Pegasystems Inc.
Rank #9HypergrowthPEGA · Nasdaq · Technology
Pegasystems Inc. (PEGA) — Rank #9 by gross profitability (GP/assets 0.96) · ROE 70.2% · Piotroski F-Score 6 / 9.
As-of 2026-09-15 · CIK 0001013857 · all metrics point-in-time as of the filing date.
About
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.
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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.
- Industry
- Software - Application
- Sector
- Technology
- State
- MA
- Filer Category
- Large accelerated filer
- Fiscal Year End
- December 31
- Website
- pega.com
Price History
Company Snapshot
P/S is the primary valuation lens — earnings are reinvested, not available for P/E.
Market Cap
$6.36B
P/E (annual)
18.1
P/S (annual)
3.6
P/B
11.3
P/OCF (annual)
12.6
Shareholder Yield
-135.1%
Employees
5,598
Industry
Software - Application
Exchange
Nasdaq
Signal Flags
Quality Profile
Profitability
1/1 passSafety
1/1 passCash Flow
3/3 passGrowth
1/2 passTerry Smith quality gate
Passes 3/5 Terry Smith thresholds1 of 5 threshold not computable from filed data.
What Growth Is Priced In
Implied revenue growth (10Y)
3.4%
The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).
Dilution drag: 135.3% — per-share value needs a total required return of 138.7% once share-count change is priced in.
vs. own 6-year median revenue growth: 15.8%
within its own historyCost-of-equity sensitivity (implied growth at different discount rates)
r = 8%
-0.7%
r = 10% (base)
3.4%
r = 12%
6.9%
Net debt / market cap: -5.1%
Valuation History
Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.
P / E
Price / diluted EPS
P / S
Price / revenue per share
P / B
Price / book value per share
P / GP
Price / gross profit per share
P / FCF
Price / free cash flow per share
Earnings bubble check
Current margins may be above sustainable levels — a P/E based on peak earnings can overstate cheapness.
Disclosure regression check
A previously-disclosed line item is no longer reported. Worth checking the filing for why.
Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.
Profitability
Gross profitability (GP / assets)
0.96
Primary signal (Novy-Marx).
3rd of 13 SIC 7374 peers
Return on equity
70.2%
Gross margin
75.9%
5th of 13 SIC 7374 peers
Revenue growth (YoY)
195.9%
Gross margin improving
Margin trend vs prior year.
Operating Leverage
| 2012 | 2013 | 2014 | 2015 | |
|---|---|---|---|---|
| Revenue vs COGS | ||||
| Revenue vs OpEx | ||||
| Op. Income vs Revenue |
Anti-fragile safety
Balance-sheet safety
Composite anti-fragile check.
Debt / equity
1.47
9th of 11 SIC 7374 peers (best = lowest)
Current ratio
1.06×
12th of 13 SIC 7374 peers
Quick ratio
0.70×
Net cash
$361.91M
Cash & equivalents minus total debt.
Cash-flow health
Free cash flow
$490.72M
Operating cash flow minus capex.
Positive free cash flow
FCF / net income
0.25
Cash-backing of earnings.
FCF/NI divergence
Unfavorable divergence (yellow flag).
Accruals healthy
Cash-backed earnings.
SBC / revenue
8.9%
Stock-based comp intensity.
Dividend safety
Composite score
3.8 / 5
Piotroski F-Score
F-Score
6 / 9
Fundamental-strength score (0-9).