Progress Software Corp (PRGS) Stock Analysis
Verdict: BUY
Acquisition-led growth and 19% FCF yield offer a deep-value entry into enterprise software, offset by high leverage and stagnant organic growth.
Investment score: 68/100
Analysis as of
Is Progress Software Corp stock worth reviewing? The TradeMates thesis
Progress Software is a cash-flow powerhouse currently undervalued by the market relative to its acquisition-driven earnings growth.
7-factor investment score
- Valuation: 85/100 (weight 20%)
- Financial Health: 55/100 (weight 15%)
- Technical Momentum: 70/100 (weight 15%)
- Earnings Quality: 80/100 (weight 15%)
- Insider Sentiment: 40/100 (weight 10%)
- Analyst Consensus: 85/100 (weight 10%)
- Risk-Adjusted Return: 60/100 (weight 15%)
Progress Software Corp opportunities and risks
What speaks for PRGS
- Deep Valuation Disconnect
What speaks against PRGS
- Aggressive Leverage Profile
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| PRGS | 18.7x | 1.6x | 9.9x | 79.2% | 8.9% | 19.0% |
| ADEA | 26.0x | 7.0x | 12.6x | 87.0% | 26.5% | 4.7% |
| ATEN | 60.2x | 9.1x | 39.6x | 79.5% | 14.9% | 1.9% |
| APPN | 1635.4x | 2.5x | 58.5x | 73.8% | 0.1% | 3.3% |
| AIP | n/a | 21.0x | n/a | 88.0% | -44.9% | -0.3% |
| NABL | n/a | 1.5x | 15.7x | 77.6% | -2.0% | 8.8% |
| Peer median | 26.0x | 7.0x | 15.7x | 79.5% | 0.1% | 3.3% |
Frequently asked questions about Progress Software Corp (PRGS)
Is PRGS stock a good investment?
The TradeMates model rates Progress Software Corp as BUY with an investment score of 68/100. Progress Software is a cash-flow powerhouse currently undervalued by the market relative to its acquisition-driven earnings growth. This is algorithmic model output, not personal investment advice.
Is PRGS stock a buy?
The TradeMates model verdict for PRGS is BUY with an investment score of 68/100. Treat this as a model signal to review, not a personal buy recommendation.