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GuruFocus Financial Strength Rank measures how strong a company’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
85% of the 1700 Companies
in the Global Software - Application industry.

( Industry Median: 19.19 vs. PEGA: No Debt )
PEGA' s 10-Year Cash to Debt Range
Min: 0.31   Max: 15681.22
Current: No Debt

0.31
15681.22
Equity to Asset 0.51
PEGA's Equity to Asset is ranked higher than
57% of the 1653 Companies
in the Global Software - Application industry.

( Industry Median: 0.59 vs. PEGA: 0.51 )
PEGA' s 10-Year Equity to Asset Range
Min: 0.51   Max: 0.88
Current: 0.51

0.51
0.88
Interest Coverage No Debt
PEGA's Interest Coverage is ranked higher than
91% of the 1081 Companies
in the Global Software - Application industry.

( Industry Median: 554.09 vs. PEGA: No Debt )
PEGA' s 10-Year Interest Coverage Range
Min: 99   Max: 9999.99
Current: No Debt

99
9999.99
F-Score: 5
Z-Score: 5.91
M-Score: -2.78
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’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.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

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 : 6/10

vs
industry
vs
history
Operating margin (%) 11.41
PEGA's Operating margin (%) is ranked higher than
83% of the 1664 Companies
in the Global Software - Application industry.

( Industry Median: 5.60 vs. PEGA: 11.41 )
PEGA' s 10-Year Operating margin (%) Range
Min: -40.23   Max: 29.55
Current: 11.41

-40.23
29.55
Net-margin (%) 7.47
PEGA's Net-margin (%) is ranked higher than
78% of the 1663 Companies
in the Global Software - Application industry.

( Industry Median: 3.69 vs. PEGA: 7.47 )
PEGA' s 10-Year Net-margin (%) Range
Min: -25.81   Max: 22.39
Current: 7.47

-25.81
22.39
ROE (%) 14.00
PEGA's ROE (%) is ranked higher than
85% of the 1622 Companies
in the Global Software - Application industry.

( Industry Median: 6.80 vs. PEGA: 14.00 )
PEGA' s 10-Year ROE (%) Range
Min: -22.65   Max: 15.7
Current: 14

-22.65
15.7
ROA (%) 7.13
PEGA's ROA (%) is ranked higher than
82% of the 1683 Companies
in the Global Software - Application industry.

( Industry Median: 3.56 vs. PEGA: 7.13 )
PEGA' s 10-Year ROA (%) Range
Min: -18.88   Max: 11.52
Current: 7.13

-18.88
11.52
ROC (Joel Greenblatt) (%) 181.34
PEGA's ROC (Joel Greenblatt) (%) is ranked higher than
91% of the 1665 Companies
in the Global Software - Application industry.

( Industry Median: 30.29 vs. PEGA: 181.34 )
PEGA' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -134.25   Max: 468.25
Current: 181.34

-134.25
468.25
Revenue Growth (%) 12.90
PEGA's Revenue Growth (%) is ranked higher than
83% of the 1399 Companies
in the Global Software - Application industry.

( Industry Median: 5.80 vs. PEGA: 12.90 )
PEGA' s 10-Year Revenue Growth (%) Range
Min: -2   Max: 28.1
Current: 12.9

-2
28.1
EBITDA Growth (%) 108.70
PEGA's EBITDA Growth (%) is ranked higher than
99% of the 1147 Companies
in the Global Software - Application industry.

( Industry Median: 6.90 vs. PEGA: 108.70 )
PEGA' s 10-Year EBITDA Growth (%) Range
Min: 0   Max: 125.7
Current: 108.7

0
125.7
» PEGA's 10-Y Financials

Financials


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

» Details

Guru Trades

Q3 2013

PEGA Guru Trades in Q3 2013

Joel Greenblatt 82,901 sh (New)
Murray Stahl 8,590 sh (New)
Chuck Royce 92,003 sh (+5.5%)
Ken Fisher 754,680 sh (unchged)
Ron Baron 2,062,177 sh (-0.48%)
Jim Simons 155,262 sh (-26.47%)
Steven Cohen 8,827 sh (-55.43%)
» More
Q4 2013

PEGA Guru Trades in Q4 2013

Paul Tudor Jones 6,438 sh (New)
Murray Stahl 10,728 sh (+24.89%)
Ron Baron 2,051,677 sh (-0.51%)
Chuck Royce 91,003 sh (-1.09%)
Joel Greenblatt 81,772 sh (-1.36%)
Ken Fisher 730,255 sh (-3.24%)
Jim Simons 143,062 sh (-7.86%)
Steven Cohen 6,981 sh (-20.91%)
» More
Q1 2014

PEGA Guru Trades in Q1 2014

Murray Stahl 42,760 sh (+298.58%)
Paul Tudor Jones 22,549 sh (+250.25%)
Steven Cohen 21,369 sh (+206.1%)
Jim Simons 255,865 sh (+78.85%)
Ken Fisher 725,780 sh (-0.61%)
Ron Baron 1,996,677 sh (-2.68%)
Joel Greenblatt 77,520 sh (-5.2%)
Chuck Royce 53,403 sh (-41.32%)
» More
Q2 2014

PEGA Guru Trades in Q2 2014

Chuck Royce 107,408 sh (+0.56%)
Ken Fisher 1,438,050 sh (-0.93%)
Ron Baron 3,508,324 sh (-12.15%)
Jim Simons 434,024 sh (-15.18%)
Joel Greenblatt 70,656 sh (-54.43%)
Murray Stahl 37,728 sh (-55.88%)
Paul Tudor Jones 19,798 sh (-56.1%)
» More
» Details

Insider Trades

Latest Guru Trades with PEGA

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2014-06-30 Reduce -54.43%0.02%$15.89 - $21.79 $ 22.2116%70656
Joel Greenblatt 2013-09-30 New Buy0.11%$16.52 - $19.84 $ 22.2121%82901
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on Pegasystems Inc

Baron Funds Comments on Pegasystems - May 02, 2014

Business process management software company Pegasystems, Inc. (PEGA) reported mixed financial results. Coupled with broad multiple contraction across the software sector, its shares fell. Pegasystems' revenue was modestly short of investor expectations due to a customer shift from perpetual to term licenses. Although this negatively impacts near-term results, we believe it is accretive to long-term value. (Neal Rosenberg)



From Baron Funds' first quarter 2014 letter to investors.



Check out Ron Baron latest stock trades

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 Funds’ third quarter 2012 letter.


Check out Ron Baron latest stock trades

Top Ranked Articles about Pegasystems Inc

Baron Funds Comments on Pegasystems
Business process management software company Pegasystems, Inc. (PEGA) reported mixed financial results. Coupled with broad multiple contraction across the software sector, its shares fell. Pegasystems' revenue was modestly short of investor expectations due to a customer shift from perpetual to term licenses. Although this negatively impacts near-term results, we believe it is accretive to long-term value. (Neal Rosenberg) Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 49.50
PEGA's P/E(ttm) is ranked higher than
62% of the 1830 Companies
in the Global Software - Application industry.

( Industry Median: 47.80 vs. PEGA: 49.50 )
PEGA' s 10-Year P/E(ttm) Range
Min: 15.44   Max: 1004
Current: 49.5

15.44
1004
P/B 6.10
PEGA's P/B is ranked lower than
58% of the 1830 Companies
in the Global Software - Application industry.

( Industry Median: 2.90 vs. PEGA: 6.10 )
PEGA' s 10-Year P/B Range
Min: 1.09   Max: 8.53
Current: 6.1

1.09
8.53
P/S 3.10
PEGA's P/S is ranked lower than
55% of the 1830 Companies
in the Global Software - Application industry.

( Industry Median: 2.25 vs. PEGA: 3.10 )
PEGA' s 10-Year P/S Range
Min: 1.7   Max: 5.35
Current: 3.1

1.7
5.35
PFCF 20.80
PEGA's PFCF is ranked higher than
78% of the 1830 Companies
in the Global Software - Application industry.

( Industry Median: 104.07 vs. PEGA: 20.80 )
PEGA' s 10-Year PFCF Range
Min: 8.99   Max: 1954.5
Current: 20.8

8.99
1954.5
EV-to-EBIT 26.97
PEGA's EV-to-EBIT is ranked higher than
71% of the 1830 Companies
in the Global Software - Application industry.

( Industry Median: 33.95 vs. PEGA: 26.97 )
PEGA' s 10-Year EV-to-EBIT Range
Min: 12.4   Max: 503.2
Current: 26.97

12.4
503.2
PEG 1.52
PEGA's PEG is ranked higher than
89% of the 1830 Companies
in the Global Software - Application industry.

( Industry Median: 9999.00 vs. PEGA: 1.52 )
PEGA' s 10-Year PEG Range
Min: 1.45   Max: 2.46
Current: 1.52

1.45
2.46
Shiller P/E 87.20
PEGA's Shiller P/E is ranked higher than
74% of the 1830 Companies
in the Global Software - Application industry.

( Industry Median: 9999.00 vs. PEGA: 87.20 )
PEGA' s 10-Year Shiller P/E Range
Min: 22.86   Max: 497.5
Current: 87.2

22.86
497.5
Current Ratio 1.81
PEGA's Current Ratio is ranked higher than
61% of the 1130 Companies
in the Global Software - Application industry.

( Industry Median: 1.98 vs. PEGA: 1.81 )
PEGA' s 10-Year Current Ratio Range
Min: 1.59   Max: 16.94
Current: 1.81

1.59
16.94
Quick Ratio 1.81
PEGA's Quick Ratio is ranked higher than
65% of the 1130 Companies
in the Global Software - Application industry.

( Industry Median: 1.85 vs. PEGA: 1.81 )
PEGA' s 10-Year Quick Ratio Range
Min: 1.59   Max: 16.94
Current: 1.81

1.59
16.94

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.30
PEGA's Dividend Yield is ranked lower than
88% of the 880 Companies
in the Global Software - Application industry.

( Industry Median: 1.62 vs. PEGA: 0.30 )
PEGA' s 10-Year Dividend Yield Range
Min: 0.24   Max: 1.41
Current: 0.3

0.24
1.41
Dividend Payout 0.17
PEGA's Dividend Payout is ranked higher than
94% of the 1830 Companies
in the Global Software - Application industry.

( Industry Median: 9999.00 vs. PEGA: 0.17 )
PEGA' s 10-Year Dividend Payout Range
Min: 0.06   Max: 7.71
Current: 0.17

0.06
7.71
Yield on cost (5-Year) 0.30
PEGA's Yield on cost (5-Year) is ranked lower than
88% of the 912 Companies
in the Global Software - Application industry.

( Industry Median: 1.70 vs. PEGA: 0.30 )
PEGA' s 10-Year Yield on cost (5-Year) Range
Min: 0.24   Max: 1.41
Current: 0.3

0.24
1.41
Share Buyback Rate -1.70
PEGA's Share Buyback Rate is ranked higher than
68% of the 1183 Companies
in the Global Software - Application industry.

( Industry Median: -1.20 vs. PEGA: -1.70 )
PEGA' s 10-Year Share Buyback Rate Range
Min: 0.4   Max: -7.5
Current: -1.7

Valuation & Return

vs
industry
vs
history
Price/Net Current Asset Value 37.00
PEGA's Price/Net Current Asset Value is ranked higher than
73% of the 1830 Companies
in the Global Software - Application industry.

( Industry Median: 9999.00 vs. PEGA: 37.00 )
PEGA' s 10-Year Price/Net Current Asset Value Range
Min: 2.03   Max: 130.82
Current: 37

2.03
130.82
Price/Tangible Book 8.90
PEGA's Price/Tangible Book is ranked higher than
50% of the 1830 Companies
in the Global Software - Application industry.

( Industry Median: 7.00 vs. PEGA: 8.90 )
PEGA' s 10-Year Price/Tangible Book Range
Min: 1.02   Max: 19.58
Current: 8.9

1.02
19.58
Price/DCF (Projected) 2.00
PEGA's Price/DCF (Projected) is ranked higher than
77% of the 1830 Companies
in the Global Software - Application industry.

( Industry Median: 9999.00 vs. PEGA: 2.00 )
PEGA' s 10-Year Price/DCF (Projected) Range
Min: 0.83   Max: 53
Current: 2

0.83
53
Price/Median PS Value 1.10
PEGA's Price/Median PS Value is ranked higher than
70% of the 1830 Companies
in the Global Software - Application industry.

( Industry Median: 1.20 vs. PEGA: 1.10 )
PEGA' s 10-Year Price/Median PS Value Range
Min: 0.3   Max: 9.09
Current: 1.1

0.3
9.09
Price/Peter Lynch Fair Value 2.00
PEGA's Price/Peter Lynch Fair Value is ranked higher than
88% of the 1830 Companies
in the Global Software - Application industry.

( Industry Median: 9999.00 vs. PEGA: 2.00 )
PEGA' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.8   Max: 29.09
Current: 2

0.8
29.09
Price/Graham Number 4.30
PEGA's Price/Graham Number is ranked higher than
64% of the 1830 Companies
in the Global Software - Application industry.

( Industry Median: 7.90 vs. PEGA: 4.30 )
PEGA' s 10-Year Price/Graham Number Range
Min: 0.58   Max: 14.92
Current: 4.3

0.58
14.92
Earnings Yield (Greenblatt) 3.70
PEGA's Earnings Yield (Greenblatt) is ranked higher than
54% of the 1440 Companies
in the Global Software - Application industry.

( Industry Median: 5.60 vs. PEGA: 3.70 )
PEGA' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.2   Max: 8.1
Current: 3.7

0.2
8.1
Forward Rate of Return (Yacktman) 27.71
PEGA's Forward Rate of Return (Yacktman) is ranked higher than
92% of the 1246 Companies
in the Global Software - Application industry.

( Industry Median: 6.02 vs. PEGA: 27.71 )
PEGA' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 0.1   Max: 31
Current: 27.71

0.1
31

Business Description

Industry: Application Software » Software - Application
Compare:CRM, SQI, RHT, INTU, ADBE » details
Traded in other countries:PEA.Germany
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.
» More Articles for PEGA

Headlines

Articles On GuruFocus.com
Baron Funds Comments on Pegasystems May 02 2014 
4 Cash Gushing, Undervalued Small Cap Stocks With Zero Debt Apr 08 2014 
Steven Cohen's Sac Capital Advisors Increased Its Stake in NQ Mobile Mar 28 2014 
Using Technology to Modernize Investors' Portfolio Mar 25 2014 
Ron Baron recent pic Mar 04 2013 
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 
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 

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