NYSE:PRO

Stock Analysis Report

Executive Summary

PROS Holdings, Inc. offers artificial intelligence (AI) solutions that power commerce in the digital economy worldwide.

Snowflake

Fundamentals

Mediocre balance sheet with concerning outlook.


Similar Companies

Share Price & News

How has PROS Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.8%

PRO

0.5%

US Software

2.3%

US Market


1 Year Return

79.2%

PRO

19.6%

US Software

5.6%

US Market

Return vs Industry: PRO exceeded the US Software industry which returned 19.6% over the past year.

Return vs Market: PRO exceeded the US Market which returned 5.6% over the past year.


Shareholder returns

PROIndustryMarket
7 Day-3.8%0.5%2.3%
30 Day-5.7%0.05%-1.0%
90 Day-12.1%-3.8%-0.7%
1 Year79.2%79.2%21.3%19.6%7.9%5.6%
3 Year162.7%162.7%120.2%111.6%45.6%36.3%
5 Year151.5%151.5%177.4%157.4%65.8%47.6%

Price Volatility Vs. Market

How volatile is PROS Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is PROS Holdings undervalued compared to its fair value and its price relative to the market?

24.77x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: PRO ($58.87) is trading above our estimate of fair value ($49.08)

Significantly Undervalued: PRO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PRO is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: PRO is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate PRO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PRO is overvalued based on its PB Ratio (24.8x) compared to the US Software industry average (5.4x).


Next Steps

Future Growth

How is PROS Holdings forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

26.6%

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 (15.6% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: PRO's revenue (15.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: PRO's Return on Equity is forecast to be low in 3 years time (1.9%).


Next Steps

Past Performance

How has PROS Holdings performed over the past 5 years?

-12.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PRO is unprofitable, and losses have increased over the past 5 years at a rate of -12.8% 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 (19.1%).


Return on Equity

High ROE: PRO has a negative Return on Equity (-65.95%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: PRO is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: PRO is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is PROS Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: PRO's short term assets ($395.3M) exceeds its short term liabilities ($179.0M)

Long Term Liabilities: PRO's short term assets (395.3M) exceeds its long term liabilities (233.4M)


Debt to Equity History and Analysis

Debt Level: PRO's debt to equity ratio (229.9%) is considered high

Reducing Debt: Insufficient data to determine if PRO's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: PRO has a low level of unsold assets or inventory.

Debt Coverage by Assets: PRO's debt is covered by short term assets (assets are 1.800280x debt).


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: Insufficient data to determine if PRO has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PRO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Andres Reiner (48yo)

8.9yrs

Tenure

US$6,734,833

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

Compensation vs. Market: Andres's total compensation ($USD6.73M) is about average for companies of similar size in the US market ($USD4.07M).

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


Management Age and Tenure

4.3yrs

Average Tenure

52yo

Average Age

Experienced Management: PRO's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

11.0yrs

Average Tenure

62.5yo

Average Age

Experienced Board: PRO's board of directors are seasoned and experienced ( 11 years average tenure).


Insider Trading

Insider Buying: PRO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$143,26005 Sep 19
Stefan Schulz
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares2,000
Max PriceUS$71.63
SellUS$19,492,08012 Aug 19
Ronald Woestemeyer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares270,160.5
Max PriceUS$72.15
SellUS$33,165,84012 Aug 19
Romaka Llc
EntityCompany
Shares459,679
Max PriceUS$72.15
SellUS$1,453,97512 Aug 19
Mariette Woestemeyer
EntityIndividual
Role
Member of the Board of Directors
Co-Founder & Director
Shares20,160.5
Max PriceUS$72.12
SellUS$143,28002 Aug 19
Stefan Schulz
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares2,000
Max PriceUS$71.64
SellUS$217,47001 Aug 19
Thomas Dziersk
EntityIndividual
Role
Head of Sales
Executive Vice President of Worldwide Sales
Shares3,000
Max PriceUS$72.49
SellUS$73,04701 Aug 19
Timothy Williams
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$73.18
SellUS$63,42010 Dec 18
Thomas Dziersk
EntityIndividual
Role
Head of Sales
Executive Vice President of Worldwide Sales
Shares2,000
Max PriceUS$31.71

Ownership Breakdown


Management Team

  • Tom Dziersk (56yo)

    Executive Vice President of Worldwide Sales

    • Tenure: 2yrs
    • Compensation: US$1.38m
  • Benson Yuen (58yo)

    President of Travel

    • Tenure: 0yrs
  • Andres Reiner (48yo)

    CEO, President & Director

    • Tenure: 8.9yrs
    • Compensation: US$6.73m
  • Stefan Schulz (52yo)

    Executive VP & CFO

    • Tenure: 4.6yrs
    • Compensation: US$2.99m
  • Damian Olthoff (44yo)

    Chief Compliance Officer

    • Tenure: 0yrs
  • Mariette Woestemeyer (68yo)

    Co-Founder & Director

    • Tenure: 34.8yrs
    • Compensation: US$186.15k
  • Wagner Williams (40yo)

    Chief People Officer

    • Tenure: 3.9yrs
  • Celia Fleischaker (49yo)

    Chief Marketing Officer

    • Tenure: 1.8yrs
  • Rob Reiner (57yo)

    Chief Technology Officer

    • Tenure: 0yrs
  • Shannon Tatz

    Senior Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Bill Russell (67yo)

    Non-Executive Chairman

    • Tenure: 8.9yrs
    • Compensation: US$261.15k
  • Tim Williams (70yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$223.65k
  • Les Rechan (57yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$208.65k
  • Greg Petersen (56yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$221.15k
  • Penny Herscher (58yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$208.65k
  • Ron Woestemeyer (73yo)

    Independent Director

    • Tenure: 34.8yrs
    • Compensation: US$186.15k
  • Andres Reiner (48yo)

    CEO, President & Director

    • Tenure: 8.9yrs
    • Compensation: US$6.73m
  • Mariette Woestemeyer (68yo)

    Co-Founder & Director

    • Tenure: 34.8yrs
    • Compensation: US$186.15k

Company Information

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


Key Information

  • Name: PROS Holdings, Inc.
  • Ticker: PRO
  • Exchange: NYSE
  • Founded: 1985
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$2.368b
  • Shares outstanding: 40.22m
  • Website: https://www.pros.com

Number of Employees


Location

  • PROS Holdings, Inc.
  • 3100 Main Street
  • Suite 900
  • Houston
  • Texas
  • 77002
  • United States

Listings

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

Biography

PROS Holdings, Inc. offers artificial intelligence (AI) solutions that power commerce in the digital economy worldwide. The company’s solutions enable buying experiences for business-to-business (B2B) and  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:59
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.