A Business at a Glance
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Our Business We develop, market, license, host, and support enterprise software that helps organizations optimize decisions and processes in real-time so they can deliver outcomes that transform their business. Our powerful platform for enterprise artificial intelligence (“AI”) decisioning and workflow automation enables the world’s leading brands and government agencies to hyper-personalize customer experiences, automate customer service, and streamline operations, mission-critical business processes, and workflows, and transform legacy systems. Clients can leverage our AI technology and scalable architecture to accelerate their digital transformation. In addition, our sales and client success teams, world-class partners, and clients can leverage Pega BlueprintTM (“Blueprint”) to rapidly prototype and accelerate the development and deployment of applications quickly and collaboratively.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 1.7B | 1.7B | 1.5B | 1.4B | 1.3B | 1.2B |
| Net Income | 393M | 393M | 99M | 68M | -346M | -63M |
| EPS | $2.13 | $2.13 | $0.28 | $0.19 | $-2.11 | $-0.39 |
| Free Cash Flow | 491M | 491M | 338M | 201M | -13M | 29M |
| ROIC | 56.7% | 70.1% | 20.9% | 12.3% | -18.8% | -6.1% |
| Gross Margin | 75.9% | 75.9% | 73.9% | 73.6% | 72.0% | 72.2% |
| Debt/Equity | 0.10 | 0.10 | 0.94 | 1.64 | 5.26 | 1.65 |
| Dividends/Share | $0.08 | $0.11 | $0.03 | $0.03 | $0.06 | $0.06 |
| Operating Income | 263M | 263M | 124M | 81M | -109M | -95M |
| Operating Margin | 15.1% | 15.1% | 8.3% | 5.7% | -8.3% | -7.8% |
| ROE | 50.0% | 57.3% | 21.1% | 28.0% | -126.4% | -13.2% |
| Shares Outstanding | 185M | 185M | 361M | 168M | 164M | 164M |
PEGASYSTEMS INC passes 6 of 9 quality checks, suggesting mixed fundamentals.
PEGASYSTEMS INC trades at 19.4x trailing earnings, compared to its 15-year median P/E of 53.2x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 14.2x vs a median of 26.5x. The company's 5-year average ROIC is 15.7% with a gross margin of 73.5%. Total shareholder yield (dividends + buybacks) is 6.8%. At current prices, the estimated annualized return to fair value is +32.1%.
PEGASYSTEMS INC (PEGA) has a current P/E ratio of 19.4, compared to its historical median P/E of 53.2. The stock is currently considered Cheap based on its historical valuation range.
PEGASYSTEMS INC (PEGA) has a 5-year average return on invested capital (ROIC) of 15.7%. This indicates strong capital allocation and a potential competitive advantage.
PEGASYSTEMS INC (PEGA) has a market capitalization of $7.6B. It is classified as a mid-cap stock.
Yes, PEGASYSTEMS INC (PEGA) pays a dividend with a trailing twelve-month yield of 0.20%. The company also returns capital through share buybacks, with a buyback yield of 6.56%.
Based on historical P/E analysis, PEGASYSTEMS INC (PEGA) appears cheap. The current P/E of 19.4 is 64% below its historical median of 53.2. The estimated fair value CAGR (P/E method) is 43.3%.
PEGASYSTEMS INC (PEGA) operates in the Services-Computer Processing & Data Preparation industry, within the Technology sector.
PEGASYSTEMS INC (PEGA) reported annual revenue of $1.7 billion in its most recent fiscal year, based on SEC EDGAR filings.
PEGASYSTEMS INC (PEGA) has a net profit margin of 22.5%. This is a strong margin indicating high profitability.
PEGASYSTEMS INC (PEGA) generated $491 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
PEGASYSTEMS INC (PEGA) has a debt-to-equity ratio of 0.10. This indicates a conservatively financed balance sheet.
PEGASYSTEMS INC (PEGA) reported earnings per share (EPS) of $2.13 in its most recent fiscal year.
PEGASYSTEMS INC (PEGA) has a return on equity (ROE) of 57.3%. This indicates the company generates strong returns for shareholders.
PEGASYSTEMS INC (PEGA) has a 5-year average gross margin of 73.5%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 17 years of financial data for PEGASYSTEMS INC (PEGA), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
PEGASYSTEMS INC (PEGA) has a book value per share of $4.26, based on its most recent annual SEC filing.