PEGA Stock Analysis: Pegasystems | NASDAQ
Software - Application | NASDAQ, USA | Market Cap: 4.273m USD | 12M Return: -53.7% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 80.6M
EPS Trend: 17.9%
Qual. Beats: 0
Rev. Trend: 95.4%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Pegasystems Inc. (NASDAQ: PEGA) is an enterprise software company that develops, markets, licenses, hosts, and supports applications across the United States, the Americas, Europe, the Middle East, Africa, and the Asia-Pacific region. Its flagship offering, Pega Infinity, is a software portfolio that includes the AI-powered Customer Decision Hub for real-time customer behavior prediction, Pega Customer Service for omnichannel customer engagement, and the Pega Platform for AI-driven workflow automation. Supporting products include the Situational Layer Cake, Pega GenAI Blueprint, Pega Cloud, Pega Catalyst, and Pega Academy, alongside global service assurance and client support services.
The company sells to the financial services, healthcare, communications and media, government, insurance, manufacturing and high tech, and consumer industries, reaching clients through a direct sales force as well as partnerships with technology providers and application developers. Its revenue model combines software licensing, cloud-based hosting subscriptions, and professional services, a structure typical of established application software vendors. Founded in 1983 and headquartered in Waltham, Massachusetts, Pegasystems is a long-tenured player in the enterprise software market and has been publicly traded since 1996.
- Pega Cloud ACV growth accelerates subscription revenue mix shift
- GenAI Blueprint adoption pressures competition from Salesforce and ServiceNow
- EMEA and APAC currency headwinds impact international license revenue
| Net Income: 324.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.36 > 0.02 and ΔFCF/TA 5.63 > 1.0 |
| NWC/Revenue: 2.44% < 20% (prev 14.68%; Δ -12.23% < -1%) |
| CFO/TA 0.37 > 3% & CFO 513.0m > Net Income 324.0m |
| Net Debt (-232.8m) to EBITDA (196.9m): -1.18 < 3 |
| Current Ratio: 1.06 > 1.5 & < 3 |
| Outstanding Shares: last quarter (175.3m) vs 12m ago -3.77% < -2% |
| Gross Margin: 75.57% > 18% (prev 75.47%; Δ 0.10% > 0.5%) |
| Asset Turnover: 128.2% > 50% (prev 126.5%; Δ 1.67% > 0%) |
| Interest Coverage Ratio: 421.9 > 6 (EBIT TTM 183.1m / Interest Expense TTM 434k) |
| A: 0.03 (Total Current Assets 761.7m - Total Current Liabilities 719.3m) / Total Assets 1.38b |
| B: 0.36 (Retained Earnings 499.5m / Total Assets 1.38b) |
| C: 0.14 (EBIT TTM 183.1m / Avg Total Assets 1.35b) |
| D: 0.68 (Book Value of Equity 560.4m / Total Liabilities 823.7m) |
| Altman-Z'' = 3.00 = A |
| DSRI: 0.94 (Receivables 375.2m/385.1m, Revenue 1.74b/1.68b) |
| GMI: 1.00 (GM 75.47% / 75.57%) |
| AQI: 1.31 (AQ_t 0.37 / AQ_t-1 0.28) |
| SGI: 1.04 (Revenue 1.74b / 1.68b) |
| TATA: -0.14 (NI 324.0m - CFO 513.0m) / TA 1.38b) |
| Beneish M = -2.88 (Cap -4..+1) = A |
As of July 25, 2026, the stock is trading at USD 26.82 with a total of 4,510,088 shares traded. Over the past week, the price has changed by -16.60%, over one month by -10.27%, over three months by -28.08% and over the past year by -53.70%.
Current recommended Stop Loss: 24.50 (which is 8.7% or 1.3 ATR below the current price).
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
| Analysts Target Price | 58.2 | 117% |
P/E Trailing = 16.6603
P/E Forward = 10.5932
P/S = 2.4608
P/B = 7.3246
P/EG = 3.5557
Revenue TTM = 1.74b USD
EBIT TTM = 183.1m USD
EBITDA TTM = 196.9m USD
Long Term Debt = unknown (none)
Short Term Debt = 15.1m USD (from shortTermDebt, last fiscal year)
Debt = 129.1m USD (from shortLongTermDebtTotal, last quarter) + Leases 72.1m
Net Debt = -232.8m USD (calculated: Debt 129.1m - CCE 361.9m)
Enterprise Value = 4.04b USD (4.27b + Debt 129.1m - CCE 361.9m)
Interest Coverage Ratio = 421.9 (Ebit TTM 183.1m / Interest Expense TTM 434k)
EV/FCF = 8.04x (Enterprise Value 4.04b / FCF TTM 502.5m)
FCF Yield = 12.44% (FCF TTM 502.5m / Enterprise Value 4.04b)
FCF Margin = 28.94% (FCF TTM 502.5m / Revenue TTM 1.74b)
Net Margin = 18.66% (Net Income TTM 324.0m / Revenue TTM 1.74b)
Gross Margin = 75.57% ((Revenue TTM 1.74b - Cost of Revenue TTM 424.1m) / Revenue TTM)
Gross Margin QoQ = 74.32% (prev 75.17%)
Tobins Q-Ratio = 2.92 (Enterprise Value 4.04b / Total Assets 1.38b)
Interest Expense / Debt = 0.34% (Interest Expense 434k / Debt 129.1m)
Taxrate = 27.97% (5.18m / 18.5m)
NOPAT = 131.9m (EBIT 183.1m * (1 - 27.97%))
Current Ratio = 1.06 (Total Current Assets 761.7m / Total Current Liabilities 719.3m)
Debt / Equity = 0.23 (Debt 129.1m / totalStockholderEquity, last quarter 560.4m)
Debt / EBITDA = -1.18 (Net Debt -232.8m / EBITDA 196.9m)
Debt / FCF = -0.46 (Net Debt -232.8m / FCF TTM 502.5m)
Total Stockholder Equity = 662.6m (last 4 quarters mean from totalStockholderEquity)
RoA = 23.93% (Net Income 324.0m / Total Assets 1.38b)
RoE = 48.90% (Net Income TTM 324.0m / Total Stockholder Equity 662.6m)
RoCE = 27.54% (EBIT 183.1m / Capital Employed (Total Assets 1.38b - Current Liab 719.3m))
RoIC = 22.24% (NOPAT 131.9m / Invested Capital 593.1m)
WACC = 10.30% (E(4.27b)/V(4.40b) * Re(10.60%) + D(129.1m)/V(4.40b) * Rd(0.34%) * (1-Tc(0.28)))
Discount Rate = 10.60% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 27.55 | Cagr: 1.76%
[DCF] Terminal Value 71.94% ; FCFF base≈464.0m ; Y1≈531.9m ; Y5≈782.8m
[DCF] Fair Price = 54.73 (EV 8.76b - Net Debt -232.8m = Equity 9.00b / Shares 164.4m; r=10.30% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 17.87 | EPS CAGR: 5.35% | SUE: -0.24 | # QB: 0
Revenue Correlation: 95.42 | Revenue CAGR: 10.05% | SUE: -0.17 | # QB: 0
EPS current Quarter (2026-09-30): EPS=0.51 | Chg30d=-14.17% | Revisions=+73% | Analysts=1
EPS current Year (2026-12-31): EPS=2.38 | Chg30d=-12.31% | Revisions=-8% | GrowthEPS=+13.3% | GrowthRev=+12.5%
EPS next Year (2027-12-31): EPS=2.99 | Chg30d=-1.71% | Revisions=+8% | GrowthEPS=+25.6% | GrowthRev=+11.8%
[Analyst] Revisions Ratio: +28% (up=17, down=9)