Stock Analysis Report

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Executive Summary

Progress Software Corporation develops business applications.

Snowflake Analysis

Good value with acceptable track record.

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

Stable Share Price: PRGS has not had significant price volatility in the past 3 months.

Market Performance

7 Day Return




US Software


US Market

1 Year Return




US Software


US Market

Return vs Industry: PRGS underperformed the US Software industry which returned 31.8% over the past year.

Return vs Market: PRGS underperformed the US Market which returned 5.3% over the past year.

Shareholder returns

7 Day-4.8%-2.3%-0.7%
30 Day-8.2%9.0%4.6%
90 Day-3.0%23.2%14.0%
1 Year-11.5%-12.9%32.8%31.8%7.6%5.3%
3 Year17.5%12.2%143.6%135.3%34.9%26.1%
5 Year25.9%18.6%236.6%216.7%62.3%44.7%

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


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 ($35.31) is trading below our estimate of fair value ($50.56)

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 (33.8x) compared to the US Software industry average (51.9x).

PE vs Market: PRGS is poor value based on its PE Ratio (33.8x) compared to the US market (16.1x).

Price to Earnings Growth Ratio

PEG Ratio: PRGS is poor value based on its PEG Ratio (2x)

Price to Book Ratio

PB vs Industry: PRGS is good value based on its PB Ratio (4.7x) compared to the US Software industry average (6.6x).

Next Steps

Future Growth

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 (16.9% per year) is above the savings rate (2.2%).

Earnings vs Market: PRGS's earnings (16.9% per year) are forecast to grow slower than the US market (22.5% per year).

High Growth Earnings: PRGS's earnings are forecast to grow, but not significantly.

Revenue vs Market: PRGS's revenue (0.8% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: PRGS's revenue (0.8% 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

Next Steps

Past Performance

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 $29.7M impacting its May 31 2020 financial results.

Growing Profit Margin: PRGS's current net profit margins (10.8%) are higher than last year (10.7%).

Past Earnings Growth Analysis

Earnings Trend: PRGS's earnings have grown significantly by 36.1% per year over the past 5 years.

Accelerating Growth: PRGS's earnings growth over the past year (15.1%) is below its 5-year average (36.1% per year).

Earnings vs Industry: PRGS earnings growth over the past year (15.1%) exceeded the Software industry 12.3%.

Return on Equity

High ROE: PRGS's Return on Equity (13.8%) is considered low.

Next Steps

Financial Health

How is Progress Software's financial position?

Financial Position Analysis

Short Term Liabilities: PRGS's short term assets ($291.4M) exceed its short term liabilities ($225.2M).

Long Term Liabilities: PRGS's short term assets ($291.4M) do not cover its long term liabilities ($330.5M).

Debt to Equity History and Analysis

Debt Level: PRGS's debt to equity ratio (87.9%) is considered high.

Reducing Debt: PRGS's debt to equity ratio has increased from 27.9% to 87.9% over the past 5 years.

Debt Coverage: PRGS's debt is well covered by operating cash flow (44.9%).

Interest Coverage: PRGS's interest payments on its debt are well covered by EBIT (8.8x coverage).

Balance Sheet

Next Steps


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 (1.87%) is higher than the bottom 25% of dividend payers in the US market (1.68%).

High Dividend: PRGS's dividend (1.87%) is low compared to the top 25% of dividend payers in the US market (4.59%).

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: With its reasonable payout ratio (62.2%), PRGS's dividend 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.

Next Steps


How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


Yogesh Gupta (59yo)





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 ($USD4.91M) is about average for companies of similar size in the US market ($USD4.72M).

Compensation vs Earnings: Yogesh's compensation has been consistent with company performance over the past year.

Leadership Team

Yogesh Gupta
CEO, President & Director3.75yrsUS$4.91m0.21% $3.3m
John Ainsworth
Senior Vice President of Core Products3.5yrsUS$1.25m0.044% $695.4k
Loren Jarrett
Senior VP & GM of Developer Tools Business1.08yrsUS$1.25m0.028% $445.3k
Gary Quinn
Senior Vice President of Core Field Organization2.92yrsUS$1.36m0.028% $452.7k
Anthony Folger
Chief Financial Officer0.50yrno datano data
Anthony Murphy
Chief Information Officer & Chief Information Security Officer3.08yrsno data0.0076% $121.2k
Brian Flanagan
Directory of Treasury & Investor Relationsno datano datano data
Stephen Faberman
Chief Legal Officer & Secretary4.58yrsUS$1.31m0.19% $3.0m
Jennifer Ortiz
Vice President of Corporate Marketing0.75yrno datano data
Jeremy Segal
Senior Vice President of Corporate Development0.17yrno datano data
Katie Kulikoski
Chief People Officer0.67yrno datano data
Sundar Subramanian
Senior VP & GM of Incubation Products0.92yrno datano data


Average Tenure


Average Age

Experienced Management: PRGS's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.

Board Members

Yogesh Gupta
CEO, President & Director3.75yrsUS$4.91m0.21% $3.3m
Michael Mark
Non-Voting Director Emeritus and Advisor to President & CEO2.17yrsUS$280.01kno data
John Egan
Independent Non-Executive Chairman of the Board7.58yrsUS$317.81k0.11% $1.7m
Paul Dacier
Independent Director3.08yrsUS$260.31k0.068% $1.1m
David Krall
Independent Director12.42yrsUS$272.81k0.15% $2.3m
Charles Kane
Independent Director13.67yrsUS$282.81k0.19% $2.9m
Vivian Vitale
Independent Director0.75yrUS$4.17k0.018% $293.6k
Angela Tucci
Independent Director2.42yrsUS$262.81k0.052% $819.4k
Rainer Gawlick
Independent Director3.08yrsUS$282.81k0.068% $1.1m
Samskriti King
Independent Director2.42yrsUS$280.31k0.052% $819.4k


Average Tenure


Average Age

Experienced Board: PRGS's board of directors are considered experienced (3.1 years average tenure).


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 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$1.590b
  • Shares outstanding: 45.04m
  • Website:

Number of Employees


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


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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/14 23:56
End of Day Share Price2020/07/14 00:00
Annual Earnings2019/11/30

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.