Pegasystems Inc
PEGA
Services-Computer Processing & Data Preparation
Mkt Cap
$4.958BPE
64.85Debt
$500MCash
$295.7MEV
$5.163BFCF
$323.9MP/E Ratio
64.85Debt
$500MCash
$295.7MEV
$5.163BFCF
$323.9MCharts data: {"Earnings":[{"time":"2014-12-30","value":33255000},{"time":"2015-12-30","value":36322000},{"time":"2016-12-30","value":26986000},{"time":"2017-12-30","value":32934000},{"time":"2018-12-30","value":10617000},{"time":"2019-12-30","value":-90433000},{"time":"2020-12-30","value":-61373000},{"time":"2021-12-30","value":-63040000},{"time":"2022-12-30","value":-345582000},{"time":"2023-12-30","value":67808000}],"Sales":[{"time":"2014-12-30","value":590004000},{"time":"2015-12-30","value":682695000},{"time":"2016-12-30","value":762229000},{"time":"2017-12-30","value":888467000},{"time":"2018-12-30","value":891581000},{"time":"2019-12-30","value":911383000},{"time":"2020-12-30","value":1017517000},{"time":"2021-12-30","value":1211653000},{"time":"2022-12-30","value":1317845000},{"time":"2023-12-30","value":1432616000}],"Net Margins":[{"time":"2014-12-30","value":0.056364024650680335},{"time":"2015-12-30","value":0.05320384652004189},{"time":"2016-12-30","value":0.035404058360414},{"time":"2017-12-30","value":0.03706834356256338},{"time":"2018-12-30","value":0.011908059951928092},{"time":"2019-12-30","value":-0.09922612118066719},{"time":"2020-12-30","value":-0.060316436973534594},{"time":"2021-12-30","value":-0.05202809715322786},{"time":"2022-12-30","value":-0.2622326601383319},{"time":"2023-12-30","value":0.04733159478883386}],"Assets":[{"time":"2014-12-30","value":587801000},{"time":"2015-12-30","value":627758000},{"time":"2016-12-30","value":654656000},{"time":"2017-12-30","value":721606000},{"time":"2018-12-30","value":982553000},{"time":"2019-12-30","value":984812000},{"time":"2020-12-30","value":1604262000},{"time":"2021-12-30","value":1593531000},{"time":"2022-12-30","value":1357672000},{"time":"2023-12-30","value":1510736000}],"Stockholders Equity":[{"time":"2014-12-30","value":294705000},{"time":"2015-12-30","value":322859000},{"time":"2016-12-30","value":335889000},{"time":"2017-12-30","value":371078000},{"time":"2018-12-30","value":621531000},{"time":"2019-12-30","value":539010000},{"time":"2020-12-30","value":542172000},{"time":"2021-12-30","value":416088000},{"time":"2022-12-30","value":130843000},{"time":"2023-12-30","value":353838000}],"ROE":[{"time":"2014-12-30","value":0.11284165521453657},{"time":"2015-12-30","value":0.11250112278115214},{"time":"2016-12-30","value":0.08034201774991143},{"time":"2017-12-30","value":0.08875222998938229},{"time":"2018-12-30","value":0.01708201199940148},{"time":"2019-12-30","value":-0.16777610804994342},{"time":"2020-12-30","value":-0.11319839460540197},{"time":"2021-12-30","value":-0.1515064121051316},{"time":"2022-12-30","value":-2.6411959371154743},{"time":"2023-12-30","value":0.19163572030138085}],"ROA":[{"time":"2014-12-30","value":0.08768103490807264},{"time":"2015-12-30","value":0.10300306806125928},{"time":"2016-12-30","value":0.05767762000195523},{"time":"2017-12-30","value":0.05357494255868161},{"time":"2018-12-30","value":-0.011747966776346925},{"time":"2019-12-30","value":-0.13692562641397546},{"time":"2020-12-30","value":-0.07784825670619887},{"time":"2021-12-30","value":-0.05944785510918834},{"time":"2022-12-30","value":-0.08058279171994413},{"time":"2023-12-30","value":0.06317450567140784}]}
Pegasystems Inc. develops, markets, licenses, hosts, and supports enterprise software applications in the United States, rest of the Americas, the United Kingdom, rest of Europe, the Middle East, Africa, and the Asia-Pacific. The company provides Pega Platform, an intelligent automation software for clients' processes and workflows; and Pega Infinity, a software platform that unifies customer engagement and digital process automation. It also offers customer engagement applications, including Pega Customer Decision Hub that enable enterprises to enhance customer acquisition and experiences across inbound, outbound, and paid media channels; Pega Sales Automation to automate and manage the sales process; and Pega Customer Service to anticipate customer needs, connect customers to people and systems, and automate customer interactions to evolve the customer service experience, as well as to allow enterprises to deliver interactions across channels and enhance employee productivity. In addition, the company provides Pega Cloud that allows clients to develop, test, and deploy applications and the Pega Platform using an Internet-based infrastructure; Pega Academy, which offers instructor-led and online training to its employees, clients, and partners; and guidance, implementation, and technical support services. It primarily markets its software and services to financial services, healthcare, communications and media, government, insurance, manufacturing and high tech, and consumer services markets through a direct sales force, as well as partnerships with technology providers and application developers. The company was incorporated in 1983 and is headquartered in Cambridge, Massachusetts.
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DCF
Discounted Cash Flow Valuation of Pegasystems Inc
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $323.9M | $339M | $354.9M | $371.4M | $388.7M | $406.9M | $425.8M | $445.7M | $466.5M | $488.2M | $511M | $5.11B |
| DCF | $294.8M | $268.3M | $244.2M | $222.3M | $202.3M | $184.1M | $167.6M | $152.5M | $138.8M | $126.3M | $1.263B | |
| Value | $3.264B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 3.9%
Earnings Stability -68%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 5.3% | 3.5% | 3.7% | 1.2% | -9.9% | -6% | -5.2% | -26% | 4.7% | 5.3% |
| ROA | 10% | 5.8% | 5.4% | -1.2% | -14% | -7.8% | -5.9% | -8.1% | 6.3% | 6.3% |
| ROE | 11% | 8% | 8.9% | 1.7% | -17% | -11% | -15% | -260% | 19% | 20% |
What is the average Net Margin?
The average Net Margin over the past 5 years is -6.91%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is -0.87%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is -5.06%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is +1.61%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is -47.75%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is -18.82%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | - | - | - | - | 0.00 | -19.98 | 20.61 | -45.51 | 2.48 | 1.54 |
| Debt Equity | - | - | - | - | 0.00 | 0.96 | 1.42 | 4.54 | 1.41 | 1.28 |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 33% | -380% | - | - | - | - | -380% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 1.54.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -2.06.
What is the Graham’s Stability?
Graham’s Stability measure stands at -3.85.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 9.4% | 9.9% | 12% | 8.7% | -0.34% |
| Net Income | 14% | 45% | - | - | -18% |
| Stockholders Equity | 0.75% | -11% | -13% | 170% | 4.9% |
| FCF | 38% | 17% | - | - | 67% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +9.95%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is -0.34%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +44.9%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -18.32%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is -10.66%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is +4.86%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +16.8%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is +67.2%.