Stocktoria
PEGASYSTEMS INC PEGA
PEGASYSTEMS INC (PEGA) earns a Piotroski F-score of 7/9 (strong financial health), with an Altman Z″ in the safe zone. It pays a dividend yielding 0.30% (safety: safe). FY2025 revenue was $1.7B at a 22.5% net margin.
Quality score trend · recomputed for each fiscal year
Each year's score is computed from that year's filing — a rising Piotroski F or Altman Z″ means improving financial health, a fall is worth a look.
Beneish M-score: -2.52 — low (below −2.22 — no manipulation red flag) . A statistical screen for earnings manipulation, not proof — and it doesn't apply to most banks/insurers.
Analyst price target
Recent analyst actions
| Date | Firm | Rating |
|---|---|---|
| 2026-06-10 | DA Davidson | Buy (main) |
| 2026-06-10 | Rosenblatt | Buy (main) |
| 2026-06-10 | Citizens | Market Outperform (reit) |
| 2026-04-23 | Citigroup | Buy (main) |
| 2026-04-23 | RBC Capital | Outperform (main) |
| 2026-04-23 | Wedbush | Outperform (reit) |
Wall Street analyst consensus — a sentiment gauge, not our scoring.
Smart money · insiders, last 12 months
Open-market insider purchases minus sells (SEC Form 4) — real buying with their own money is a bullish “smart money” signal; grants and option exercises are excluded.
How it ranks in Services · percentile among 982 companies
Percentile vs other Services companies we cover — e.g. “stronger than 90%” means only 10% score higher on that measure.
Piotroski F breakdown · 7/9 tests passed
- Positive return on assets
- Positive operating cash flow
- Rising ROA
- Cash flow exceeds net income
- Lower long-term debt
- Rising current ratio
- No share dilution
- Rising gross margin
- Rising asset turnover
Altman Z″ components · safe zone
| Component | Value |
|---|---|
| Working capital / assets | 0.147 |
| Retained earnings / assets | 0.284 |
| EBIT / assets | 0.161 |
| Equity / liabilities | 0.932 |
Sector peers · similar-size Services companies compare side by side →
| Ticker | Company | Piotroski F | Altman Z″ | P / E | Revenue growth |
|---|---|---|---|---|---|
| PEGA | PEGASYSTEMS INC | 7/9 | 3.96 | 13.1 | +16.6% |
| FA | FIRST ADVANTAGE CORP | 5/9 | 1.18 | — | +83% |
| RDDT | Reddit, Inc. | 5/9 | 15.96 | 60.7 | +69.4% |
| TASK | TaskUs, Inc. | 7/9 | 4.64 | 4.2 | +19% |
| FIVN | Five9, Inc. | 7/9 | 2.98 | 41.4 | +10.3% |
| CLVT | CLARIVATE PLC | 4/9 | -1.51 | — | -4% |
| SSTK | Shutterstock, Inc. | 7/9 | 0.56 | 11.5 | +5.8% |
About PEGASYSTEMS INC
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.
FAQ
Is PEGA financially healthy?
PEGASYSTEMS INC's Piotroski F-score is 7/9 (8–9 is excellent, 0–3 weak), and its Altman Z″ distress score is in the safe zone.
Does PEGA pay a dividend, and is it safe?
Yes. PEGASYSTEMS INC pays a dividend yielding about 0.30% with a 3.9% payout ratio, rated “safe” for safety.
How profitable is PEGA?
In FY2025, PEGASYSTEMS INC had a net margin of 22.5% and a return on equity of 50.0%.
Is PEGA overvalued or undervalued?
PEGASYSTEMS INC trades at about 14.7× trailing earnings — below its 10-year norm (10-year range 20.5×–433.0×, median 51.1×). Stocktoria reports the data, not buy/sell advice.
What is the analyst price target for PEGA?
The average Wall-Street price target for PEGASYSTEMS INC is $58.18, about 85.6% above the recent price, from 11 analysts.
Is PEGA a good stock to buy?
Stocktoria doesn't give buy or sell advice, but here is the data on PEGASYSTEMS INC: a Piotroski F-score of 7/9, an Altman Z″ in the safe zone, a P/E of about 13.1×, a dividend yield of 0.30%. Weigh these quality and valuation signals against your own goals.
Computed from company filings · US · as of 2025-12-31. Facts plus Stocktoria's own computed scores — not investment advice.