(PEGA) Pegasystems - Overview

Sector: Technology | Industry: Software - Application | Exchange: NASDAQ (USA) | Market Cap: 5.633m USD | Total Return: -31.8% in 12m

Workflow Automation, Customer Service, Decision Management, Cloud Computing
Total Rating 47
Safety 87
Buy Signal -0.56
Software - Application
Industry Rotation: +9.1
Market Cap: 5.63B
Avg Turnover: 69.2M
Risk 3d forecast
Volatility47.0%
VaR 5th Pctl7.46%
VaR vs Median-4.78%
Reward TTM
Sharpe Ratio-0.64
Rel. Str. IBD4.2
Rel. Str. Peer Group16
Character TTM
Beta1.250
Beta Downside1.431
Hurst Exponent0.533
Drawdowns 3y
Max DD50.84%
CAGR/Max DD0.27
CAGR/Mean DD0.97
EPS (Earnings per Share) EPS (Earnings per Share) of PEGA over the last years for every Quarter: "2021-03": 0.26, "2021-06": 0.23, "2021-09": -0.4, "2021-12": 0.04, "2022-03": 0.59, "2022-06": -0.38, "2022-09": -0.34, "2022-12": 0.82, "2023-03": 0.23, "2023-06": 0.01, "2023-09": 0.44, "2023-12": 1.77, "2024-03": 0.48, "2024-06": 0.52, "2024-09": 0.39, "2024-12": 1.61, "2025-03": 1.53, "2025-06": 0.28, "2025-09": 0.3, "2025-12": 0.76, "2026-03": 0.46,
EPS CAGR: 121.31%
EPS Trend: 43.2%
Last SUE: -0.64
Qual. Beats: 0
Revenue Revenue of PEGA over the last years for every Quarter: 2021-03: 313.499, 2021-06: 325.702, 2021-09: 256.268, 2021-12: 316.184, 2022-03: 376.307, 2022-06: 274.337, 2022-09: 270.731, 2022-12: 396.47, 2023-03: 325.472, 2023-06: 298.268, 2023-09: 334.643, 2023-12: 474.233, 2024-03: 330.147, 2024-06: 351.153, 2024-09: 325.05, 2024-12: 490.83, 2025-03: 475.633, 2025-06: 384.512, 2025-09: 381.35, 2025-12: 504.317, 2026-03: 429.973,
Rev. CAGR: 12.73%
Rev. Trend: 69.1%
Last SUE: -0.95
Qual. Beats: 0

Warnings

Below Avwap Earnings

Tailwinds

No distinct edge detected

Description: PEGA Pegasystems

Pegasystems Inc. (PEGA) is a global provider of enterprise software focused on AI-powered workflow automation and customer engagement. The company’s core offering, Pega Infinity, integrates real-time decisioning, customer service management, and low-code application development to streamline complex operational workflows. Its business model has transitioned significantly toward a subscription-based cloud architecture, primarily serving large-scale organizations in the financial services, healthcare, and government sectors.

The company operates within the Application Software sub-industry, where high switching costs often create significant customer retention. Pegasystems utilizes a Situational Layer Cake architecture, a specialized technical approach that allows multinational corporations to manage localized business rules and regulatory requirements within a unified software framework. This modularity is a key differentiator in the Business Process Management (BPM) and Customer Relationship Management (CRM) markets.

To better understand how these operational strengths impact long-term valuation, consider exploring the detailed metrics available on ValueRay. Pegasystems continues to expand its footprint through its direct sales force and strategic partnerships with global technology consultants.

Headlines to Watch Out For
  • Subscription revenue growth and cloud transition drive recurring cash flow stability
  • Adoption of GenAI Blueprint accelerates enterprise software development and deployment cycles
  • Federal and financial services sector spending impacts high-value contract renewals
  • Legal outcomes regarding intellectual property litigation influence long-term capital allocation strategy
  • Sales force productivity and partner ecosystem expansion dictate market share gains
Piotroski VR‑10 (Strict) 8.5
Net Income: 340.8m TTM > 0 and > 6% of Revenue
FCF/TA: 0.32 > 0.02 and ΔFCF/TA 4.60 > 1.0
NWC/Revenue: 9.44% < 20% (prev 14.45%; Δ -5.01% < -1%)
CFO/TA 0.33 > 3% & CFO 513.2m > Net Income 340.8m
Net Debt (-386.7m) to EBITDA (214.2m): -1.81 < 3
Current Ratio: 1.22 > 1.5 & < 3
Outstanding Shares: last quarter (178.8m) vs 12m ago -5.29% < -2%
Gross Margin: 74.96% > 18% (prev 0.76%; Δ 7.42k% > 0.5%)
Asset Turnover: 118.4% > 50% (prev 124.3%; Δ -5.90% > 0%)
Interest Coverage Ratio: 643.2 > 6 (EBITDA TTM 214.2m / Interest Expense TTM 302k)
Altman Z'' 3.21
A: 0.10 (Total Current Assets 903.9m - Total Current Liabilities 743.4m) / Total Assets 1.55b
B: 0.32 (Retained Earnings 491.1m / Total Assets 1.55b)
C: 0.14 (EBIT TTM 194.2m / Avg Total Assets 1.44b)
D: 0.57 (Book Value of Equity 478.9m / Total Liabilities 845.1m)
Altman-Z'' Score: 3.21 = A
Beneish M -3.20
DSRI: 0.72 (Receivables 315.9m/424.9m, Revenue 1.70b/1.64b)
GMI: 1.01 (GM 74.96% / 75.74%)
AQI: 1.23 (AQ_t 0.35 / AQ_t-1 0.28)
SGI: 1.03 (Revenue 1.70b / 1.64b)
TATA: -0.11 (NI 340.8m - CFO 513.2m) / TA 1.55b)
Beneish M-Score: -3.20 (Cap -4..+1) = AA
What is the price of PEGA shares? As of May 20, 2026, the stock is trading at USD 33.50 with a total of 1,501,577 shares traded.
Over the past week, the price has changed by -1.50%, over one month by -23.52%, over three months by -25.10% and over the past year by -31.78%.
Is PEGA a buy, sell or hold? Pegasystems has received a consensus analysts rating of 4.21. Therefore, it is recommended to buy PEGA.
  • StrongBuy: 7
  • Buy: 3
  • Hold: 4
  • Sell: 0
  • StrongSell: 0
What are the forecasts/targets for the PEGA price?
Analysts Target Price 58.2 73.7%
Pegasystems (PEGA) - Fundamental Data Overview as of 17 May 2026
P/E Trailing = 18.2216
P/E Forward = 12.3153
P/S = 3.3135
P/B = 8.5166
P/EG = 4.1343
Revenue TTM = 1.70b USD
EBIT TTM = 194.2m USD
EBITDA TTM = 214.2m USD
Long Term Debt = 72.1m USD (from capitalLeaseObligations, last quarter)
Short Term Debt = 15.1m USD (from shortTermDebt, last fiscal year)
Debt = 87.3m USD (corrected: LT Debt 72.1m + ST Debt 15.1m)
Net Debt = -386.7m USD (recalculated: Debt 87.3m - CCE 474.0m)
Enterprise Value = 5.25b USD (5.63b + Debt 87.3m - CCE 474.0m)
Interest Coverage Ratio = 643.2 (Ebit TTM 194.2m / Interest Expense TTM 302k)
EV/FCF = 10.60x (Enterprise Value 5.25b / FCF TTM 494.9m)
FCF Yield = 9.43% (FCF TTM 494.9m / Enterprise Value 5.25b)
FCF Margin = 29.11% (FCF TTM 494.9m / Revenue TTM 1.70b)
Net Margin = 20.04% (Net Income TTM 340.8m / Revenue TTM 1.70b)
Gross Margin = 74.96% ((Revenue TTM 1.70b - Cost of Revenue TTM 425.7m) / Revenue TTM)
Gross Margin QoQ = 75.17% (prev 79.48%)
Tobins Q-Ratio = 3.38 (Enterprise Value 5.25b / Total Assets 1.55b)
Interest Expense / Debt = 0.05% (Interest Expense 44.0k / Debt 87.3m)
Taxrate = 17.48% (6.94m / 39.7m)
NOPAT = 160.3m (EBIT 194.2m * (1 - 17.48%))
Current Ratio = 1.22 (Total Current Assets 903.9m / Total Current Liabilities 743.4m)
Debt / Equity = 0.12 (Debt 87.3m / totalStockholderEquity, last quarter 705.9m)
Debt / EBITDA = -1.81 (Net Debt -386.7m / EBITDA 214.2m)
Debt / FCF = -0.78 (Net Debt -386.7m / FCF TTM 494.9m)
Total Stockholder Equity = 678.7m (last 4 quarters mean from totalStockholderEquity)
RoA = 23.72% (Net Income 340.8m / Total Assets 1.55b)
RoE = 50.21% (Net Income TTM 340.8m / Total Stockholder Equity 678.7m)
RoCE = 25.87% (EBIT 194.2m / Capital Employed (Equity 678.7m + L.T.Debt 72.1m))
RoIC = 23.62% (NOPAT 160.3m / Invested Capital 678.7m)
WACC = 10.22% (E(5.63b)/V(5.72b) * Re(10.38%) + D(87.3m)/V(5.72b) * Rd(0.05%) * (1-Tc(0.17)))
Discount Rate = 10.38% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 24.44 | Cagr: -0.01%
[DCF] Terminal Value 74.69% ; FCFF base≈441.3m ; Y1≈544.5m ; Y5≈928.9m
[DCF] Fair Price = 67.56 (EV 10.90b - Net Debt -386.7m = Equity 11.29b / Shares 167.1m; r=10.22% [WACC]; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: 43.25 | EPS CAGR: 121.3% | SUE: -0.64 | # QB: 0
Revenue Correlation: 69.13 | Revenue CAGR: 12.73% | SUE: -0.95 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.43 | Chg30d=-4.84% | Revisions=-23% | Analysts=12
EPS next Quarter (2026-09-30): EPS=0.59 | Chg30d=+13.96% | Revisions=+67% | Analysts=12
EPS current Year (2026-12-31): EPS=2.71 | Chg30d=-0.15% | Revisions=-8% | GrowthEPS=+29.2% | GrowthRev=+13.2%
EPS next Year (2027-12-31): EPS=3.04 | Chg30d=+0.04% | Revisions=+8% | GrowthEPS=+12.1% | GrowthRev=+12.1%
[Analyst] Revisions Ratio: +67%