Pegasystems Inc.
Find Ratings ReportsPEGASYSTEMS INC's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its subsector this quarter as compared to the same quarter a year ago. PEGASYSTEMS INC has strong liquidity. Currently, the Quick Ratio is 1.70 which shows the ability to cover short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 170.42% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 474.23 | 396.47 |
EBITDA ($mil) | 160.13 | 62.38 |
EBIT ($mil) | 155.56 | 55.98 |
Net Income ($mil) | 142.67 | 34.61 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 423.34 | 297.22 |
Total Assets ($mil) | 1510.74 | 1357.67 |
Total Debt ($mil) | 581.27 | 687.74 |
Equity ($mil) | 353.84 | 130.84 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 81.78 | 78.25 |
EBITDA Margin | 33.76 | 15.73 |
Operating Margin | 32.8 | 14.12 |
Sales Turnover | 0.95 | 0.97 |
Return on Assets | 4.48 | -25.45 |
Return on Equity | 19.16 | -264.12 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.78 | 1.57 |
Debt/Capital | 0.62 | 0.84 |
Interest Expense | 1.65 | 1.91 |
Interest Coverage | 94.45 | 29.31 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 83.84 | 82.44 |
Div / share | 0.03 | 0.03 |
EPS | 1.61 | 0.4 |
Book value / share | 4.22 | 1.59 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 478538.0 | 291522.0 |
HOLD. PEGASYSTEMS INC's P/E ratio indicates a significant premium compared to an average of 47.17 for the Publishing Industries subsector and a significant premium compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 14.83 indicates a significant premium versus the S&P 500 average of 4.68 and a significant premium versus the subsector average of 11.80. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. After reviewing these and other key valuation criteria, PEGASYSTEMS INC proves to trade at a premium to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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PEGA 88.17 | Peers 47.17 | PEGA 24.10 | Peers 33.15 | |||||||||||||||||||||
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. PEGA is trading at a significant premium to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. PEGA is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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PEGA 19.67 | Peers 32.16 | PEGA 0.32 | Peers 1.66 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. PEGA is trading at a significant discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. PEGA trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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PEGA 14.83 | Peers 11.80 | PEGA 116.74 | Peers 148.13 | |||||||||||||||||||||
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. PEGA is trading at a significant premium to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, PEGA is expected to trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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PEGA 3.66 | Peers 12.32 | PEGA 8.70 | Peers 12.66 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. PEGA is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. PEGA significantly trails its peers on the basis of sales growth. |
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