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Progress SoftwarePRGS -2.57%79 Return-on-Tangible-Asset is 15.95% as of May. 2026, which is 7% above its 10-year median of 14.85. 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 2,894 Software companies, Progress Software ranks better than 88.36% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Progress Software's annualizedNet Income for the quarter that ended in May. 2026 was $84 Mil. Progress Software's average total tangible assets for the quarter that ended in May. 2026 was $529 Mil. Therefore, Progress Software's annualized Return-on-Tangible-Asset for the quarter that ended in May. 2026 was 15.95%.
The historical rank and industry rank for Progress Software's Return-on-Tangible-Asset or its related term are showing as below:
PRGS'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -14.13 Med: 14.85 Max: 23.23
Current: 17.23
During the past 13 years, Progress Software's highest Return-on-Tangible-Asset was 23.23%. The lowest was -14.13%. And the median was 14.85%.
PRGS's Return-on-Tangible-Asset is ranked better than 88.36% of 2894
companies
in the Software industry
Industry Median: 2.095
vs PRGS: 17.23
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Progress Software Return-on-Tangible-Asset Related Terms
Progress Software Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Progress Software's Return-on-Tangible-Asset 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.
PRGS vs PICS, NN, APPN: Return-on-Tangible-Asset Comparison
For the Software - Infrastructure subindustry, Progress Software's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, Progress Software's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Progress Software's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (May. 2026) net income data.
What does a Return-on-Tangible-Asset of 15.95% mean?
Progress Software (PRGS) has a Return-on-Tangible-Asset of 15.95% as of May. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Progress Software and its competitors. This is near median its historical median of 14.85. According to the industry distribution chart, Progress Software ranks #337 out of 2894 companies in the Software industry, placing it in the top 11.6%.
Is Progress Software's Return-on-Tangible-Asset too high?
Progress Software's current Return-on-Tangible-Asset of 15.95% is near median its 10-year median of 14.85. The Software industry median Return-on-Tangible-Asset is 2.10. Progress Software's value of 15.95% is 661.3% above this industry median. Based on the distribution chart, Progress Software ranks #337 out of 2894 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 Return-on-Tangible-Asset compare to PICS and NN?
According to the Software industry distribution chart, Progress Software ranks #337 out of 2894 companies for Return-on-Tangible-Asset. This places Progress Software in the top 12% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.10. Progress Software's value of 15.95% is 661.3% above this benchmark. While the company's 10-year median is 14.85 vs. the industry median of 2.10, 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 Return-on-Tangible-Asset for a Software company?
The median Return-on-Tangible-Asset among Software companies is 2.10, based on 2,894 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Progress Software's current Return-on-Tangible-Asset of 15.95% is 661.3% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Progress Software and its competitors. For the Software industry, the median Return-on-Tangible-Asset is 2.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Progress Software's current Return-on-Tangible-Asset is 15.95%, which is near median its own 10-year median of 14.85. 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 $42.66 — trading 45.9% below its estimated fair value. The current Return-on-Tangible-Asset is 15.95%, which is near median its 10-year median of 14.85 and 661.3% above the Software industry median of 2.10. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Progress Software (PRGS), the current Return-on-Tangible-Asset is 15.95% 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 (PRGS) Overvalued in 2026?
Based on GuruFocus' analysis, Progress Software stock appears to be undervalued.
The current stock price of $42.66 is trading 45.9% below its estimated GF Value™ of $78.84.
GuruFocus considers Progress Software to be Possible Value Trap.
Key valuation signals for PRGS:
Return-on-Tangible-Asset: 15.95% (near median its 10-year median of 14.85)
GF Value™: $78.84 vs. price of $42.66 (45.9% below fair value)
Industry Position: 661.3% above the Software median (#337 of 2894)
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
Get the complete analysis for PRGS
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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