 2.9% More Shares In Progress Software Corporation (NASDAQ:PRGS)2 weeks ago | Simply Wall St
Progress Software Corporation (NASDAQ:PRGS) Analysts Are Pretty Bullish On The Stock After Recent ResultsValuation
Is Progress Software undervalued compared to its fair value and its price relative to the market?
36.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PRGS ($38.66) is trading below our estimate of fair value ($61.11)
Significantly Below Fair Value: PRGS is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: PRGS is good value based on its PE Ratio (30.3x) compared to the US Software industry average (63.2x).
PE vs Market: PRGS is poor value based on its PE Ratio (30.3x) compared to the US market (19x).
Price to Earnings Growth Ratio
PEG Ratio: PRGS is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: PRGS is good value based on its PB Ratio (4.7x) compared to the US Software industry average (7.4x).
Next Steps
Future Growth
How is Progress Software forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
19.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PRGS's forecast earnings growth (19.2% per year) is above the savings rate (2.2%).
Earnings vs Market: PRGS's earnings (19.2% per year) are forecast to grow slower than the US market (22.2% per year).
High Growth Earnings: PRGS's earnings are forecast to grow, but not significantly.
Revenue vs Market: PRGS's revenue (7.8% per year) is forecast to grow slower than the US market (10.1% per year).
High Growth Revenue: PRGS's revenue (7.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: PRGS's Return on Equity is forecast to be high in 3 years time (27.2%)
Next Steps
Past Performance
How has Progress Software performed over the past 5 years?
42.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PRGS has a large one-off loss of $29.9M impacting its August 31 2020 financial results.
Growing Profit Margin: PRGS's current net profit margins (13.1%) are higher than last year (10%).
Past Earnings Growth Analysis
Earnings Trend: PRGS's earnings have grown significantly by 42.5% per year over the past 5 years.
Accelerating Growth: PRGS's earnings growth over the past year (44.6%) exceeds its 5-year average (42.5% per year).
Earnings vs Industry: PRGS earnings growth over the past year (44.6%) exceeded the Software industry 12.8%.
Return on Equity
High ROE: PRGS's Return on Equity (15.6%) is considered low.
Next Steps
Financial Health
How is Progress Software's financial position?
Financial Position Analysis
Short Term Liabilities: PRGS's short term assets ($320.2M) exceed its short term liabilities ($227.7M).
Long Term Liabilities: PRGS's short term assets ($320.2M) do not cover its long term liabilities ($323.6M).
Debt to Equity History and Analysis
Debt Level: PRGS's debt to equity ratio (80.2%) is considered high.
Reducing Debt: PRGS's debt to equity ratio has increased from 27.3% to 80.2% over the past 5 years.
Debt Coverage: PRGS's debt is well covered by operating cash flow (47%).
Interest Coverage: PRGS's interest payments on its debt are well covered by EBIT (11.2x coverage).
Balance Sheet
Next Steps
Dividend
What is Progress Software current dividend yield, its reliability and sustainability?
1.81%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: PRGS's dividend (1.81%) is higher than the bottom 25% of dividend payers in the US market (1.64%).
High Dividend: PRGS's dividend (1.81%) is low compared to the top 25% of dividend payers in the US market (4.68%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, PRGS has been paying a dividend for less than 10 years.
Growing Dividend: PRGS's dividend payments have increased, but the company has only paid a dividend for 4 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (51.7%), PRGS's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.3yrs
Average management tenure
CEO
Yogesh Gupta (59 yo)
4yrs
Tenure
US$4,914,828
Compensation
Mr. Yogesh Gupta has been the Chief Executive Officer of Progress Software Corporation since October 10, 2016 and as its President since October 2016. Prior to that time, Mr. Gupta served as an advisor to ...
CEO Compensation Analysis
Compensation vs Market: Yogesh's total compensation ($USD4.91M) is about average for companies of similar size in the US market ($USD4.48M).
Compensation vs Earnings: Yogesh's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 4yrs | US$4.91m | 0.23% $ 4.0m | |
| Senior Vice President of Core Products | 3.75yrs | US$1.25m | 0.048% $ 837.1k | |
| Senior VP & GM of Developer Tools Business | 1.33yrs | US$1.25m | 0.032% $ 563.4k | |
| Senior Vice President of Core Field Organization | 3.17yrs | US$1.36m | 0.018% $ 316.8k | |
| Chief Financial Officer | 0.75yr | no data | 0.0091% $ 158.8k | |
| Chief Information Officer & Chief Information Security Officer | 3.33yrs | no data | 0.011% $ 185.2k | |
| Directory of Treasury & Investor Relations | no data | no data | no data | |
| Chief Legal Officer & Secretary | 4.83yrs | US$1.31m | 0.19% $ 3.4m | |
| Vice President of Corporate Marketing | 1yr | no data | no data | |
| Senior Vice President of Corporate Development | 0.42yr | no data | no data | |
| Chief People Officer | 0.92yr | no data | 0.00068% $ 11.9k | |
| Senior VP & GM of Incubation Products | 1.17yrs | no data | no data |
1.3yrs
Average Tenure
48.5yo
Average Age
Experienced Management: PRGS's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 4yrs | US$4.91m | 0.23% $ 4.0m | |
| Non-Voting Director Emeritus and Advisor to President & CEO | 2.42yrs | US$280.01k | no data | |
| Independent Non-Executive Chairman of the Board | 7.83yrs | US$317.81k | 0.11% $ 1.9m | |
| Independent Director | 3.33yrs | US$260.31k | 0.068% $ 1.2m | |
| Independent Director | 12.67yrs | US$272.81k | 0.14% $ 2.5m | |
| Independent Director | 13.92yrs | US$282.81k | 0.18% $ 3.2m | |
| Independent Director | 1yr | US$4.17k | 0.018% $ 321.4k | |
| Independent Director | 2.67yrs | US$262.81k | 0.051% $ 897.1k | |
| Independent Director | 3.33yrs | US$282.81k | 0.070% $ 1.2m | |
| Independent Director | 2.67yrs | US$280.31k | 0.051% $ 897.1k |
3.3yrs
Average Tenure
61yo
Average Age
Experienced Board: PRGS's board of directors are considered experienced (3.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: PRGS insiders have sold more shares than they have bought 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
Progress Software Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Progress Software Corporation
- Ticker: PRGS
- Exchange: NasdaqGS
- Founded: 1981
- Industry: Systems Software
- Sector: Software
- Market Cap: US$1.744b
- Shares outstanding: 45.10m
- Website: https://www.progress.com
Number of Employees
Location
- Progress Software Corporation
- 14 Oak Park Drive
- Bedford
- Massachusetts
- 1730
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PRGS | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Jul 1991 |
| PGR | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jul 1991 |
Biography
Progress Software Corporation develops business applications. The company operates through three segments: OpenEdge, Data Connectivity and Integration, and Application Development and Deployment. The OpenE ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/21 00:20 |
| End of Day Share Price | 2020/10/20 00:00 |
| Earnings | 2020/08/31 |
| Annual Earnings | 2019/11/30 |
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.