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PRGS

Progress SoftwareNasdaqGS:PRGS Stock Report

Last Price

US$44.50

Market Cap

US$2.0b

7D

-3.1%

1Y

6.0%

Updated

21 Jan, 2022

Data

Company Financials +
PRGS fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance2/6
Financial Health3/6
Dividends3/6

PRGS Stock Overview

Progress Software Corporation develops business applications.

Progress Software Competitors

Microsoft

NasdaqGS:MSFT

US$2.2t

Oracle

NYSE:ORCL

US$219.6b

Amazon.com

NasdaqGS:AMZN

US$1.4t

BAE Systems

LSE:BA.

UK£18.8b

Price History & Performance

Summary of all time highs, changes and price drops for Progress Software
Historical stock prices
Current Share PriceUS$44.50
52 Week HighUS$53.99
52 Week LowUS$39.91
Beta1.15
1 Month Change-7.23%
3 Month Change-13.00%
1 Year Change6.03%
3 Year Change26.39%
5 Year Change56.42%
Change since IPO1,257.63%

Recent News & Updates

Jan 20

Progress Software: Lean In To This Stock For Value

Progress Software should be able to outperform most tech stocks due to its value orientation. The company is currently trading at barely ~11x forward P/E. The company has solid annual recurring revenue and a long history of profitability. Its strategy of growing via smart acquisitions has been proven to drive accretive growth.

Dec 27
Progress Software Corporation's (NASDAQ:PRGS) Intrinsic Value Is Potentially 74% Above Its Share Price

Progress Software Corporation's (NASDAQ:PRGS) Intrinsic Value Is Potentially 74% Above Its Share Price

In this article we are going to estimate the intrinsic value of Progress Software Corporation ( NASDAQ:PRGS ) by taking...

Shareholder Returns

PRGSUS SoftwareUS Market
7D-3.1%-5.5%-6.1%
1Y6.0%6.1%4.2%

Return vs Industry: PRGS underperformed the US Software industry which returned 9.6% over the past year.

Return vs Market: PRGS matched the US Market which returned 6.6% over the past year.

Price Volatility

Is PRGS's price volatile compared to industry and market?
PRGS volatility
PRGS Average Weekly Movement4.0%
Software Industry Average Movement8.6%
Market Average Movement6.7%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.4%

Stable Share Price: PRGS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: PRGS's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19811,796Yogesh Guptahttps://www.progress.com

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; and WhatsUp Gold, a network monitoring solution.

Progress Software Fundamentals Summary

How do Progress Software's earnings and revenue compare to its market cap?
PRGS fundamental statistics
Market CapUS$1.95b
Earnings (TTM)US$78.42m
Revenue (TTM)US$531.31m

24.9x

P/E Ratio

3.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PRGS income statement (TTM)
RevenueUS$531.31m
Cost of RevenueUS$63.51m
Gross ProfitUS$467.80m
ExpensesUS$389.38m
EarningsUS$78.42m

Last Reported Earnings

Nov 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.79
Gross Margin88.05%
Net Profit Margin14.76%
Debt/Equity Ratio135.8%

How did PRGS perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

39%

Payout Ratio

Does PRGS pay a reliable dividends?

See PRGS dividend history and benchmarks
When do you need to buy PRGS by to receive an upcoming dividend?
Progress Software dividend dates
Ex Dividend DateFeb 28 2022
Dividend Pay DateMar 15 2022
Days until Ex dividend36 days
Days until Dividend pay date51 days

Does PRGS pay a reliable dividends?

See PRGS dividend history and benchmarks

Valuation

Is Progress Software undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PRGS ($44.5) is trading below our estimate of fair value ($125.19)

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 (24.9x) compared to the US Software industry average (41.9x).

PE vs Market: PRGS is poor value based on its PE Ratio (24.9x) compared to the US market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: PRGS is poor value based on its PEG Ratio (1.8x)


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 (4.9x).


Future Growth

How is Progress Software forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

14.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRGS's forecast earnings growth (14.1% per year) is above the savings rate (2%).

Earnings vs Market: PRGS's earnings (14.1% per year) are forecast to grow faster than the US market (13.1% per year).

High Growth Earnings: PRGS's earnings are forecast to grow, but not significantly.

Revenue vs Market: PRGS's revenue (7.7% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: PRGS's revenue (7.7% 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 low in 3 years time (19%).


Past Performance

How has Progress Software performed over the past 5 years?

45.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRGS has high quality earnings.

Growing Profit Margin: PRGS's current net profit margins (14.8%) are lower than last year (18%).


Past Earnings Growth Analysis

Earnings Trend: PRGS has become profitable over the past 5 years, growing earnings by 45% per year.

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 (-1.6%) over the past year, making it difficult to compare to the Software industry average (20.5%).


Return on Equity

High ROE: PRGS's Return on Equity (19%) is considered low.


Financial Health

How is Progress Software's financial position?


Financial Position Analysis

Short Term Liabilities: PRGS's short term assets ($337.8M) exceed its short term liabilities ($322.9M).

Long Term Liabilities: PRGS's short term assets ($337.8M) do not cover its long term liabilities ($628.1M).


Debt to Equity History and Analysis

Debt Level: PRGS's net debt to equity ratio (97.7%) is considered high.

Reducing Debt: PRGS's debt to equity ratio has increased from 33.2% to 135.8% over the past 5 years.

Debt Coverage: PRGS's debt is well covered by operating cash flow (31.9%).

Interest Coverage: PRGS's interest payments on its debt are well covered by EBIT (8.5x coverage).


Balance Sheet


Dividend

What is Progress Software current dividend yield, its reliability and sustainability?

1.57%

Current Dividend Yield


Upcoming Dividend Payment

TodayJan 22 2022Ex Dividend DateFeb 28 2022Dividend Pay DateMar 15 202215 days from Ex DividendBuy in the next 36 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: PRGS's dividend (1.57%) is higher than the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: PRGS's dividend (1.57%) is low compared to the top 25% of dividend payers in the US market (3.55%).


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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.2%), PRGS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PRGS's dividends in 3 years are forecast to be well covered by earnings (17.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Yogesh Gupta (60 yo)

5.25yrs

Tenure

US$5,205,877

Compensation

Mr. Yogesh K. 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...


CEO Compensation Analysis

Compensation vs Market: Yogesh's total compensation ($USD5.21M) is above average for companies of similar size in the US market ($USD3.73M).

Compensation vs Earnings: Yogesh's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: PRGS's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: PRGS's board of directors are considered experienced (4.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 employee growth, exchange listings and data sources


Key Information

  • Name: Progress Software Corporation
  • Ticker: PRGS
  • Exchange: NasdaqGS
  • Founded: 1981
  • Industry: Systems Software
  • Sector: Software
  • Implied Market Cap: US$1.951b
  • Shares outstanding: 43.84m
  • Website: https://www.progress.com

Number of Employees


Location

  • Progress Software Corporation
  • 14 Oak Park Drive
  • Bedford
  • Massachusetts
  • 1730
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:34
End of Day Share Price2022/01/21 00:00
Earnings2021/11/30
Annual Earnings2021/11/30


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.