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PRO

PROS Holdings NYSE:PRO Stock Report

Last Price

US$24.70

Market Cap

US$1.1b

7D

8.2%

1Y

-33.0%

Updated

30 Sep, 2022

Data

Company Financials +
PRO fundamental analysis
Snowflake Score
Valuation1/6
Future Growth1/6
Past Performance0/6
Financial Health2/6
Dividends0/6

PRO Stock Overview

PROS Holdings, Inc. provides solutions that optimize the processes of selling and shopping in the digital economy worldwide.

PROS Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for PROS Holdings
Historical stock prices
Current Share PriceUS$24.70
52 Week HighUS$39.60
52 Week LowUS$18.09
Beta1.39
1 Month Change18.47%
3 Month Change-8.89%
1 Year Change-32.97%
3 Year Change-59.03%
5 Year Change0.57%
Change since IPO92.22%

Recent News & Updates

Sep 16

PROS Holdings Sees Revenue Growth But High Operating Losses Remain

Summary PROS Holdings reported its Q2 2022 financial results in late July. The company provides selling and optimization software and related services to companies worldwide. PROS Holdings has generated higher revenue growth of late, but operating losses remain elevated, resulting in a beaten down stock due to a higher cost of capital environment. Until management can make a meaningful turn toward operating breakeven, I'm on Hold for PROS Holdings. A Quick Take On PROS Holdings PROS Holdings, Inc. (PRO) reported its Q2 2022 financial results on July 28, 2022, beating expected revenue and EPS estimates. The company provides enterprises with a variety of selling software tools and services. Until PRO can make a meaningful move toward operating breakeven while igniting faster revenue growth, I’m on Hold for the stock. PROS Holdings Overview Houston, Texas-based PROS Holdings was founded in 1985 to provide configure-price-quote and related software originally as on-premises software and more recently on a subscription basis. The firm is headed by Chief Executive Officer Andres Reiner, who has been with the firm since 2007 and was previously Software developer at Platinum Technology and Product Architect at ADAC Laboratories. The company’s primary offerings include: Smart Configure Price Quote Smart Price Optimization Airline Revenue Optimization and Management Airline Real-Time Dynamic Pricing Group Sales Optimizer Digital Retail Related Services The firm acquires customers through its in-house sales and marketing teams as well as through partners, resellers and systems integrators. PROS Holdings’ Market & Competition According to a 2022 market research report by Global Industry Analysts, the market for configure-price-quote software was an estimated $1.6 billion in 2020 and is forecast to reach $3.9 billion by 2026. This represents a forecast CAGR of 16.3% from 2021 to 2026. The main drivers for this expected growth are a rise in demand as a result of the COVID-19 pandemic, as customers seek more efficient ways to power their sales efforts. Also, the on-premise segment is expected to continue to dominate even as growth shifts to cloud-based CPQ environments Major competitive or other industry participants include: Apttus Aspire Technologies Callidus Software Cincom Systems ConnectWise FPX Infor International Business Machines Model N Oracle Corp Salesforce.com SAP Ag Vendavo PROS Holdings’ Recent Financial Performance Total revenue by quarter has grown according to the following chart: 9 Quarter Total Revenue (Seeking Alpha) Gross profit by quarter has also risen only moderately in the past several quarters: 9 Quarter Gross Profit (Seeking Alpha) Selling, G&A expenses as a percentage of total revenue by quarter have trended higher recently: 9 Quarter Selling, G&A % Of Revenue (Seeking Alpha) Operating losses by quarter have worsened of late: 9 Quarter Operating Income (Seeking Alpha) Earnings per share (Diluted) have also remained negative, as the chart shows below: 9 Quarter Earnings Per Share (Seeking Alpha) (All data in above charts is GAAP) In the past 12 months, PRO’s stock price has dropped 44.4% vs. the U.S. S&P 500 index’ drop of around 14.5%, as the chart below indicates: 52 Week Stock Price (Seeking Alpha) Valuation And Other Metrics For PROS Holdings Below is a table of relevant capitalization and valuation figures for the company: Measure [TTM] Amount Enterprise Value / Sales 4.33 Revenue Growth Rate 6.6% Net Income Margin -35.1% GAAP EBITDA % -25.2% Market Capitalization $1,020,000,000 Enterprise Value $1,140,000,000 Operating Cash Flow -$22,090,000 Earnings Per Share (Fully Diluted) -$2.06 (Source - Seeking Alpha) The Rule of 40 is a software industry rule of thumb that says that as long as the combined revenue growth rate and EBITDA percentage rate equal or exceed 40%, the firm is on an acceptable growth/EBITDA trajectory. PRO’s most recent GAAP Rule of 40 calculation was negative (18.6%) as of Q2 2022, so the firm needs significant improvement in this regard, per the table below: Rule of 40 - GAAP Calculation Recent Rev. Growth % 6.6% GAAP EBITDA % -25.2% Total -18.6% (Source - Seeking Alpha) Commentary On PROS Holdings In its last earnings call (Source - Seeking Alpha), covering Q2 2022’s results, management highlighted the "more than double" in deal count growth through the first half of 2022, "booking more deals so far this year than we did in all of 2021." This was likely due to a greater emphasis by companies in various verticals on improving their supply chain efficiencies as the pandemic threw supply chains into disarray. Also, the company is seeing growth from certain large air carriers in adopting and expanding use of its offerings. As to its financial results, total revenue rose by 10% year-over-year, while its subscription revenue component increased by 14%.

Shareholder Returns

PROUS SoftwareUS Market
7D8.2%-1.3%-2.5%
1Y-33.0%-33.2%-23.2%

Return vs Industry: PRO underperformed the US Software industry which returned -30.9% over the past year.

Return vs Market: PRO underperformed the US Market which returned -21.5% over the past year.

Price Volatility

Is PRO's price volatile compared to industry and market?
PRO volatility
PRO Average Weekly Movement9.3%
Software Industry Average Movement8.9%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.8%

Stable Share Price: PRO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: PRO's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19851,545Andres Reinerhttps://www.pros.com

PROS Holdings, Inc. provides solutions that optimize the processes of selling and shopping in the digital economy worldwide. The company offers PROS Smart Configure Price Quote that improves sales productivity and accelerate deal velocity by automating common sales tasks; and PROS Smart Price Optimization and Management that enables businesses to optimize, personalize and harmonize pricing across the complexity of their go-to-market channels in the context of dynamic market and competitive conditions. It offers PROS Airline Revenue Optimization; PROS Airline Revenue Management solution that delivers algorithmic forecasting and network optimization for the travel industry; PROS Airline Real-Time Dynamic Pricing that offers accurate booking class availability and seat prices; and PROS Airline Group Sales Optimizer which enables airlines and their travel agent partners to create and manage group bookings, contracts, and policies.

PROS Holdings Fundamentals Summary

How do PROS Holdings's earnings and revenue compare to its market cap?
PRO fundamental statistics
Market CapUS$1.12b
Earnings (TTM)-US$92.18m
Revenue (TTM)US$262.50m

4.3x

P/S Ratio

-12.1x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PRO income statement (TTM)
RevenueUS$262.50m
Cost of RevenueUS$107.03m
Gross ProfitUS$155.47m
Other ExpensesUS$247.65m
Earnings-US$92.18m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-2.03
Gross Margin59.23%
Net Profit Margin-35.12%
Debt/Equity Ratio-1,152.0%

How did PRO perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is PRO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PRO?

Other financial metrics that can be useful for relative valuation.

PRO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.7x
Enterprise Value/EBITDA-18.6x
PEG Ration/a

Price to Sales Ratio vs Peers

How does PRO's PS Ratio compare to its peers?

PRO PS Ratio vs Peers
The above table shows the PS ratio for PRO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average7.7x
MTTR Matterport
9.6x26.6%US$1.1b
CCSI Consensus Cloud Solutions
2.6x6.0%US$937.9m
AGYS Agilysys
8x17.0%US$1.4b
BTRS BTRS Holdings
10.5x20.7%US$1.5b
PRO PROS Holdings
4.3x9.2%US$1.1b

Price-To-Sales vs Peers: PRO is good value based on its Price-To-Sales Ratio (4.3x) compared to the peer average (7.7x).


Price to Earnings Ratio vs Industry

How does PRO's PE Ratio compare vs other companies in the US Software Industry?

Price-To-Sales vs Industry: PRO is expensive based on its Price-To-Sales Ratio (4.3x) compared to the US Software industry average (4.2x)


Price to Sales Ratio vs Fair Ratio

What is PRO's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PRO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio4.3x
Fair PS Ratio3.2x

Price-To-Sales vs Fair Ratio: PRO is expensive based on its Price-To-Sales Ratio (4.3x) compared to the estimated Fair Price-To-Sales Ratio (3.2x).


Share Price vs Fair Value

What is the Fair Price of PRO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate PRO's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate PRO's fair value for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


Discover undervalued companies

  • Take a look at our analysis of PRO's management and see if the CEO's compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don't know where to start, we recommend reading through PROS Holdings regulatory filings.

Future Growth

How is PROS Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


4.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRO is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: PRO is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: PRO is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: PRO's revenue (9.2% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: PRO's revenue (9.2% 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 PRO's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

How has PROS Holdings performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-3.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PRO is currently unprofitable.

Growing Profit Margin: PRO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PRO is unprofitable, and losses have increased over the past 5 years at a rate of 3.2% per year.

Accelerating Growth: Unable to compare PRO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PRO is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (13.4%).


Return on Equity

High ROE: PRO's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Discover strong past performing companies

Financial Health

How is PROS Holdings's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: PRO has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: PRO has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: PRO has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: PRO's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: PRO has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: PRO has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of 11.7% each year


Discover healthy companies

Dividend

What is PROS Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

PROS Holdings Dividend Yield vs Market
How does PROS Holdings dividend yield compare to the market?
SegmentDividend Yield
Company (PROS Holdings)n/a
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Software)1.1%
Analyst forecast in 3 Years (PROS Holdings)0%

Notable Dividend: Unable to evaluate PRO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PRO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PRO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PRO's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as PRO has not reported any payouts.


Discover strong dividend paying companies

Management

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

7.2yrs

Average management tenure


CEO

Andres Reiner (51 yo)

12.67yrs

Tenure

US$7,339,632

Compensation

Mr. Andres D. Reiner serves as the Chief Executive Officer and President at PROS, Inc. Mr. Reiner has been the Chief Executive Officer and President at PROS Holdings, Inc. (“PROS”) since November 2010. Mr....


CEO Compensation Analysis

Andres Reiner's Compensation vs PROS Holdings Earnings
How has Andres Reiner's remuneration changed compared to PROS Holdings's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

-US$92m

Mar 31 2022n/an/a

-US$88m

Dec 31 2021US$7mUS$540k

-US$81m

Sep 30 2021n/an/a

-US$76m

Jun 30 2021n/an/a

-US$77m

Mar 31 2021n/an/a

-US$76m

Dec 31 2020US$5mUS$540k

-US$77m

Sep 30 2020n/an/a

-US$76m

Jun 30 2020n/an/a

-US$75m

Mar 31 2020n/an/a

-US$75m

Dec 31 2019US$6mUS$525k

-US$69m

Sep 30 2019n/an/a

-US$65m

Jun 30 2019n/an/a

-US$63m

Mar 31 2019n/an/a

-US$62m

Dec 31 2018US$7mUS$525k

-US$64m

Sep 30 2018n/an/a

-US$68m

Jun 30 2018n/an/a

-US$74m

Mar 31 2018n/an/a

-US$77m

Dec 31 2017US$5mUS$525k

-US$78m

Sep 30 2017n/an/a

-US$79m

Jun 30 2017n/an/a

-US$74m

Mar 31 2017n/an/a

-US$75m

Dec 31 2016US$6mUS$525k

-US$75m

Sep 30 2016n/an/a

-US$74m

Jun 30 2016n/an/a

-US$77m

Mar 31 2016n/an/a

-US$72m

Dec 31 2015US$4mUS$525k

-US$66m

Compensation vs Market: Andres's total compensation ($USD7.34M) is above average for companies of similar size in the US market ($USD4.14M).

Compensation vs Earnings: Andres's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: PRO's management team is seasoned and experienced (7.2 years average tenure).


Board Members

Experienced Board: PRO's board of directors are considered experienced (7.5 years average tenure).


Ownership

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.


Ownership Breakdown

What is the ownership structure of PRO?
Owner TypeNumber of SharesOwnership Percentage
Private Companies917,1412.0%
Individual Insiders1,682,9333.6%
Hedge Funds3,456,7497.4%
Institutions40,405,09187.0%

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.


Top Shareholders

Top 25 shareholders own 85.35% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
11.54%
Brown Capital Management, LLC
5,230,298$129.2m-1.65%1.36%
8.65%
The Vanguard Group, Inc.
3,916,980$96.7m-0.12%no data
8.02%
Fred Alger Management, LLC
3,632,119$89.7m-10.11%0.4%
7.63%
RGM Capital, LLC
3,456,749$85.4m3.33%4.09%
7.37%
BlackRock, Inc.
3,340,626$82.5m1.75%no data
7.22%
Conestoga Capital Advisors, LLC
3,270,028$80.8m-7.12%1.47%
4.34%
Brown Advisory Incorporated
1,965,851$48.6m-0.29%0.08%
3.98%
D.F. Dent and Company, Inc.
1,802,051$44.5m1.3%0.63%
2.61%
Stephens Investment Management Group, LLC
1,181,216$29.2m0.61%0.53%
2.18%
Andres Reiner
986,186$24.4m0%no data
2.03%
Eagle Asset Management, Inc.
921,387$22.8m9.3%0.14%
1.92%
State Street Global Advisors, Inc.
868,587$21.5m-0.65%no data
1.88%
Riverbridge Partners, LLC
853,826$21.1m-4.83%0.32%
1.66%
William Blair Investment Management, LLC
753,915$18.6m-1.41%0.03%
1.61%
Alyeska Investment Group, L.P.
731,585$18.1m68.48%0.2%
1.61%
New York State Common Retirement Fund
727,590$18.0m0.11%0.02%
1.54%
Tremblant Capital Group
696,869$17.2m-30.06%0.99%
1.54%
Geode Capital Management, LLC
695,862$17.2m3.65%no data
1.52%
RMW - M 2007 Trust LLC
690,619$17.1m0%no data
1.35%
Granahan Investment Management, LLC
611,638$15.1m-2.82%0.47%
1.14%
Woodline Partners LP
515,304$12.7m35.18%0.2%
1.08%
Rockefeller & Co. LLC
490,932$12.1m-0.2%0.06%
0.98%
Northern Trust Global Investments
445,290$11.0m-1.68%no data
0.98%
Royal Bank of Canada, Banking & Securities Investments
441,809$10.9m-3.91%0.01%
0.97%
Morgan Stanley, Investment Banking and Brokerage Investments
439,318$10.9m-12.94%no data

Company Information

PROS Holdings, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: PROS Holdings, Inc.
  • Ticker: PRO
  • Exchange: NYSE
  • Founded: 1985
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: US$1.119b
  • Shares outstanding: 45.31m
  • Website: https://www.pros.com

Number of Employees


Location

  • PROS Holdings, Inc.
  • 3200 Kirby Drive
  • Suite 600
  • Houston
  • Texas
  • 77098
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PRONYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2007
PH2DB (Deutsche Boerse AG)YesCommon StockDEEURJun 2007

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/30 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.