Pros Holdings Inc (PRO, Financial), a prominent player in the software industry, has been making waves in the stock market with its impressive performance. The company's market cap stands at $1.64 billion, with its stock price currently at $35.57. Over the past week, the stock has seen a gain of 6.88%, and over the past three months, it has surged by an impressive 26.76%. The company's GF Value, a measure of intrinsic value defined by GuruFocus.com, is currently at $34.28, compared to its past GF Value of $35.28 three months ago. This indicates that the stock is currently 'Fairly Valued', a shift from its 'Modestly Undervalued' status three months ago.
Company Overview
Pros Holdings Inc. is a leading provider of cloud-based revenue and profit realization software solutions. The company's solutions assist customers in growing revenue, modernizing business processes, and supporting profitability by leveraging prescriptive analytics and data science-based decision-making technology. The firm's solutions enable buyers to move fluidly across its customers' direct sales, partner, online, mobile, and emerging channels with personalized experiences. The company generates revenue in the United States, Europe, Africa, Asia-Pacific, and Middle East regions.
Profitability Analysis
As of June 30, 2023, Pros Holdings Inc. has a Profitability Rank of 3 out of 10. The company's Operating Margin stands at -21.78%, which is better than 25.46% of 2785 companies in the same industry. The company's ROA is -14.13%, which is better than 25.68% of 2847 companies. The company's ROIC is -19.15%, which is better than 24.89% of 2844 companies. Over the past 10 years, the company has had 1 year of profitability, which is better than 9.88% of 2247 companies.
Growth Prospects
As of today, Pros Holdings Inc. has a Growth Rank of 3 out of 10. The company's 3-year revenue growth rate per share is -0.70%, which is better than 28.71% of 2414 companies. The company's 5-year revenue growth rate per share is 1.70%, which is better than 35.18% of 1896 companies. The company's total revenue growth rate (future 3Y to 5Y est) is 8.56%, which is better than 37.38% of 503 companies. The company's 3-year EPS without NRI growth rate is -1.90%, which is better than 37.24% of 1987 companies. The company's 5-year EPS without NRI growth rate is 4.30%, which is better than 34.61% of 1173 companies.
Major Stock Holders
The top three holders of Pros Holdings Inc. stock are PRIMECAP Management (Trades, Portfolio), Chuck Royce (Trades, Portfolio), and Jim Simons (Trades, Portfolio). PRIMECAP Management (Trades, Portfolio) holds 308,740 shares, accounting for 0.67% of the total shares. Chuck Royce (Trades, Portfolio) holds 254,971 shares, accounting for 0.55% of the total shares. Jim Simons (Trades, Portfolio) holds 74,600 shares, accounting for 0.16% of the total shares.
Competitive Landscape
Pros Holdings Inc. faces competition from Diebold Nixdorf Inc(DBD, Financial), E2open Parent Holdings Inc(ETWO, Financial), and Sapiens International Corp NV(SPNS, Financial). Diebold Nixdorf Inc. has a market cap of $1.46 billion, E2open Parent Holdings Inc. has a market cap of $1.42 billion, and Sapiens International Corp NV has a market cap of $1.54 billion.
Conclusion
In conclusion, Pros Holdings Inc. has shown impressive stock performance with a 26.76% gain over the past three months. Despite its profitability rank of 3/10, the company has managed to perform better than a significant percentage of companies in terms of operating margin, ROA, and ROIC. The company's growth prospects also look promising, with its growth rank of 3/10 and better performance than a considerable percentage of companies in terms of revenue and EPS growth rates. The company's competitive position is also strong, with a market cap higher than its main competitors. Therefore, Pros Holdings Inc. presents an interesting case for investors looking for opportunities in the software industry.
