Progress Story

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PRGS -- USA Stock  

USD 42.45  0.62  1.44%

It seems Progress Software may not recover as fast as we have hopped for as its price went down 0.48% today. The company current daily volatility is 1.6 percent, with a beta of 0.26 and an alpha of -0.84 over DOW. As many retail investors getting excited about latest market fluctuations it is important to sum up Progress Software based on its critical indicators. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over a week ago
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How risky is Progress Software after the latest volatility spike?
Progress Software currently holds roughly 230.12 M in cash with 138.69 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 5.1. Our recommendation tool can be used to complement Progress Software trade recommendations provided by experts. It analyzes the firm's potential to grow against your specific risk preferences and investment horizon.
Investing in Progress Software, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Progress Software along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Progress Software's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Progress Software in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Progress Software. Your research has to be compared to or analyzed against Progress Software's peers to derive any actionable benefits. When done correctly, Progress Software's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Progress Software.

How important is Progress Software's Liquidity

Progress Software financial leverage refers to using borrowed capital as a funding source to finance Progress Software ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Progress Software financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Progress Software's total debt and its cash.

How Progress utilizes its cash?

To perform a cash flow analysis of Progress Software, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Progress Software is receiving and how much cash it distributes out in a given period. The Progress Software cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Progress Software Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. Progress Software reported last year Net Cash Flow from Operations of 115.64 Million

Progress Software Correlation with Peers

Investors in Progress can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Progress Software. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Progress Software and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Progress is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Progress for more details

A Deeper Perspective

Progress Software appears to be very steady, given 1 month investment horizon. Progress Software maintains Sharpe Ratio (i.e. Efficiency) of 0.18, which implies the firm had 0.18% of return per unit of risk over the last month. Our standpoint towards forecasting the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Progress Software, which you can use to evaluate future volatility of the company. Please employ Progress Software risk adjusted performance of (0.08), and Coefficient Of Variation of (1,111) to confirm if our risk estimates are consistent with your expectations.
TEAM
DASTF
NOW
SAP
SAPGF
TEAM
0.650.8-0.03-0.03
TEAM
DASTF
0.650.590.350.36
DASTF
NOW
0.80.590.120.11
NOW
SAP
-0.030.350.121.0
SAP
SAPGF
-0.030.360.111.0
SAPGF
TEAM
DASTF
NOW
SAP
SAPGF
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Progress Software has a small chance to finish above $48 in 2 months

Latest potential upside is at 2.17. As of the 13th of January 2021, Progress Software holds the coefficient of variation of (1,111), and Risk Adjusted Performance of (0.08). Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Progress Software, as well as the relationship between them. Put it differently, you can use this information to find out if the company will indeed mirror its model of past market data, or the prices will eventually revert. We were able to interpolate data for nineteen technical drivers for Progress Software, which can be compared to its competitors. Please check Progress Software variance, value at risk, as well as the relationship between the Value At Risk and skewness to decide if Progress Software is priced some-what accurately, providing market reflects its current price of 47.47 per share. Given that Progress Software has jensen alpha of (0.84), we recommend you to check out Progress Software's recent market performance to make sure the company can sustain itself at a future point.

Our Bottom Line On Progress Software

While few other entities within the software?application industry are still a little expensive, even after the recent corrections, Progress Software may offer a potential longer-term growth to retail investors. To conclude, as of the 13th of January 2021, we believe that at this point, Progress Software is overvalued with low odds of financial turmoil within the next 2 years. Our primary Buy-Hold-Sell recommendation on the enterprise is Strong Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Progress Software. Please refer to our Terms of Use for any information regarding our disclosure principles.

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