Progress Software
Progress Software Corporation develops business applications worldwide. The last earnings update was 21 days ago. More info.
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PRGS Share Price and Events
7 Day Returns
1 Year Returns
PRGS Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Progress Software (PRGS) | 2.5% | 8.1% | 14.2% | -21.9% | 53.5% | 51.4% |
| US Software | 1.8% | 8.6% | 7.5% | 23.1% | 111% | 125.1% |
| US Market | 1.2% | 6.6% | 1.2% | 0.9% | 44.3% | 41.3% |
1 Year Return vs Industry and Market
- PRGS underperformed the Software industry which returned 23.1% over the past year.
- PRGS underperformed the Market in United States of America which returned 0.9% over the past year.
PRGS Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Progress Software
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Progress Software.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 4 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 11.3% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 7.3% |
| Software Unlevered Beta | Simply Wall St/ S&P Global | 1.12 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.116 (1 + (1- 21%) (6.89%)) |
1.176 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.18 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.176 * 7.27%) |
11.28% |
Discounted Cash Flow Calculation for NasdaqGS:PRGS using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Progress Software is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Levered FCF (USD, Millions) | 113.50 | 116.50 | 111.40 | 115.10 | 116.20 |
| Source | Analyst x1 | Analyst x1 | Analyst x1 | Analyst x1 | Analyst x1 |
|
Present Value Discounted (@ 11.28%) |
101.99 | 94.07 | 80.84 | 75.05 | 68.09 |
| Present value of next 5 years cash flows | $420.04 |
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2023
× (1 + g) ÷ (Discount Rate – g)
= $116.20 × (1 + 2.73%) ÷ (11.28% – 2.73%) |
$1,395.75 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)5
= $1,395.75 ÷ (1 + 11.28%)5 |
$817.85 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 5 years cash flows +
Terminal Value
= $420.04 + $817.85 |
$1,237.89 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $1,237.89 / 45.15 |
$27.41 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $27.41 |
| Current discount | Discount to share price of
$37.32
= -1 x ($37.32 - $27.41) / $27.41 |
-36.1% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Progress Software is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Progress Software's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Progress Software's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-11-30) in USD | $1.39 |
| NasdaqGS:PRGS Share Price ** | NasdaqGS (2019-02-15) in USD | $37.32 |
| United States of America Software Industry PE Ratio | Median Figure of 77 Publicly-Listed Software Companies | 47.36x |
| United States of America Market PE Ratio | Median Figure of 3,045 Publicly-Listed Companies | 16.97x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Progress Software.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NasdaqGS:PRGS Share Price ÷ EPS (both in USD) = 37.32 ÷ 1.39 |
26.78x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Progress Software is good value based on earnings compared to the US Software industry average.
- Progress Software is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Progress Software's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 26.78x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts |
-4.5%per year |
| United States of America Software Industry PEG Ratio | Median Figure of 62 Publicly-Listed Software Companies | 2.67x |
| United States of America Market PEG Ratio | Median Figure of 2,115 Publicly-Listed Companies | 1.36x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 26.78x ÷ -4.5% |
-5.96x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Progress Software earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on
Progress Software's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-11-30) in USD | $6.87 |
| NasdaqGS:PRGS Share Price * | NasdaqGS (2019-02-15) in USD | $37.32 |
| United States of America Software Industry PB Ratio | Median Figure of 217 Publicly-Listed Software Companies | 5.58x |
| United States of America Market PB Ratio | Median Figure of 5,122 Publicly-Listed Companies | 1.82x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NasdaqGS:PRGS Share Price ÷ Book Value per Share (both in USD) = 37.32 ÷ 6.87 |
5.43x |
* Primary Listing of Progress Software.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Progress Software is good value based on assets compared to the US Software industry average.
Value checks
We assess Progress Software's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Software industry average (and greater than 0)? (1 check) Progress Software has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
PRGS Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Progress Software's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
- Progress Software's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
- Progress Software's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NasdaqGS:PRGS Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts | -4.5% |
| NasdaqGS:PRGS Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts | -0.1% |
| United States of America Software Industry Earnings Growth Rate | Market Cap Weighted Average | 19.2% |
| United States of America Software Industry Revenue Growth Rate | Market Cap Weighted Average | 11.3% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.3% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 4 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-11-30 | 395 | 1 | ||
| 2022-11-30 | 391 | 1 | ||
| 2021-11-30 | 387 | 1 | ||
| 2020-11-30 | 390 | 60 | 3 | |
| 2019-11-30 | 383 | 122 | 55 | 4 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-11-30 | 397 | 121 | 63 |
| 2018-08-31 | 402 | 130 | 61 |
| 2018-05-31 | 404 | 120 | 56 |
| 2018-02-28 | 401 | 100 | 51 |
| 2017-11-30 | 398 | 106 | 37 |
| 2017-08-31 | 399 | 107 | -53 |
| 2017-05-31 | 404 | 113 | -56 |
| 2017-02-28 | 407 | 118 | -59 |
| 2016-11-30 | 405 | 103 | -56 |
| 2016-08-31 | 400 | 96 | 9 |
| 2016-05-31 | 393 | 96 | -3 |
| 2016-02-29 | 386 | 90 | -5 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 4 Analyst Estimates (S&P Global) | See Below |
All data from Progress Software Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-11-30 | ||||
| 2022-11-30 | ||||
| 2021-11-30 | ||||
| 2020-11-30 | 1.41 | 1.50 | 1.32 | 2.00 |
| 2019-11-30 | 1.23 | 1.27 | 1.20 | 3.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-11-30 | 1.39 |
| 2018-08-31 | 1.33 |
| 2018-05-31 | 1.19 |
| 2018-02-28 | 1.07 |
| 2017-11-30 | 0.78 |
| 2017-08-31 | -1.09 |
| 2017-05-31 | -1.16 |
| 2017-02-28 | -1.21 |
| 2016-11-30 | -1.13 |
| 2016-08-31 | 0.17 |
| 2016-05-31 | -0.06 |
| 2016-02-29 | -0.09 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Unable to establish if Progress Software will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
Future performance checks
We assess Progress Software's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Progress Software has a total score of 0/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
PRGS Past Performance
How has Progress Software performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Progress Software's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
- Progress Software's 1-year earnings growth exceeds its 5-year average (69.7% vs -8.8%)
- Progress Software's earnings growth has exceeded the US Software industry average in the past year (69.7% vs 29.3%).
Earnings and Revenue History
All data from Progress Software Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-11-30 | 397.17 | 63.49 | 142.09 | 79.74 |
| 2018-08-31 | 401.91 | 61.49 | 137.64 | 80.65 |
| 2018-05-31 | 403.54 | 55.92 | 137.99 | 80.93 |
| 2018-02-28 | 400.65 | 50.85 | 136.99 | 79.90 |
| 2017-11-30 | 397.57 | 37.42 | 140.58 | 76.99 |
| 2017-08-31 | 399.22 | -52.81 | 146.58 | 78.43 |
| 2017-05-31 | 403.93 | -56.40 | 153.52 | 80.52 |
| 2017-02-28 | 406.83 | -59.47 | 162.08 | 84.02 |
| 2016-11-30 | 405.34 | -55.73 | 167.83 | 88.49 |
| 2016-08-31 | 400.34 | 8.60 | 171.89 | 87.19 |
| 2016-05-31 | 392.96 | -3.11 | 174.71 | 85.91 |
| 2016-02-29 | 385.65 | -4.61 | 178.83 | 85.90 |
| 2015-11-30 | 377.55 | -8.80 | 181.86 | 86.92 |
| 2015-08-31 | 362.73 | 15.13 | 176.60 | 78.93 |
| 2015-05-31 | 347.37 | 30.36 | 167.16 | 73.48 |
| 2015-02-28 | 339.38 | 37.39 | 157.42 | 66.67 |
| 2014-11-30 | 332.53 | 49.46 | 148.59 | 58.97 |
| 2014-08-31 | 325.62 | 49.61 | 147.18 | 60.00 |
| 2014-05-31 | 323.92 | 45.72 | 150.75 | 59.64 |
| 2014-02-28 | 324.80 | 41.06 | 154.92 | 58.83 |
| 2013-11-30 | 334.00 | 39.78 | 161.99 | 57.34 |
| 2013-08-31 | 329.66 | 37.65 | 167.03 | 54.02 |
| 2013-05-31 | 326.45 | 38.19 | 168.16 | 52.04 |
| 2013-02-28 | 318.87 | 38.91 | 165.59 | 47.75 |
| 2012-11-30 | 317.61 | 44.95 | 158.13 | 44.44 |
| 2012-08-31 | 205.30 | 50.31 | 93.94 | 20.72 |
| 2012-05-31 | 255.44 | 52.15 | 118.60 | 26.19 |
| 2012-02-29 | 308.94 | 61.68 | 136.63 | 34.33 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Progress Software has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
- Progress Software used its assets more efficiently than the US Software industry average last year based on Return on Assets.
- Progress Software has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Progress Software's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Progress Software has a total score of 5/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
PRGS Health
How is Progress Software's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Progress Software's finances.
The net worth of a company is the difference between its assets and liabilities.
- Progress Software is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Progress Software's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Progress Software Company Filings, last reported 2 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-11-30 | 310.08 | 116.09 | 139.51 |
| 2018-08-31 | 305.47 | 117.54 | 137.88 |
| 2018-05-31 | 309.14 | 119.00 | 144.20 |
| 2018-02-28 | 347.65 | 120.45 | 167.50 |
| 2017-11-30 | 376.08 | 121.91 | 183.61 |
| 2017-08-31 | 391.60 | 122.95 | 191.32 |
| 2017-05-31 | 392.84 | 126.61 | 245.08 |
| 2017-02-28 | 386.19 | 130.27 | 264.19 |
| 2016-11-30 | 406.63 | 135.00 | 249.75 |
| 2016-08-31 | 494.58 | 136.88 | 232.68 |
| 2016-05-31 | 491.40 | 138.75 | 229.11 |
| 2016-02-29 | 522.64 | 140.63 | 251.49 |
| 2015-11-30 | 522.46 | 144.38 | 241.28 |
| 2015-08-31 | 529.74 | 144.38 | 218.30 |
| 2015-05-31 | 523.00 | 146.25 | 199.12 |
| 2015-02-28 | 538.07 | 148.13 | 211.16 |
| 2014-11-30 | 543.25 | 0.00 | 283.27 |
| 2014-08-31 | 524.28 | 0.00 | 261.29 |
| 2014-05-31 | 518.53 | 0.00 | 226.58 |
| 2014-02-28 | 524.67 | 0.00 | 248.05 |
| 2013-11-30 | 513.65 | 0.00 | 231.44 |
| 2013-08-31 | 519.36 | 0.00 | 241.98 |
| 2013-05-31 | 542.24 | 0.00 | 255.80 |
| 2013-02-28 | 595.82 | 0.00 | 321.38 |
| 2012-11-30 | 638.40 | 0.00 | 355.22 |
| 2012-08-31 | 679.44 | 0.00 | 352.21 |
| 2012-05-31 | 659.54 | 0.07 | 328.25 |
| 2012-02-29 | 653.43 | 0.17 | 315.16 |
- Progress Software's level of debt (37.4%) compared to net worth is satisfactory (less than 40%).
- The level of debt compared to net worth has increased over the past 5 years (0% vs 37.4% today).
- Debt is well covered by operating cash flow (104.5%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 24.2x coverage).
Financial health checks
We assess Progress Software's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Progress Software has a total score of 5/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
PRGS Dividends
What is Progress Software's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Progress Software
shares you are expected to receive
$33
in your first year as a dividend.
Dividend Amount
- Progress Software's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
- Progress Software's dividend is below the markets top 25% of dividend payers in United States of America (3.59%).
Upcoming dividend payment
Purchase Progress Software on or before the 'Buy Limit' to receive their next dividend payment.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 4 Analyst Estimates (S&P Global) | See Below |
| United States of America Software Industry Average Dividend Yield | Market Cap Weighted Average of 24 Stocks | 1.6% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 1998 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-11-30 | ||
| 2022-11-30 | ||
| 2021-11-30 | ||
| 2020-11-30 | ||
| 2019-11-30 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-01-17 | 0.620 | 1.723 |
| 2018-10-05 | 0.620 | 1.842 |
| 2018-09-27 | 0.620 | 1.731 |
| 2018-03-28 | 0.560 | 1.444 |
| 2017-09-12 | 0.560 | 1.310 |
| 2017-06-28 | 0.500 | 1.550 |
| 2017-03-29 | 0.500 | 1.693 |
| 2016-09-28 | 0.500 | 1.729 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Whilst dividend payments have been stable, Progress Software has been paying a dividend for less than 10 years.
- Dividend payments have increased, but Progress Software only paid a dividend in the past 2 years.
Income/ dividend checks
We assess Progress Software's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Progress Software afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Progress Software has a total score of 2/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
PRGS Management
CEO
| COMPENSATION | $3,382,043 |
| AGE | 57 |
| TENURE AS CEO | 2.3 years |
CEO Bio
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 various venture capital and private equity firms from October 2015 until September 2016. Mr. Gupta serves as the Chief Technology Officer of KvLab Inc. Mr. Gupta served as the Chief Executive Officer and President of Kaseya International Shared Services Sàrl (also known as Kaseya International Limited) since June 24, 2013 until 2015 and he defined a new growth strategy and led it through a complete product and business transformation. He successfully implemented a high-velocity sales process that led to the transition of an $80 million on-premise and perpetual business to cloud and subscription. Mr. Gupta served as the Chief Executive Officer of FatWire Corporation since August 7, 2007 until 2011 and President since August 7, 2007 and oversaw all global operations, including sales, marketing, development, finance and professional services. He has over two decades of experience in product development, marketing, strategy, planning and business development. Mr. Gupta served increasingly responsible senior management roles at CA Technologies (now CA, Inc.) as the Chief Technology Officer and Chief Strategist/Chief Technology Strategist. He served as a Senior Vice President of Business Development of CA, Inc. since January 2006, Chief Technology Officer from August 2000 to January 25, 2006 and also served as its Senior Vice President since August 2000. He served at CA from 1989 to 2007. His other roles at CA included five years as Senior Vice President of Worldwide Product Marketing, Senior Vice President of Strategic Planning as well as General Manager of its $2 billion distributed product portfolio. In the 1990s, he launched CA's flagship product Unicenter. He served as the Head of CA, where he managed an organization of over 2000 software professionals. He held technical and management roles at various companies including Cullinet Software and Burroughs Corp. He served as Chief Technology Officer of AbirNet. He has been a Director of Progress Software Corporation since October 10, 2016. Mr. Gupta serves as a Director of The Long Island Software and Technology Network. He served as a Director of FatWire Corporation. He served as a Director of AbirNet and DimDim, Inc. He is a recognized expert in emerging technologies and industry trends. He is a published author and much sought-after Speaker who regularly presents to audiences ranging from CIOs to Chief Technology Officers, to industry analysts, financial investors and the media. In 2004, he was selected by InfoWorld as one of the 25 most influential Chief Technology Officer's worldwide. Mr. Gupta has a Bachelors degree in Electronics Engineering from the Indian Institute of Technology in Madras and a Masters degree in Computer Science from the University of Wisconsin.
CEO Compensation
- Yogesh's compensation has been consistent with company performance over the past year.
- Yogesh's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Progress Software management team in years:
- The tenure for the Progress Software management team is about average.
Management Team
Yogesh Gupta
CEO, President & Director
$3M
57
2.3 yrs
Paul Jalbert
Chief Financial Officer
$3M
61
1.9 yrs
Dmitri Tcherevik
Chief Technology Officer
$1M
48
1.8 yrs
Loren Jarrett
Chief Marketing Officer
$2M
43
2.1 yrs
John Ainsworth
Senior Vice President of Core Products
$2M
53
2.1 yrs
Michael Mark
$280K
72
0.8 yrs
Tony Murphy
Chief Information Officer & Chief Information Security Officer
47
1.7 yrs
Brian Flanagan
Directory of Treasury & Investor Relations
Stephen Faberman
Chief Legal Officer & Secretary
$1M
48
3.2 yrs
Dimi Taslakov
Chief Talent Officer
41
4.2 yrs
Board of Directors Tenure
Average tenure and age of the Progress Software board of directors in years:
- The average tenure for the Progress Software board of directors is less than 3 years, this suggests a new board.
Board of Directors
Jack Egan
Non-Executive Chairman of the Board
$333K
60
6.2 yrs
Yogesh Gupta
CEO, President & Director
$3M
57
2.3 yrs
Chuck Kane
Independent Director
$290K
61
12.3 yrs
David Krall
Independent Director
$285K
58
11 yrs
Paul Dacier
Director
$456K
60
1.7 yrs
Michael Mark
$280K
72
0.8 yrs
Rainer Gawlick
Director
$458K
50
1.7 yrs
Sam King
Director
43
1 yrs
Angela Tucci
Director
51
1 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 05. Oct 18 | Sell | Dimitre Taslakov | Individual | 03. Oct 18 | 03. Oct 18 | -2,000 | $35.00 | $-70,000 | ||
| 07. Mar 18 | Sell | Praesidium Investment Management Company, LLC | Company | 11. Jan 18 | 05. Mar 18 | -4,327,479 | $50.87 | $-195,325,242 | ||
Management checks
We assess Progress Software's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Progress Software has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
PRGS News
Simply Wall St News
How Many Insiders Sold Progress Software Corporation (NASDAQ:PRGS) Shares?
Progress Software Insider Transactions Over The Last Year. … In the last twelve months, the biggest single sale by an insider was when Chief Talent Officer Dimitre Taslakov sold US$70k worth of shares at a price of US$35.00 per share. … That means that even when the share price was below the current price of US$37.03, an insider wanted to cash in some shares.
Simply Wall St - – Full articleProgress Software Corporation (NASDAQ:PRGS) Has Attractive Fundamentals
Looking at the company as a whole, as a potential stock investment, I believe PRGS has a lot to offer. … is a company with great financial health as well as a. … Below, I've touched on some key aspects you should know on a high level
Simply Wall St - – Full articleHere's What Progress Software Corporation's (NASDAQ:PRGS) ROCE Can Tell Us
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.
Simply Wall St - – Full articleCan Progress Software Corporation's (NASDAQ:PRGS) ROE Continue To Surpass The Industry Average?
To keep the lesson grounded in practicality, we'll use ROE to better understand Progress Software Corporation (NASDAQ:PRGS). … Progress Software has a ROE of 20%, based on the last twelve months. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleConsider This Before Buying Progress Software Corporation (NASDAQ:PRGS) For The 1.8% Dividend
Progress Software Corporation (NASDAQ:PRGS) has recently paid dividends to shareholders, and currently yields 1.8%. … Does Progress Software tick all the boxes of a great dividend stock? … View our latest analysis for Progress Software
Simply Wall St - – Full articleProgress Software Corporation (NASDAQ:PRGS): 4 Days To Buy Before The Ex-Dividend Date
Investors who want to cash in on Progress Software Corporation's (NASDAQ:PRGS) upcoming dividend of US$0.15 per share have only 4 days left to buy the shares before its ex-dividend date, 30 November 2018, in time for dividends payable on the 17 December 2018. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Progress Software's latest financial data to analyse its dividend attributes. … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:?
Simply Wall St - – Full articleWhat does Progress Software Corporation's (NASDAQ:PRGS) Balance Sheet Tell Us About Its Future?
Investors are always looking for growth in small-cap stocks like Progress Software Corporation (NASDAQ:PRGS), with a market cap of US$1.5b. … However, an important fact which most ignore is: how financially healthy is the business? … Companies operating in the Software industry,.
Simply Wall St - – Full articleDoes The Progress Software Corporation (NASDAQ:PRGS) Share Price Fall With The Market?
Volatility is considered to be a measure of risk in modern finance theory. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.
Simply Wall St - – Full articleA Look At The Fair Value Of Progress Software Corporation (NASDAQ:PRGS)
In this article I am going to calculate the intrinsic value of Progress Software Corporation (NASDAQ:PRGS). … by projecting its future cash flows and then discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model
Simply Wall St - – Full articleHas Progress Software Corporation's (NASDAQ:PRGS) Earnings Momentum Changed Recently?
After reading Progress Software Corporation's (NASDAQ:PRGS) latest earnings update (31 May 2018), I found it beneficial to look back at how the company has performed in the past and compare this against the most recent numbers. … As a long-term investor I tend to pay attention to earnings trend, rather than a single number at one point in time. … Did PRGS's recent earnings growth beat the long-term trend and the industry
Simply Wall St - – Full articlePRGS Company Info
Map
Description
Progress Software Corporation develops business applications worldwide. The company operates in 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; NativeScript, an open-source application development platform; 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 Dev Tools, a cross-platform, user experience design, quality assurance, debugging, and reporting suite; Sitefinity, a Web content management and customer analytics platform; and Test Studio, an application lifecycle management suite for testing Web, mobile, and desktop applications. 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 directly to end users, as well as indirectly to application partners, original equipment manufacturers, and system integrators. Progress Software Corporation was founded in 1981 and is headquartered in Bedford, Massachusetts.
Details
| Name: | Progress Software Corporation |
| PRGS | |
| Exchange: | NasdaqGS |
| Founded: | 1981 |
| $1,685,138,136 | |
| 45,153,755 | |
| Website: | http://www.progress.com |
| Address: |
Progress Software Corporation 14 Oak Park Drive, Bedford, Massachusetts, 01730, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NasdaqGS | PRGS | Common Stock | Nasdaq Global Select | US | USD | 30. Jul 1991 | |
| DB | PGR | Common Stock | Deutsche Boerse AG | DE | EUR | 30. Jul 1991 |
Number of employees
Current staff
Industry
| Systems Software | |
| Software |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/02/18 01:33 |
| End of day share price update: | 2019/02/15 00:00 |
| Last estimates confirmation: | 2019/01/18 |
| Last earnings filing: | 2019/01/28 |
| Last earnings reported: | 2018/11/30 |
| Last annual earnings reported: | 2018/11/30 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
