Progress Software Corp

Technology
Computer Software: Prepackaged Software
www.progress.com

Earnings Score
Moat Score
Safety Score

Market Cap $2.96B
PE 36
Debt $795.28M
Cash $232.71M
EV $3.52B
FCF $220.29M

Earnings

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Sales & Net Margins

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Earnings	$82.63M
EBIT	$125.04M
ROE	19%
ROA	8%
FCF	$220.29M
Equity	$425.61M
Growth Stability	83%
PE	35.78
PEG	2.48
PB	6.95
P/FCF	13.42
P/S	4.13
Price/Cash	0.08
Debt/Equity	1.87
Debt/FCF	3.61
Net Margins	12%
Gross Margins	82%
Op. Margins	17%
Earnings CAGR	15%
Sales Growth YoY	2%
Sales Growth QoQ	2%
Sales CAGR	8%
FCF CAGR	11%
Equity CAGR	-1%
Earnings Stability	0.42
Earnings Growth YoY	49%
Earnings Growth QoQ	76%
Earnings CAGR 5Y	14%

Sales CAGR 5Y	14%
FCF CAGR 5Y	10%
Equity CAGR 5Y	6%
Earnings CAGR 3Y	12%
Sales CAGR 3Y	12%
FCF CAGR 3Y	5%
Equity CAGR 3Y	6%
Market Cap	$2.96B
Revenue	$715.42M
Dividend Yield	1%
Payout Ratio	38%
Assets	$1.62B
Total Debt	$795.28M
Cash	$232.71M
Shares Outstanding	42.87M
EV	3.52B
Earnings Score	45%
Moat Score	91%
Safety Score	83%
Final Score	73%
Working Capital	73.65M
Current Ratio	1.23
Gross Profit	$587.81M
Shares Growth 3y	-0%
Equity Growth QoQ	6%
Equity Growth YoY	-4%

Assets & ROA

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Stockholders Equity & ROE

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Progress Software Corporation is a provider of cloud-based security solutions to large- and mid-sized organizations in a wide range of industries. The firm operates in three segments: OpenEdge, which offers development software for building multi-language applications; Data Connectivity and Integration, which focuses on data integration components of its cloud offerings; and Application Development and Deployment, which focuses on growing application development assets for customers. The company derives revenue from perpetual licenses to its products, but some products also use term licensing models. Its cloud-based offerings use a subscription-based model. A majority of the firm's revenue is generated in the United States, Europe, the Middle East, and Africa (EMEA).

SEC Filings

Direct access to Progress Software Corp (PRGS) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Aug 31
- 10-Q May 31
- 10-Q Feb 29
2023
- 10-K Nov 30
- 10-Q Aug 31
- 10-Q May 31
- 10-Q Feb 28
2022
- 10-K Nov 30
- 10-Q Aug 31
- 10-Q May 31
- 10-Q Feb 28

Sector Comparison

How does Progress Software Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Progress Software Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 15%

Stability 42%

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Progress Software Corp Discounted Cash Flow

Fully customizable DCF calculator online for Progress Software Corp .

Years

Calculation mode

= $4.7B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$220M	$244M	$271M	$300M	$333M	$369M	$410M	$454M	$504M	$559M	$620M	$6.2B
DCF		$222M	$224M	$226M	$228M	$229M	$231M	$233M	$235M	$237M	$239M	$2.4B
Value	$4.7B

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	11/2015	11/2016	11/2017	11/2018	11/2019	11/2020	11/2021	11/2022	11/2023	TTM
Net Margins	-2%	-14%	9%	16%	6%	18%	15%	16%	10%	12%
ROA	-	-4%	10%	13%	5%	10%	9%	9%	7%	8%
ROE	-	-14%	10%	20%	8%	23%	19%	24%	15%	19%

Good Net Margins (12.5%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

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	11/2015	11/2016	11/2017	11/2018	11/2019	11/2020	11/2021	11/2022	11/2023	TTM
Debt over FCF	-	1.55	1.27	1.08	2.47	2.91	3.75	3.41	4.42	3.61
Debt over Equity	0.29	0.37	0.34	0.4	0.93	1.16	1.58	1.59	1.62	1.87
Growth Stability	-	-	-	-	100%	100%	100%	100%	83%	83%

Neutral Debt/FCF ratio (3.61)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Bad Debt/Equity ratio (1.87)

The company is overleveraged and has a bad balance between equity and debt.

Neutral Graham’s Stability (83%)

The company has a stability in its earnings that is not too good nor too bad.

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	11/2015	11/2016	11/2017	11/2018	11/2019	11/2020	11/2021	11/2022	11/2023	CAGR 5Y
Revenue YoY growth	-	7%	-2%	-0%	4%	7%	20%	13%	15%	14%
Earnings YoY growth	-	533%	-167%	70%	-58%	202%	-2%	21%	-26%	14%
Equity YoY growth	-	-22%	-8%	-18%	7%	5%	19%	-3%	15%	6%
FCF YoY growth	-	-0%	5%	12%	9%	11%	26%	7%	-10%	10%