Pegasystems Inc. PEGA
Composite 64/100; the shares have moved about 52% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Momentum ranks 24/100 — a strong mark against it.
Growth ranks 89/100 — a strong point in its favour. Balance-sheet strength ranks 82/100 — a strong point in its favour. Quality ranks 78/100 — a strong point in its favour.
Momentum ranks 24/100 — a strong mark against it. Income ranks 36/100 — a moderate mark against it. Valuation ranks 49/100 — a slight mark against it.
What the company does Pegasystems provides Pega Infinity, an AI-powered enterprise software suite including the Customer Decision Hub, Customer Service, and Pega Platform for workflow automation. Its Situational Layer Cake and GenAI Blueprint aim to accelerate app development and deployment across customer types and geographies.
Key financials High profitability metrics: ROE 54.7%, ROA 9.1%, ROCE 27.5%, gross margin 75.6%, operating margin 4.6%, net margin 18.7%. Revenue growth is 9.4%, but EPS declined -52.9%. Strong balance sheet with debt/equity 0.13 and net debt/EBITDA -1.38; interest coverage 1089.95.
Stock health Momentum is weak: -17.18% (3m), -32.11% (6m), -49.28% (12m), -55.50% from 52w high, RSI(14) 49.00. SideraVIA scores: Overall 56.2 (strong quality, fairly valued, weak momentum), Quality 74.8, Momentum 12.1.
Price vs fair value The stock trades at a discount to both our fair-value estimate and analyst target. - Trading at a 56.40% discount to our fair-value estimate of 47.31 (SideraVIA). - Trading at a 42.20% discount to the 12-month target of 43.00 (analyst count 9.0). - Recent negative sentiment highlighted by headlines citing headwinds and reasons to avoid PEGA (StockStory).
Looking forward Forward P/E of 9.59 and PEG of 0.16 suggest valuation support, but weak momentum and negative headlines may weigh on sentiment. Focus on execution in AI-driven enterprise software and margin recovery to close the valuation gap.
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Data as of 2026-09-05, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.