Pegasystems, Inc. (PEGA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Zillow Group, Inc.

Science Applications International Corp.

AppFolio, Inc.

CACI International, Inc.

Pegasystems, Inc.

Workiva, Inc.

Insight Enterprises, Inc.

Guidewire Software, Inc.

Parsons Corp.

ASGN Incorporated

Wix.com Ltd.

Why is Pegasystems, Inc. ?

The company is Net-Debt Free

Low Debt Company with Strong Long Term Fundamental Strength

Positive results in Mar 26

OPERATING CASH FLOW(Y) Highest at USD 513.25 MM
NET PROFIT(HY) Higher at USD 289.3 MM
DIVIDEND PAYOUT RATIO(Y) Highest at 16.38%

With ROE of 50.11%, it has a attractive valuation with a 8.65 Price to Book Value

Over the past year, while the stock has generated a return of -35.26%, its profits have risen by 194.8% ; the PEG ratio of the company is 0.4

High Institutional Holdings at 67.17%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 0.63% over the previous quarter.

Below par performance in long term as well as near term

Along with generating -35.26% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Pegasystems, Inc. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Pegasystems, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Pegasystems, Inc.

-35.26%

-0.62

71.22%

S&P 500

22.93%

1.75

13.09%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.40%

EBIT Growth (5y)

31.83%

EBIT to Interest (avg)

6.61

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.59

Sales to Capital Employed (avg)

2.00

Tax Ratio

30.75%

Dividend Payout Ratio

4.92%

Pledged Shares

Institutional Holding

67.17%

ROCE (avg)

31.26%

ROE (avg)

13.12%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

8.65

EV to EBIT

22.51

EV to EBITDA

20.82

EV to Capital Employed

17.07

EV to Sales

3.67

PEG Ratio

0.36

Dividend Yield

0.25%

ROCE (Latest)

75.81%

ROE (Latest)

50.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 513.25 MM

NET PROFIT(HY)

Higher at USD 289.3 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 16.38%

DEBT-EQUITY RATIO (HY)

Lowest at -57.27 %

DIVIDEND PER SHARE(HY)

Highest at USD 4.27

-6What is not working for the Company

PRE-TAX PROFIT(Q)

At USD 41.61 MM has Fallen at -40.87%

NET PROFIT(Q)

At USD 34.34 MM has Fallen at -65.19%

Here's what is working for Pegasystems, Inc.

Operating Cash Flow

Highest at USD 513.25 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Lowest at -57.27 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at USD 4.27

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 16.38%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Pegasystems, Inc.

Pre-Tax Profit

At USD 41.61 MM has Fallen at -40.87%

over average net sales of the previous four periods of USD 70.37 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 34.34 MM has Fallen at -65.19%

over average net sales of the previous four periods of USD 98.64 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)