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Progress Software Corporation (PRGS) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Progress Software Corporation

PRGSMarket cap $1.52BPrice $37.2

Country🇺🇸United States

SectorTechnology

IndustrySoftware

Builds infrastructure software that helps businesses develop, deploy, and manage applications without reinventing the wheel. Powers critical systems for thousands of enterprises worldwide through steady acquisitions, quietly stitching together a software empire most consumers never notice but businesses can't live without.

In Bastion Portfolios?

52W Return-18%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+18%9

Revenue Forecast

Rev CAGR (1y)+7%5

Rev CAGR (3y)+10%7

Rev CAGR (5y)+6%5

Earnings Forecast

EPS Growth Y+1+274%10

EPS Growth Y+2+15%8

EPS Growth Y+3+14%7

Quality

Margins

EBIT Margin19%7

Net Income Margin9%5

Free Cash Flow Margin32%9

Debt

Net Debt/EBITDA3.33

Efficiency

ROE18%7

ROA4%5

Earnings Stability55

GEAR+STRONG80

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)610

P/E Ratio (Forward 3y)410

P/BV2.95

EV Multiples

EV/EBITDA Fwd79

EV/EBIT Fwd710

Yield

Free Cash Flow Yield21.0%10

Dividend Yieldna–

Momentum

Short term

1 month return-16%1

3 month return-5%5

YTD return-13%3

Mid term

Price vs 52wHigh79%5

1 year return-21%2

Long term

3 year return-28%1

5 year return-22%2

Risk Shield

Price Risk

Beta0.76

Volatility54%3

Free Cash Flow

Free Cash Flow Margin32%9

Free Cash Flow Yield21.0%10

Quality

ROCE11%6

Earnings Stability55

Net Debt/EBITDA3.33

02Growth

Is it actually growing, and how fast?

PRGSProgress Software

Revenue FY25$978M

GROWTH RATING↗

AVERAGE63 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+18%9

Revenue, next 1Y+7%5

Revenue, next 3Y, CAGR+10%7

Revenue, next 5Y, CAGR+6%5

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+274%10

EPS growth, FY27E+15%8

EPS growth, FY28E+14%7

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 18%/yr over the last 3 years, ahead of 80% of companies worldwide.9/10

Earnings are set to grow faster than sales (EPS about 15%/yr vs revenue 10%/yr), so margins should widen.

WATCH

A mid-pack grower, ahead of 63% of companies worldwide.

Revenue is set to grow 10%/yr over the next 3 years, a little ahead of the market.6/10

Revenue grew 18%/yr over the last 3 years; forecasts see it cooling to 10%/yr.

Over five years revenue is set to grow 6%/yr, about average versus companies worldwide.5/10

WEAKNESSES

None flagged.

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower that is slowing. The one thing to watch: the pace is cooling.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK12 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-16%1

3-month return-5%5

YTD return-13%3

MID & LONG-TERM▾SCORE

% of 52-week high79%5

1-year return-21%2

3-year return-28%1

5-year return-22%2

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Returns sit at the market level over three months (-5%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-28% over three years and -22% over five), behind 80% of the market.

It's down 21% over the past year, now 21% below its 52-week high. That is a touch behind the market.

The stock is underperforming over the past month (-16%) and so far this year (-13%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Progress Software Corporation. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

PRGSProgress Software

Revenue FY25$978M

GROWTH RATING↗

AVERAGE63 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+18%9

Revenue, next 1Y+7%5

Revenue, next 3Y, CAGR+10%7

Revenue, next 5Y, CAGR+6%5

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+274%10

EPS growth, FY27E+15%8

EPS growth, FY28E+14%7

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 18%/yr over the last 3 years, ahead of 80% of companies worldwide.9/10

Earnings are set to grow faster than sales (EPS about 15%/yr vs revenue 10%/yr), so margins should widen.

WATCH

A mid-pack grower, ahead of 63% of companies worldwide.

Revenue is set to grow 10%/yr over the next 3 years, a little ahead of the market.6/10

Revenue grew 18%/yr over the last 3 years; forecasts see it cooling to 10%/yr.

Over five years revenue is set to grow 6%/yr, about average versus companies worldwide.5/10

WEAKNESSES

None flagged.

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower that is slowing. The one thing to watch: the pace is cooling.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK12 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-16%1

3-month return-5%5

YTD return-13%3

MID & LONG-TERM▾SCORE

% of 52-week high79%5

1-year return-21%2

3-year return-28%1

5-year return-22%2

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Returns sit at the market level over three months (-5%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-28% over three years and -22% over five), behind 80% of the market.

It's down 21% over the past year, now 21% below its 52-week high. That is a touch behind the market.

The stock is underperforming over the past month (-16%) and so far this year (-13%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on Progress Software Corporation. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community