Progress Software Corp (PRGS) stock analysis

PRGSNasdaqServices-Prepackaged SoftwareFiscal year ends November 30

Financials through Q3 FY2026, quarter ended Aug 31, 2026Last filing: 10-Q on Sep 30, 2026Score 13/3025% below fair value

$44.30+0.50 (+1.14%)

Close on Nov 11, 2026Market cap $1.81BP/E 20.4Yield 0.00%

StockData Score

Prices as of Nov 11, 2026How the score works

Mixed13 of 30 checks passed

Progress Software passes 13 of the 30 checks behind our score; 5 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation: 5/6
Growth: 4/6
Past performance: 3/6
Financial health: 1/6
Dividend: 0/6

What stands out

Margin of safety over 20%
The price is 25.3% below fair value, more than the 20% cushion we look for.
Trading below fair value
The share price of $44.30 is below our fair value estimate of $59.28.
Return on equity over 15%
Return on equity was 18.3% over the last twelve months and averaged 18.3% over five years.
Revenue growing 10%+ a year
Revenue grew 17.5% a year over the last three fiscal years.

What to watch

Return on capital under 10%
Return on invested capital was 9.5%, below the 10% that usually covers the cost of capital.
High debt
Debt is 233% of shareholders' equity, above the 40% we consider low.
Earnings shrank over 5 years
Net income shrank 1.7% a year on average over the last five fiscal years.
EPS growing under 10% a year
Diluted EPS grew -8.3% a year over the last three fiscal years.

Valuation5/6

P/E below its 5-year median
Progress Software's P/E of 20.4 is below its own 5-year median of 28.6.
P/E below the industry
Progress Software's P/E of 20.4 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.
EV/EBITDA below its 5-year median
Progress Software's EV/EBITDA of 16.6 is below its 5-year median of 20.9.
P/B above the industry
Progress Software's price-to-book of 3.42 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.
Trading below fair value
The share price of $44.30 is below our fair value estimate of $59.28.
Margin of safety over 20%
The price is 25.3% below fair value, more than the 20% cushion we look for.

Growth4/6

Revenue growing 10%+ a year
Revenue grew 17.5% a year over the last three fiscal years.
EPS growing under 10% a year
Diluted EPS grew -8.3% a year over the last three fiscal years.
Earnings growth accelerating
Net income grew 90.4% over the last twelve months, against a 5-year average of -1.7% a year.
Growing slower than the industry
Revenue grew 6.4% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.
Guidance raised
Progress Software raised its fiscal year ending November 30, 2026 Revenue outlook on Sep 30, 2026.
Gross margin improving
Gross margin was 82.2% over the last twelve months, against 81.1% a year earlier.

Past performance3/6

Return on equity over 15%
Return on equity was 18.3% over the last twelve months and averaged 18.3% over five years.
Return on capital under 10%
Return on invested capital was 9.5%, below the 10% that usually covers the cost of capital.
Return on equity above the industry
Progress Software's return on equity of 18.3% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.
Earnings shrank over 5 years
Net income shrank 1.7% a year on average over the last five fiscal years.
Net margin below its 5-year average
Net margin was 9.2% over the last twelve months, against a 5-year average of 11.4%.
Net margin above the industry
Progress Software's net margin of 9.2% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.

Financial health1/6

High debt
Debt is 233% of shareholders' equity, above the 40% we consider low.
Debt rising against equity
Debt to equity rose from 111% five years ago to 233%.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 26.6% of total debt.
Interest not well covered
Operating income covers interest expense 2.7 times; we look for at least 5.
Short-term assets don't cover short-term debts
Current assets are 0.80 times current liabilities.
Elevated bankruptcy risk
The Altman Z-score is 1.34; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

No dividend
Progress Software has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$59.28

The share price is 25% below this estimate.

20%+ below

Near fair value

20%+ above

$44.30Price$59.28Fair value

Method	Multiple used	Own 5Y median	Industry median	Value per share	Weight
P/E	28.1×	28.6×	27.6×	$60.92	40%
EV/EBITDA	19.9×	20.9×	18.8×	$58.48	35%
P/B	4.4×	5.4×	3.3×	$56.40	10%
Earnings power	8.4% cost of equity	–	–	$58.71	15%
Fair value				$59.28	100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

P/E at month end
Own 5-year median 28.6
Computer Programming, Data Processing, and Other Computer Related Services median 27.6

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day: $22.81M
Value traded per 1% price move: $10.82M

Downside

High risk

Typical loss in a bad month: 30.7%
Volatility (annualized): 54%
Sharpe ratio, 1 year: 0.00
Beta to the S&P 500 (5Y): 0.70

Typical bad-month loss, week by week

Margins

Share of revenue, fiscal years 2011 to 2025

Gross margin

80.8%−5.1 pts over 5 years

Operating margin

15.7%−8.7 pts over 5 years

Net margin

7.5%−10.6 pts over 5 years

Growth rates

Compound annual growth to fiscal 2025

Per year	1 year	3 years	5 years	10 years
Revenue	+29.8%	+17.5%	+17.2%	+10.0%
Gross profit	+26.9%	+15.9%	+15.8%	+9.7%
Operating income	+23.6%	+5.1%	+7.3%	+26.4%
Net income	+6.9%	-8.4%	-1.7%	–
EPS, diluted	+7.8%	-8.3%	-1.2%	–
Free cash flow	+11.2%	+7.2%	+10.7%	+9.0%

Returns and balance sheet

10 fiscal years. Hover a measure to see how it is calculated.

Measure	FY2016	FY2020	FY2025
Return on equity	-11.5%	23.6%	15.9%
Return on assets	-6.8%	8.3%	2.9%
Current ratio	1.65	0.91	0.49
Debt to equity	0.30	1.11	2.93
Net debt to EBITDA	3.40×	2.50×	8.19×
Interest coverage	-7.1×	10.6×	2.2×
Inventory turnover	–	–	–
Capex to revenue	1.4%	1.5%	0.6%
Diluted shares	49M	45M	44M

DuPont analysis

Return on equity split into margin, efficiency and leverage

Net margin7.5%

Asset turnover0.39×

Equity multiplier5.43×

Return on equity, FY202515.9%

Fiscal year	Net margin	Asset turnover	Equity multiplier	Return on equity
FY2025	7.5%	0.39×	5.43×	15.9%
FY2024	9.1%	0.36×	4.60×	15.2%
FY2023	10.1%	0.46×	3.51×	16.4%
FY2022	15.8%	0.43×	3.42×	23.4%
FY2021	14.8%	0.44×	3.17×	20.7%
FY2020	18.0%	0.46×	2.84×	23.6%
FY2019	6.4%	0.54×	2.33×	8.1%
FY2018	13.1%	0.56×	1.87×	13.6%
FY2017	7.5%	0.53×	1.74×	6.9%
FY2016	-13.7%	0.50×	1.69×	-11.5%

Where these numbers come from

Parsed from the XBRL in Progress Software's annual and quarterly filings with the SEC
Per-share figures adjusted for the 3-for-2 split on Jan 31, 2011
Fourth quarters derived from the annual report minus nine months
Every figure in the statements links to its source filing