Progress Software
Progress Software Corporation provides software solutions for various industries worldwide. The last earnings update was 16 days ago. More info.
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- Progress Software has significant price volatility in the past 3 months.
PRGS Share Price and Events
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 | 11.4% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 3% |
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 | 3% |
| Equity Risk Premium | S&P Global | 7.1% |
| Software Unlevered Beta | Simply Wall St/ S&P Global | 1.12 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.123 (1 + (1- 21%) (8.15%)) |
1.195 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.19 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.195 * 7.05%) |
11.37% |
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) | 132.85 | 127.00 | 116.90 | 120.80 | 127.23 |
| Source | Analyst x2 | Analyst x2 | Analyst x1 | Analyst x1 | Est @ 5.32% |
|
Present Value Discounted (@ 11.37%) |
119.28 | 102.38 | 84.62 | 78.51 | 74.25 |
| Present value of next 5 years cash flows | $459.04 |
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2023
× (1 + g) ÷ (Discount Rate – g)
= $127.23 × (1 + 2.95%) ÷ (11.37% – 2.95%) |
$1,554.85 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)5
= $1,554.85 ÷ (1 + 11.37%)5 |
$907.33 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 5 years cash flows +
Terminal Value
= $459.04 + $907.33 |
$1,366.37 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $1,366.37 / 44.90 |
$30.43 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $30.43 |
| Current discount | Discount to share price of
$32.14
= -1 x ($32.14 - $30.43) / $30.43 |
-5.6% |
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 (2018-08-31) in USD | $1.33 |
| NasdaqGS:PRGS Share Price ** | NasdaqGS (2018-10-19) in USD | $32.14 |
| United States of America Software Industry PE Ratio | Median Figure of 68 Publicly-Listed Software Companies | 49.25x |
| United States of America Market PE Ratio | Median Figure of 2,939 Publicly-Listed Companies | 18.97x |
* 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) = 32.14 ÷ 1.33 |
24.13x |
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 | 24.13x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts |
0.6%per year |
| United States of America Software Industry PEG Ratio | Median Figure of 54 Publicly-Listed Software Companies | 2.53x |
| United States of America Market PEG Ratio | Median Figure of 2,059 Publicly-Listed Companies | 1.27x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 24.13x ÷ 0.6% |
39.13x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Progress Software is poor value based on expected growth next year.
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 (2018-08-31) in USD | $6.77 |
| NasdaqGS:PRGS Share Price * | NasdaqGS (2018-10-19) in USD | $32.14 |
| United States of America Software Industry PB Ratio | Median Figure of 205 Publicly-Listed Software Companies | 5.14x |
| United States of America Market PB Ratio | Median Figure of 4,944 Publicly-Listed Companies | 1.91x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NasdaqGS:PRGS Share Price ÷ Book Value per Share (both in USD) = 32.14 ÷ 6.77 |
4.75x |
* 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 growth is positive but not above the low risk savings rate of 3%.
Growth vs Market Checks
- Progress Software's earnings growth is positive but not above the United States of America market average.
- Progress Software's revenue growth is positive but not above 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 | 0.6% |
| NasdaqGS:PRGS Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts | 0.3% |
| United States of America Software Industry Earnings Growth Rate | Market Cap Weighted Average | 22.6% |
| United States of America Software Industry Revenue Growth Rate | Market Cap Weighted Average | 10.8% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 15.9% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.5% |
*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 (1 month 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 |
|---|---|---|---|---|
| 2022-11-30 | 401 | 1 | ||
| 2021-11-30 | 397 | 1 | ||
| 2020-11-30 | 405 | 143 | 67 | 3 |
| 2019-11-30 | 398 | 134 | 63 | 4 |
| 2018-11-30 | 395 | 130 | 66 | 4 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 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 |
| 2015-11-30 | 378 | 105 | -9 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month 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 1 month 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 |
|---|---|---|---|---|
| 2022-11-30 | ||||
| 2021-11-30 | ||||
| 2020-11-30 | 1.54 | 1.70 | 1.38 | 2.00 |
| 2019-11-30 | 1.40 | 1.45 | 1.33 | 3.00 |
| 2018-11-30 | 1.43 | 1.43 | 1.42 | 3.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 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 |
| 2015-11-30 | -0.17 |
*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 has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
- Progress Software has become profitable in the last year making it difficult to compare the US Software industry average.
Earnings and Revenue History
All data from Progress Software Company Filings, last reported 1 month 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 |
|---|---|---|---|---|
| 2018-08-31 | 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 |
| 2011-11-30 | 333.61 | 71.39 | 145.59 | 38.18 |
*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 3/6, 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 1.7x 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 1 month ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 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 |
| 2011-11-30 | 625.11 | 0.36 | 261.42 |
- Progress Software's level of debt (38.5%) 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 38.5% today).
- Debt is well covered by operating cash flow (110.2%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 27x 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
$39
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 (1.38%).
- Progress Software's dividend is below the markets top 25% of dividend payers in United States of America (3.49%).
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 23 Stocks | 1.6% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 1973 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 | 3.5% |
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 |
|---|---|---|
| 2022-11-30 | ||
| 2021-11-30 | ||
| 2020-11-30 | ||
| 2019-11-30 | ||
| 2018-11-30 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2018-10-05 | 0.620 | 1.883 |
| 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 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.
Management Team Tenure
Average tenure and age of the Progress Software management team in years:
- The average tenure for the Progress Software management team is less than 2 years, this suggests a new team.
Management Team
Yogesh Gupta
CEO, President & Director
$3M
57
2 yrs
Paul Jalbert
Chief Financial Officer
$3M
61
1.6 yrs
Dmitri Tcherevik
Chief Technology Officer
$1M
48
1.5 yrs
Loren Jarrett
Chief Marketing Officer
$2M
43
1.8 yrs
John Ainsworth
Senior VP of Core Products
$2M
53
1.8 yrs
Michael Mark
Non-Voting Director Emeritus and Advisor to President & CEO
$280K
72
0.4 yrs
Tony Murphy
Chief Information Officer
47
1.3 yrs
Brian Flanagan
Directory of Treasury & Investor Relations
Stephen Faberman
Chief Legal Officer & Secretary
$1M
48
2.8 yrs
Dimi Taslakov
Chief Talent Officer
41
3.8 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
5.8 yrs
Yogesh Gupta
CEO, President & Director
$3M
57
2 yrs
Chuck Kane
Independent Director
$290K
61
11.9 yrs
David Krall
Independent Director
$285K
58
10.7 yrs
Paul Dacier
Director
$456K
60
1.3 yrs
Michael Mark
Non-Voting Director Emeritus and Advisor to President & CEO
$280K
72
0.4 yrs
Rainer Gawlick
Director
$458K
50
1.3 yrs
Sam King
Director
44
0.7 yrs
Angela Tucci
Director
51
0.7 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Start | End | Shares | Value (USD) |
|---|---|---|---|---|---|---|---|
| 05. Oct 18 | Sell | Dimitre Taslakov | Individual | 03. Oct 18 | 03. Oct 18 | -2,000 | $-70,000.00 |
| 07. Mar 18 | Sell | Praesidium Investment Management Company, LLC | Company | 11. Jan 18 | 05. Mar 18 | -4,327,479 | $-195,325,241.95 |
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
External News
Simply Wall St News
Has 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 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$1.72b. … However, an important fact which most ignore is: how financially healthy is the business? … Software companies,.
Simply Wall St - – Full articleA Look At The Fair Value Of Progress Software Corporation (NASDAQ:PRGS)
by projecting its future cash flows and then discounting them to today's value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model
Simply Wall St - – Full articleIs There Now An Opportunity In Progress Software Corporation (NASDAQ:PRGS)?
saw significant share price volatility over the past couple of months on the NasdaqGS, rising to the highs of $41.37 and falling to the lows of $36.26. … A question to answer is whether Progress Software's current trading price of $36.26 reflective of the actual value of the? … Let’s take a look at Progress Software’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change
Simply Wall St - – Full articleIs Progress Software Corporation's (NASDAQ:PRGS) PE Ratio A Signal To Buy For Investors?
and want to better understand how you can grow your money by investing in Progress Software Corporation (NASDAQ:PRGS). … Progress Software Corporation (NASDAQ:PRGS) is trading with a trailing P/E of 36.5x, which is lower than the industry average of 36.7x. … View out our latest analysis for Progress Software
Simply Wall St - – Full articleUnderstanding Your Return On Investment In Progress Software Corporation (NASDAQ:PRGS)
PRGS’s ROCE is calculated below: ROCE Calculation for PRGS Return on Capital Employed (ROCE) = Earnings Before Tax (EBT) ÷ (Capital Employed) Capital Employed = (Total Assets - Current Liabilities) ∴ ROCE = US$91.74M ÷ (US$683.14M - US$203.03M) = 19.11% The calculation above shows that PRGS’s earnings were 19.11% of capital employed. … With this, the current earnings of US$91.74M improved from US$68.13M and the amount of capital employed fell in response to a decline in total assets and a larger reliance on current liabilities (increased borrowing to fund operations) , which means the company has been able to improve ROCE by growing earnings and simultaneously putting less capital to work. … Next Steps PRGS's investors have enjoyed an upward trend in ROCE and it is currently at a level that makes the company an attractive candidate that is capable of producing solid capital returns, and hence, an attractive return on investment.
Simply Wall St - – Full articleIs Progress Software Corporation (NASDAQ:PRGS) Undervalued?
Progress Software Corporation (NASDAQ:PRGS), a software company based in United States, saw significant share price volatility over the past couple of months on the NasdaqGS, rising to the highs of $52.51 and falling to the lows of $37.21. … It’s trading around 6.63% below my intrinsic value, which means if you buy Progress Software today, you’d be paying a fair price for it. … PRGS’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value.
Simply Wall St - – Full articleWhy Progress Software Corporation's (NASDAQ:PRGS) Investor Composition Impacts Your Returns
Therefore, it is beneficial for us to examine PRGS's ownership structure in more detail. … However, a higher level of insider ownership has been linked to management executing on high-returning projects instead of expansion projects for the sake of apparent growth. … Next Steps: PRGS's considerably high level of institutional ownership calls for further analysis into its margin of safety.
Simply Wall St - – Full articleWhat You Must Know About Progress Software Corporation's (NASDAQ:PRGS) Market Risks
If you are looking to invest in Progress Software Corporation’s (NASDAQ:PRGS), or currently own the stock, then you need to understand its beta in order to understand how it can affect the risk of your portfolio. … A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one. … PRGS's beta implies it may be a stock that investors with high-beta portfolios might find relevant if they wanted to reduce their exposure to market risk, especially during times of downturns.
Simply Wall St - – Full articleAre Progress Software Corporation's (NASDAQ:PRGS) Interest Costs Too High?
How does PRGS’s operating cash flow stack up against its debt? … Moreover, PRGS has produced cash from operations of US$105.69M during the same period of time, leading to an operating cash to total debt ratio of 86.69%, signalling that PRGS’s current level of operating cash is high enough to cover debt. … For PRGS, the ratio of 26.36x suggests that interest is comfortably covered, which means that lenders may be less hesitant to lend out more funding as PRGS’s high interest coverage is seen as responsible and safe practice.Next Steps: PRGS has demonstrated its ability to generate sufficient levels of cash flow, while its debt hovers at an appropriate level.
Simply Wall St - – Full articlePRGS Company Info
Map
Description
Progress Software Corporation provides software solutions for various industries worldwide. It 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; DataRPM, which provides maintenance solutions for industrial IoT; and Kinvey that offers cloud backend as a service technology. 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; NativeScript, an open-source application development platform; Test Studio, an application lifecycle management suite for testing Web, mobile, and desktop applications; and Sitefinity, a Web content management and customer analytics platform. 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 |
| $1,443,169,788 | |
| 44,902,607 | |
| 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: | 2018/10/21 21:09 |
| End of day share price update: | 2018/10/19 00:00 |
| Last estimates confirmation: | 2018/09/28 |
| Last earnings filing: | 2018/10/05 |
| Last earnings reported: | 2018/08/31 |
| Last annual earnings reported: | 2017/11/30 |
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.
