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Pegasystems Inc. (PEGA)

POSITIVE
TechnologySoftware - ApplicationUnited States

Fundamental

75

Price

$33.91

Market Cap

$5.52B

Part 1 · What the company is worth

Overview

Pegasystems Inc. develops, markets, licenses, hosts, and supports enterprise software in the United States, rest of the Americas, the United Kingdom, rest of Europe, the Middle East, Africa, and the Asia-Pacific. It provides Pega Infinity, a software portfolio comprising of Pega Customer Decision Hub, a real-time AI-powered decision engine, which can predict a customer's behavior and recommend the next best action to take across channels in real-time; Pega Customer Service to anticipate customer needs, connect customers to people and systems, and automate customer interactions to evolve the customer service experience, as well as to allow enterprises to deliver interactions across channels and enhance employee productivity; and Pega Platform, a software for AI-powered workflow automation for increasing the efficiency of clients' processes and operational workflows. The company also offers Situational Layer Cake that organizes logic into layers that map to the unique dimensions of a client's business, such as customer types, lines of business, geographies, etc.; Pega GenAI Blueprint to rapidly prototype and accelerate the development and deployment of applications; Pega Cloud that allows clients to develop, test, and deploy applications; Pega Catalyst, which helps clients to transform and prototype their customer journeys; Pega Academy, which offers enablement content for Pega product implementations, such as instructor-led and online training to its employees, clients, and partners; and global service assurance and client support services. It primarily markets its software and services to financial services, healthcare, communications and media, government, insurance, manufacturing and high tech, and consumer industries through a direct sales force, as well as partnerships with technology providers and application developers. Pegasystems Inc. was incorporated in 1983 and is headquartered in Waltham, Massachusetts.

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Direct competitors

Who this company fights with for the same customers

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Balance Sheet & Liquidity

Revenue

$1.74B

Trailing 12 months (through 6/30/2026)

Net Income

$324M

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$491M

Total Equity

$787M

Total Liabilities

$844M

Current Ratio

1.06

Interest Coverage

498.89

Debt/EBITDA

0.26

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

Fairly Valued

Fair Value

$38.13

Current Price

$33.91

Margin of Safety

+11.1%

Fair Value Range

$24.78 - $51.48

Estimation Methods

Analyst Target:$43.00
DCF:$61.70
PE-based:$21.08
Graham Growth:$28.65
EPV:$8.58
Analyst Consensus:Buy (13B / 6H / 0S)
Last Earnings Surprise:-20.98%

Valuation Metrics

P/E Ratio

19.48

ROE

50.0%

P/B Ratio

10.06

P/FCF

11.44

Gross Margin

75.6%

ROIC

20.5%

Profitability Radar

Value Creation (Economic Moat)

ROIC

20.5%

WACC

9.1%

ROIC − WACC

+11.4 pp

ROIC exceeds the cost of capital — the company is creating value for shareholders.

Fundamental Analysis Criteria

Passed (22)

  • EPS shows upward trend
  • EPS CAGR 5.91%
  • Price CAGR 6.43%
  • ROIC 20.5%
  • Gross Margin 75.6%
  • P/FCF 11.44
  • Debt/Equity ratio
  • Operating Margin 9.9%
  • Positive Free Cash Flow
  • CapEx intensity
  • Current Ratio
  • Interest Coverage
  • Debt/EBITDA
  • Return on Tangible Assets
  • Low reliance on intangibles
  • ROE 48.9%
  • Revenue Growth 5Y 11.4%
  • Analyst Consensus 68% Buy
  • Earnings Quality (OCF/NI) 1.58
  • Share Dilution 2.4%
  • Net Margin Trend 18.7% vs 13.1%
  • Piotroski F-Score 8/9

Failed (4)

  • P/B Ratio 10.06
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Earnings Surprise avg -1.1%

Unavailable (2)

  • Dividend Payout NaN%
  • PEG Ratio (need PE > 0 and growth > 0)

Piotroski F-Score

8/9

Strong financial health

score
criteria

Earnings Quality

1.58

High quality: earnings backed by cash

Share Dilution

2.4%

Issuing new shares, diluting ownership

Governance

Executive Team

NameTitleAge
Mr. Alan TreflerFounder, CEO & Chairman of the Board69
Mr. Kenneth R. Stillwell Jr.COO & CFO54
Mr. Leon TreflerChief of Clients & Markets64
Mr. Kerim AkgonulChief Product Officer53
Mr. John HigginsChief of Client & Partner Success50
Mr. Efstathios A. KouninisChief Accounting Officer, VP of Finance & Treasurer63
Mr. Don SchuermanCTO and VP of Marketing & Technology Strategy-
Mr. David VidoniChief Information Officer-
Mr. Peter WelburnVice President of Investor Relations-
Mr. Benjamin OstapukChief Legal Officer-

Audit Risk

3

Board Risk

7

Compensation Risk

5

Shareholder Rights Risk

4

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Latest News

Recent headlines for PEGA, sourced from Markets Gazette.

No recent news for PEGA.