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Progress SoftwareMEX:PRGS 50 Interest Coverage is 2.95 as of May. 2026, which is 62% below its 10-year median of 7.68. GuruFocus rates MEX:PRGS with a GF Score™ of 50/100 and a GF Value™ of MXN949.11 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 1,721 Software companies, Progress Software ranks worse than 87.1% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Progress Software's
Operating Income
for the
three
months ended in May. 2026 was MXN816 Mil. Progress Software's Interest Expense for the
three
months ended in May. 2026 was MXN-276 Mil.
Progress Software's interest coverage for the quarter that ended in May. 2026 was 2.95.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Progress Software's Interest Coverage or its related term are showing as below:
MEX:PRGS'
s Interest Coverage Range Over the Past 10 Years
Min: 2.46 Med: 7.68 Max: 17.52
Current: 2.84
MEX:PRGS's Interest Coverage is ranked worse than 87.1% of 1721
companies
in the Software industry
Industry Median: 26.06
vs MEX:PRGS: 2.84
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Progress Software Interest Coverage Related Terms
Progress Software Interest Coverage Historical Data
* Premium members only.
The historical data trend for Progress Software's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MEX:PRGS vs PICS, NN, APPN: Interest Coverage Comparison
For the Software - Infrastructure subindustry, Progress Software's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Software Industry
For the Software industry and Technology sector, Progress Software's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Progress Software's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (MEX:PRGS) has a Interest Coverage of 2.95 as of May. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Progress Software and its competitors. This is 62% below median its historical median of 7.68. Over the past decade, Progress Software's Interest Coverage has ranged from 2.46 to 17.52. According to the industry distribution chart, Progress Software ranks #1499 out of 1721 companies in the Software industry, placing it in the top 87.1%.
Is Progress Software's Interest Coverage too high?
Progress Software's current Interest Coverage of 2.95 is 62% below median its 10-year median of 7.68. Over the past 10 years, this metric has ranged from a low of 2.46 to a high of 17.52. The Software industry median Interest Coverage is 26.06. Progress Software's value of 2.95 is 88.7% below this industry median. Based on the distribution chart, Progress Software ranks #1499 out of 1721 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Progress Software has a GF Score™ of 50/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Progress Software's Interest Coverage compare to PICS and NN?
According to the Software industry distribution chart, Progress Software ranks #1499 out of 1721 companies for Interest Coverage. This places Progress Software in the lower half of its industry. The industry median Interest Coverage is 26.06. Progress Software's value of 2.95 is 88.7% below this benchmark. Historically, Progress Software's own Interest Coverage has ranged from 2.46 to 17.52 over the past decade. While the company's 10-year median is 7.68 vs. the industry median of 26.06, Progress Software has consistently been below 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 Interest Coverage for a Software company?
The median Interest Coverage among Software companies is 26.06, based on 1,721 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Progress Software's current Interest Coverage of 2.95 is 88.7% below 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Progress Software and its competitors. For the Software industry, the median Interest Coverage is 26.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Progress Software's current Interest Coverage is 2.95, which is 62% below median its own 10-year median of 7.68. 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 (MEX:PRGS) is currently considered Possible Value Trap. The stock's GF Value™ is MXN949.11, compared to a current price of MXN537.00 — trading 43.4% below its estimated fair value. The current Interest Coverage is 2.95, which is 62% below median its 10-year median of 7.68 and 88.7% below the Software industry median of 26.06. Progress Software's overall GF Score™ is 50/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Progress Software (MEX:PRGS), the current Interest Coverage is 2.95 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 (MEX:PRGS) Overvalued in 2026?
Based on GuruFocus' analysis, Progress Software stock appears to be undervalued.
The current stock price of MXN537.00 is trading 43.4% below its estimated GF Value™ of MXN949.11.
GuruFocus considers Progress Software to be Possible Value Trap.
Key valuation signals for MEX:PRGS:
Interest Coverage: 2.95 (62% below median its 10-year median of 7.68)
GF Value™: MXN949.11 vs. price of MXN537.00 (43.4% below fair value)
Industry Position: 88.7% below the Software median (#1499 of 1721)
No single metric tells the full story. See the MEX: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.
50GF Score
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