NasdaqGS:PRGS

Stock Analysis Report

Executive Summary

Progress Software Corporation develops business applications worldwide.

Snowflake

Fundamentals

Acceptable track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has Progress Software's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.3%

NasdaqGS:PRGS

-0.5%

US Software

0.2%

US Market


1 Year Return

-1.2%

NasdaqGS:PRGS

18.6%

US Software

-0.7%

US Market

PRGS underperformed the Software industry which returned 18.6% over the past year.

PRGS matched the United States of America Market (-0.7%) over the past year.


Share holder returns

PRGSIndustryMarket
7 Day2.3%-0.5%0.2%
30 Day-5.2%-3.6%-2.7%
90 Day-7.2%2.3%1.6%
1 Year0.4%-1.2%20.3%18.6%1.6%-0.7%
3 Year42.7%36.8%114.9%106.4%40.0%30.9%
5 Year75.8%68.5%162.0%143.1%53.8%36.8%

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

Valuation

Is Progress Software undervalued based on future cash flows and its price relative to the stock market?

10%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Progress Software's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Progress Software's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

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

Progress Software is poor value based on expected growth next year.


Price Based on Value of Assets

Progress Software is overvalued based on assets compared to the US Software industry average.


Next Steps

Future Growth

How is Progress Software expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Progress Software's revenue is expected to grow by 5.6% yearly, however this is not considered high growth (20% yearly).

Progress Software's earnings are expected to grow by 8.8% yearly, however this is not considered high growth (20% yearly).

Progress Software's revenue growth is positive but not above the United States of America market average.

Progress Software's earnings growth is positive but not above the United States of America market average.

Progress Software's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Progress Software will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Progress Software performed over the past 5 years?

8.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Progress Software's year on year earnings growth rate has been positive over the past 5 years.

Progress Software's 1-year earnings growth is less than its 5-year average (0.4% vs 8%)

Progress Software's earnings growth has not exceeded the US Software industry average in the past year (0.4% vs 45.5%).


Return on Equity

Progress Software has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Progress Software used its assets more efficiently than the US Software industry average last year based on Return on Assets.


Return on Capital Employed

Progress Software has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Progress Software's financial position?


Financial Position Analysis

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 long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Progress Software's level of debt (94.6%) compared to net worth is high (greater than 40%).

Unable to establish if Progress Software's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (37.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 16.6x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.7x debt.


Next Steps

Dividend

What is Progress Software's current dividend yield, its reliability and sustainability?

1.58%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Progress Software before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Progress Software's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Progress Software's dividend is below the markets top 25% of dividend payers in United States of America (3.85%).

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 3 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Progress Software's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

Yogesh Gupta (58yo)

2.8yrs

Tenure

US$4,810,311

Compensation

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

Yogesh's remuneration is about average for companies of similar size in United States of America.

Yogesh's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

2.6yrs

Average Tenure

51.5yo

Average Age

The tenure for the Progress Software management team is about average.


Board Age and Tenure

2.2yrs

Average Tenure

59yo

Average Age

The average tenure for the Progress Software board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$591,45529 Apr 19
Dimitre Taslakov
EntityIndividual
Role
Head of Human Resources
Chief Talent Officer
Shares12,999
Max PriceUS$45.50
SellUS$42,86325 Apr 19
Anthony Murphy
EntityIndividual
Role
Chief Information Officer
Chief Information Officer & Chief Information Security Officer
Shares932
Max PriceUS$45.99
SellUS$353,88312 Apr 19
Charles Kane
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,764
Max PriceUS$45.58
SellUS$2,025,26805 Apr 19
John Egan
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman of the Board
Shares45,000
Max PriceUS$45.30
SellUS$70,00005 Oct 18
Dimitre Taslakov
EntityIndividual
Role
Head of Human Resources
Chief Talent Officer
Shares2,000
Max PriceUS$35.00

Ownership Breakdown


Management Team

  • Yogesh Gupta (58yo)

    CEO, President & Director

    • Tenure: 2.8yrs
    • Compensation: US$4.81m
  • Gary Quinn (58yo)

    Senior Vice President of Core Field Organization

    • Tenure: 2.0yrs
    • Compensation: US$1.45m
  • Stephen Faberman (49yo)

    Chief Legal Officer & Secretary

    • Tenure: 3.7yrs
    • Compensation: US$1.31m
  • Paul Jalbert (62yo)

    Chief Financial Officer

    • Tenure: 2.4yrs
    • Compensation: US$1.93m
  • Dmitri Tcherevik (49yo)

    Chief Technology Officer

    • Tenure: 2.3yrs
    • Compensation: US$1.39m
  • Tony Murphy (48yo)

    Chief Information Officer & Chief Information Security Officer

    • Tenure: 2.2yrs
  • Dimi Taslakov (42yo)

    Chief Talent Officer

    • Tenure: 4.7yrs
  • Kim King

    Vice President of Global Partners and Channels

    • Tenure: 6.8yrs
  • John Ainsworth (54yo)

    Senior Vice President of Core Products

    • Tenure: 2.6yrs
    • Compensation: US$1.38m
  • Brian Flanagan

    Directory of Treasury & Investor Relations

    • Tenure: 0.0yrs

Board Members

  • Jack Egan (61yo)

    Non-Executive Chairman of the Board

    • Tenure: 6.7yrs
    • Compensation: US$307.84k
  • Paul Dacier (61yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: US$397.86k
  • David Krall (59yo)

    Independent Director

    • Tenure: 11.5yrs
    • Compensation: US$272.84k
  • Chuck Kane (62yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$272.84k
  • Yogesh Gupta (58yo)

    CEO, President & Director

    • Tenure: 2.8yrs
    • Compensation: US$4.81m
  • Michael Mark (73yo)

    • Tenure: 1.3yrs
    • Compensation: US$280.01k
  • Angela Tucci (52yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: US$552.22k
  • Rainer Gawlick (51yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: US$420.36k
  • Sam King (45yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: US$557.22k

Company Information

Progress Software Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Progress Software Corporation
  • Ticker: PRGS
  • Exchange: NasdaqGS
  • Founded: 1981
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$1.751b
  • Shares outstanding: 44.73m
  • Website: https://www.progress.com

Number of Employees


Location

  • Progress Software Corporation
  • 14 Oak Park Drive
  • Bedford
  • Massachusetts
  • 1730
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PRGSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 1991
PGRDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1991

Biography

Progress Software Corporation develops business applications worldwide. The company operates in three segments: OpenEdge, Data Connectivity and Integration, and Application Development and Deployment. The  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 23:42
End of Day Share Price2019/08/21 00:00
Earnings2019/05/31
Annual Earnings2018/11/30


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.