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PRGS

STRONG BUYAPPROVE

Progress Software Corporation · Technology · United States · $1.6B · Avg Vol: $34M/d

92
StockRank
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Q
61
V
68
M
64
P/E (TTM)
19.7x
ROE
18.6%
D/E
2.6x
Dividend %
AI CONVICTION THESIS

Progress Software runs an acquire-and-optimise model over mature infrastructure software products, generating very high margins and predictable maintenance revenue used to fund a large buyback (2.85% of shares outstanding in 90 days) and debt reduction. Forward-EPS consensus has been revised up 3.0%. Nothing adverse is known on accounting, solvency or governance.

COMPANY DESCRIPTION

Progress Software Corporation develops and provides enterprise software solutions that enable businesses to build, deploy, and manage critical applications and infrastructure, including products for application development, integration, and data connectivity. The company benefits from high customer switching costs due to its software often being deeply embedded into client operations, creating a sticky revenue base. Progress Software operates as a specialized provider in the enterprise technology sector, serving specific niches with a portfolio of established and continually evolving products.

FINANCIAL SUMMARY (USD)

Year2022202320242025CAGRTTM2026E2027EFwd CAGR
Revenue602.0M694.4M753.4M977.8M17.5%1.0B995.7M1.0B1.4%
EPS2.191.621.581.70-8.1%2.011.821.854.4%
Shares43.3M43.8M43.4M42.3M-2.1%41.0M
Debt640.6M747.1M1.6B1.4B30.7%1.3B
Equity398.5M459.7M438.8M478.3M6.3%
Op CF192.2M173.9M211.5M235.2M7.0%313.7M
Inv CF22.0M-360.4M-857.9M-26.9M
Fin CF-101.4M51.2M640.8M-238.4M
Loading 1Y...
PRICE (1Y)+22.8%
27.6630.8834.1037.3340.55Jun 12Jul 7Jul 27
SMA 50SMA 200
Close
$38.66
RSI (14)
47.8
52W High
$51.28
From 52W High
0.8%

SCORE BREAKDOWN

Quality
61
ROIC
9.3%59.9
ROE
18.6%81.8
GP/Assets
34.9%76.6
Op. Margin
18.5%81.8
FCF/Assets
10.1%79.2
Piotroski
780.2
Int. Cover
2.2x29.1
D/E Ratio
2.62x2.6
Current Ratio
0.81x6.0
Value
68
P/E (TTM)
19.7x68.2
EV/EBITDA
8.5x78.2
P/FCF
6.3x91.8
P/B
3.2x45.9
P/S
1.6x66.7
Div Yield
N/A
Momentum
64
52W High %
75%76.3
RS 6M
-17%51.2
SMA 50/200
0.91x28.1
EPS Rev 4W
+3.0%92.2
EPS Rev 12W
+3.0%67.3
EPS Improve
+210%78.0
Q Growth
24%52.9

FUNDAMENTALS

Market Cap
$1.6B
P/E (Forward)
6.3x
Gross Margin
85.6%

SECTOR PEERS

Closest peers in Technology, ranked by industry match, size, and score similarity. Cross-listings of PRGS are excluded.

TickerCompanyMkt CapStockRankSignal
PRGSProgress Software Corporation(you)$1.6B92STRONG BUY
GCTGigaCloud Technology Inc.$1.3B91STRONG BUY
PGYPagaya Technologies Ltd.$1.3B94STRONG BUY
FIVNFive9, Inc.$1.8B96STRONG BUY
EVTCEVERTEC, Inc.$1.8B87STRONG BUY
RAMPLiveRamp Holdings, Inc.$2.3B96STRONG BUY
FLYWFlywire Corporation$1.7B83STRONG BUY
EEFTEuronet Worldwide, Inc.$3.0B91STRONG BUY
NTCTNetScout Systems, Inc.$2.9B95STRONG BUY
TDCTeradata Corporation$2.7B97STRONG BUY

Peer medians: ROE 7.5% · P/E 37.2x · Gross margin 53.1%

Progress Software Corporation (PRGS) — Stock Score Summary

Progress Software Corporation (PRGS) has a MoatMap StockRank of 92/100 based on Quality (61/100), Value (68/100), and Momentum (64/100) factor scores. The current signal is STRONG BUY. Progress Software runs an acquire-and-optimise model over mature infrastructure software products, generating very high margins and predictable maintenance revenue used to fund a large buyback (2.85% of shares outstanding in 90 days) and debt reduction. Forward-EPS consensus has been revised up 3.0%. Nothing adverse is known on accounting, solvency or governance.

Progress Software Corporation develops and provides enterprise software solutions that enable businesses to build, deploy, and manage critical applications and infrastructure, including products for application development, integration, and data connectivity. The company benefits from high customer switching costs due to its software often being deeply embedded into client operations, creating a sticky revenue base. Progress Software operates as a specialized provider in the enterprise technology sector, serving specific niches with a portfolio of established and continually evolving products.

Key Financial Metrics

Price$38.66
Market Cap$1.6B
P/E (TTM)19.65
P/E (Forward)6.33
Price/Book3.22
Return on Equity18.6%
Return on Invested Capital9.3%
Debt/Equity2.62x
Gross Margin85.6%
Operating Margin18.5%
Revenue Growth6.8%
Free Cash Flow$248M

Progress Software Corporation operates in the Software - Infrastructure industry, part of the Technology sector (United States).

Frequently Asked Questions

What is Progress Software Corporation’s (PRGS) StockRank?
MoatMap’s StockRank for Progress Software Corporation (PRGS) is 92/100, with a Strong Buy signal. It is a composite of Quality (61), Value (68), and Momentum (64) factor ranks across MoatMap’s 20,000+ stock universe.
Does Progress Software Corporation have an economic moat?
Progress Software Corporation (PRGS) has a Quality factor score of 61/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage — the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is Progress Software Corporation a buy, hold, or sell?
MoatMap’s current signal for Progress Software Corporation (PRGS) is Strong Buy, based on a StockRank of 92/100. Signals are derived mechanically from the StockRank composite and should be one input among many — combine with your own thesis on management, competitive position, and valuation.
What sector is Progress Software Corporation in?
Progress Software Corporation (PRGS) operates in the Technology sector, specifically the Software - Infrastructure industry (United States).