Progress Software
Market Cap
US$1.9b
Last Updated
2019/11/18 23:43 UTC
Data Sources
Company Financials +
Executive Summary
Progress Software Corporation develops business applications worldwide.
Snowflake
Fundamentals
Fair value 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
0.4%
PRGS
2.3%
US Software
0.9%
US Market
1 Year Return
27.5%
PRGS
37.2%
US Software
15.5%
US Market
Return vs Industry: PRGS underperformed the US Software industry which returned 37.2% over the past year.
Return vs Market: PRGS exceeded the US Market which returned 15.5% over the past year.
Shareholder returns
| PRGS | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.4% | 2.3% | 0.9% |
| 30 Day | 5.6% | 10.1% | 4.7% |
| 90 Day | 7.4% | 5.0% | 6.6% |
| 1 Year | 29.6%27.5% | 39.1%37.2% | 18.1%15.5% |
| 3 Year | 45.7%39.0% | 125.3%116.8% | 48.0%38.5% |
| 5 Year | 69.1%61.4% | 174.9%155.5% | 62.1%44.2% |
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
1 week ago | Simply Wall St
One Thing To Remember About The Progress Software Corporation (NASDAQ:PRGS) Share Price2 weeks ago | Simply Wall St
Does Progress Software's (NASDAQ:PRGS) Share Price Gain of 54% Match Its Business Performance?4 weeks ago | Simply Wall St
Why Progress Software Corporation (NASDAQ:PRGS) Looks Like A Quality CompanyValuation
Is Progress Software undervalued compared to its fair value and its price relative to the market?
7.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PRGS ($41.56) is trading below our estimate of fair value ($44.91)
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 good value based on its PE Ratio (34.8x) compared to the Software industry average (45x).
PE vs Market: PRGS is poor value based on its PE Ratio (34.8x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: PRGS is poor value based on its PEG Ratio (3x)
Price to Book Ratio
PB vs Industry: PRGS is good value based on its PB Ratio (5.6x) compared to the US Software industry average (5.8x).
Next Steps
Future Growth
How is Progress Software forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
11.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PRGS's forecast earnings growth (11.5% per year) is above the savings rate (2.7%).
Earnings vs Market: PRGS's earnings (11.5% per year) are forecast to grow slower than the US market (14.3% per year).
High Growth Earnings: PRGS's earnings are forecast to grow, but not significantly.
Revenue vs Market: PRGS's revenue (1.9% per year) is forecast to grow slower than the US market (7.3% per year).
High Growth Revenue: PRGS's revenue (1.9% 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 (15.8%).
Next Steps
Past Performance
How has Progress Software performed over the past 5 years?
16.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PRGS has high quality earnings.
Growing Profit Margin: PRGS's current net profit margins (13%) are lower than last year (14.5%).
Past Earnings Growth Analysis
Earnings Trend: PRGS's earnings have grown by 16.2% 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 (-6.7%) over the past year, making it difficult to compare to the Software industry average (25.8%).
Return on Equity
High ROE: PRGS's Return on Equity (16.1%) 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 ($236.3M) exceeds its short term liabilities ($215.3M)
Long Term Liabilities: PRGS's short term assets ($236.3M) do not cover its long term liabilities (311.6M)
Debt to Equity History and Analysis
Debt Level: PRGS's debt to equity ratio (89%) is considered high.
Reducing Debt: Insufficient data to determine if PRGS's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: PRGS's debt is well covered by operating cash flow (39.2%).
Interest Coverage: PRGS's interest payments on its debt are well covered by EBIT (11.9x 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 0.8x debt).
Next Steps
Dividend
What is Progress Software's current dividend yield, its reliability and sustainability?
1.59%
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 (1.59%) is higher than the bottom 25% of dividend payers in the US market (1.43%).
High Dividend: PRGS's dividend (1.59%) is low compared to the top 25% of dividend payers in the US market (3.65%).
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 reasonable payout ratio (51.9%), 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
What is the CEO of Progress Software's salary, the management and board of directors tenure and is there insider trading?
2.8yrs
Average management tenure
CEO
Yogesh Gupta (58yo)
3.1yrs
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 ($USD3.92M).
Compensation vs Earnings: Yogesh's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Management Age and Tenure
2.8yrs
Average Tenure
56yo
Average Age
Experienced Management: PRGS's management team is considered experienced (2.8 years average tenure).
Board Age and Tenure
2.4yrs
Average Tenure
60yo
Average Age
Experienced Board: PRGS's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Shares | 12,999 |
| Max Price | US$45.50 |
| Entity | Individual |
| Role | Chief Information Officer Chief Information Officer & Chief Information Security Officer |
| Shares | 932 |
| Max Price | US$45.99 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 7,764 |
| Max Price | US$45.58 |
| Entity | Individual |
| Role | Chairman of the Board Non-Executive Chairman of the Board |
| Shares | 45,000 |
| Max Price | US$45.30 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Yogesh Gupta (58yo)
CEO, President & Director
- Tenure: 3.1yrs
- Compensation: US$4.81m
Gary Quinn (58yo)
Senior Vice President of Core Field Organization
- Tenure: 2.3yrs
- Compensation: US$1.45m
Stephen Faberman (49yo)
Chief Legal Officer & Secretary
- Tenure: 3.9yrs
- Compensation: US$1.31m
Paul Jalbert (62yo)
Chief Financial Officer
- Tenure: 2.7yrs
- Compensation: US$1.93m
Tony Murphy (48yo)
Chief Information Officer & Chief Information Security Officer
- Tenure: 2.4yrs
Katie Kulikoski
Chief People Officer
- Tenure: 0yrs
Kim King
Vice President of Global Partners and Channels
- Tenure: 7.1yrs
John Ainsworth (54yo)
Senior Vice President of Core Products
- Tenure: 2.8yrs
- Compensation: US$1.38m
Brian Flanagan
Directory of Treasury & Investor Relations
- Tenure: 0yrs
Jennifer Ortiz
Vice President of Corporate Marketing
- Tenure: 0.08yrs
Board Members
Jack Egan (61yo)
Non-Executive Chairman of the Board
- Tenure: 6.9yrs
- Compensation: US$307.84k
Paul Dacier (61yo)
Independent Director
- Tenure: 2.4yrs
- Compensation: US$397.86k
David Krall (59yo)
Independent Director
- Tenure: 11.8yrs
- Compensation: US$272.84k
Chuck Kane (62yo)
Independent Director
- Tenure: 13yrs
- Compensation: US$272.84k
Yogesh Gupta (58yo)
CEO, President & Director
- Tenure: 3.1yrs
- Compensation: US$4.81m
Michael Mark (73yo)
Non-Voting Director Emeritus and Advisor to President & CEO
- Tenure: 1.5yrs
- Compensation: US$280.01k
Vivian Vitale (65yo)
Director
- Tenure: 0.08yrs
Angela Tucci (52yo)
Independent Director
- Tenure: 1.8yrs
- Compensation: US$552.22k
Rainer Gawlick (51yo)
Independent Director
- Tenure: 2.4yrs
- Compensation: US$420.36k
Sam King (45yo)
Independent Director
- Tenure: 1.8yrs
- Compensation: US$557.22k
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$1.861b
- Shares outstanding: 44.79m
- 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 worldwide. The company operates in three segments: OpenEdge, Data Connectivity and Integration, and Application Development and Deployment. The ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/11/18 23:43 |
| End of Day Share Price | 2019/11/18 00:00 |
| Earnings | 2019/08/31 |
| Annual Earnings | 2018/11/30 |
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.