Fact based stock research
Progress Software (NasdaqGS:PRGS)

US7433121008

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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.

Progress Software stock research in summary

progress.com

ANALYSIS: With an Obermatt Combined Rank of 84 (better than 84% compared with investment alternatives), Progress Software (Systems Software, USA) shares have much better financial characteristics than comparable stocks. Shares of Progress Software are a good value (attractively priced) with a consolidated Value Rank of 98 (better than 98% of alternatives), show above-average growth (Growth Rank of 68) but are riskily financed (Safety Rank of 27), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 84, is a strong buy recommendation based on Progress Software's financial characteristics. As the company Progress Software's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 98) and above-average growth (Obermatt Growth Rank of 68), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 27) 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	98
Growth Rank	68
Safety Rank	27
Combined Rank	84

Country	USA
Industry	Systems Software
Index	NASDAQ
Size class	Medium

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

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

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

Research History: Progress Software

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	77	89	94	98
GROWTH
GROWTH	57	55	13	68
SAFETY
SAFETY	6	67	33	27
SENTIMENT
SENTIMENT	n/a	99	81	^new
360° VIEW
360° VIEW	n/a	97	64	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 31-Aug-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Progress Software is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	77	89	94	98
GROWTH
GROWTH	57	55	13	68
SAFETY
SAFETY	6	67	33	27
COMBINED
COMBINED	49	93	34	84

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

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 98 (better than 98% compared with alternatives) for 2024, Progress Software shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Progress Software. Price-to-Sales is 74 which means that the stock price compared with what market professionals expect for future sales is lower than for 74% of comparable companies, indicating a good value for Progress Software's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 94% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 100. Compared with other companies in the same industry, dividend yields of Progress Software are expected to be higher than for 90% of all competitors (a Dividend Yield rank of 90). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 98, is a buy recommendation based on Progress Software's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Progress Software based on its detailed value metrics. 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)	66	78	77	74
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	86	92	86	94
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	39	27	53	100
DIVIDEND YIELD
DIVIDEND YIELD	81	84	87	90
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	77	89	94	98

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 68 (better than 68% compared with alternatives), Progress Software shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Progress Software. Sales Growth has a rank of 85 which means that currently, professionals expect the company to grow more than 85% of its competitors. Capital Growth is also above 31% of competitors with a rank of 57, and Stock Returns with the rank of 64 is also an outperformance. Only Profit Growth is low with a rank of 31 which means that currently, professionals expect the company to grow its profits less than 69% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 68, is a buy recommendation for growth and momentum investors. All three operating growth indicators, namely revenue, profit, and capital growth, are showing improvements. This is a good indication of a company with a positive future. That might, at the same time, be the simple reason why profit growth is low. A growing company needs money and thus can't yet show high profit growth. Look out for signs in corporate communication about extra growth efforts costing time and money. If that is the case, Progress Software is a good growth stock. 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	49	37	29	85
PROFIT GROWTH
PROFIT GROWTH	38	67	22	31
CAPITAL GROWTH
CAPITAL GROWTH	n/a	24	25	57
STOCK RETURNS
STOCK RETURNS	65	75	31	64
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	57	55	13	68

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

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 27 (better than 27% compared with alternatives), the company Progress Software 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 Progress Software 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 Progress Software. Liquidity is at 63, meaning the company generates more profit to service its debt than 63% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 28, 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 72% of its competitors. Leverage is also high at a rank of 13, which means that the company has an above-average debt-to-equity ratio. It has more debt than 87% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 27 (worse than 73% compared with alternatives), Progress Software 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	4	15	18	13
REFINANCING
REFINANCING	8	81	17	28
LIQUIDITY
LIQUIDITY	40	56	69	63
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	6	67	33	27

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Progress Software 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	98	82	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	91	85	^new
MARKET PULSE
MARKET PULSE	n/a	52	69	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	99	81	^new

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