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Progress SoftwareMEX:PRGS 50 Net Margin % is 8.31% as of May. 2026, which is 13% below its 10-year median of 9.60. 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 2,832 Software companies, Progress Software ranks better than 72.35% on this metric.
Progress Software (MEX:PRGS) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Progress Software Net Margin % Related Terms
Progress Software Net Margin % Historical Data
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The historical data trend for Progress Software's Net 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.
MEX:PRGS vs PICS, NN, APPN: Net Margin % Comparison
For the Software - Infrastructure subindustry, Progress Software's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Software Industry
For the Software industry and Technology sector, Progress Software's Net Margin % distribution charts can be found below:
* The bar in red indicates where Progress Software's Net 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 (MEX:PRGS) has a Net Margin % of 8.31% as of May. 2026. Net margin is the ratio of total net income to net sales. View historical data on Progress Software and its competitors. This is 13% below median its historical median of 9.60. According to the industry distribution chart, Progress Software ranks #783 out of 2832 companies in the Software industry, placing it in the top 27.6%.
Is Progress Software's Net Margin % too high?
Progress Software's current Net Margin % of 8.31% is 13% below median its 10-year median of 9.60. The Software industry median Net Margin % is 2.74. Progress Software's value of 8.31% is 203.3% above this industry median. Based on the distribution chart, Progress Software ranks #783 out of 2832 companies in the Software industry, which is above the industry midpoint. 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 Net Margin % compare to PICS and NN?
According to the Software industry distribution chart, Progress Software ranks #783 out of 2832 companies for Net Margin %. This puts Progress Software in the upper half of its industry. The industry median Net Margin % is 2.74. Progress Software's value of 8.31% is 203.3% above this benchmark. While the company's 10-year median is 9.60 vs. the industry median of 2.74, 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 Net Margin % for a Software company?
The median Net Margin % among Software companies is 2.74, based on 2,832 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Progress Software's current Net Margin % of 8.31% is 203.3% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Progress Software and its competitors. For the Software industry, the median Net Margin % is 2.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Progress Software's current Net Margin % is 8.31%, which is 13% below median its own 10-year median of 9.60. 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 Net Margin % is 8.31%, which is 13% below median its 10-year median of 9.60 and 203.3% above the Software industry median of 2.74. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Progress Software (MEX:PRGS), the current Net Margin % is 8.31% 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:
Net Margin %: 8.31% (13% below median its 10-year median of 9.60)
GF Value™: MXN949.11 vs. price of MXN537.00 (43.4% below fair value)
Industry Position: 203.3% above the Software median (#783 of 2832)
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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