Fact based stock research
Pegasystems (NasdaqGS:PEGA)

US7055731035

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Pegasystems stock research in summary

pega.com

ANALYSIS: With an Obermatt Combined Rank of 78 (better than 78% compared with investment alternatives), Pegasystems (Application Software, USA) shares have much better financial characteristics than comparable stocks. Shares of Pegasystems are a good value (attractively priced) with a consolidated Value Rank of 62 (better than 62% of alternatives), show above-average growth (Growth Rank of 76) but are riskily financed (Safety Rank of 38), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 78, is a strong buy recommendation based on Pegasystems's financial characteristics. As the company Pegasystems's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 62) and above-average growth (Obermatt Growth Rank of 76), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 38) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	62
Growth Rank	76
Safety Rank	38
Combined Rank	78

Country	USA
Industry	Application Software
Index	NASDAQ
Size class	Large

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Pegasystems

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	12	37	66	62
GROWTH
GROWTH	79	43	47	76
SAFETY
SAFETY	6	15	23	38
SENTIMENT
SENTIMENT	n/a	1	6	^new
360° VIEW
360° VIEW	n/a	3	13	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Pegasystems is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	12	37	66	62
GROWTH
GROWTH	79	43	47	76
SAFETY
SAFETY	6	15	23	38
COMBINED
COMBINED	9	7	22	78

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Pegasystems the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 62 (better than 62% compared with alternatives), Pegasystems shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Pegasystems. Price-to-Sales (P/S) is 61, which means that the stock price compared with what market professionals expect for future sales is lower than for 61% of comparable companies, indicating a good value concerning Pegasystems's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 66% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 72 (dividends are expected to be higher than 72% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 91% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Pegasystems to 9. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 62, is a buy recommendation based on Pegasystems's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner in assets than its competitors. For instance, the company could be leasing its production facilities or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the three good value ranks for Sales, Profits, and Dividends are reliable indicators for the stock price value. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	44	51	80	61
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	9	11	67	66
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	4	12	11	9
DIVIDEND YIELD
DIVIDEND YIELD	48	72	73	72
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	12	37	66	62

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Pegasystems; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 76 (better than 76% compared with alternatives) for 2024, Pegasystems shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Pegasystems. Profit Growth has a rank of 58 which means that currently professionals expect the company to grow its profits more than 58% of its competitors. The same is valid for capital growth and stock returns. Capital Growth has a rank of 78, and Stock Returns has a rank of 90 which means that the stock returns have recently been above 90% of alternative investments. Only revenue growth is low with a Sales Growth has a rank of 29 (71% of its competitors are better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 76, is a buy recommendation for growth and momentum investors. The many positive growth indicators indicate a positive growth momentum with only low revenue growth. That can also be attributed to divestments or the sale of unprofitable businesses. If that is the reason, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	57	67	35	29
PROFIT GROWTH
PROFIT GROWTH	65	89	85	58
CAPITAL GROWTH
CAPITAL GROWTH	n/a	13	7	78
STOCK RETURNS
STOCK RETURNS	56	29	53	90
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	79	43	47	76

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Pegasystems.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 38 (better than 38% compared with alternatives), the company Pegasystems has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Pegasystems is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Pegasystems. Liquidity is at 71, meaning the company generates more profit to service its debt than 71% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 24, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 76% of its competitors. Leverage is also high at a rank of 15, which means that the company has an above-average debt-to-equity ratio. It has more debt than 85% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 38 (worse than 62% compared with alternatives), Pegasystems has a financing structure that is riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	8	19	10	15
REFINANCING
REFINANCING	65	53	57	24
LIQUIDITY
LIQUIDITY	21	15	26	71
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	6	15	23	38

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Pegasystems and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	64	16	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	7	29	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	17	4	^new
MARKET PULSE
MARKET PULSE	n/a	24	33	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	1	6	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Pegasystems.
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