Is the business good?
How good a business is PEGA?
Pegasystems Inc. earns 59% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
59%
Return on invested capital · cost of capital 9.0% · 50 points above what the capital costs: growth creates value
- Operating margin
- 10%
Operating margin · Software - Application median 8.2% · 12 months to Q1 2026
- Cash conversion
- 1.45×
Cash conversion · 1.83× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −5.3%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −14% |
| FY2021 | −7.8% |
| FY2022 | −8.3% |
| FY2023 | 5.7% |
| FY2024 | 8.3% |
| FY2025 | 15% |
Details›
- Gross margin12 months to Q1 2026
- 75%
- Operating margin12 months to Q1 2026
- 10%
- Net margin12 months to Q1 2026
- 20%
- Free cash flow margin
- 29%
- R&D as % of revenue
- 19%
- Revenue, trailing twelve months
- $1.70B
- Free cash flow, trailing twelve months
- $495M
- Net income, trailing twelve months
- $341M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 59%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Application
Ranks #32 of 90 by Smart Score