(PEGA) Pegasystems - Overview
Stock: Customer, Service, Platform, Cloud, Automation
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 0.20% |
| Yield on Cost 5y | 0.17% |
| Yield CAGR 5y | 0.00% |
| Payout Consistency | 62.8% |
| Payout Ratio | 5.0% |
| Risk 5d forecast | |
|---|---|
| Volatility | 45.0% |
| Relative Tail Risk | -11.7% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.26 |
| Alpha | -46.12 |
| Character TTM | |
|---|---|
| Beta | 1.397 |
| Beta Downside | 1.324 |
| Drawdowns 3y | |
|---|---|
| Max DD | 44.38% |
| CAGR/Max DD | 0.65 |
Description: PEGA Pegasystems January 07, 2026
Pegasystems Inc. (NASDAQ:PEGA) is a U.S.-based enterprise-software vendor that designs, licenses, hosts, and supports a suite of applications for customers across the Americas, EMEA, and APAC. The company is incorporated in 1983 and operates from Waltham, Massachusetts, classifying under the GICS sub-industry “Application Software.”
The core offering is the Pega Infinity portfolio, which includes the AI-driven Pega Customer Decision Hub for real-time next-best-action recommendations, Pega Customer Service for omnichannel support automation, and the Pega Platform for workflow and process automation. Complementary components such as the Situational Layer Cake, GenAI Blueprint, Pega Cloud, Catalyst, and the Pega Academy expand the platform’s flexibility, speed of development, and ecosystem enablement.
Pega sells primarily to financial services, healthcare, communications & media, government, insurance, manufacturing, high-tech, and consumer-services firms through a direct sales force and strategic technology partnerships. This focus aligns the company with sectors that are investing heavily in digital transformation and AI-enabled customer engagement.
Recent metrics indicate solid momentum: FY2023 total revenue reached approximately $1.5 billion, with subscription-based ARR growing ~20% YoY and cloud-hosting revenue up about 30% YoY (non-GAAP operating margin ~15%). The broader enterprise-software market is projected to expand 8-10% annually, driven by rising demand for low-code automation and AI-enhanced decisioning-key tailwinds for Pega’s platform strategy.
For a deeper, data-rich comparison of Pegasystems against its peers, the ValueRay analysis provides a useful next step.
Piotroski VR‑10 (Strict, 0-10) 7.5
| Net Income: 278.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.34 > 0.02 and ΔFCF/TA 13.51 > 1.0 |
| NWC/Revenue: 12.37% < 20% (prev 6.39%; Δ 5.99% < -1%) |
| CFO/TA 0.34 > 3% & CFO 442.0m > Net Income 278.0m |
| Net Debt (-71.9m) to EBITDA (373.3m): -0.19 < 3 |
| Current Ratio: 1.36 > 1.5 & < 3 |
| Outstanding Shares: last quarter (184.1m) vs 12m ago 7.50% < -2% |
| Gross Margin: 75.74% > 18% (prev 0.74%; Δ 7500 % > 0.5%) |
| Asset Turnover: 120.6% > 50% (prev 93.75%; Δ 26.88% > 0%) |
| Interest Coverage Ratio: 112.4 > 6 (EBITDA TTM 373.3m / Interest Expense TTM 2.96m) |
Altman Z'' 3.58
| A: 0.17 (Total Current Assets 811.8m - Total Current Liabilities 597.5m) / Total Assets 1.29b |
| B: 0.18 (Retained Earnings 233.9m / Total Assets 1.29b) |
| C: 0.23 (EBIT TTM 332.8m / Avg Total Assets 1.44b) |
| D: 0.33 (Book Value of Equity 226.8m / Total Liabilities 696.0m) |
| Altman-Z'' Score: 3.58 = A |
Beneish M -2.92
| DSRI: 0.94 (Receivables 417.4m/378.5m, Revenue 1.73b/1.48b) |
| GMI: 0.98 (GM 75.74% / 74.40%) |
| AQI: 1.31 (AQ_t 0.29 / AQ_t-1 0.22) |
| SGI: 1.17 (Revenue 1.73b / 1.48b) |
| TATA: -0.13 (NI 278.0m - CFO 442.0m) / TA 1.29b) |
| Beneish M-Score: -2.92 (Cap -4..+1) = A |
What is the price of PEGA shares?
Over the past week, the price has changed by -8.17%, over one month by -33.19%, over three months by -31.92% and over the past year by -23.62%.
Is PEGA a buy, sell or hold?
- StrongBuy: 7
- Buy: 3
- Hold: 4
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the PEGA price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 73.9 | 84.2% |
| Analysts Target Price | 73.9 | 84.2% |
| ValueRay Target Price | 38.6 | -3.9% |
PEGA Fundamental Data Overview February 04, 2026
P/E Forward = 19.802
P/S = 4.3029
P/B = 12.3902
P/EG = 0.6736
Revenue TTM = 1.73b USD
EBIT TTM = 332.8m USD
EBITDA TTM = 373.3m USD
Long Term Debt = 76.8m USD (from capitalLeaseObligations, last quarter)
Short Term Debt = 14.4m USD (from shortTermDebt, last quarter)
Debt = 76.8m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -71.9m USD (from netDebt column, last quarter)
Enterprise Value = 7.18b USD (7.45b + Debt 76.8m - CCE 351.4m)
Interest Coverage Ratio = 112.4 (Ebit TTM 332.8m / Interest Expense TTM 2.96m)
EV/FCF = 16.35x (Enterprise Value 7.18b / FCF TTM 439.2m)
FCF Yield = 6.12% (FCF TTM 439.2m / Enterprise Value 7.18b)
FCF Margin = 25.36% (FCF TTM 439.2m / Revenue TTM 1.73b)
Net Margin = 16.05% (Net Income TTM 278.0m / Revenue TTM 1.73b)
Gross Margin = 75.74% ((Revenue TTM 1.73b - Cost of Revenue TTM 420.3m) / Revenue TTM)
Gross Margin QoQ = 72.23% (prev 71.50%)
Tobins Q-Ratio = 5.55 (Enterprise Value 7.18b / Total Assets 1.29b)
Interest Expense / Debt = 0.19% (Interest Expense 144.0k / Debt 76.8m)
Taxrate = 30.46% (43.4m / 142.6m)
NOPAT = 231.4m (EBIT 332.8m * (1 - 30.46%))
Current Ratio = 1.36 (Total Current Assets 811.8m / Total Current Liabilities 597.5m)
Debt / Equity = 0.13 (Debt 76.8m / totalStockholderEquity, last quarter 596.8m)
Debt / EBITDA = -0.19 (Net Debt -71.9m / EBITDA 373.3m)
Debt / FCF = -0.16 (Net Debt -71.9m / FCF TTM 439.2m)
Total Stockholder Equity = 604.5m (last 4 quarters mean from totalStockholderEquity)
RoA = 19.36% (Net Income 278.0m / Total Assets 1.29b)
RoE = 45.98% (Net Income TTM 278.0m / Total Stockholder Equity 604.5m)
RoCE = 48.84% (EBIT 332.8m / Capital Employed (Equity 604.5m + L.T.Debt 76.8m))
RoIC = 32.08% (NOPAT 231.4m / Invested Capital 721.4m)
WACC = 10.95% (E(7.45b)/V(7.53b) * Re(11.06%) + D(76.8m)/V(7.53b) * Rd(0.19%) * (1-Tc(0.30)))
Discount Rate = 11.06% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 1.44%
[DCF Debug] Terminal Value 72.29% ; FCFF base≈392.8m ; Y1≈484.5m ; Y5≈825.2m
Fair Price DCF = 51.57 (EV 8.68b - Net Debt -71.9m = Equity 8.75b / Shares 169.7m; r=10.95% [WACC]; 5y FCF grow 25.0% → 2.90% )
EPS Correlation: 45.34 | EPS CAGR: 71.14% | SUE: 0.23 | # QB: 0
Revenue Correlation: 53.98 | Revenue CAGR: 5.12% | SUE: 0.77 | # QB: 0
EPS next Quarter (2026-03-31): EPS=0.62 | Chg30d=+0.005 | Revisions Net=+1 | Analysts=11
EPS next Year (2026-12-31): EPS=2.23 | Chg30d=+0.005 | Revisions Net=-1 | Growth EPS=+7.5% | Growth Revenue=+6.9%