NYSE:PRO

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Adequate 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

Stable Share Price: PRO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.7%

PRO

0.5%

US Software

1.0%

US Market


1 Year Return

-46.6%

PRO

43.9%

US Software

13.6%

US Market

Return vs Industry: PRO underperformed the US Software industry which returned 43.9% over the past year.

Return vs Market: PRO underperformed the US Market which returned 13.6% over the past year.


Shareholder returns

PROIndustryMarket
7 Day5.7%0.5%1.0%
30 Day-20.2%0.6%-0.4%
90 Day-25.5%7.6%8.9%
1 Year-46.6%-46.6%44.9%43.9%16.2%13.6%
3 Year38.3%38.3%144.2%136.1%40.2%30.8%
5 Year42.9%42.9%267.2%246.1%89.6%68.2%

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?

12.01x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: PRO ($32.77) is trading above our estimate of fair value ($31.85)

Significantly Below Fair Value: 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 US 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

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 (12x) compared to the US Software industry average (6.6x).


Next Steps

Future Growth

How is PROS Holdings forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

19.7%

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 (10.3% per year) is forecast to grow faster than the US market (9.7% per year).

High Growth Revenue: PRO's revenue (10.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PRO is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has PROS Holdings performed over the past 5 years?

-0.6%

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 0.6% 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 (15.1%).


Return on Equity

High ROE: PRO has a negative Return on Equity (-63.12%), as it is currently unprofitable.


Next Steps

Financial Health

How is PROS Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: PRO's short term assets ($289.3M) exceed its short term liabilities ($158.7M).

Long Term Liabilities: PRO's short term assets ($289.3M) exceed its long term liabilities ($150.5M).


Debt to Equity History and Analysis

Debt Level: PRO's debt to equity ratio (96.6%) is considered high.

Reducing Debt: PRO's debt to equity ratio has reduced from 144.9% to 96.6% over the past 5 years.


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: 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

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.


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

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

2.9yrs

Average management tenure


CEO

Andres Reiner (49 yo)

9.83yrs

Tenure

US$6,338,570

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 ($USD6.34M) is above average for companies of similar size in the US market ($USD4.56M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andres Reiner
CEO, President & Director9.83yrsUS$6.34m1.83%
$ 25.9m
Mariette Woestemeyer
Co-Founder & Independent Director35.67yrsUS$254.45k0.015%
$ 217.6k
Stefan Schulz
Executive VP & CFO5.5yrsUS$3.03m0.55%
$ 7.8m
Leslie Rechan
Chief Operating Officer0.33yrUS$276.95k0.080%
$ 1.1m
Roberto Reiner
Executive VP & CTOno dataUS$2.59m0.18%
$ 2.6m
Thomas Dziersk
Executive Officer0.25yrUS$2.76m0.047%
$ 669.4k
John P. Allessio
Executive VP & Chief Customer Officer0.92yrUS$2.34mno data
Scott Cook
Senior VP & Chief Accounting Officerno datano data0.071%
$ 1.0m
Shannon Tatz
Vice President of Strategy and Investor Relationsno datano datano data
Damian Olthoff
Chief Compliance Officer4.92yrsno datano data
Nikki Brewer
Chief People Officer0.67yrno datano data
Benson Yuen
President of Travelno datano datano data

2.9yrs

Average Tenure

57yo

Average Age

Experienced Management: PRO's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andres Reiner
CEO, President & Director9.83yrsUS$6.34m1.83%
$ 25.9m
Mariette Woestemeyer
Co-Founder & Independent Director35.67yrsUS$254.45k0.015%
$ 217.6k
William Russell
Independent Non-Executive Chairman9.83yrsUS$339.45k0.31%
$ 4.4m
Timothy Williams
Independent Director13.17yrsUS$291.95k0.26%
$ 3.7m
Carlos Dominguez
Independent Director0.42yrno datano data
Gregory Petersen
Independent Director13.17yrsUS$289.45k0.25%
$ 3.5m
Catherine Lesjak
Independent Director0.083yrno datano data
Penelope Herscher
Independent Director2.67yrsUS$276.95k0.022%
$ 313.9k
Raja Hammoud
Independent Director0.25yrno datano data

9.8yrs

Average Tenure

61yo

Average Age

Experienced Board: PRO's board of directors are considered experienced (9.8 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

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.8%.


Top Shareholders

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$1.420b
  • Shares outstanding: 43.34m
  • 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 and busine ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/19 05:57
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.