Progress Software Corporation develops business applications.
Moderate growth potential with mediocre balance sheet.
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's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: PRGS underperformed the US Software industry which returned 5.2% over the past year.
Return vs Market: PRGS underperformed the US Market which returned -15.9% over the past year.
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 weeks ago | Simply Wall StIntroducing Progress Software (NASDAQ:PRGS), The Stock That Dropped 15% In The Last Year
4 weeks ago | Simply Wall StA Sliding Share Price Has Us Looking At Progress Software Corporation's (NASDAQ:PRGS) P/E Ratio
1 month ago | Simply Wall StIs Progress Software Corporation (NASDAQ:PRGS) Trading At A 32% Discount?
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 ($32.43) is trading below our estimate of fair value ($49.49)
Significantly Below Fair Value: PRGS is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: PRGS is poor value based on its PE Ratio (38.1x) compared to the Software industry average (37.9x).
PE vs Market: PRGS is poor value based on its PE Ratio (38.1x) compared to the US market (12.2x).
Price to Earnings Growth Ratio
PEG Ratio: PRGS is poor value based on its PEG Ratio (1.4x)
Price to Book Ratio
PB vs Industry: PRGS is overvalued based on its PB Ratio (4.4x) compared to the US Software industry average (4x).
How is Progress Software forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PRGS's forecast earnings growth (27.7% per year) is above the savings rate (1.7%).
Earnings vs Market: PRGS's earnings (27.7% per year) are forecast to grow faster than the US market (13.4% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: PRGS's revenue (0.6% per year) is forecast to grow slower than the US market (7% per year).
High Growth Revenue: PRGS's revenue (0.6% 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 a large one-off loss of $32.9M impacting its February 29 2020 financial results.
Growing Profit Margin: PRGS's current net profit margins (8.8%) are lower than last year (15.1%).
Past Earnings Growth Analysis
Earnings Trend: PRGS's earnings have grown significantly by 29.8% 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 (-35.5%) over the past year, making it difficult to compare to the Software industry average (18.4%).
Return on Equity
High ROE: PRGS's Return on Equity (11.6%) is considered low.
How is Progress Software's financial position?
Financial Position Analysis
Short Term Liabilities: PRGS's short term assets ($274.7M) exceed its short term liabilities ($230.7M).
Long Term Liabilities: PRGS's short term assets ($274.7M) do not cover its long term liabilities ($331.5M).
Debt to Equity History and Analysis
Debt Level: PRGS's debt to equity ratio (89.3%) is considered high.
Reducing Debt: PRGS's debt to equity ratio has increased from 27.5% to 89.3% over the past 5 years.
Debt Coverage: PRGS's debt is well covered by operating cash flow (46.8%).
Interest Coverage: PRGS's interest payments on its debt are well covered by EBIT (10x coverage).
What is Progress Software's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: PRGS's dividend (2.04%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2.07%).
High Dividend: PRGS's dividend (2.04%) is low compared to the top 25% of dividend payers in the US market (5.82%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, PRGS has been paying a dividend for less than 10 years.
Growing Dividend: PRGS's dividend payments have increased, but the company has only paid a dividend for 4 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (75.2%), PRGS's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Yogesh Gupta (58yo)
Mr. Yogesh Gupta has been the Chief Executive Officer of Progress Software Corporation since October 10, 2016 and as its President since October 2016. Prior to that time, Mr. Gupta served as an advisor to ...
CEO Compensation Analysis
Compensation vs Market: Yogesh's total compensation ($USD4.81M) is about average for companies of similar size in the US market ($USD4.79M).
Compensation vs Earnings: Yogesh's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
|CEO, President & Director||3.5yrs||US$4.81m||0.21% $3.2m|
|Senior Vice President of Core Products||3.25yrs||US$1.38m||0.044% $681.2k|
|Senior VP & GM of Developer Tools Business||0.83yr||US$1.38m||0.028% $436.2k|
|Senior Vice President of Core Field Organization||2.67yrs||US$1.45m||0.029% $443.5k|
|Chief Financial Officer||0.25yr||no data||no data|
|Chief Information Officer & Chief Information Security Officer||2.83yrs||no data||0.0077% $118.6k|
|Directory of Treasury & Investor Relations||no data||no data||no data|
|Chief Legal Officer & Secretary||4.33yrs||US$1.31m||0.19% $2.9m|
|Vice President of Corporate Marketing||0.50yr||no data||no data|
|Chief People Officer||0.42yr||no data||no data|
Experienced Management: PRGS's management team is considered experienced (2.7 years average tenure).
|CEO, President & Director||3.5yrs||US$4.81m||0.21% $3.2m|
|Non-Voting Director Emeritus and Advisor to President & CEO||1.92yrs||US$280.01k||no data|
|Independent Non-Executive Chairman of the Board||7.33yrs||US$307.84k||0.044% $675.6k|
|Independent Director||2.83yrs||US$397.86k||no data|
|Independent Director||12.17yrs||US$272.84k||0.15% $2.3m|
|Independent Director||13.42yrs||US$272.84k||0.094% $1.4m|
|Independent Director||0.50yr||no data||0.0071% $109.8k|
|Independent Director||2.17yrs||US$552.22k||no data|
|Independent Director||2.83yrs||US$420.36k||no data|
|Independent Director||2.17yrs||US$557.22k||no data|
Experienced Board: PRGS's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.
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$1.549b
- Shares outstanding: 44.77m
- Website: https://www.progress.com
Number of Employees
- Progress Software Corporation
- 14 Oak Park Drive
- United States
|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|
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; WhatsUp Gold, a network monitoring solution; and DataRPM, a cognitive predictive maintenance solution for industrial IoT. 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 Developer Tools, a set of components for user interface development; 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 to end users, application partners, original equipment manufacturers, and system integrators. The company has operations in North America, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. Progress Software Corporation was founded in 1981 and is headquartered in Bedford, Massachusetts.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/07 03:14|
|End of Day Share Price||2020/04/06 00:00|