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Progress SoftwarePRGS -2.07%79 FCF Margin % is 30.37% as of May. 2026, which is 6% above its 10-year median of 28.75. GuruFocus rates PRGS with a GF Score™ of 79/100 and a GF Value™ of $78.84 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 2,817 Software companies, Progress Software ranks better than 94.75% on this metric.
The historical data trend for Progress Software's FCF Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Infrastructure subindustry, Progress Software's FCF Margin %, along with its competitors' market caps and FCF Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Progress Software FCF Margin % vs Software Industry
For the Software industry and Technology sector, Progress Software's FCF Margin % distribution charts can be found below:
* The bar in red indicates where Progress Software's FCF Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Progress Software (PRGS) has a FCF Margin % of 30.37% as of May. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Progress Software and its competitors. This is near median its historical median of 28.75. Over the past decade, Progress Software's FCF Margin % has ranged from 23.47 to 32.73. According to the industry distribution chart, Progress Software ranks #148 out of 2817 companies in the Software industry, placing it in the top 5.3%.
Is Progress Software's FCF Margin % too high?
Progress Software's current FCF Margin % of 30.37% is near median its 10-year median of 28.75. Over the past 10 years, this metric has ranged from a low of 23.47 to a high of 32.73. The Software industry median FCF Margin % is 2.14. Progress Software's value of 30.37% is 1319.2% above this industry median. Based on the distribution chart, Progress Software ranks #148 out of 2817 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Progress Software has a GF Score™ of 79/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Progress Software's FCF Margin % compare to PICS and NN?
According to the Software industry distribution chart, Progress Software ranks #148 out of 2817 companies for FCF Margin %. This places Progress Software in the top 5% of its industry — outperforming the majority of peers. The industry median FCF Margin % is 2.14. Progress Software's value of 30.37% is 1319.2% above this benchmark. Historically, Progress Software's own FCF Margin % has ranged from 23.47 to 32.73 over the past decade. While the company's 10-year median is 28.75 vs. the industry median of 2.14, Progress Software has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Margin % for a Software company?
The median FCF Margin % among Software companies is 2.14, based on 2,817 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Progress Software's current FCF Margin % of 30.37% is 1319.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Progress Software and its competitors. For the Software industry, the median FCF Margin % is 2.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Progress Software's current FCF Margin % is 30.37%, which is near median its own 10-year median of 28.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Progress Software stock overvalued right now?
Based on GuruFocus' analysis, Progress Software (PRGS) is currently considered Possible Value Trap. The stock's GF Value™ is $78.84, compared to a current price of $42.88 — trading 45.6% below its estimated fair value. The current FCF Margin % is 30.37%, which is near median its 10-year median of 28.75 and 1319.2% above the Software industry median of 2.14. Progress Software's overall GF Score™ is 79/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For Progress Software (PRGS), the current FCF Margin % is 30.37% as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Progress Software (PRGS) Overvalued in 2026?
Based on GuruFocus' analysis, Progress Software stock appears to be undervalued.
The current stock price of $42.88 is trading 45.6% below its estimated GF Value™ of $78.84.
GuruFocus considers Progress Software to be Possible Value Trap.
Key valuation signals for PRGS:
FCF Margin %: 30.37% (near median its 10-year median of 28.75)
GF Value™: $78.84 vs. price of $42.88 (45.6% below fair value)
Industry Position: 1319.2% above the Software median (#148 of 2817)
No single metric tells the full story. See the PRGS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Progress Software Corp provides software products that enable customers to develop, deploy, and manage AI-powered applications and digital experiences. The Company operates across North America, Latin America, Europe, the Middle East and Africa (EMEA), and Asia Pacific through subsidiaries and distributors, generating a majority of its revenue from the United States. Its product portfolio includes Progress Agentic RAG, Automate MFT, Chef, Corticon, DataDirect, Developer Tools, Flowmon, Kemp LoadMaster, MarkLogic, MOVEit, OpenEdge, Semaphore, ShareFile, Sitefinity, and WhatsUp Gold, offering solutions for application development, data connectivity, DevOps automation, managed file transfer, network security, and digital experience. It generates maximum revenue from the United States.
79GF Score
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FCF Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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