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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
89% of the 2679 Companies
in the Global Software - Application industry.

( Industry Median: 11.22 vs. PEGA: No Debt )
PEGA' s 10-Year Cash to Debt Range
Min: 0.31   Max: No Debt
Current: No Debt

Equity to Asset 0.50
PEGA's Equity to Asset is ranked higher than
58% of the 2422 Companies
in the Global Software - Application industry.

( Industry Median: 0.60 vs. PEGA: 0.50 )
PEGA' s 10-Year Equity to Asset Range
Min: 0.5   Max: 0.88
Current: 0.5

0.5
0.88
Interest Coverage No Debt
PEGA's Interest Coverage is ranked higher than
99% of the 1666 Companies
in the Global Software - Application industry.

( Industry Median: 10000.00 vs. PEGA: No Debt )
PEGA' s 10-Year Interest Coverage Range
Min: 32   Max: 9999.99
Current: No Debt

32
9999.99
F-Score: 5
Z-Score: 5.32
M-Score: -3.07
WACC vs ROIC
14.20%
48.59%
WACC
ROIC
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 (%) 8.74
PEGA's Operating margin (%) is ranked higher than
78% of the 2644 Companies
in the Global Software - Application industry.

( Industry Median: 5.74 vs. PEGA: 8.74 )
PEGA' s 10-Year Operating margin (%) Range
Min: -36.89   Max: 29.55
Current: 8.74

-36.89
29.55
Net-margin (%) 5.64
PEGA's Net-margin (%) is ranked higher than
75% of the 2644 Companies
in the Global Software - Application industry.

( Industry Median: 3.65 vs. PEGA: 5.64 )
PEGA' s 10-Year Net-margin (%) Range
Min: -24.98   Max: 22.39
Current: 5.64

-24.98
22.39
ROE (%) 11.84
PEGA's ROE (%) is ranked higher than
79% of the 2571 Companies
in the Global Software - Application industry.

( Industry Median: 6.74 vs. PEGA: 11.84 )
PEGA' s 10-Year ROE (%) Range
Min: -21.61   Max: 22.35
Current: 11.84

-21.61
22.35
ROA (%) 6.04
PEGA's ROA (%) is ranked higher than
78% of the 2689 Companies
in the Global Software - Application industry.

( Industry Median: 3.51 vs. PEGA: 6.04 )
PEGA' s 10-Year ROA (%) Range
Min: -17.71   Max: 16.16
Current: 6.04

-17.71
16.16
ROC (Joel Greenblatt) (%) 178.72
PEGA's ROC (Joel Greenblatt) (%) is ranked higher than
90% of the 2659 Companies
in the Global Software - Application industry.

( Industry Median: 30.47 vs. PEGA: 178.72 )
PEGA' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -127.02   Max: 570.75
Current: 178.72

-127.02
570.75
Revenue Growth (3Y)(%) 12.40
PEGA's Revenue Growth (3Y)(%) is ranked higher than
82% of the 2077 Companies
in the Global Software - Application industry.

( Industry Median: 5.20 vs. PEGA: 12.40 )
PEGA' s 10-Year Revenue Growth (3Y)(%) Range
Min: -0.9   Max: 32.9
Current: 12.4

-0.9
32.9
EBITDA Growth (3Y)(%) 39.50
PEGA's EBITDA Growth (3Y)(%) is ranked higher than
94% of the 1703 Companies
in the Global Software - Application industry.

( Industry Median: 6.50 vs. PEGA: 39.50 )
PEGA' s 10-Year EBITDA Growth (3Y)(%) Range
Min: 0   Max: 125.7
Current: 39.5

0
125.7
EPS Growth (3Y)(%) 47.80
PEGA's EPS Growth (3Y)(%) is ranked higher than
93% of the 1566 Companies
in the Global Software - Application industry.

( Industry Median: 6.10 vs. PEGA: 47.80 )
PEGA' s 10-Year EPS Growth (3Y)(%) Range
Min: -56.9   Max: 175.9
Current: 47.8

-56.9
175.9
» PEGA's 10-Y Financials

Financials


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

» Details

Guru Trades

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 (-56.10%)
» More
Q3 2014

PEGA Guru Trades in Q3 2014

Chuck Royce 128,408 sh (+19.55%)
Joel Greenblatt 81,768 sh (+15.73%)
Murray Stahl 42,169 sh (+11.77%)
Ken Fisher 1,461,050 sh (+1.60%)
Ron Baron 3,262,524 sh (-7.01%)
Paul Tudor Jones 16,789 sh (-15.20%)
Jim Simons 288,324 sh (-33.57%)
» More
Q4 2014

PEGA Guru Trades in Q4 2014

Ken Fisher 1,771,574 sh (+21.25%)
Chuck Royce 132,508 sh (+3.19%)
Paul Tudor Jones Sold Out
Murray Stahl 41,009 sh (-2.75%)
Ron Baron 3,098,654 sh (-5.02%)
Jim Simons 93,424 sh (-67.60%)
Joel Greenblatt 24,720 sh (-69.77%)
» More
2015

PEGA Guru Trades in 2015

Ron Baron 3,098,654 sh (unchged)
» 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%)

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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

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) 53.60
PEGA's P/E(ttm) is ranked higher than
70% of the 3000 Companies
in the Global Software - Application industry.

( Industry Median: 88.10 vs. PEGA: 53.60 )
PEGA' s 10-Year P/E(ttm) Range
Min: 19.44   Max: 1004
Current: 53.6

19.44
1004
Forward P/E 23.26
PEGA's Forward P/E is ranked higher than
87% of the 3000 Companies
in the Global Software - Application industry.

( Industry Median: 0.00 vs. PEGA: 23.26 )
N/A
PE(NRI) 51.00
PEGA's PE(NRI) is ranked higher than
74% of the 3000 Companies
in the Global Software - Application industry.

( Industry Median: 88.10 vs. PEGA: 51.00 )
PEGA' s 10-Year PE(NRI) Range
Min: 19.83   Max: 1004
Current: 51

19.83
1004
P/B 5.60
PEGA's P/B is ranked higher than
52% of the 3000 Companies
in the Global Software - Application industry.

( Industry Median: 3.60 vs. PEGA: 5.60 )
PEGA' s 10-Year P/B Range
Min: 1.09   Max: 8.53
Current: 5.6

1.09
8.53
P/S 2.97
PEGA's P/S is ranked higher than
60% of the 3000 Companies
in the Global Software - Application industry.

( Industry Median: 2.78 vs. PEGA: 2.97 )
PEGA' s 10-Year P/S Range
Min: 1.7   Max: 5.35
Current: 2.97

1.7
5.35
PFCF 20.00
PEGA's PFCF is ranked higher than
84% of the 3000 Companies
in the Global Software - Application industry.

( Industry Median: 393.13 vs. PEGA: 20.00 )
PEGA' s 10-Year PFCF Range
Min: 8.99   Max: 1954.5
Current: 20

8.99
1954.5
POCF 16.87
PEGA's POCF is ranked higher than
80% of the 3000 Companies
in the Global Software - Application industry.

( Industry Median: 34.19 vs. PEGA: 16.87 )
PEGA' s 10-Year POCF Range
Min: 7.53   Max: 1578.5
Current: 16.87

7.53
1578.5
EV-to-EBIT 27.63
PEGA's EV-to-EBIT is ranked higher than
75% of the 3000 Companies
in the Global Software - Application industry.

( Industry Median: 52.88 vs. PEGA: 27.63 )
PEGA' s 10-Year EV-to-EBIT Range
Min: -545.8   Max: 503.2
Current: 27.63

-545.8
503.2
PEG 1.72
PEGA's PEG is ranked higher than
94% of the 3000 Companies
in the Global Software - Application industry.

( Industry Median: 0.00 vs. PEGA: 1.72 )
PEGA' s 10-Year PEG Range
Min: 1   Max: 10.32
Current: 1.72

1
10.32
Shiller P/E 78.40
PEGA's Shiller P/E is ranked higher than
76% of the 3000 Companies
in the Global Software - Application industry.

( Industry Median: 0.00 vs. PEGA: 78.40 )
PEGA' s 10-Year Shiller P/E Range
Min: 22.86   Max: 435
Current: 78.4

22.86
435
Current Ratio 1.71
PEGA's Current Ratio is ranked higher than
63% of the 2471 Companies
in the Global Software - Application industry.

( Industry Median: 1.91 vs. PEGA: 1.71 )
PEGA' s 10-Year Current Ratio Range
Min: 1.63   Max: 7.02
Current: 1.71

1.63
7.02
Quick Ratio 1.71
PEGA's Quick Ratio is ranked higher than
65% of the 2471 Companies
in the Global Software - Application industry.

( Industry Median: 1.81 vs. PEGA: 1.71 )
PEGA' s 10-Year Quick Ratio Range
Min: 1.63   Max: 7.02
Current: 1.71

1.63
7.02
Days Sales Outstanding 95.79
PEGA's Days Sales Outstanding is ranked higher than
66% of the 3000 Companies
in the Global Software - Application industry.

( Industry Median: 87.53 vs. PEGA: 95.79 )
PEGA' s 10-Year Days Sales Outstanding Range
Min: 22.58   Max: 256.92
Current: 95.79

22.58
256.92

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.54
PEGA's Dividend Yield is ranked lower than
82% of the 1274 Companies
in the Global Software - Application industry.

( Industry Median: 1.68 vs. PEGA: 0.54 )
PEGA' s 10-Year Dividend Yield Range
Min: 0.24   Max: 1.41
Current: 0.54

0.24
1.41
Dividend Payout 0.25
PEGA's Dividend Payout is ranked higher than
92% of the 3000 Companies
in the Global Software - Application industry.

( Industry Median: 0.00 vs. PEGA: 0.25 )
PEGA' s 10-Year Dividend Payout Range
Min: 0.12   Max: 1.93
Current: 0.25

0.12
1.93
Dividend growth (3y) 20.50
PEGA's Dividend growth (3y) is ranked higher than
86% of the 782 Companies
in the Global Software - Application industry.

( Industry Median: 7.70 vs. PEGA: 20.50 )
PEGA' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 26
Current: 20.5

0
26
Yield on cost (5-Year) 0.74
PEGA's Yield on cost (5-Year) is ranked lower than
73% of the 1305 Companies
in the Global Software - Application industry.

( Industry Median: 1.87 vs. PEGA: 0.74 )
PEGA' s 10-Year Yield on cost (5-Year) Range
Min: 0.36   Max: 2.1
Current: 0.74

0.36
2.1
Share Buyback Rate 0.10
PEGA's Share Buyback Rate is ranked higher than
84% of the 1771 Companies
in the Global Software - Application industry.

( Industry Median: -1.40 vs. PEGA: 0.10 )
PEGA' s 10-Year Share Buyback Rate Range
Min: 0.4   Max: -7.5
Current: 0.1

Valuation & Return

vs
industry
vs
history
Price/Net Current Asset Value 49.70
PEGA's Price/Net Current Asset Value is ranked higher than
77% of the 3000 Companies
in the Global Software - Application industry.

( Industry Median: 0.00 vs. PEGA: 49.70 )
PEGA' s 10-Year Price/Net Current Asset Value Range
Min: 1.61   Max: 31.38
Current: 49.7

1.61
31.38
Price/Tangible Book 8.40
PEGA's Price/Tangible Book is ranked higher than
67% of the 3000 Companies
in the Global Software - Application industry.

( Industry Median: 9.38 vs. PEGA: 8.40 )
PEGA' s 10-Year Price/Tangible Book Range
Min: 1.02   Max: 19.58
Current: 8.4

1.02
19.58
Price/DCF (Projected) 2.00
PEGA's Price/DCF (Projected) is ranked higher than
84% of the 3000 Companies
in the Global Software - Application industry.

( Industry Median: 0.00 vs. PEGA: 2.00 )
PEGA' s 10-Year Price/DCF (Projected) Range
Min: 1.03   Max: 2.57
Current: 2

1.03
2.57
Price/Median PS Value 1.10
PEGA's Price/Median PS Value is ranked higher than
81% of the 3000 Companies
in the Global Software - Application industry.

( Industry Median: 1.37 vs. PEGA: 1.10 )
PEGA' s 10-Year Price/Median PS Value Range
Min: 0.29   Max: 8.61
Current: 1.1

0.29
8.61
Price/Peter Lynch Fair Value 2.10
PEGA's Price/Peter Lynch Fair Value is ranked higher than
93% of the 3000 Companies
in the Global Software - Application industry.

( Industry Median: 0.00 vs. PEGA: 2.10 )
PEGA' s 10-Year Price/Peter Lynch Fair Value Range
Min: 1.98   Max: 5.44
Current: 2.1

1.98
5.44
Price/Graham Number 4.40
PEGA's Price/Graham Number is ranked higher than
78% of the 3000 Companies
in the Global Software - Application industry.

( Industry Median: 0.00 vs. PEGA: 4.40 )
PEGA' s 10-Year Price/Graham Number Range
Min: 1.08   Max: 10.97
Current: 4.4

1.08
10.97
Earnings Yield (Greenblatt) 3.60
PEGA's Earnings Yield (Greenblatt) is ranked higher than
69% of the 2619 Companies
in the Global Software - Application industry.

( Industry Median: 3.20 vs. PEGA: 3.60 )
PEGA' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.2   Max: 7
Current: 3.6

0.2
7
Forward Rate of Return (Yacktman) 49.29
PEGA's Forward Rate of Return (Yacktman) is ranked higher than
98% of the 1217 Companies
in the Global Software - Application industry.

( Industry Median: 11.85 vs. PEGA: 49.29 )
PEGA' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 1.5   Max: 49.5
Current: 49.29

1.5
49.5

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, markets, and licenses software solutions that help clients improve their business results by giving them the power to engage customers, simplify their operations, and adapt to change. Its software allows clients to build and change enterprise software applications much more rapidly than they can with traditional programming, while engaging the collaborative efforts of both businesspeople and technologists. The Company's unified platform intersects with several traditional software markets, including: Customer Relationship Management, Business Process Management, Business Rules Management Systems, Dynamic Case Management, Decision Management, including predictive and adaptive analytics, and the Vertical Specific Software market of vertical industry solutions and packaged applications. The Company's unified and highly scalable platform provides superior capability and agility to its clients. It also provides consulting services and implementation support, training, and technical support services to help clients maximize the business value. Its product - Pega Build for Change platform is a unified platform that enables clients to build enterprise applications in a fraction of the time it would take using traditional programming technologies. It also offers purpose or industry-specific solutions built on its platform. Its product - Pega Customer Engagement Solutions offer a process-driven, customer-centric CRM solution to maximize the lifetime value of customers and reduce the costs of serving customers. It provides marketing, sales, and service solutions to optimize sales processes and customer service interactions. Its case management and business process solutions facilitates the fulfillment of customer requests, while its Next-Best-Action analytics predicts and adapts to customer behavior to improve both business outcomes and the customer experience. The Company's Pega Application Mobility Platform enables clients to build, manage, and deploy mobile applications. Its mobile application development platform permits clients to manage the complex elements of the mobile application lifecycle including security, integration, testing, and management of mobile applications and devices. Its Pega Cloud service allows clients to create and deploy the Company's software applications using an Internet-based infrastructure enabling its customers to rapidly build, test, and deploy their applications in a secure cloud environment, while minimizing their infrastructure and hardware costs. The Company competes with IBM, Oracle Corporation, Software AG, Tibco Software Inc., Appian Corporation, Salesforce.com, and the Siebel division of Oracle, the Microsoft Dynamics CRM division of Microsoft, Guidewire Software, Inc., SmartStream Technologies Ltd., SunGard, SAP, and The TriZetto Group, Inc.
» More Articles for PEGA

Headlines

Articles On GuruFocus.com
Pega Marketing Delivers Significant Improvements in Personalized Customer Engagement Jan 14 2015 
Pegasystems Signs Unicorn Systems as New Systems Integrator to Grow European Business Dec 18 2014 
Pegasystems Outlines a Roadmap for Digital Government Nov 20 2014 
Pegasystems Founder and CEO Alan Trefler Inducted Into the Academy of Distinguished Entrepreneurs at Nov 13 2014 
Pegasystems Extends Pega Cloud on Amazon Web Services With New Pega Customer Service Application Nov 11 2014 
Pegasystems Signs New Partner Adqura to Extend Its CRM and Marketing Solutions Nov 06 2014 
Pegasystems Completes Acquisition of Turkish Partner, Ultima Information Technology Oct 31 2014 
Pegasystems Raises the Bar for Customer Experience With Latest Industry-Leading Customer Service App Oct 29 2014 
Pegasystems Acquires Turkish Partner, Ultima Information Technology Oct 22 2014 
Pegasystems' Fourth Annual Collaborative Healthcare Summit to Highlight Performance-Driven Moderniza Oct 21 2014 

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