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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Guidewire Software, Inc.

Zillow Group, Inc.

AppFolio, Inc.

Pegasystems, Inc.

CACI International, Inc.

Science Applications International Corp.

Parsons Corp.

Insight Enterprises, Inc.

ASGN Incorporated

Workiva, Inc.

Wix.com Ltd.

Why is Pegasystems, Inc. ?

Company has a low Debt to Equity ratio (avg) at times

Low Debt Company with Strong Long Term Fundamental Strength

Positive results in Jun 25

NET PROFIT(HY) At USD 96.23 MM has Grown at 274.39%
OPERATING CASH FLOW(Y) Highest at USD 416.18 MM
DEBT-EQUITY RATIO (HY) Lowest at -53.25 %

With ROE of 32.71%, it has a attractive valuation with a 14.35 Price to Book Value

Over the past year, while the stock has generated a return of 14.30%, its profits have risen by 55.8% ; the PEG ratio of the company is 0.8

High Institutional Holdings at 57.83%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 2.22% over the previous quarter.

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.

19.36%

-0.09

74.80%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.19%

EBIT Growth (5y)

33.54%

EBIT to Interest (avg)

6.61

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.59

Sales to Capital Employed (avg)

1.86

Tax Ratio

30.75%

Dividend Payout Ratio

10.84%

Pledged Shares

Institutional Holding

57.83%

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

14.35

EV to EBIT

30.51

EV to EBITDA

28.79

EV to Capital Employed

33.16

EV to Sales

5.12

PEG Ratio

0.84

Dividend Yield

8.57%

ROCE (Latest)

108.68%

ROE (Latest)

32.71%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

13What is working for the Company

NET PROFIT(HY)

At USD 96.23 MM has Grown at 274.39%

OPERATING CASH FLOW(Y)

Highest at USD 416.18 MM

DEBT-EQUITY RATIO (HY)

Lowest at -53.25 %

RAW MATERIAL COST(Y)

Fallen by 1.23% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 4.47 times

DIVIDEND PER SHARE(HY)

Highest at USD 4.47

-6What is not working for the Company

PRE-TAX PROFIT(Q)

At USD 6.47 MM has Fallen at -91%

NET PROFIT(Q)

At USD 11.3 MM has Fallen at -77.39%

Here's what is working for Pegasystems, Inc.

Operating Cash Flow

Highest at USD 416.18 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 -53.25 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 4.47 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at USD 4.47

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by 1.23% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 6.16 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Depreciation

At USD 6.16 MM has Grown at 96.33%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (USD MM)

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

Pre-Tax Profit

At USD 6.47 MM has Fallen at -91%

over average net sales of the previous four periods of USD 71.93 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 11.3 MM has Fallen at -77.39%

over average net sales of the previous four periods of USD 49.99 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)