NASDAQ
PRGS
Last Price
US $39.16
KEY FIGURES
MKT CAP
$1.4B
EPS
TTM
$2.02
PEG
TTM
0.32x
P/E
TTM
16.66x
P/S
TTM
1.43x
YIELD
0.00%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
17.82%
Return on equity
ROIC: 9.03%
Valuation History
16.7X
Price to Earnings
EV/EBITDA: 6.8X
Cash flow
Profit margin
17.20%
(FY vs FY)
EBITDA Y/Y
2.31%
(FY vs FY)
Cash flow Y/Y
10.65%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $39.16
101.33%
Default assumptions
EBITDA Multiple
Fair Value
Market $39.16
-78.12%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
Progress Software Corporation cash flow to debt ratio of 27.64% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.
Financial stability - Healthy cash flow growth.
Progress Software Corporation's free cash flow has increased 11.24% from $206.29M last year to $229.49M, signaling increasing performance
Financial risk - Healthy debt to equity ratio.
Progress Software Corporation's debt to equity ratio is 1.74, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial stability - Healthy debt to equity ratio development.
Progress Software Corporation's debt has decreased relative to shareholder equity from 3.56 last year to 1.74 today, signaling strengthened financials
Financial risk - Net debt/EBITDA.
Progress Software Corporation has a net debt to EBITDA ratio of 4.76x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Financial stability - ICR.
Progress Software Corporation's interest coverage ratio of 2.52 indicates that earnings with margin can cover interest payments on company debt
Financial risk - Profit margin growth.
Progress Software Corporation's profit margin has decreased (-5.25%) in the last year from 9.08% to 8.61%, signaling decreasing performance
Financial risk - Short term assets vs short term liabilities.
Progress Software Corporation's short-term liabilities of $809.73M exceed its short-term assets of $399.96M, signaling financial risk
Decreasing performance - ROA.
Progress Software Corporation's return on assets of 3.55% is lower than the 5.00% threshold, indicating inefficient asset utilization
Increasing performance - Absolute return on equity.
Progress Software Corporation's return on equity of 17.82%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
Progress Software Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Progress Software Corporation had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Progress Software Corporation has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Progress Software Corporation has a free cash flow yield of 16.45%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
Progress Software Corporation's yearly earnings has increased 6.86% since last year from $68.44M to $73.13M, signaling increasing performance
Increasing performance - Healthy revenue growth.
Progress Software Corporation's yearly revenue has increased 29.79% since last year from $753.41M to $977.83M, signaling increasing performance
Increasing performance - ROIC.
ROIC 9.03% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Increasing performance - 3-year revenue CAGR.
Progress Software Corporation's 3-year revenue CAGR of 17.55% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Progress Software Corporation had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Progress Software Corporation had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Undervalued - DCF valuation.
Progress Software Corporation is undervalued relative to its fair value price of 78.84 based on Discounted Cash Flow model
Undervalued - Earnings yield.
Progress Software Corporation has an earnings yield of 6.08%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
Progress Software Corporation is overvalued relative to its fair value price of 8.57 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Progress Software Corporation has an EV/EBITDA ratio of 6.80x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Undervalued - PEG ratio value.
Progress Software Corporation has a PEG-ratio under 1 which is considered undervalued
Undervalued - P/B ratio.
Progress Software Corporation has a price-to-book ratio of 2.80x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Progress Software Corporation has a price-to-sales ratio of 1.41x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue