Last Updated: 12 Oct 2024
Executive Summary
Progress Software Corporation (PRGS) is a technology company that develops business applications. The company has a market capitalization of $2.8 billion and trades on the NASDAQ exchange. PRGS has a strong financial profile with solid profitability and revenue growth. The stock is currently trading at a forward P/E of 11.86 and is considered undervalued by analysts.
Company Overview
Progress Software Corporation was founded in 1981 and is headquartered in Bedford, Massachusetts. The company develops and markets a range of business applications, including database management systems, application development tools, and content management systems. PRGS has a global customer base and serves a variety of industries, including healthcare, financial services, and manufacturing.
Fundamental Analysis
PRGS has a strong financial profile with solid profitability and revenue growth. The company's revenue has grown at a compound annual growth rate (CAGR) of 5.5% over the past five years. PRGS has also been profitable in each of the past five years, with a net income margin of 11.6% in the most recent fiscal year.
The company's balance sheet is also strong, with $429 million in cash and equivalents and no long-term debt. PRGS has a current ratio of 2.2 and a debt-to-equity ratio of 0.1.
Technical Analysis
The technical analysis of PRGS shows that the stock is currently in a bullish trend. The stock price has been trading above its 50-day and 200-day moving averages for the past several months. The relative strength index (RSI) is also above 50, which indicates that the stock is not overbought.
Short Term Outlook
The short-term outlook for PRGS is positive. The stock is currently trading at a discount to its fair value and is supported by a strong technical trend. The company is also expected to continue to grow its revenue and earnings in the coming quarters.
Long Term Outlook
The long-term outlook for PRGS is also positive. The company is a leader in the business applications market and is well-positioned to benefit from the continued growth of the digital economy. PRGS has a strong financial profile and a track record of innovation. The company is also committed to returning capital to shareholders through dividends and share repurchases.
Analyst Recommendations
The majority of analysts have a buy rating on PRGS. The average analyst target price is $70.6, which represents a potential upside of 8% from the current price.
