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): 11.21%
EPS Trend (3Y Correlation): 79.9%

PRGS Revenue

Revenue Growth (3Y CAGR): 18.36%
Revenue Trend (3Y Correlation): 91.5%

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	1,916m
Sub-Industry	Systems Software
IPO / Inception	1991-07-30

PRGS Stock Ratings

Growth Rating	-21.4%
Fundamental	68.3%
Dividend Rating	4.12%
Return 12m vs S&P 500	-41.0%
Analyst Rating	4.29 of 5

PRGS Dividends

Currently no dividends paid

PRGS Growth Ratios

Growth Correlation 3m	-30.8%
Growth Correlation 12m	-81.3%
Growth Correlation 5y	70.6%
CAGR 5y	-1.21%
CAGR/Max DD 3y (Calmar Ratio)	-0.03
CAGR/Mean DD 3y (Pain Ratio)	-0.11
Sharpe Ratio 12m	-0.01
Alpha	-44.20
Beta	0.661
Volatility	31.17%
Current Volume	492.5k
Average Volume 20d	904.7k
Stop Loss	43 (-4.8%)
Signal	0.72

Piotroski VR‑10 (Strict, 0-10) 4.5

Net Income (48.5m TTM) > 0 and > 6% of Revenue (6% = 56.4m TTM)

FCFTA 0.08 (>2.0%) and ΔFCFTA -5.91pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue -46.19% (prev 10.29%; Δ -56.49pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.08 (>3.0%) and CFO 192.0m > Net Income 48.5m (YES >=105%, WARN >=100%)

Net Debt (731.8m) to EBITDA (280.1m) ratio: 2.61 <= 3.0 (WARN <= 3.5)

Current Ratio 0.44 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (43.7m) change vs 12m ago 0.01% (target <= -2.0% for YES)

Gross Margin 81.11% (prev 77.45%; Δ 3.66pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 46.52% (prev 44.16%; Δ 2.36pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 2.10 (EBITDA TTM 280.1m / Interest Expense TTM 65.2m) >= 6 (WARN >= 3)

Altman Z'' -0.48

(A) -0.18 = (Total Current Assets 335.5m - Total Current Liabilities 769.8m) / Total Assets 2.42b

(B) 0.06 = Retained Earnings (Balance) 138.1m / Total Assets 2.42b

(D) 0.05 = Book Value of Equity 106.1m / Total Liabilities 1.94b

Total Rating: -0.48 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 68.33

1. Piotroski 4.50pt = -0.50

2. FCF Yield 7.04% = 3.52

3. FCF Margin 19.82% = 4.95

4. Debt/Equity 1.74 = 1.15

5. Debt/Ebitda 2.61 = -1.16

6. ROIC - WACC (= -1.11)% = -1.39

7. RoE 10.78% = 0.90

8. Rev. Trend 91.45% = 6.86

9. EPS Trend 79.92% = 4.00

What is the price of PRGS shares?

As of October 19, 2025, the stock is trading at USD 45.16 with a total of 492,454 shares traded.
Over the past week, the price has changed by +1.14%, over one month by +7.75%, over three months by -7.30% and over the past year by -31.92%.

Is Progress Software a good stock to buy?

Partly, yes. Based on ValueRay´s Fundamental Analyses, Progress Software (NASDAQ:PRGS) is currently (October 2025) ok to buy, but has to be watched. It has a ValueRay Fundamental Rating of 68.33 and therefor a somewhat positive outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of PRGS is around 38.87 USD . This means that PRGS is currently overvalued and has a potential downside of -13.93%.

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	68.3	51.3%
Analysts Target Price	68.3	51.3%
ValueRay Target Price	42.5	-5.9%

Last update: 2025-10-13 02:01

PRGS Fundamental Data Overview

Market Cap USD = 1.92b (1.92b USD * 1.0 USD.USD)
P/E Trailing = 40.9633
P/E Forward = 7.8802
P/S = 2.0378
P/B = 4.1607
P/EG = 1.5755
Beta = 0.661
Revenue TTM = 940.1m USD
EBIT TTM = 136.8m USD
EBITDA TTM = 280.1m USD
Long Term Debt = 1.06b USD (from longTermDebt, last quarter)
Short Term Debt = 8.79m USD (from shortTermDebt, last quarter)
Debt = 830.8m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 731.8m USD (from netDebt column, last quarter)
Enterprise Value = 2.65b USD (1.92b + Debt 830.8m - CCE 99.0m)
Interest Coverage Ratio = 2.10 (Ebit TTM 136.8m / Interest Expense TTM 65.2m)
FCF Yield = 7.04% (FCF TTM 186.3m / Enterprise Value 2.65b)
FCF Margin = 19.82% (FCF TTM 186.3m / Revenue TTM 940.1m)
Net Margin = 5.16% (Net Income TTM 48.5m / Revenue TTM 940.1m)
Gross Margin = 81.11% ((Revenue TTM 940.1m - Cost of Revenue TTM 177.6m) / Revenue TTM)
Gross Margin QoQ = 80.97% (prev 80.08%)
Tobins Q-Ratio = 1.09 (Enterprise Value 2.65b / Total Assets 2.42b)
Interest Expense / Debt = 2.13% (Interest Expense 17.7m / Debt 830.8m)
Taxrate = 25.92% (6.79m / 26.2m)
NOPAT = 101.4m (EBIT 136.8m * (1 - 25.92%))
Current Ratio = 0.44 (Total Current Assets 335.5m / Total Current Liabilities 769.8m)
Debt / Equity = 1.74 (Debt 830.8m / totalStockholderEquity, last quarter 477.7m)
Debt / EBITDA = 2.61 (Net Debt 731.8m / EBITDA 280.1m)
Debt / FCF = 3.93 (Net Debt 731.8m / FCF TTM 186.3m)
Total Stockholder Equity = 450.3m (last 4 quarters mean from totalStockholderEquity)
RoA = 2.00% (Net Income 48.5m / Total Assets 2.42b)
RoE = 10.78% (Net Income TTM 48.5m / Total Stockholder Equity 450.3m)
RoCE = 9.06% (EBIT 136.8m / Capital Employed (Equity 450.3m + L.T.Debt 1.06b))
RoIC = 5.26% (NOPAT 101.4m / Invested Capital 1.93b)
WACC = 6.37% (E(1.92b)/V(2.75b) * Re(8.45%) + D(830.8m)/V(2.75b) * Rd(2.13%) * (1-Tc(0.26)))
Discount Rate = 8.45% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -1.25%
[DCF Debug] Terminal Value 77.38% ; FCFE base≈199.9m ; Y1≈207.4m ; Y5≈236.8m
Fair Price DCF = 89.84 (DCF Value 3.85b / Shares Outstanding 42.9m; 5y FCF grow 3.89% → 3.0% )
EPS Correlation: 79.92 | EPS CAGR: 11.21% | SUE: 3.76 | # QB: 8
Revenue Correlation: 91.45 | Revenue CAGR: 18.36% | SUE: 4.0 | # QB: 1

Additional Sources for PRGS Stock

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