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31.28 (1y: -2%)
Market Cap 1.22 B P/E(ttm) 45.60
Enterprise Value 1.03 B P/B 4.90
PEGA- NAS (USA)
Pegasystems, Inc.
  • Currently 1/5
Business Predictability Rank: 1-Star
Back Testing Results:
Average gain of all 1-Star stocks: 1.1% per year.
% of Stocks that are in still loss if held for 10yrs: 45%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$31.28
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GuruFocus Financial Strength Rank measures how strong a companyย’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 9/10

vs
industry		 vs
history
Cash to Debt No Debt
PEGA's Cash to Debt is ranked higher than
65% of the 835 Companies
in the Global Software - Application industry.

( Industry Median: 10000.00 vs. PEGA: No Debt )
PEGA' s 10-Year Cash to Debt Range
Min: 43.79   Max: No Debt
Current: No Debt
Equity to Asset 0.359
PEGA's Equity to Asset is ranked lower than
62% of the 835 Companies
in the Global Software - Application industry.

( Industry Median: 0.49 vs. PEGA: 0.359 )
PEGA' s 10-Year Equity to Asset Range
Min: 0.27   Max: 0.84
Current: 0.36
0.27
0.84
Interest Coverage No Debt
PEGA's Interest Coverage is ranked higher than
54% of the 835 Companies
in the Global Software - Application industry.

( Industry Median: 10000.00 vs. PEGA: No Debt )
PEGA' s 10-Year Interest Coverage Range
Min: No Debt   Max: No Debt
Current: No Debt
F-Score: 7
Z-Score: 5.96
M-Score: -4.37
GuruFocus Profitability Rank ranks how profitable a company is and how likely the companyย’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
ย•ย•3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rankย•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 5/10

vs
industry		 vs
history
Operating margin (%) 6.80
PEGA's Operating margin (%) is ranked lower than
64% of the 835 Companies
in the Global Software - Application industry.

( Industry Median: 5.40 vs. PEGA: 6.80 )
PEGA' s 10-Year Operating margin (%) Range
Min: -12.5   Max: 15.8
Current: 6.8
-12.5
15.8
Net-margin (%) 4.7
PEGA's Net-margin (%) is ranked lower than
64% of the 835 Companies
in the Global Software - Application industry.

( Industry Median: 3.50 vs. PEGA: 4.7 )
PEGA' s 10-Year Net-margin (%) Range
Min: -25.8   Max: 17.8
Current: 4.7
-25.8
17.8
ROE (%) 9.2
PEGA's ROE (%) is ranked lower than
65% of the 835 Companies
in the Global Software - Application industry.

( Industry Median: 6.80 vs. PEGA: 9.2 )
PEGA' s 10-Year ROE (%) Range
Min: -22.7   Max: 15.7
Current: 9.2
-22.7
15.7
ROA (%) 5
PEGA's ROA (%) is ranked lower than
64% of the 835 Companies
in the Global Software - Application industry.

( Industry Median: 4.00 vs. PEGA: 5 )
PEGA' s 10-Year ROA (%) Range
Min: -18.9   Max: 11.5
Current: 5
-18.9
11.5
ROC (Joel Greenblatt) (%) 99.10
PEGA's ROC (Joel Greenblatt) (%) is ranked higher than
54% of the 835 Companies
in the Global Software - Application industry.

( Industry Median: 21.20 vs. PEGA: 99.10 )
PEGA' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -32.4   Max: 162.4
Current: 99.1
-32.4
162.4
Revenue Growth (%) 14.4
PEGA's Revenue Growth (%) is ranked higher than
95% of the 835 Companies
in the Global Software - Application industry.

( Industry Median: 4.20 vs. PEGA: 14.4 )
PEGA' s 10-Year Revenue Growth (%) Range
Min: -1.5   Max: 20.4
Current: 14.4
-1.5
20.4
EBITDA Growth (%) 2.5
PEGA's EBITDA Growth (%) is ranked higher than
89% of the 835 Companies
in the Global Software - Application industry.

( Industry Median: 6.90 vs. PEGA: 2.5 )
PEGA' s 10-Year EBITDA Growth (%) Range
Min: -39.9   Max: 97.9
Current: 2.5
-39.9
97.9
EPS Growth (%) -9.9
PEGA's EPS Growth (%) is ranked higher than
78% of the 835 Companies
in the Global Software - Application industry.

( Industry Median: 4.85 vs. PEGA: -9.9 )
PEGA' s 10-Year EPS Growth (%) Range
Min: -43.5   Max: 103.1
Current: -9.9
-43.5
103.1
ยป PEGA's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades
Q2 2012

PEGA Guru Trades in Q2 2012

Ken Fisher 157,150 sh (+18.78%)
Chuck Royce 67,000 sh (unchged)
Jim Simons Sold Out
Steven Cohen Sold Out
Ron Baron 2,360,575 sh (-0.33%)
» More
Q3 2012

PEGA Guru Trades in Q3 2012

Ken Fisher 157,150 sh (unchged)
Chuck Royce 67,000 sh (unchged)
Ron Baron 2,346,285 sh (-0.61%)
» More
Q4 2012

PEGA Guru Trades in Q4 2012

Jim Simons 68,962 sh (New)
Ken Fisher 729,190 sh (+364.01%)
Chuck Royce 67,000 sh (unchged)
Ron Baron 2,072,902 sh (-11.65%)
» More
Q1 2013

PEGA Guru Trades in Q1 2013

Steven Cohen 19,013 sh (New)
Paul Tudor Jones 11,900 sh (New)
Ken Fisher 736,130 sh (+0.95%)
Ron Baron 2,072,902 sh (unchged)
Chuck Royce 67,000 sh (unchged)
Jim Simons 67,062 sh (-2.76%)
» More
» Details

Insider Trades

Latest Guru Trades with PEGA

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Ron Baron 2010-06-30 New Buy0.51%$27.3 - $39.29 $ 30.97-5%2228855
Premium More recent guru trades are included for Premium Members only!!

Guru Investment Theses on Pegasystems, Inc.

Baron Funds Comments on Pegasystems Inc. - Dec 14, 2012

Pegasystems, Inc. (PEGA) is the developer of a software tool used to automate manual business processes. Shares fell 11.9% in the third quarter due to concerns over global economic conditions and the impact on software sales. Despite near-term potential headwinds, we estimate that Pegasystems' software bookings are trending ahead of industry growth.We expect Pegasystems to grow significantly faster than the overall business process management market due to its superior product, growing sales force, expanding product set, enhanced partnerships, and a positive network effect. (Neal Rosenberg)

From Baron Fundsโ€™ third quarter 2012 letter.


Check out Ron Baron latest stock trades

Top Ranked Articles about Pegasystems, Inc.

Baron Funds Comments on Pegasystems Inc.
December 14, 2012
Pegasystems, Inc. (PEGA) is the developer of a software tool used to automate manual business processes. Shares fell 11.9% in the third quarter due to concerns over global economic conditions and the impact on software sales. Despite near-term potential headwinds, we estimate that Pegasystems' software bookings are trending ahead of industry growth.We expect Pegasystems to grow significantly faster than the overall business process management market due to its superior product, growing sales force, expanding product set, enhanced partnerships, and a positive network effect. (Neal Rosenberg) Read more...

Ratios

vs
industry		 vs
history
P/E(ttm) 45.60
PEGA's P/E(ttm) is ranked higher than
51% of the 835 Companies
in the Global Software - Application industry.

( Industry Median: 25.05 vs. PEGA: 45.60 )
PEGA' s 10-Year P/E(ttm) Range
Min: 6.81   Max: 367.86
Current: 45.6
6.81
367.86
P/B 4.90
PEGA's P/B is ranked lower than
76% of the 835 Companies
in the Global Software - Application industry.

( Industry Median: 1.90 vs. PEGA: 4.90 )
PEGA' s 10-Year P/B Range
Min: 0.74   Max: 8.82
Current: 4.9
0.74
8.82
P/S 2.50
PEGA's P/S is ranked lower than
62% of the 835 Companies
in the Global Software - Application industry.

( Industry Median: 1.40 vs. PEGA: 2.50 )
PEGA' s 10-Year P/S Range
Min: 0.84   Max: 9
Current: 2.5
0.84
9
PFCF 11.30
PEGA's PFCF is ranked lower than
66% of the 835 Companies
in the Global Software - Application industry.

( Industry Median: 18.41 vs. PEGA: 11.30 )
PEGA' s 10-Year PFCF Range
Min: 5.59   Max: 1303
Current: 11.3
5.59
1303
EV-to-EBIT 27
PEGA's EV-to-EBIT is ranked lower than
51% of the 835 Companies
in the Global Software - Application industry.

( Industry Median: 18.35 vs. PEGA: 27 )
PEGA' s 10-Year EV-to-EBIT Range
Min: 4   Max: 503.2
Current: 27
4
503.2
PEG 2.5
PEGA's PEG is ranked lower than
60% of the 835 Companies
in the Global Software - Application industry.

( Industry Median: 1.37 vs. PEGA: 2.5 )
PEGA' s 10-Year PEG Range
Min: 2.31   Max: 9.8
Current: 2.5
2.31
9.8
Shiller P/E 81.4
PEGA's Shiller P/E is ranked higher than
79% of the 835 Companies
in the Global Software - Application industry.

( Industry Median: 22.91 vs. PEGA: 81.4 )
PEGA' s 10-Year Shiller P/E Range
Min: 23.7   Max: 995
Current: 81.4
23.7
995

Dividend & Buy Back

vs
industry		 vs
history
Dividend Yield 0.40
PEGA's Dividend Yield is ranked higher than
62% of the 835 Companies
in the Global Software - Application industry.

( Industry Median: 2.00 vs. PEGA: 0.40 )
PEGA' s 10-Year Dividend Yield Range
Min: 0.26   Max: 1.41
Current: 0.4
0.26
1.41
Dividend Payout 0.3
PEGA's Dividend Payout is ranked lower than
68% of the 835 Companies
in the Global Software - Application industry.

( Industry Median: 0.85 vs. PEGA: 0.3 )
PEGA' s 10-Year Dividend Payout Range
Min: 0.14   Max: 1.21
Current: 0.3
0.14
1.21
Yield on cost (5-Year) 0.40
PEGA's Yield on cost (5-Year) is ranked higher than
61% of the 835 Companies
in the Global Software - Application industry.

( Industry Median: 2.00 vs. PEGA: 0.40 )
PEGA' s 10-Year Yield on cost (5-Year) Range
Min: 0.26   Max: 1.41
Current: 0.4
0.26
1.41
Share Buyback Rate -0.5
PEGA's Share Buyback Rate is ranked higher than
80% of the 835 Companies
in the Global Software - Application industry.

( Industry Median: -1.20 vs. PEGA: -0.5 )
PEGA' s 10-Year Share Buyback Rate Range
Min: 0.3   Max: -5.6
Current: -0.5

Valuation & Return

vs
industry		 vs
history
Price/Net Current Asset Value 11.3
PEGA's Price/Net Current Asset Value is ranked higher than
83% of the 835 Companies
in the Global Software - Application industry.

( Industry Median: 13.80 vs. PEGA: 11.3 )
PEGA' s 10-Year Price/Net Current Asset Value Range
Min: 2.2   Max: 40.8
Current: 11.3
2.2
40.8
Price/Tangible Book 7.5
PEGA's Price/Tangible Book is ranked higher than
90% of the 835 Companies
in the Global Software - Application industry.

( Industry Median: 3.85 vs. PEGA: 7.5 )
PEGA' s 10-Year Price/Tangible Book Range
Min: 1.2   Max: 14.9
Current: 7.5
1.2
14.9
Price/DCF (Projected) 2
PEGA's Price/DCF (Projected) is ranked higher than
93% of the 835 Companies
in the Global Software - Application industry.

( Industry Median: 1.40 vs. PEGA: 2 )
PEGA' s 10-Year Price/DCF (Projected) Range
Min: 1   Max: 2.5
Current: 2
1
2.5
Price/Median PS Value 0.9
PEGA's Price/Median PS Value is ranked higher than
78% of the 835 Companies
in the Global Software - Application industry.

( Industry Median: 0.80 vs. PEGA: 0.9 )
PEGA' s 10-Year Price/Median PS Value Range
Min: 0.3   Max: 1.8
Current: 0.9
0.3
1.8
Price/Peter Lynch Fair Value 3.5
PEGA's Price/Peter Lynch Fair Value is ranked lower than
58% of the 835 Companies
in the Global Software - Application industry.

( Industry Median: 1.90 vs. PEGA: 3.5 )
PEGA' s 10-Year Price/Peter Lynch Fair Value Range
Min: 1.5   Max: 6.6
Current: 3.5
1.5
6.6
Price/Graham Number 4.3
PEGA's Price/Graham Number is ranked lower than
65% of the 835 Companies
in the Global Software - Application industry.

( Industry Median: 2.20 vs. PEGA: 4.3 )
PEGA' s 10-Year Price/Graham Number Range
Min: 1.1   Max: 7.1
Current: 4.3
1.1
7.1
Earnings Yield (Greenblatt) 3.70
PEGA's Earnings Yield (Greenblatt) is ranked higher than
66% of the 835 Companies
in the Global Software - Application industry.

( Industry Median: 4.80 vs. PEGA: 3.70 )
PEGA' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.2   Max: 24.9
Current: 3.7
0.2
24.9
Forward Rate of Return (Yacktman) 15.66
PEGA's Forward Rate of Return (Yacktman) is ranked higher than
96% of the 835 Companies
in the Global Software - Application industry.

( Industry Median: 6.38 vs. PEGA: 15.66 )
PEGA' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -0.1   Max: 30.3
Current: 15.66
-0.1
30.3

Business Description

Pegasystems Inc. was incorporated in Massachusetts in 1983. The Company develops, market, and license software. It also provides implementation, consulting, training, and technical support services to help its customers maximize the business value they obtain from the use of its software. Its PegaRULES Process Commander software provides a unified platform that includes all the necessary elements and technologies to build enterprise applications in a fraction of the time it would take using the disjointed architectures offered by its competitors. This allows organizations to build, deploy, and change enterprise applications easily and quickly. It also eliminates the time and expense required to create lengthy policy manuals and system specifications by unifying business rules with business processes in the software and automating the creation of system documentation. Its software delivers multi-channel, cross silo capabilities that bridge front and back-office, and is often used to rejuvenate legacy technology. Its customers use its software to improve their customer service and the customer experience, generate new business, and enhance productivity and profitability. Its unified technology also allows customers to leverage existing technology investments and create and/or deploy their PRPC applications on premise or through an internet-based cloud computing model, using its Pega Cloud service offerings. PRPC is complemented by software solutions that it refer to as frameworks. These frameworks provide purpose or industry-specific functionality that allows its customers to quickly implement and easily customize its software to suit their unique requirement. The Company markets its software and services primarily through a direct sales force. Strategic partnerships with consultants and systems integrators are important to its sales efforts because they influence buying decisions, help it to identify sales opportunities, and complement its software with their domain expertise and professional services capabilities. The Company competes in the BPM, Case Management, CRM, and Decision Management software markets. The Company encounters competition from: Oriented Architecture ("SOA") middleware vendors IBM, Oracle Corporation, Software AG, and Tibco Software Inc., and other BPM vendors, the FileNet division of IBM's Information Management Group, the Siebel division of Oracle, the Microsoft Dynamics CRM division of Microsoft, and Salesforce.com.
Company Website
SEC Reports
Industry: Software - Application
Compare:CRM, SQI, RHT, INTU, ADBE
Traded in other countries:PEA.Germany
ยป More Articles for PEGA

Headlines

Articles On GuruFocus.com
Baron Funds Comments on Pegasystems Inc. Dec 14 2012 
Weekly Guru Bargains Highlights: MCP, NRGY, EXPE, PEGA, PNE Jan 29 2012 
Weekly Guru Bargains Highlights: FTR, HUN, HFC, DNDN, PEGA Jan 09 2012 
3 Picks from Business Software and Services Industry with Profitable Growth Oct 07 2011 
Baron Opportunity Fund Commentary on: PLCM, PPO, PEGA, CRR, EQIX, WBMD, NILE, RATE, VLT, EW Sep 07 2011 
Weekly CFO Sells Highlight: MHR, DISCA, BCR, STAA, PEGA, IDXX Aug 22 2011 
Pegasystems Inc. Reports Operating Results (10-Q) Nov 09 2010 
Pegasystems Inc. Reports Operating Results (10-Q) Aug 09 2010 
Baron Funds Team Comment onTop Purchases: TOTVS, Pegasystems, Primerica, CARBO Ceramics, SS&C Techno Jul 28 2010 
Pegasystems Inc. (PEGA) CEO & Chairman, 10% Owner Alan Trefler sells 75,000 Shares Dec 18 2009 

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