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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

HashiCorp, Inc.

Progress Software Corp.

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Why is Progress Software Corp. ?

With a growth in Operating Profit of 4.3%, the company declared Very Positive results in Feb 26

The company has declared positive results for the last 2 consecutive quarters
OPERATING CASH FLOW(Y) Highest at USD 258.66 MM
NET PROFIT(HY) At USD 55.79 MM has Grown at 147.1%
INTEREST COVERAGE RATIO(Q) Highest at 558.88

With ROCE of 9.74%, it has a attractive valuation with a 1.38 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 -48.00%, its profits have risen by 14.6% ; the PEG ratio of the company is 0.9

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 19.75% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -48.00% returns

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?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Progress Software Corp.

-48.0%

-0.60

55.27%

S&P 500

19.75%

1.50

13.19%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.20%

EBIT Growth (5y)

8.27%

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

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

2.44

EV to EBIT

14.21

EV to EBITDA

7.60

EV to Capital Employed

1.38

EV to Sales

2.54

PEG Ratio

0.87

Dividend Yield

ROCE (Latest)

9.74%

ROE (Latest)

19.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

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

16What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 258.66 MM

NET PROFIT(HY)

At USD 55.79 MM has Grown at 147.1%

INTEREST COVERAGE RATIO(Q)

Highest at 558.88

RAW MATERIAL COST(Y)

Fallen by -3.24% (YoY

OPERATING PROFIT(Q)

Highest at USD 85.21 MM

OPERATING PROFIT MARGIN(Q)

Highest at 34.39 %

PRE-TAX PROFIT(Q)

Highest at USD 33.17 MM

-3What is not working for the Company

INTEREST(9M)

At USD 49.53 MM has Grown at 37.24%

CASH AND EQV(HY)

Lowest at USD 207.98 MM

Here's what is working for Progress Software Corp.

Interest Coverage Ratio

Highest at 558.88 and Grown

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Profit

At USD 55.79 MM has Grown at 147.1%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Operating Cash Flow

Highest at USD 258.66 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)

Operating Profit

Highest at USD 85.21 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 34.39 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 33.17 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Raw Material Cost

Fallen by -3.24% (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

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

Interest

At USD 49.53 MM has Grown at 37.24%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Cash and Eqv

Lowest at USD 207.98 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents