Progress Software Corporation develops business applications. More Details
Solid track record and fair value.
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 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.
7 Day Return
1 Year Return
Return vs Industry: PRGS underperformed the US Software industry which returned 62.5% over the past year.
Return vs Market: PRGS underperformed the US Market which returned 58.4% over the past year.
Long-Term 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
2 days ago | Simply Wall StIs Now The Time To Put Progress Software (NASDAQ:PRGS) On Your Watchlist?
2 weeks ago | Simply Wall StShould You Be Excited About Progress Software Corporation's (NASDAQ:PRGS) 22% Return On Equity?
4 weeks ago | Simply Wall StIf You Had Bought Progress Software (NASDAQ:PRGS) Shares Five Years Ago You'd Have Earned 82% Returns
Is Progress Software undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PRGS ($44.54) is trading below our estimate of fair value ($54.65)
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 (25.7x) compared to the US Software industry average (51x).
PE vs Market: PRGS is poor value based on its PE Ratio (25.7x) compared to the US market (21.8x).
Price to Earnings Growth Ratio
PEG Ratio: PRGS is poor value based on its PEG Ratio (2.2x)
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 (8.1x).
How is Progress Software forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PRGS's forecast earnings growth (11.8% per year) is above the savings rate (2%).
Earnings vs Market: PRGS's earnings (11.8% per year) are forecast to grow slower than the US market (17.6% per year).
High Growth Earnings: PRGS's earnings are forecast to grow, but not significantly.
Revenue vs Market: PRGS's revenue (6.7% per year) is forecast to grow slower than the US market (9.7% per year).
High Growth Revenue: PRGS's revenue (6.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if PRGS's Return on Equity is forecast to be high in 3 years time
How has Progress Software performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PRGS has high quality earnings.
Growing Profit Margin: PRGS's current net profit margins (17.1%) are higher than last year (8.8%).
Past Earnings Growth Analysis
Earnings Trend: PRGS has become profitable over the past 5 years, growing earnings by 47.4% per year.
Accelerating Growth: PRGS's earnings growth over the past year (103.5%) exceeds its 5-year average (47.4% per year).
Earnings vs Industry: PRGS earnings growth over the past year (103.5%) exceeded the Software industry 17.8%.
Return on Equity
High ROE: Whilst PRGS's Return on Equity (22%) is high, this metric is skewed due to their high level of debt.
How is Progress Software's financial position?
Financial Position Analysis
Short Term Liabilities: PRGS's short term assets ($239.3M) do not cover its short term liabilities ($265.7M).
Long Term Liabilities: PRGS's short term assets ($239.3M) do not cover its long term liabilities ($408.8M).
Debt to Equity History and Analysis
Debt Level: PRGS's debt to equity ratio (104.8%) is considered high.
Reducing Debt: PRGS's debt to equity ratio has increased from 26.9% to 104.8% over the past 5 years.
Debt Coverage: PRGS's debt is well covered by operating cash flow (42.3%).
Interest Coverage: PRGS's interest payments on its debt are well covered by EBIT (13.4x coverage).
What is Progress Software current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: PRGS's dividend (1.57%) is higher than the bottom 25% of dividend payers in the US market (1.26%).
High Dividend: PRGS's dividend (1.57%) is low compared to the top 25% of dividend payers in the US market (3.52%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, PRGS has been paying a dividend for less than 10 years.
Growing Dividend: PRGS's dividend payments have increased, but the company has only paid a dividend for 5 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (39.2%), PRGS's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Yogesh Gupta (59 yo)
Mr. Yogesh K. Gupta has been the Chief Executive Officer of Progress Software Corporation since October 10, 2016 and as its President since October 2016. Prior to that time, Mr. Gupta served as an advisor ...
CEO Compensation Analysis
Compensation vs Market: Yogesh's total compensation ($USD5.21M) is above average for companies of similar size in the US market ($USD3.76M).
Compensation vs Earnings: Yogesh's compensation has been consistent with company performance over the past year.
Experienced Management: PRGS's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Experienced Board: PRGS's board of directors are considered experienced (3.8 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Progress Software Corporation's company bio, employee growth, exchange listings and data sources
- Name: Progress Software Corporation
- Ticker: PRGS
- Exchange: NasdaqGS
- Founded: 1981
- Industry: Systems Software
- Sector: Software
- Market Cap: US$1.960b
- Shares outstanding: 44.00m
- Website: https://www.progress.com
Number of Employees
- Progress Software Corporation
- 14 Oak Park Drive
- United States
Progress Software Corporation develops business applications. The company operates through three segments: OpenEdge, Data Connectivity and Integration, and Application Development and Deployment. The OpenE...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/04/20 23:36|
|End of Day Share Price||2021/04/20 00:00|
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.