(PRGS) Progress Software - Overview
Sector: Technology | Industry: Software - Infrastructure | Exchange: NASDAQ (USA) | Market Cap: 1.253m USD | Total Return: -46.2% in 12m
Avg Turnover: 15.1M
EPS Trend: 95.5%
Qual. Beats: 0
Rev. Trend: 96.5%
Qual. Beats: 0
Warnings
Altman Z'' -0.48 < 1.0 - financial distress zone
Overextended 3d
Tailwinds
Confidence
Progress Software Corporation (PRGS) specializes in infrastructure software designed to develop, deploy, and manage AI-powered applications and digital experiences. Its extensive portfolio includes DevOps automation through Chef, managed file transfer via MOVEit, and data connectivity solutions under the DataDirect brand. The company operates within the Systems Software sub-industry, a sector characterized by high switching costs and recurring revenue models driven by multi-year subscription contracts.
The firm’s business model centers on providing foundational tools for enterprise developers and IT administrators, including load balancing, network monitoring, and semantic AI platforms. Progress Software utilizes a diverse distribution strategy, selling directly to end users while leveraging a network of independent software vendors and system integrators. For a deeper look into the companys fundamentals, you may find it useful to explore additional data on ValueRay.
Founded in 1981 and headquartered in Burlington, Massachusetts, the company has expanded its capabilities through strategic acquisitions to address hybrid cloud security and document-centric collaboration. This consolidation strategy is common among mature software firms seeking to increase their total addressable market by integrating niche technological solutions into a unified enterprise ecosystem.
- Strategic acquisitions drive inorganic revenue growth and expand enterprise software portfolio
- High recurring revenue from maintenance and SaaS subscriptions provides cash flow stability
- Cybersecurity vulnerabilities in MOVEit and managed file transfer products pose reputational risks
- Integration of AI-powered Agentic RAG and Semaphore platforms enhances high-margin software demand
- Expansion of Chef and DevSecOps tools captures growing enterprise automation spending patterns
| Net Income: 85.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA 2.49 > 1.0 |
| NWC/Revenue: -42.32% < 20% (prev -10.89%; Δ -31.43% < -1%) |
| CFO/TA 0.11 > 3% & CFO 264.9m > Net Income 85.0m |
| Net Debt (920.2m) to EBITDA (174.8m): 5.26 < 3 |
| Current Ratio: 0.47 > 1.5 & < 3 |
| Outstanding Shares: last quarter (42.7m) vs 12m ago -4.81% < -2% |
| Gross Margin: 78.65% > 18% (prev 0.82%; Δ 7.78k% > 0.5%) |
| Asset Turnover: 40.67% > 50% (prev 32.76%; Δ 7.90% > 0%) |
| Interest Coverage Ratio: 2.53 > 6 (EBITDA TTM 174.8m / Interest Expense TTM 67.7m) |
| A: -0.17 (Total Current Assets 370.1m - Total Current Liabilities 788.1m) / Total Assets 2.39b |
| B: 0.04 (Retained Earnings 100.3m / Total Assets 2.39b) |
| C: 0.07 (EBIT TTM 170.9m / Avg Total Assets 2.43b) |
| D: 0.05 (Book Value of Equity 100.8m / Total Liabilities 1.90b) |
| Altman-Z'' = -0.48 = B |
| DSRI: 0.95 (Receivables 188.4m/161.8m, Revenue 987.6m/806.7m) |
| GMI: 1.04 (GM 78.65% / 82.16%) |
| AQI: 0.98 (AQ_t 0.83 / AQ_t-1 0.84) |
| SGI: 1.22 (Revenue 987.6m / 806.7m) |
| TATA: -0.08 (NI 85.0m - CFO 264.9m) / TA 2.39b) |
| Beneish M = -2.96 (Cap -4..+1) = A |
As of May 30, 2026, the stock is trading at USD 32.83 with a total of 1,176,363 shares traded.
Over the past week, the price has changed by +13.52%,
over one month by +20.43%,
over three months by -21.61% and
over the past year by -46.24%.
Progress Software has received a consensus analysts rating of 4.29. Therefore, it is recommended to buy PRGS.
- StrongBuy: 4
- Buy: 1
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 50.8 | 54.8% |
P/E Trailing = 15.2718
P/E Forward = 4.9628
P/S = 1.2688
P/B = 2.5123
P/EG = 0.9927
Revenue TTM = 987.6m USD
EBIT TTM = 170.9m USD
EBITDA TTM = 174.8m USD
Long Term Debt = 981.7m USD (from longTermDebt, last quarter)
Short Term Debt = 17.6m USD (from shortTermDebt, last quarter)
Debt = 1.03b USD (corrected: LT Debt 981.7m + ST Debt 17.6m) + Leases 34.1m
Net Debt = 920.2m USD (calculated: Debt 1.03b - CCE 113.2m)
Enterprise Value = 2.17b USD (1.25b + Debt 1.03b - CCE 113.2m)
Interest Coverage Ratio = 2.53 (Ebit TTM 170.9m / Interest Expense TTM 67.7m)
EV/FCF = 8.43x (Enterprise Value 2.17b / FCF TTM 257.7m)
FCF Yield = 11.86% (FCF TTM 257.7m / Enterprise Value 2.17b)
FCF Margin = 26.10% (FCF TTM 257.7m / Revenue TTM 987.6m)
Net Margin = 8.61% (Net Income TTM 85.0m / Revenue TTM 987.6m)
Gross Margin = 78.65% ((Revenue TTM 987.6m - Cost of Revenue TTM 210.8m) / Revenue TTM)
Gross Margin QoQ = 71.96% (prev 81.59%)
Tobins Q-Ratio = 0.91 (Enterprise Value 2.17b / Total Assets 2.39b)
Interest Expense / Debt = 6.55% (Interest Expense 67.7m / Debt 1.03b)
Taxrate = 24.69% (7.48m / 30.3m)
NOPAT = 128.7m (EBIT 170.9m * (1 - 24.69%))
Current Ratio = 0.47 (Total Current Assets 370.1m / Total Current Liabilities 788.1m)
Debt / Equity = 2.07 (Debt 1.03b / totalStockholderEquity, last quarter 498.8m)
Debt / EBITDA = 5.26 (Net Debt 920.2m / EBITDA 174.8m)
Debt / FCF = 3.57 (Net Debt 920.2m / FCF TTM 257.7m)
Total Stockholder Equity = 476.9m (last 4 quarters mean from totalStockholderEquity)
RoA = 3.50% (Net Income 85.0m / Total Assets 2.39b)
RoE = 17.82% (Net Income TTM 85.0m / Total Stockholder Equity 476.9m)
RoCE = 11.72% (EBIT 170.9m / Capital Employed (Equity 476.9m + L.T.Debt 981.7m))
RoIC = 8.52% (NOPAT 128.7m / Invested Capital 1.51b)
WACC = 7.11% (E(1.25b)/V(2.29b) * Re(8.91%) + D(1.03b)/V(2.29b) * Rd(6.55%) * (1-Tc(0.25)))
Discount Rate = 8.91% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -60.25 | Cagr: -2.00%
[DCF] Terminal Value 77.97% ; FCFF base≈236.1m ; Y1≈270.7m ; Y5≈398.4m
[DCF] Fair Price = 120.6 (EV 6.00b - Net Debt 920.2m = Equity 5.08b / Shares 42.1m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 95.54 | EPS CAGR: 13.08% | SUE: 0.54 | # QB: 0
Revenue Correlation: 96.49 | Revenue CAGR: 17.37% | SUE: 0.42 | # QB: 0
EPS current Quarter (2026-05-31): EPS=1.49 | Chg30d=+6.02% | Revisions=+60% | Analysts=6
EPS next Quarter (2026-08-31): EPS=1.45 | Chg30d=+0.72% | Revisions=-20% | Analysts=6
EPS current Year (2026-11-30): EPS=5.98 | Chg30d=+1.80% | Revisions=+60% | GrowthEPS=+4.6% | GrowthRev=+1.7%
EPS next Year (2027-11-30): EPS=6.06 | Chg30d=+1.73% | Revisions=+60% | GrowthEPS=+1.3% | GrowthRev=+1.1%
[Analyst] Revisions Ratio: +60%