Overview Dividends

(PRGS) Progress Software - Ratings and Ratios

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US7433121008

App Server,DBMS,Analytics,Low-Code Dev

PRGS EPS (Earnings per Share)

EPS Growth (3Y CAGR): 0.00%
EPS Trend (3Y Correlation): -29.9%

PRGS Revenue

Revenue Growth (3Y CAGR): 17.81%
Revenue Trend (3Y Correlation): 90.8%

Description: PRGS Progress Software

Progress Software Corporation (NASDAQ:PRGS) is a US-based company operating in the Systems Software sub-industry. The companys stock performance is characterized by a current price of $43.92, indicating a potential downtrend given its 20-day, 50-day, and 200-day Simple Moving Averages (SMA) stand at $47.60, $55.27, and $59.64, respectively.

To evaluate PRGS financial health, we examine key performance indicators. The Market Capitalization is approximately $1.98 billion, with a Price-to-Earnings (P/E) ratio of 35.42, suggesting the stock might be overvalued relative to its earnings. However, the Forward P/E ratio is significantly lower at 8.09, indicating potential growth in earnings. The Return on Equity (RoE) is 13.17%, reflecting the companys ability to generate profits from shareholders equity.

Key economic drivers for PRGS include the demand for systems software, the competitive landscape, and the overall health of the technology sector. As a software company, PRGS revenue is likely driven by subscription models, licensing fees, and potentially, cloud services. The companys beta of 0.671 suggests its stock is less volatile than the overall market, which could be attractive to risk-averse investors.

To assess the investment potential of PRGS, we need to consider additional KPIs such as revenue growth rate, gross margin, operating margin, and cash flow generation. A thorough analysis would involve examining these metrics over time and in comparison to industry peers to determine if PRGS is undervalued or overvalued and if its financial performance is improving or deteriorating.

PRGS Stock Overview

Market Cap in USD	1,931m
Sub-Industry	Systems Software
IPO / Inception	1991-07-30

PRGS Stock Ratings

Growth Rating	-17.6%
Fundamental	59.7%
Dividend Rating	10.1%
Return 12m vs S&P 500	-40.1%
Analyst Rating	4.29 of 5

PRGS Dividends

Currently no dividends paid

PRGS Growth Ratios

Growth Correlation 3m	-90.1%
Growth Correlation 12m	-72.1%
Growth Correlation 5y	77.7%
CAGR 5y	-1.33%
CAGR/Max DD 3y	-0.03
CAGR/Mean DD 3y	-0.17
Sharpe Ratio 12m	-0.01
Alpha	-46.97
Beta	0.919
Volatility	29.06%
Current Volume	659.2k
Average Volume 20d	656.4k
Stop Loss	40 (-3.5%)
Signal	-1.23

Piotroski VR‑10 (Strict, 0-10) 4.0

Net Income (57.6m TTM) > 0 and > 6% of Revenue (6% = 52.1m TTM)

FCFTA 0.07 (>2.0%) and ΔFCFTA -6.08pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue -48.86% (prev 5.02%; Δ -53.89pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.07 (>3.0%) and CFO 176.3m > Net Income 57.6m (YES >=105%, WARN >=100%)

Net Debt (1.39b) to EBITDA (260.2m) ratio: 5.33 <= 3.0 (WARN <= 3.5)

Current Ratio 0.43 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (44.2m) change vs 12m ago 0.44% (target <= -2.0% for YES)

Gross Margin 81.69% (prev 76.79%; Δ 4.90pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 43.45% (prev 44.86%; Δ -1.41pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 2.47 (EBITDA TTM 260.2m / Interest Expense TTM 54.2m) >= 6 (WARN >= 3)

Altman Z'' -0.49

(A) -0.18 = (Total Current Assets 325.7m - Total Current Liabilities 750.3m) / Total Assets 2.41b

(B) 0.05 = Retained Earnings (Balance) 123.3m / Total Assets 2.41b

(D) 0.05 = Book Value of Equity 90.6m / Total Liabilities 1.96b

Total Rating: -0.49 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 59.74

1. Piotroski 4.0pt = -1.0

2. FCF Yield 5.17% = 2.59

3. FCF Margin 19.62% = 4.91

4. Debt/Equity 3.24 = -1.12

5. Debt/Ebitda 5.64 = -2.50

6. ROIC - WACC -0.19% = -0.24

7. RoE 13.17% = 1.10

8. Rev. Trend 90.79% = 4.54

9. Rev. CAGR 17.81% = 2.23

10. EPS Trend -29.91% = -0.75

11. EPS CAGR 0.0% = 0.0

What is the price of PRGS shares?

As of September 16, 2025, the stock is trading at USD 41.43 with a total of 659,216 shares traded.
Over the past week, the price has changed by -4.10%, over one month by -9.40%, over three months by -34.48% and over the past year by -28.77%.

Is Progress Software a good stock to buy?

Neither. Based on ValueRay´s Fundamental Analyses, Progress Software is currently (September 2025) neither a good nor a bad stock to buy. It has a ValueRay Fundamental Rating of 59.74 and therefor a neutral outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of PRGS is around 32.32 USD . This means that PRGS is currently overvalued and has a potential downside of -21.99%.

Is PRGS a buy, sell or hold?

Progress Software has received a consensus analysts rating of 4.29. Therefore, it is recommended to buy PRGS.

Strong Buy: 4
Buy: 1
Hold: 2
Sell: 0
Strong Sell: 0

What are the forecasts/targets for the PRGS price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	70	69%
Analysts Target Price	70	69%
ValueRay Target Price	35.1	-15.2%

Last update: 2025-09-05 04:56

PRGS Fundamental Data Overview

Market Cap USD = 1.93b (1.93b USD * 1.0 USD.USD)
CCE Cash And Equivalents = 102.0m USD (Cash And Short Term Investments, last quarter)
P/E Trailing = 34.4615
P/E Forward = 7.874
P/S = 2.2223
P/B = 4.2661
P/EG = 1.5747
Beta = 0.697
Revenue TTM = 869.0m USD
EBIT TTM = 133.9m USD
EBITDA TTM = 260.2m USD
Long Term Debt = 1.10b USD (from longTermDebt, last quarter)
Short Term Debt = 366.3m USD (from shortTermDebt, last quarter)
Debt = 1.47b USD (Calculated: Short Term 366.3m + Long Term 1.10b)
Net Debt = 1.39b USD (from netDebt column, last quarter)
Enterprise Value = 3.30b USD (1.93b + Debt 1.47b - CCE 102.0m)
Interest Coverage Ratio = 2.47 (Ebit TTM 133.9m / Interest Expense TTM 54.2m)
FCF Yield = 5.17% (FCF TTM 170.5m / Enterprise Value 3.30b)
FCF Margin = 19.62% (FCF TTM 170.5m / Revenue TTM 869.0m)
Net Margin = 6.63% (Net Income TTM 57.6m / Revenue TTM 869.0m)
Gross Margin = 81.69% ((Revenue TTM 869.0m - Cost of Revenue TTM 159.1m) / Revenue TTM)
Tobins Q-Ratio = 36.37 (Enterprise Value 3.30b / Book Value Of Equity 90.6m)
Interest Expense / Debt = 1.24% (Interest Expense 18.1m / Debt 1.47b)
Taxrate = 27.40% (25.8m / 94.3m)
NOPAT = 97.2m (EBIT 133.9m * (1 - 27.40%))
Current Ratio = 0.43 (Total Current Assets 325.7m / Total Current Liabilities 750.3m)
Debt / Equity = 3.24 (Debt 1.47b / last Quarter total Stockholder Equity 452.7m)
Debt / EBITDA = 5.64 (Net Debt 1.39b / EBITDA 260.2m)
Debt / FCF = 8.60 (Debt 1.47b / FCF TTM 170.5m)
Total Stockholder Equity = 437.2m (last 4 quarters mean)
RoA = 2.39% (Net Income 57.6m, Total Assets 2.41b )
RoE = 13.17% (Net Income TTM 57.6m / Total Stockholder Equity 437.2m)
RoCE = 8.71% (Ebit 133.9m / (Equity 437.2m + L.T.Debt 1.10b))
RoIC = 5.54% (NOPAT 97.2m / Invested Capital 1.76b)
WACC = 5.73% (E(1.93b)/V(3.40b) * Re(9.40%)) + (D(1.47b)/V(3.40b) * Rd(1.24%) * (1-Tc(0.27)))
Shares Correlation 3-Years: 21.21 | Cagr: 0.05%
Discount Rate = 9.40% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 74.54% ; FCFE base≈185.7m ; Y1≈198.0m ; Y5≈238.8m
Fair Price DCF = 76.31 (DCF Value 3.29b / Shares Outstanding 43.1m; 5y FCF grow 7.35% → 3.0% )
Revenue Correlation: 90.79 | Revenue CAGR: 17.81%
Rev Growth-of-Growth: 9.67
EPS Correlation: -29.91 | EPS CAGR: 0.0%
EPS Growth-of-Growth: -58.00

Additional Sources for PRGS Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle