Pegasystems Inc.Find Ratings Reports
PEGASYSTEMS INC's gross profit margin for the second quarter of its fiscal year 2019 has increased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. PEGASYSTEMS INC has average liquidity. Currently, the Quick Ratio is 1.49 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 12.81% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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|Income Statement||Q2 FY19||Q2 FY18|
|Net Sales ($mil)||205.59||196.78|
|Net Income ($mil)||-32.3||-10.41|
|Balance Sheet||Q2 FY19||Q2 FY18|
|Cash & Equiv. ($mil)||155.05||243.58|
|Total Assets ($mil)||940.62||973.04|
|Total Debt ($mil)||68.87||0.0|
|Profitability||Q2 FY19||Q2 FY18|
|Gross Profit Margin||71.67||67.06|
|Return on Assets||-5.54||4.48|
|Return on Equity||-9.36||6.83|
|Debt||Q2 FY19||Q2 FY18|
|Share Data||Q2 FY19||Q2 FY18|
|Shares outstanding (mil)||79.14||78.75|
|Div / share||0.03||0.03|
|Book value / share||7.04||8.12|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||277276.0||334043.0|
HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 10.55 indicates a significant premium versus the S&P 500 average of 3.24 and a discount versus the subsector average of 11.89. 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 discount to investment alternatives.
|PEGA NM||Peers 669.01||PEGA 158.58||Peers 41.19|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
PEGA's P/E is negative making this valuation measure meaningless.
Premium. 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 premium to its peers.
|PEGA 168.89||Peers 47.59||PEGA NA||Peers 5.20|
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.
PEGA's ratio is negative making this valuation measure meaningless.
Neutral. 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.
Ratio not available.
|PEGA 10.55||Peers 11.89||PEGA -230.76||Peers 110.98|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
PEGA is trading at a discount 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 significantly trail its peers on the basis of its earnings growth rate.
|PEGA 6.70||Peers 9.67||PEGA 0.02||Peers 20.07|
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.