(PEGA) Pegasystems - Overview
Stock: Customer, Service, Platform, Cloud, Automation
| Risk 5d forecast | |
|---|---|
| Volatility | 61.2% |
| Relative Tail Risk | -11.2% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.39 |
| Alpha | -9.98 |
| Character TTM | |
|---|---|
| Beta | 1.431 |
| Beta Downside | 1.177 |
| Drawdowns 3y | |
|---|---|
| Max DD | 44.38% |
| CAGR/Max DD | 0.58 |
EPS (Earnings per Share)
Revenue
Description: PEGA Pegasystems January 07, 2026
Pegasystems Inc. (NASDAQ:PEGA) is a U.S.-based enterprise-software vendor that designs, licenses, hosts, and supports a suite of applications for customers across the Americas, EMEA, and APAC. The company is incorporated in 1983 and operates from Waltham, Massachusetts, classifying under the GICS sub-industry “Application Software.”
The core offering is the Pega Infinity portfolio, which includes the AI-driven Pega Customer Decision Hub for real-time next-best-action recommendations, Pega Customer Service for omnichannel support automation, and the Pega Platform for workflow and process automation. Complementary components such as the Situational Layer Cake, GenAI Blueprint, Pega Cloud, Catalyst, and the Pega Academy expand the platform’s flexibility, speed of development, and ecosystem enablement.
Pega sells primarily to financial services, healthcare, communications & media, government, insurance, manufacturing, high-tech, and consumer-services firms through a direct sales force and strategic technology partnerships. This focus aligns the company with sectors that are investing heavily in digital transformation and AI-enabled customer engagement.
Recent metrics indicate solid momentum: FY2023 total revenue reached approximately $1.5 billion, with subscription-based ARR growing ~20% YoY and cloud-hosting revenue up about 30% YoY (non-GAAP operating margin ~15%). The broader enterprise-software market is projected to expand 8-10% annually, driven by rising demand for low-code automation and AI-enhanced decisioning-key tailwinds for Pega’s platform strategy.
For a deeper, data-rich comparison of Pegasystems against its peers, the ValueRay analysis provides a useful next step.
Piotroski VR‑10 (Strict, 0-10) 9.5
| Net Income: 393.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.30 > 0.02 and ΔFCF/TA 10.94 > 1.0 |
| NWC/Revenue: 13.78% < 20% (prev 16.54%; Δ -2.76% < -1%) |
| CFO/TA 0.31 > 3% & CFO 505.2m > Net Income 393.4m |
| Net Debt (-136.5m) to EBITDA (307.8m): -0.44 < 3 |
| Current Ratio: 1.33 > 1.5 & < 3 |
| Outstanding Shares: last quarter (184.2m) vs 12m ago -3.72% < -2% |
| Gross Margin: 75.86% > 18% (prev 0.74%; Δ 7512 % > 0.5%) |
| Asset Turnover: 102.7% > 50% (prev 84.67%; Δ 18.02% > 0%) |
| Interest Coverage Ratio: 219.4 > 6 (EBITDA TTM 307.8m / Interest Expense TTM 1.28m) |
Altman Z'' 3.57
| A: 0.15 (Total Current Assets 978.3m - Total Current Liabilities 737.8m) / Total Assets 1.63b |
| B: 0.28 (Retained Earnings 463.4m / Total Assets 1.63b) |
| C: 0.17 (EBIT TTM 281.9m / Avg Total Assets 1.70b) |
| D: 0.54 (Book Value of Equity 456.5m / Total Liabilities 844.5m) |
| Altman-Z'' Score: 3.57 = A |
Beneish M -2.74
| DSRI: 0.75 (Receivables 482.6m/552.9m, Revenue 1.75b/1.50b) |
| GMI: 0.97 (GM 75.86% / 73.91%) |
| AQI: 1.80 (AQ_t 0.34 / AQ_t-1 0.19) |
| SGI: 1.17 (Revenue 1.75b / 1.50b) |
| TATA: -0.07 (NI 393.4m - CFO 505.2m) / TA 1.63b) |
| Beneish M-Score: -2.74 (Cap -4..+1) = A |
What is the price of PEGA shares?
Over the past week, the price has changed by +1.93%, over one month by -9.52%, over three months by -16.53% and over the past year by +16.29%.
Is PEGA a buy, sell or hold?
- StrongBuy: 7
- Buy: 3
- Hold: 4
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the PEGA price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 59.6 | 31.5% |
| Analysts Target Price | 59.6 | 31.5% |
PEGA Fundamental Data Overview February 20, 2026
P/E Forward = 15.8983
P/S = 4.3514
P/B = 9.4142
P/EG = 15.2766
Revenue TTM = 1.75b USD
EBIT TTM = 281.9m USD
EBITDA TTM = 307.8m USD
Long Term Debt = 76.0m USD (from capitalLeaseObligations, last quarter)
Short Term Debt = 15.1m USD (from shortTermDebt, last quarter)
Debt = 76.0m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -136.5m USD (from netDebt column, last quarter)
Enterprise Value = 7.25b USD (7.60b + Debt 76.0m - CCE 425.8m)
Interest Coverage Ratio = 219.4 (Ebit TTM 281.9m / Interest Expense TTM 1.28m)
EV/FCF = 14.77x (Enterprise Value 7.25b / FCF TTM 490.7m)
FCF Yield = 6.77% (FCF TTM 490.7m / Enterprise Value 7.25b)
FCF Margin = 28.11% (FCF TTM 490.7m / Revenue TTM 1.75b)
Net Margin = 22.54% (Net Income TTM 393.4m / Revenue TTM 1.75b)
Gross Margin = 75.86% ((Revenue TTM 1.75b - Cost of Revenue TTM 421.4m) / Revenue TTM)
Gross Margin QoQ = 79.48% (prev 72.23%)
Tobins Q-Ratio = 4.44 (Enterprise Value 7.25b / Total Assets 1.63b)
Interest Expense / Debt = 0.15% (Interest Expense 113.0k / Debt 76.0m)
Taxrate = 21.0% (US default 21%)
NOPAT = 222.7m (EBIT 281.9m * (1 - 21.00%))
Current Ratio = 1.33 (Total Current Assets 978.3m / Total Current Liabilities 737.8m)
Debt / Equity = 0.10 (Debt 76.0m / totalStockholderEquity, last quarter 787.4m)
Debt / EBITDA = -0.44 (Net Debt -136.5m / EBITDA 307.8m)
Debt / FCF = -0.28 (Net Debt -136.5m / FCF TTM 490.7m)
Total Stockholder Equity = 655.0m (last 4 quarters mean from totalStockholderEquity)
RoA = 23.14% (Net Income 393.4m / Total Assets 1.63b)
RoE = 60.07% (Net Income TTM 393.4m / Total Stockholder Equity 655.0m)
RoCE = 38.57% (EBIT 281.9m / Capital Employed (Equity 655.0m + L.T.Debt 76.0m))
RoIC = 34.00% (NOPAT 222.7m / Invested Capital 655.0m)
WACC = 11.08% (E(7.60b)/V(7.67b) * Re(11.19%) + D(76.0m)/V(7.67b) * Rd(0.15%) * (1-Tc(0.21)))
Discount Rate = 11.19% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 1.46%
[DCF Debug] Terminal Value 71.92% ; FCFF base≈429.7m ; Y1≈530.1m ; Y5≈902.8m
Fair Price DCF = 56.04 (EV 9.34b - Net Debt -136.5m = Equity 9.47b / Shares 169.0m; r=11.08% [WACC]; 5y FCF grow 25.0% → 2.90% )
EPS Correlation: 42.05 | EPS CAGR: 6.99% | SUE: 0.06 | # QB: 0
Revenue Correlation: 60.56 | Revenue CAGR: 8.12% | SUE: 0.27 | # QB: 0
EPS next Quarter (2026-03-31): EPS=0.71 | Chg30d=+0.093 | Revisions Net=+6 | Analysts=10
EPS current Year (2026-12-31): EPS=2.71 | Chg30d=+0.480 | Revisions Net=+11 | Growth EPS=+28.9% | Growth Revenue=+13.7%
EPS next Year (2027-12-31): EPS=3.05 | Chg30d=+0.626 | Revisions Net=+7 | Growth EPS=+12.7% | Growth Revenue=+11.6%