Progress Software Corp. (PRGS) 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

HashiCorp, Inc.

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Envestnet, Inc.

Alteryx, Inc.

Progress Software Corp.

Aurora Innovation, Inc.

Asana, Inc.

N-able, Inc.

Why is Progress Software Corp. ?

Negative results in May 25

INTEREST(HY) At USD 36.57 MM has Grown at 154.8%
NET PROFIT(9M) At USD 42.61 MM has Grown at -33.8%
ROCE(HY) Lowest at 13.48%

With ROCE of 8.87%, it has a very expensive valuation with a 2.28 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -34.40%, its profits have fallen by -13.3%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -34.40% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Progress Software Corp. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

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

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

Is Progress Software Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Progress Software Corp.

-27.77%

-0.39

35.10%

S&P 500

13.99%

0.81

19.85%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.91%

EBIT Growth (5y)

12.36%

EBIT to Interest (avg)

5.89

Debt to EBITDA (avg)

2.67

Net Debt to Equity (avg)

3.01

Sales to Capital Employed (avg)

0.52

Tax Ratio

27.74%

Dividend Payout Ratio

34.08%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

14.34%

ROE (avg)

22.39%

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

6.39

EV to EBIT

25.76

EV to EBITDA

15.19

EV to Capital Employed

2.28

EV to Sales

5.14

PEG Ratio

Dividend Yield

27.48%

ROCE (Latest)

8.87%

ROE (Latest)

16.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

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

5What is working for the Company

NET SALES(Q)

At USD 237.35 MM has Grown at 17.69%

-18What is not working for the Company

INTEREST(HY)

At USD 36.57 MM has Grown at 154.8%

NET PROFIT(9M)

At USD 42.61 MM has Grown at -33.8%

ROCE(HY)

Lowest at 13.48%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

CASH AND EQV(HY)

Lowest at USD 226.17 MM

DIVIDEND PER SHARE(HY)

Lowest at USD 6

PRE-TAX PROFIT(Q)

Lowest at USD 23.37 MM

Here's what is working for Progress Software Corp.

Net Sales

At USD 237.35 MM has Grown at 17.69%

over average net sales of the previous four periods of USD 201.68 MM

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Depreciation

Highest at USD 38.2 MM

in the last five periods

MOJO Watch

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

Depreciation (USD MM)

Here's what is not working for Progress Software Corp.

Interest

At USD 36.57 MM has Grown at 154.8%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Profit

At USD 42.61 MM has Grown at -33.8%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Pre-Tax Profit

Lowest at USD 23.37 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Pre-Tax Profit

At USD 23.37 MM has Fallen at -21.7%

over average net sales of the previous four periods of USD 29.85 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Cash and Eqv

Lowest at USD 226.17 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Dividend per share

Lowest at USD 6

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (USD)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)