Pros Holdings, Inc.

PRO

Services-Computer Programming Services

Mkt Cap

$1.494B

PE

-30.68

Debt

$293.6M

Cash

$166.4M

EV

$1.622B

FCF

$10.16M

Market Cap

$1.494B

P/E Ratio

-30.68

Debt

$293.6M

Cash

$166.4M

EV

$1.622B

FCF

$10.16M

Charts data: {"Earnings":[{"time":"2014-12-30","value":-37551000},{"time":"2015-12-30","value":-65811000},{"time":"2016-12-30","value":-75225000},{"time":"2017-12-30","value":-77926000},{"time":"2018-12-30","value":-64246000},{"time":"2019-12-30","value":-69081000},{"time":"2020-12-30","value":-76984000},{"time":"2021-12-30","value":-81209000},{"time":"2022-12-30","value":-82246000},{"time":"2023-12-30","value":-56354000}],"Sales":[{"time":"2014-12-30","value":185829000},{"time":"2015-12-30","value":168246000},{"time":"2016-12-30","value":153276000},{"time":"2017-12-30","value":168816000},{"time":"2018-12-30","value":197024000},{"time":"2019-12-30","value":250334000},{"time":"2020-12-30","value":252424000},{"time":"2021-12-30","value":251423000},{"time":"2022-12-30","value":276137000},{"time":"2023-12-30","value":303708000}],"Net Margins":[{"time":"2014-12-30","value":-0.2020728734481701},{"time":"2015-12-30","value":-0.39115937377411647},{"time":"2016-12-30","value":-0.4907813356298442},{"time":"2017-12-30","value":-0.4616031655767226},{"time":"2018-12-30","value":-0.32608210167289264},{"time":"2019-12-30","value":-0.27595532368755343},{"time":"2020-12-30","value":-0.3049789243495072},{"time":"2021-12-30","value":-0.32299749824001783},{"time":"2022-12-30","value":-0.29784491031625604},{"time":"2023-12-30","value":-0.1855532287592029}],"Assets":[{"time":"2014-12-30","value":300125000},{"time":"2015-12-30","value":263722000},{"time":"2016-12-30","value":227654000},{"time":"2017-12-30","value":288683000},{"time":"2018-12-30","value":436967000},{"time":"2019-12-30","value":513307000},{"time":"2020-12-30","value":539971000},{"time":"2021-12-30","value":494483000},{"time":"2022-12-30","value":452952000},{"time":"2023-12-30","value":421833000}],"Stockholders Equity":[{"time":"2014-12-30","value":98999000},{"time":"2015-12-30","value":55414000},{"time":"2016-12-30","value":-3394000},{"time":"2017-12-30","value":-46979000},{"time":"2018-12-30","value":54899000},{"time":"2019-12-30","value":164996000},{"time":"2020-12-30","value":117037000},{"time":"2021-12-30","value":3584000},{"time":"2022-12-30","value":-35473000},{"time":"2023-12-30","value":-77873000}],"ROE":[{"time":"2014-12-30","value":-0.37930686168547156},{"time":"2015-12-30","value":-1.1876240661204749},{"time":"2016-12-30","value":22.164113140836772},{"time":"2017-12-30","value":1.658741139658145},{"time":"2018-12-30","value":-1.1702581103480938},{"time":"2019-12-30","value":-0.41868287716065844},{"time":"2020-12-30","value":-0.6577748917009151},{"time":"2021-12-30","value":-22.658761160714285},{"time":"2022-12-30","value":2.3185521382459897},{"time":"2023-12-30","value":0.7236654552925917}],"ROA":[{"time":"2014-12-30","value":-0.07465889212827988},{"time":"2015-12-30","value":-0.21043750616179158},{"time":"2016-12-30","value":-0.2872692770608028},{"time":"2017-12-30","value":-0.22363284294537608},{"time":"2018-12-30","value":-0.10769691990470676},{"time":"2019-12-30","value":-0.10391052528019294},{"time":"2020-12-30","value":-0.1207157421417076},{"time":"2021-12-30","value":-0.15034490568937658},{"time":"2022-12-30","value":-0.17241120471926386},{"time":"2023-12-30","value":-0.1199574239094618}]}

PROS Holdings, Inc. provides solutions that optimize the processes of selling and shopping in the digital economy worldwide. The company offers PROS Smart Configure Price Quote that improves sales productivity and accelerate deal velocity by automating common sales tasks; and PROS Smart Price Optimization and Management that enables businesses to optimize, personalize, and harmonize pricing across the complexity of their go-to-market channels in the context of dynamic market and competitive conditions. It also provides PROS Airline Revenue Optimization; PROS Airline Revenue Management solution that delivers algorithmic forecasting and network optimization for the travel industry; PROS Airline Real-Time Dynamic Pricing that offers accurate booking class availability and seat prices; PROS Airline Group Sales Optimizer, which enables airlines and their travel agent partners to create and manage group bookings, contracts, policies, and payments; and PROS Corporate Sales, a solution that enables airlines to create commercial agreements with their corporate customers. In addition, the company offers PROS Digital Retail, a configurable end-to-end solution for airlines to optimize the traveler experience from inspiration to post-trip; and PROS digital offer marketing solutions provide performance content management and search engine marketing tools that enable businesses in the travel industry. Further, it provides software-related services, such as implementation, configuration, consulting, training, maintenance, and support services. The company sells its software solutions to customers in various industries, including automotive and industrial manufacturing, transportation and logistics, chemicals and energy, food and beverage, healthcare, high tech, and travel. It markets and sells its software solutions through its sales force, as well as through partners, resellers, and systems integrators. The company was incorporated in 1985 and is headquartered in Houston, Texas.

Sector

10-Q
9/30/23
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10-K
12/31/22
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10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Pros Holdings, Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

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	$10.16M	$10.38M	$10.6M	$10.83M	$11.06M	$11.3M	$11.55M	$11.8M	$12.05M	$12.31M	$12.58M	$125.8M
DCF		$9.022M	$8.015M	$7.12M	$6.325M	$5.619M	$4.992M	$4.435M	$3.94M	$3.5M	$3.109M	$31.09M
Value	$87.17M

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth -

Earnings Stability -

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.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	-39%	-49%	-46%	-33%	-28%	-30%	-32%	-30%	-19%	-16%
ROA	-21%	-29%	-22%	-11%	-10%	-12%	-15%	-17%	-12%	-10%
ROE	-120%	2.2K%	170%	-120%	-42%	-66%	-2.3K%	230%	72%	58%

What is the average Net Margin?

The average Net Margin over the past 5 years is -28.56%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +1.77%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is -12.92%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.85%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -364.39%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -12.34%.

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.

The company has high debt with respect to the cashflow it generates.

Data are missing

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	13.32	-5.67	-8.02	53.26	-4257.85	-2.80	-13.50	-11.70	40.09	28.91
Debt Equity	2.10	-36.03	-4.54	4.10	0.67	1.86	80.44	-8.17	-3.78	-3.49
MIN
Graham Stability	-	-	-	-	-	-	-	-	-	-

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 28.91.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 361.77.

What is the Graham’s Stability?

Graham’s Stability measure stands at -.

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.

Data are missing

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	10%	9%	6.4%	10%	1.6%
Net Income	-	-	-	-	-
Stockholders Equity	-	-	-	-	-1.9%
FCF	-	12%	-	-	-

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +9.04%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +1.62%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -2.59%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -1.89%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +11.65%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -.