PRGS Stock Analysis: Progress Software | NASDAQ
Software - Infrastructure | NASDAQ, USA | Market Cap: 1.549m USD | 12M Return: -25.3% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 26.9M
EPS Trend: 56.7%
Qual. Beats: 1
Rev. Trend: 96.9%
Qual. Beats: 1
Warnings
Tailwinds
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.
Progress Software Corporation (PRGS) is a Burlington, Massachusetts-based software company founded in 1981 that develops, deploys, and manages artificial intelligence-powered applications and digital experiences for customers in the United States and internationally. Within the Information Technology sector and the Systems Software sub-industry, the company operates a diversified enterprise software model spanning multiple product lines, including AI and data platforms (Agentic RAG, Semaphore, MarkLogic), DevOps and developer tools (Chef, OpenEdge, Developer Tools), secure file transfer and connectivity (Automate MFT, MOVEit, DataDirect, ShareFile), network monitoring and load balancing (Flowmon, Kemp LoadMaster, WhatsUp Gold), digital experience and decision automation (Sitefinity, Corticon), and related professional services such as implementation, custom development, and training.
The company distributes its products through multiple channels, selling directly to end users as well as through independent software vendors, original equipment manufacturers, system integrators, value-added resellers, and distributors. This broad channel mix, combined with a portfolio that blends recurring SaaS offerings with perpetual-license and maintenance-based products, reflects a hybrid B2B enterprise software business model that has been built largely through acquisitions since the companys founding in 1981.
- MOVEit security breach litigation costs pressure operating margins
- AI-powered product demand accelerates subscription revenue growth
- OpenEdge legacy segment faces secular decline amid modernization shift
| Net Income: 89.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.13 > 0.02 and ΔFCF/TA 5.95 > 1.0 |
| NWC/Revenue: -7.92% < 20% (prev -48.86%; Δ 40.94% < -1%) |
| CFO/TA 0.13 > 3% & CFO 313.7m > Net Income 89.0m |
| Net Debt (1.26b) to EBITDA (287.1m): 4.38 < 3 |
| Current Ratio: 0.81 > 1.5 & < 3 |
| Outstanding Shares: last quarter (42.5m) vs 12m ago -3.71% < -2% |
| Gross Margin: 79.24% > 18% (prev 81.69%; Δ -2.45% > 0.5%) |
| Asset Turnover: 42.18% > 50% (prev 36.01%; Δ 6.18% > 0%) |
| Interest Coverage Ratio: 2.45 > 6 (EBIT TTM 160.3m / Interest Expense TTM 65.4m) |
| A: -0.03 (Total Current Assets 336.5m - Total Current Liabilities 416.0m) / Total Assets 2.35b |
| B: 0.05 (Retained Earnings 124.4m / Total Assets 2.35b) |
| C: 0.07 (EBIT TTM 160.3m / Avg Total Assets 2.38b) |
| D: 0.28 (Book Value of Equity 506.1m / Total Liabilities 1.84b) |
| Altman-Z'' = 0.69 = B |
| DSRI: 0.88 (Receivables 176.5m/174.3m, Revenue 1.00b/869.0m) |
| GMI: 1.03 (GM 81.69% / 79.24%) |
| AQI: 0.99 (AQ_t 0.84 / AQ_t-1 0.85) |
| SGI: 1.16 (Revenue 1.00b / 869.0m) |
| TATA: -0.10 (NI 89.0m - CFO 313.7m) / TA 2.35b) |
| Beneish M = -3.01 (Cap -4..+1) = AA |
As of July 10, 2026, the stock is trading at USD 38.50 with a total of 386,980 shares traded. Over the past week, the price has changed by -1.69%, over one month by +22.53%, over three months by +40.41% and over the past year by -25.27%.
Current recommended Stop Loss: 33.90 (which is 11.9% or 2.3 ATR below the current price).
Progress Software has received a consensus analysts rating of 4.29. Therefore, it is recommended to buy PRGS.
- StrongBuy: 4
- Buy: 1
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 50.7 | 31.6% |
P/E Trailing = 19.0707
P/E Forward = 6.4309
P/S = 1.5429
P/B = 3.1119
P/EG = 1.2864
Revenue TTM = 1.00b USD
EBIT TTM = 160.3m USD
EBITDA TTM = 287.1m USD
Long Term Debt = 1.29b USD (from longTermDebt, last quarter)
Short Term Debt = 8.14m USD (from shortTermDebt, last quarter)
Debt = 1.36b USD (from shortLongTermDebtTotal, last quarter) + Leases 34.6m
Net Debt = 1.26b USD (calculated: Debt 1.36b - CCE 103.0m)
Enterprise Value = 2.81b USD (1.55b + Debt 1.36b - CCE 103.0m)
Interest Coverage Ratio = 2.45 (Ebit TTM 160.3m / Interest Expense TTM 65.4m)
EV/FCF = 9.20x (Enterprise Value 2.81b / FCF TTM 305.2m)
FCF Yield = 10.87% (FCF TTM 305.2m / Enterprise Value 2.81b)
FCF Margin = 30.41% (FCF TTM 305.2m / Revenue TTM 1.00b)
Net Margin = 8.87% (Net Income TTM 89.0m / Revenue TTM 1.00b)
Gross Margin = 79.24% ((Revenue TTM 1.00b - Cost of Revenue TTM 208.4m) / Revenue TTM)
Gross Margin QoQ = 82.30% (prev 71.96%)
Tobins Q-Ratio = 1.20 (Enterprise Value 2.81b / Total Assets 2.35b)
Interest Expense / Debt = 4.81% (Interest Expense 65.4m / Debt 1.36b)
Taxrate = 17.24% (18.6m / 107.6m)
NOPAT = 132.7m (EBIT 160.3m * (1 - 17.24%))
Current Ratio = 0.81 (Total Current Assets 336.5m / Total Current Liabilities 416.0m)
Debt / Equity = 2.69 (Debt 1.36b / totalStockholderEquity, last quarter 506.1m)
Debt / EBITDA = 4.38 (Net Debt 1.26b / EBITDA 287.1m)
Debt / FCF = 4.12 (Net Debt 1.26b / FCF TTM 305.2m)
Total Stockholder Equity = 490.2m (last 4 quarters mean from totalStockholderEquity)
RoA = 3.74% (Net Income 89.0m / Total Assets 2.35b)
RoE = 18.16% (Net Income TTM 89.0m / Total Stockholder Equity 490.2m)
RoCE = 9.00% (EBIT 160.3m / Capital Employed (Equity 490.2m + L.T.Debt 1.29b))
RoIC = 7.03% (NOPAT 132.7m / Invested Capital 1.89b)
WACC = 6.79% (E(1.55b)/V(2.91b) * Re(9.27%) + D(1.36b)/V(2.91b) * Rd(4.81%) * (1-Tc(0.17)))
Discount Rate = 9.27% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -46.67 | Cagr: -2.32%
[DCF] Terminal Value 77.97% ; FCFF base≈251.3m ; Y1≈288.1m ; Y5≈424.0m
[DCF] Fair Price = 124.9 (EV 6.38b - Net Debt 1.26b = Equity 5.12b / Shares 41.0m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 56.71 | EPS CAGR: 3.97% | SUE: 1.05 | # QB: 1
Revenue Correlation: 96.94 | Revenue CAGR: 17.90% | SUE: 3.16 | # QB: 1
EPS current Quarter (2026-08-31): EPS=1.50 | Chg30d=+3.68% | Revisions=-22% | Analysts=4
EPS current Year (2026-11-30): EPS=6.13 | Chg30d=+2.50% | Revisions=+67% | GrowthEPS=+7.2% | GrowthRev=+1.9%
EPS next Year (2027-11-30): EPS=6.24 | Chg30d=+2.95% | Revisions=+67% | GrowthEPS=+1.8% | GrowthRev=+1.2%
[Analyst] Revisions Ratio: +48% (up=14, down=4)