| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 2/6 |
| Past Performance | 2/6 |
| Financial Health | 3/6 |
| Dividends | 3/6 |
PRGS Stock Overview
Progress Software Corporation develops business applications.
Progress Software Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$44.50 |
| 52 Week High | US$53.99 |
| 52 Week Low | US$39.91 |
| Beta | 1.15 |
| 1 Month Change | -7.23% |
| 3 Month Change | -13.00% |
| 1 Year Change | 6.03% |
| 3 Year Change | 26.39% |
| 5 Year Change | 56.42% |
| Change since IPO | 1,257.63% |
Recent News & Updates
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.
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
| PRGS | US Software | US Market | |
|---|---|---|---|
| 7D | -3.1% | -5.5% | -6.1% |
| 1Y | 6.0% | 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
| PRGS volatility | |
|---|---|
| PRGS Average Weekly Movement | 4.0% |
| Software Industry Average Movement | 8.6% |
| Market Average Movement | 6.7% |
| 10% most volatile stocks in US Market | 15.6% |
| 10% least volatile stocks in US Market | 2.4% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1981 | 1,796 | Yogesh Gupta | https://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
| PRGS fundamental statistics | |
|---|---|
| Market Cap | US$1.95b |
| Earnings (TTM) | US$78.42m |
| Revenue (TTM) | US$531.31m |
24.9x
P/E Ratio3.7x
P/S RatioIs PRGS overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| PRGS income statement (TTM) | |
|---|---|
| Revenue | US$531.31m |
| Cost of Revenue | US$63.51m |
| Gross Profit | US$467.80m |
| Expenses | US$389.38m |
| Earnings | US$78.42m |
Last Reported Earnings
Nov 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 1.79 |
| Gross Margin | 88.05% |
| Net Profit Margin | 14.76% |
| Debt/Equity Ratio | 135.8% |
How did PRGS perform over the long term?
See historical performance and comparisonDividends
1.6%
Current Dividend Yield39%
Payout RatioDoes PRGS pay a reliable dividends?
See PRGS dividend history and benchmarks| Progress Software dividend dates | |
|---|---|
| Ex Dividend Date | Feb 28 2022 |
| Dividend Pay Date | Mar 15 2022 |
| Days until Ex dividend | 36 days |
| Days until Dividend pay date | 51 days |
Does PRGS pay a reliable dividends?
See PRGS dividend history and benchmarksValuation
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
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/21 23:34 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/11/30 |
| Annual Earnings | 2021/11/30 |
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.