Progress Software Corporation Common Stock (DE) (PRGS)

FairStock Score: 71/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am wary of businesses that look cheap on cash flow but carry a heavy balance sheet. Progress Software, at $39.41 on 2026-10-13, has a market value of $1.6B and trades at 19.13 times earnings and 3.22 times book. The company generated $305.2M of trailing free cash flow, an 18.9% FCF yield, which is genuinely attractive. It also earns an 18.57% return on equity, and its Piotroski F-Score is 7/9. Yet the Graham Number is only $23.83, leaving a negative margin of safety of -65.38%. The balance sheet gives me pause: debt-to-equity is 2.62, return on capital employed is just 4.89%, and the Altman Z-Score of 0.73 signals distress risk. Growth is uneven. In fiscal Q3 2026, the quarter ended 2026-08-31, revenue was $246.0M, down from $249.8M in fiscal Q3 2025, the quarter ended 2025-08-31, though net income rose to $22.8M from $19.4M and diluted EPS to $0.55 from $0.44. For FY2025, the year ended 2025-11-30, revenue was $977.8M and net income $73.1M, versus FY2024, the year ended 2024-11-30, revenue of $753.4M and net income of $68.4M. FairStock's Lynch category is SLOW GROWER—Shrinking, with profit down 1.7% a year over five years. EV/EBITDA of 8.84 and PEG of 0.81 are not demanding, but the low ROCE and high leverage make the quality questionable. I would want a wider discount to the Graham Number before calling this a margin-of-safety bargain.

In plain English: Progress Software sells software that helps companies build and run AI-powered apps and other digital tools. It generates a lot of cash and earns a decent profit, but it owes a lot of money and its recent sales growth has been slow, with one recent quarter slipping from a year earlier. At the recent price, the stock looks expensive by a strict asset-and-earnings measure, even though its cash flow makes it less clear-cut.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-08-31) · fiscal Q2 2026 10-Q (period ended 2026-05-31) · fiscal Q1 2026 10-Q (period ended 2026-02-28) · fiscal Q3 2025 10-Q (period ended 2025-08-31) · FY2025 10-K (period ended 2025-11-30) · FY2024 10-K (period ended 2024-11-30) · FY2023 10-K (period ended 2023-11-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer