Progress Software
Market Cap
US$2.0b
Last Updated
2020/02/16 23:39 UTC
Data Sources
Company Financials +
Executive Summary
Progress Software Corporation develops business applications.
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential with mediocre balance sheet.
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
0.3%
PRGS
1.7%
US Software
1.5%
US Market
1 Year Return
20.7%
PRGS
42.3%
US Software
20.1%
US Market
Return vs Industry: PRGS underperformed the US Software industry which returned 42.2% over the past year.
Return vs Market: PRGS matched the US Market which returned 20.1% over the past year.
Shareholder returns
| PRGS | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.3% | 1.7% | 1.5% |
| 30 Day | -8.2% | 7.7% | 1.4% |
| 90 Day | 8.4% | 18.4% | 8.7% |
| 1 Year | 22.6%20.7% | 43.9%42.3% | 22.7%20.1% |
| 3 Year | 61.3%54.0% | 152.8%142.4% | 50.1%40.5% |
| 5 Year | 73.5%65.0% | 224.7%201.5% | 73.1%54.1% |
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
5 days ago | Simply Wall St
Have Progress Software Corporation (NASDAQ:PRGS) Insiders Been Selling Their Stock?6 days ago | Simply Wall St
Is Progress Software Corporation (NASDAQ:PRGS) A Good Dividend Stock?2 weeks ago | Simply Wall St
Read This Before Judging Progress Software Corporation's (NASDAQ:PRGS) ROEValuation
Is Progress Software undervalued compared to its fair value and its price relative to the market?
13.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PRGS ($45.04) is trading below our estimate of fair value ($52.27)
Significantly Below Fair Value: PRGS is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: PRGS is poor value based on its PE Ratio (76.4x) compared to the Software industry average (52.1x).
PE vs Market: PRGS is poor value based on its PE Ratio (76.4x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: PRGS is poor value based on its PEG Ratio (1.7x)
Price to Book Ratio
PB vs Industry: PRGS is overvalued based on its PB Ratio (6.1x) compared to the US Software industry average (6x).
Next Steps
Future Growth
How is Progress Software forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
44.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PRGS's forecast earnings growth (44.9% per year) is above the savings rate (1.7%).
Earnings vs Market: PRGS's earnings (44.9% per year) are forecast to grow faster than the US market (14.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: PRGS's revenue (2.6% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: PRGS's revenue (2.6% 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 (24.4%)
Next Steps
Past Performance
How has Progress Software performed over the past 5 years?
21.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PRGS has a large one-off loss of $32.0M impacting its November 30 2019 financial results.
Growing Profit Margin: PRGS's current net profit margins (6.4%) are lower than last year (13.1%).
Past Earnings Growth Analysis
Earnings Trend: PRGS's earnings have grown significantly by 21.5% per year over the past 5 years.
Accelerating Growth: PRGS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: PRGS had negative earnings growth (-46.8%) over the past year, making it difficult to compare to the Software industry average (17.1%).
Return on Equity
High ROE: PRGS's Return on Equity (8%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Progress Software's financial position?
Financial Position Analysis
Short Term Liabilities: PRGS's short term assets ($284.7M) exceed its short term liabilities ($240.9M).
Long Term Liabilities: PRGS's short term assets ($284.7M) do not cover its long term liabilities ($310.1M).
Debt to Equity History and Analysis
Debt Level: PRGS's debt to equity ratio (89.9%) is considered high.
Reducing Debt: PRGS's debt to equity ratio has increased from 0.3% to 89.9% over the past 5 years.
Debt Coverage: PRGS's debt is well covered by operating cash flow (43.3%).
Interest Coverage: PRGS's interest payments on its debt are well covered by EBIT (8.1x coverage).
Balance Sheet
Inventory Level: PRGS has a low level of unsold assets or inventory.
Debt Coverage by Assets: PRGS's debt is not covered by short term assets (assets are 1x debt).
Next Steps
Dividend
What is Progress Software's current dividend yield, its reliability and sustainability?
1.47%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Progress Software before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: PRGS's dividend (1.47%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: PRGS's dividend (1.47%) is low compared to the top 25% of dividend payers in the US market (3.69%).
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 3 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (106.9%), PRGS's dividend payments are not well 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?
2.5yrs
Average management tenure
CEO
Yogesh Gupta (58yo)
3.3yrs
Tenure
US$4,810,311
Compensation
Mr. Yogesh Gupta has been the Chief Executive Officer of Progress Software Corporation since October 10, 2016 and as its President since October 2016. Prior to that time, Mr. Gupta served as an advisor to ...
CEO Compensation Analysis
Compensation vs Market: Yogesh's total compensation ($USD4.81M) is about average for companies of similar size in the US market ($USD3.76M).
Compensation vs Earnings: Yogesh's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 3.3yrs | US$4.81m | 0.19% $3.9m | |
| Executive Officer | 0.08yrs | US$1.93m | 0.047% $954.7k | |
| Senior Vice President of Core Products | 3.1yrs | US$1.38m | 0.037% $745.9k | |
| Senior VP & GM of Developer Tools Business | 0.7yrs | US$1.38m | 0.021% $427.0k | |
| Senior Vice President of Core Field Organization | 2.5yrs | US$1.45m | 0.024% $484.7k | |
| Chief Financial Officer | 0.08yrs | no data | no data | |
| Chief Information Officer & Chief Information Security Officer | 2.7yrs | no data | 0.0063% $128.8k | |
| Directory of Treasury & Investor Relations | 0yrs | no data | no data | |
| Chief Legal Officer & Secretary | 4.2yrs | US$1.31m | 0.18% $3.7m | |
| Vice President of Corporate Marketing | 0.3yrs | no data | no data |
2.5yrs
Average Tenure
49yo
Average Age
Experienced Management: PRGS's management team is considered experienced (2.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 3.3yrs | US$4.81m | 0.19% $3.9m | |
| Non-Voting Director Emeritus and Advisor to President & CEO | 1.8yrs | US$280.01k | no data | |
| Independent Non-Executive Chairman of the Board | 7.2yrs | US$307.84k | 0.095% $1.9m | |
| Independent Director | 2.7yrs | US$397.86k | no data | |
| Independent Director | 12yrs | US$272.84k | 0.17% $3.4m | |
| Independent Director | 13.3yrs | US$272.84k | 0.17% $3.5m | |
| Director | 0.3yrs | no data | no data | |
| Independent Director | 2yrs | US$552.22k | no data | |
| Independent Director | 2.7yrs | US$420.36k | no data | |
| Independent Director | 2yrs | US$557.22k | no data |
2.7yrs
Average Tenure
60yo
Average Age
Experienced Board: PRGS's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: PRGS 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
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$2.031b
- 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 OpenEdge segment offers Progress OpenEdge, a development software, which builds multi-language applications for secure deployment across various platforms and devices, as well as cloud; Progress Corticon, a business rules management system that enables applications with decision automation and change process, and decision-related insight capabilities; Progress Kinvey, a platform for building enterprise applications; MOVEit that provides secure collaboration and automated file transfers of critical business information; WhatsUp Gold, a network monitoring solution; and DataRPM, a cognitive predictive maintenance solution for industrial IoT. The Data Connectivity and Integration segment provides Progress DataDirect Connect software, which offers data connectivity using industry-standard interfaces to connect applications running on various platforms; and Progress DataDirect Hybrid Data Pipeline, a data access service that provides cloud and on-premises data sources for hybrid cloud applications, such as CRM, data management platforms, and hosted analytics. The Application Development and Deployment segment offers Developer Tools, a set of components for user interface development; and Sitefinity, a Web content management and customer analytics platform. The company also provides project management, implementation, custom development, programming, and other services, as well as services to Web-enable applications; and training services. It sells its products to end users, application partners, original equipment manufacturers, and system integrators. The company has operations in North America, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. Progress Software Corporation was founded in 1981 and is headquartered in Bedford, Massachusetts.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 23:39 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/11/30 |
| 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.