| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 2/6 |
| Past Performance | 2/6 |
| Financial Health | 3/6 |
| Dividends | 2/6 |
PRGS Stock Overview
Progress Software Corporation develops, deploys, and manages business applications.
Progress Software Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$47.06 |
| 52 Week High | US$53.99 |
| 52 Week Low | US$41.68 |
| Beta | 1.07 |
| 1 Month Change | -0.89% |
| 3 Month Change | 4.58% |
| 1 Year Change | 6.30% |
| 3 Year Change | 8.81% |
| 5 Year Change | 62.44% |
| Change since IPO | 1,335.73% |
Recent News & Updates
Progress Software (NASDAQ:PRGS) Has Re-Affirmed Its Dividend Of US$0.17
Progress Software Corporation ( NASDAQ:PRGS ) will pay a dividend of US$0.17 on the 15th of June. This means the annual...
Progress Software: Unconventional, But Powerful
Progress Software, one of the lowest-profile stocks in the software sector, continues to execute against its ambitious targets. The company operates as a portfolio company of sorts, with its principal strategy revolving around buying other software companies. Its latest major acquisition, Kemp, added ~10% to its ARR base, and integration is going according to plan. The company's ~11x forward P/E, plus positive cash flow that helps to provide firepower for M&A, makes it an attractive investment.
Shareholder Returns
| PRGS | US Software | US Market | |
|---|---|---|---|
| 7D | 0.6% | -3.8% | -2.5% |
| 1Y | 6.3% | -10.3% | -10.4% |
Return vs Industry: PRGS exceeded the US Software industry which returned -10.3% over the past year.
Return vs Market: PRGS exceeded the US Market which returned -10.4% over the past year.
Price Volatility
| PRGS volatility | |
|---|---|
| PRGS Average Weekly Movement | 4.5% |
| Software Industry Average Movement | 11.4% |
| Market Average Movement | 7.8% |
| 10% most volatile stocks in US Market | 16.7% |
| 10% least volatile stocks in US Market | 2.8% |
Stable Share Price: PRGS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: PRGS's weekly volatility (5%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1981 | 2,103 | Yogesh Gupta | https://www.progress.com |
Progress Software Corporation develops, deploys, and manages business applications. The company offers OpenEdge, a development software, which builds multi-language applications for secure deployment across various platforms and devices, as well as cloud; developer tools that consists of components for user interface development for Web, mobile, desktop, chat, and AR/VR apps, as well as automated application testing and reporting tools; Sitefinity, a web content management and customer analytics platform; Corticon, a business rules management system that provides applications with decision automation and change process, and decision-related insight capabilities. It also offers DataDirect Connect, which provides data connectivity using industry-standard interfaces to connect applications running on various platforms; MOVEit that offers secure collaboration and automated file transfers of critical business information; Chef, an infrastructure automation platform to build, deploy, manage, and secure applications in multi-cloud and hybrid environments, and on-premises; and WhatsUp Gold, a network monitoring solution.
Progress Software Fundamentals Summary
| PRGS fundamental statistics | |
|---|---|
| Market Cap | US$2.06b |
| Earnings (TTM) | US$79.91m |
| Revenue (TTM) | US$554.96m |
25.8x
P/E Ratio3.7x
P/S RatioIs PRGS overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| PRGS income statement (TTM) | |
|---|---|
| Revenue | US$554.96m |
| Cost of Revenue | US$66.80m |
| Gross Profit | US$488.16m |
| Other Expenses | US$408.25m |
| Earnings | US$79.91m |
Last Reported Earnings
Feb 28, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 1.83 |
| Gross Margin | 87.96% |
| Net Profit Margin | 14.40% |
| Debt/Equity Ratio | 168.9% |
How did PRGS perform over the long term?
See historical performance and comparisonDividends
1.5%
Current Dividend Yield38%
Payout RatioDoes PRGS pay a reliable dividends?
See PRGS dividend history and benchmarks| Progress Software dividend dates | |
|---|---|
| Ex Dividend Date | May 31 2022 |
| Dividend Pay Date | Jun 15 2022 |
| Days until Ex dividend | 16 days |
| Days until Dividend pay date | 31 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?
Valuation Score
3/6Valuation Score 3/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry
44.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PRGS ($47.06) is trading below our estimate of fair value ($84.21)
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 (25.8x) compared to the US Software industry average (41.9x).
PE vs Market: PRGS is poor value based on its PE Ratio (25.8x) compared to the US market (15.6x).
Price to Earnings Growth Ratio
PEG Ratio: PRGS is poor value based on its PEG Ratio (2.8x)
Price to Book Ratio
PB vs Industry: PRGS is overvalued based on its PB Ratio (5.6x) compared to the US Software industry average (3.6x).
Future Growth
How is Progress Software forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Future Growth Score
2/6Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
9.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PRGS's forecast earnings growth (9.2% per year) is above the savings rate (1.9%).
Earnings vs Market: PRGS's earnings (9.2% per year) are forecast to grow slower than the US market (12.6% per year).
High Growth Earnings: PRGS's earnings are forecast to grow, but not significantly.
Revenue vs Market: PRGS's revenue (6.4% per year) is forecast to grow slower than the US market (8% per year).
High Growth Revenue: PRGS's revenue (6.4% 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 high in 3 years time (27%)
Past Performance
How has Progress Software performed over the past 5 years?
Past Performance Score
2/6Past Performance Score 2/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
39.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PRGS has high quality earnings.
Growing Profit Margin: PRGS's current net profit margins (14.4%) are lower than last year (17.1%).
Past Earnings Growth Analysis
Earnings Trend: PRGS has become profitable over the past 5 years, growing earnings by 39.3% per year.
Accelerating Growth: PRGS's earnings growth over the past year (3%) is below its 5-year average (39.3% per year).
Earnings vs Industry: PRGS earnings growth over the past year (3%) underperformed the Software industry 29.6%.
Return on Equity
High ROE: Whilst PRGS's Return on Equity (21.7%) is high, this metric is skewed due to their high level of debt.
Financial Health
How is Progress Software's financial position?
Financial Health Score
3/6Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: PRGS's short term assets ($342.6M) exceed its short term liabilities ($283.7M).
Long Term Liabilities: PRGS's short term assets ($342.6M) do not cover its long term liabilities ($701.1M).
Debt to Equity History and Analysis
Debt Level: PRGS's net debt to equity ratio (121.8%) is considered high.
Reducing Debt: PRGS's debt to equity ratio has increased from 33.7% to 168.9% over the past 5 years.
Debt Coverage: PRGS's debt is well covered by operating cash flow (28.6%).
Interest Coverage: PRGS's interest payments on its debt are well covered by EBIT (6.4x coverage).
Balance Sheet
Dividend
What is Progress Software current dividend yield, its reliability and sustainability?
Dividend Score
2/6Dividend Score 2/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
1.49%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: PRGS's dividend (1.49%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.54%).
High Dividend: PRGS's dividend (1.49%) is low compared to the top 25% of dividend payers in the US market (4.05%).
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 6 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (38.4%), PRGS's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its low cash payout ratio (17.6%), PRGS's dividend payments are well covered by cash flows.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.7yrs
Average management tenure
CEO
Yogesh Gupta (60 yo)
5.58yrs
Tenure
US$6,019,029
Compensation
Mr. Yogesh K. Gupta has been the Chief Executive Officer of Progress Software Corporation since October 10, 2016 and as its President since October 2016. Prior to that time, Mr. Gupta served as an advisor...
CEO Compensation Analysis
Compensation vs Market: Yogesh's total compensation ($USD6.02M) is about average for companies of similar size in the US market ($USD5.45M).
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 (2.7 years average tenure).
Board Members
Experienced Board: PRGS's board of directors are considered experienced (4.9 years average tenure).
Ownership
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
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$2.060b
- Shares outstanding: 43.77m
- Website: https://www.progress.com
Number of Employees
Location
- Progress Software Corporation
- 15 Wayside Road
- Suite 400
- Burlington
- Massachusetts
- 1803
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/05/14 00:00 |
| End of Day Share Price | 2022/05/13 00:00 |
| Earnings | 2022/02/28 |
| 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.