Progress Software Intrinsic Value Calculation – Progress Software: Risk Outweighs Reward at Current Time
December 15, 2023
☀️Trending News
Progress Software ($NASDAQ:PRGS) Corporation is a software company that provides business applications, including software for analytics, integration, development, and management of operational data. Unfortunately, at the current time, investors are noticing that the risk/reward ratio for a potential investment in Progress Software is not favorable.
In addition, Progress Software has been dealing with increasing competition from other large software companies, which could limit future growth. As a result, investors may want to wait until the risk/reward ratio of Progress Software becomes more favorable before considering an investment. This could happen if the company releases a new product or can prove that its current product lineup is gaining traction in the market. Alternatively, if the stock price of Progress Software drops significantly, investors may consider taking advantage of the lower price as it could present better rewards with lower risk. Nonetheless, at this point in time, the risk appears to outweigh the reward when it comes to investing in Progress Software.
Market Price
Progress Software Corporation (PROGRESS) is a publicly traded company that provides software-as-a-service and platform solutions to customers around the world. On Wednesday, PROGRESS SOFTWARE stock opened at $53.7 and closed at $54.5, up by 1.7% from previous closing price of 53.6. While this positive performance may attract investors, analysts are recommending against investing in PROGRESS at this time due to the high amount of risk associated with the stock.
In addition, PROGRESS has recently faced legal issues related to its customer contracts, which has further underscored the risks associated with investing in the company at this time. Given these uncertain market conditions, investors should be cautious when considering PROGRESS at this time. Despite the 1.7% rise in stock prices on Wednesday, the overall risk associated with the company outweighs any potential reward that could be earned from investing in PROGRESS at this moment. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Progress Software. More…
| Total Revenues | Net Income | Net Margin |
| 674.6 | 78.57 | 13.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Progress Software. More…
| Operations | Investing | Financing |
| 180.9 | -360.69 | 91.5 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Progress Software. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.6k | 1.15k | 10.26 |
Key Ratios Snapshot
Some of the financial key ratios for Progress Software are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.6% | 6.1% | 20.0% |
| FCF Margin | ROE | ROA |
| 25.9% | 19.5% | 5.3% |
Analysis – Progress Software Intrinsic Value Calculation
At GoodWhale, we recently conducted an analysis of PROGRESS SOFTWARE‘s fundamentals. Our Valuation Line has determined that the intrinsic value of each PROGRESS SOFTWARE share is approximately $58.3. This means that currently, PROGRESS SOFTWARE stock is being traded at $54.5, a price slightly lower than its actual value. In other words, the stock is undervalued by 6.5%. We believe it might be a perfect time to invest in PROGRESS SOFTWARE. More…
Peers
Progress Software Corporation is an American publicly traded company headquartered in Bedford, Massachusetts. The company develops software products and services for businesses. Progress Software’s main competitors are DocuSign Inc, Pros Holdings Inc, and Sprout Social Inc.
– DocuSign Inc ($NASDAQ:DOCU)
DocuSign Inc is a US provider of electronic signature technology and digital transaction management services, founded in 2003. The company’s software allows users to electronically sign, send, and manage documents. As of 2022, DocuSign has a market cap of 8.52B and a ROE of -15.28%.
– Pros Holdings Inc ($NYSE:PRO)
A market cap of 1.17B means that the company is worth 1.17 billion dollars. The company’s ROE is 195.47%, which means that the company has made 195.47% profit on every dollar that it has invested. The company does business in the healthcare industry.
– Sprout Social Inc ($NASDAQ:SPT)
Sprout Social is a social media management platform that helps brands grow their social media presence. The company has a market cap of $2.61B and a ROE of -17.92%. Sprout Social’s platform helps brands with tasks such as scheduling and publishing content, analyzing social media analytics, andEngaging with their audience.
Summary
Progress Software is currently not seen as an attractive investment option by analysts. This is due to a combination of factors, including weaker than expected growth in the software sector, increasing competition from larger companies, and a lack of clarity regarding the company’s long-term strategy. The stock has declined over the past year, and analysts are recommending that investors remain cautious at this time and wait for signs of stronger industry growth or a more clear long-term strategy from Progress Software before considering investing.
