Pegasystems (PEGA) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Pegasystems

NasdaqGS•Technology•Software - Application

$36.57+0.15(<0.01%)Market open

Market Cap

$5.63B

P/E

19.1x

P/S

3.2x

P/B

10.3x

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.

How this company scores

GoodMetricSide Score: 71/100

Strongest: Cash & Earnings Quality (21/25); weakest: Balance Sheet & Red Flags (15/25).

Profitability18/25

Growth17/25

Balance Sheet & Red Flags15/25

Cash & Earnings Quality21/25

Strengths

High ROEInterest easily coveredCash-backed earningsConsistent free cash flow

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 19.1x5y range 15.6x – 80.9x

Currently below its 12-quarter median.

P/S · 3.2x5y range 2.1x – 7.7x

Currently near its 20-quarter median.

P/B · 10.3x5y range 9.0x – 41.7x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

Operating margins dropped 42.2% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.

Price & Volume

Market Cap $5.63B

Metrics at a Glance

as of September 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $1.75B
Q. Revenue: $393.36M
TTM EBITDA: $186.60M
TTM Op. Income: $173.01M
Q. Op. Income: $14.86M
TTM Net Income: $294.76M
Q. Net Income: $14.09M
EPS: $0.09
Shares Out.: $163.76M

$1.75B in TTM revenue grew 0.9% YoY, reaching $393.36M last quarter. TTM EBITDA of $186.60M and TTM operating income of $173.01M show growth is flowing through to the bottom line. TTM net income of $294.76M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 2 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 73.6%
EBITDA Margin: 4.7%
Op. Margin: 3.8%
Net Margin: 3.6%

Op. margin of 3.8% is down 0.0% YoY — costs are rising relative to revenue. Net margin at 3.6% and gross margin of 73.6% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has fallen for 3 consecutive quarters — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 19.1x
P/S Ratio: 3.2x
P/B Ratio: 10.3x

At 19.1x P/E, the stock trades within typical market levels. P/S of 3.2x and P/B of 10.3x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is down 47% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $1.33B
Cash: $202.19M
Long-Term Debt: N/A
Book Value: $549.06M
D/E Ratio: N/A
Debt/EBITDA: 0.0

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $6.07M
TTM Free Cash Flow: $442.24M
FCF Margin: 25.3%
FCF / Net Income: 1.5

TTM FCF of $442.24M on $6.07M in operating cash flow. The FCF / Net Income ratio of 1.5x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has fallen for 2 consecutive quarters — a weakening trend.