PEGA

Technology

Pegasystems Inc. · Software - Application · $6B

UQS Score — Balanced Preset
65.1
Good

Pegasystems Inc. scores 65.1/100 using the Balanced preset.

UQS vs Technology Sector
PEGA
65.1
Sector avg
38.0
Quality
Good
Moat
Neutral
Growth
Neutral
Risk
Strong
Valuation
Attractive

What is Pegasystems Inc.?

Pegasystems is an enterprise software company headquartered in Waltham, Massachusetts, serving large organizations across financial services, healthcare, government, and other regulated industries worldwide.

Pegasystems generates revenue by licensing, hosting, and supporting enterprise software platforms. Its core products help businesses automate complex processes and manage customer engagement at scale. The company earns recurring revenue through cloud subscriptions and long-term enterprise contracts, supplemented by professional services and training.

Founded in 1996, Pegasystems has grown into a mid-cap technology company with a global customer base.

  • Pega Platform — low-code application development
  • Pega Infinity — unified customer engagement and process automation
  • Pega Customer Decision Hub — AI-driven customer experience across channels
  • Pega Cloud — cloud-hosted deployment and infrastructure

Is PEGA a Good Stock to Buy?

UQS Score rates PEGA as Good overall, reflecting a balanced profile across the five quality pillars.

PEGA's strongest pillar is Risk, suggesting the business carries a relatively conservative financial structure compared to sector peers. Quality and Valuation also register as Good, indicating a reasonably priced business with sound fundamentals.

Moat and Growth both register as Neutral, pointing to a more competitive landscape and a measured near-term expansion pace.

See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does PEGA pay dividends?

Yes — Pegasystems Inc. pays a dividend.

Pegasystems pays a regular dividend, which is relatively uncommon among mid-cap software companies. This reflects a degree of financial discipline and cash generation. Income-oriented investors may find this appealing, though the dividend should be weighed alongside the company's reinvestment priorities.

When does PEGA report earnings?

Pegasystems reports earnings on a quarterly cadence, consistent with standard practice for US-listed equities.

The company has been navigating a transition toward cloud-based recurring revenue, which can affect short-term reported figures while building longer-term revenue visibility. Investors typically focus on annual recurring revenue trends and cloud adoption rates as key indicators of business health.

For the most recent quarter's results, visit Pegasystems' investor relations page directly.

PEGA Price History

-32.8% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in Pegasystems Inc.?

$
Today it would be worth
$6,261
That's a -37.4% total return, or -8.9% annualized.

Based on Pegasystems Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

Frequently Asked Questions

What does Pegasystems do?

Pegasystems develops enterprise software that helps large organizations automate business processes and manage customer interactions. Its platforms serve industries including financial services, healthcare, insurance, and government, primarily through cloud-hosted and licensed software models.

Does PEGA pay dividends?

Yes, Pegasystems pays a regular dividend. This is relatively uncommon for a mid-cap software company and may appeal to investors seeking some income alongside growth exposure. Check the company's investor relations page for the current dividend rate.

When does PEGA report earnings?

Pegasystems follows a standard quarterly earnings cadence. Specific upcoming dates are best confirmed on the company's investor relations page, as our data source does not cover forward-looking calendar events.

Is PEGA a good stock to buy?

UQS Score rates PEGA as Good overall. The Risk pillar is Strong, and both Quality and Valuation are Good. Moat and Growth are Neutral. Whether it fits your portfolio depends on your own investment criteria — the full pillar breakdown is available to Pro members.

Is PEGA overvalued?

PEGA's Valuation pillar is rated Good, suggesting the stock is not considered elevated relative to its fundamentals within the UQS framework. For the detailed valuation metrics behind that rating, a Pro account provides the complete view.

What is PEGA's market cap bracket?

Pegasystems is classified as a mid-cap stock. This places it in a segment that typically offers more growth potential than large-caps but with greater volatility than mega-cap technology peers.

Is PEGA a long-term quality indicator?

From a quality standpoint, PEGA's Good overall UQS Score and Strong Risk pillar suggest a business with relatively stable fundamentals. Long-term investors may want to monitor Moat and Growth trends, as both currently sit at Neutral. The full analysis is available to Pro members.

What sector does PEGA belong to?

Pegasystems operates in the Technology sector, specifically within enterprise software. It competes in the areas of low-code development, intelligent automation, and customer engagement platforms — a segment that includes both large incumbents and specialized vendors.

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Pro Analysis

PEGA — Score History

60657075Apr 2Apr 12Apr 22May 2May 12May 22May 23v5
Score changes· 22 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 23, 202665.272.847.051.483.282.90.0
May 21, 202665.272.847.051.483.283.3-0.2
May 16, 202665.473.147.051.483.284.1-0.3
May 14, 202665.773.547.051.483.285.3+0.4
May 12, 202665.372.947.051.483.283.9-0.9
May 7, 202666.276.947.051.484.381.90.0
May 4, 202666.276.947.051.484.382.10.0
May 3, 202666.276.947.051.384.382.1+0.2
May 1, 202666.076.947.051.384.381.0-0.1
Apr 26, 202666.176.947.051.484.381.1+0.7

PEGA — Pillar Breakdown

Quality

72.8/100 (25%)

Pegasystems Inc. shows solid profitability with healthy returns on capital and reasonable margins.

Capital Efficiency (ROIC)Moderate

How effectively capital is deployed to generate returns.

Return on EquityStrong

Profitability relative to shareholders' equity.

Operating ProfitabilityWeak

Ability to convert revenue into operating profit.

Net ProfitabilityModerate

Bottom-line profit as a share of revenue.

Gross Profit / AssetsStrong

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationStrong

Free cash flow relative to market value.

Growth

51.4/100 (20%)

Pegasystems Inc. shows steady but unspectacular growth, typical for mature companies.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthStrong

Year-over-year earnings per share growth.

Forward Revenue OutlookModerate

Analyst consensus for future revenue growth.

Forward EPS GrowthStrong

Analyst consensus for future earnings growth.

Risk

83.2/100 (15%)

Pegasystems Inc. carries minimal financial risk with conservative leverage and strong solvency.

Financial LeverageStrong

Debt levels relative to earnings capacity.

Debt/EquityStrong

Total debt relative to shareholder equity.

Current RatioWeak

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageStrong

Earnings capacity relative to interest payments.

Valuation

82.8/100 (15%)

Pegasystems Inc. appears attractively valued relative to its earnings, cash flows, and sector peers.

Earnings YieldStrong

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowStrong

How many years of FCF the market cap represents.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorWeak

Enterprise value multiple relative to sector median.

Moat

47/100 (25%)

Pegasystems Inc. possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for PEGA.

Score Composition

Quality
72.8×25%18.2
Growth
51.4×20%10.3
Risk
83.2×15%12.5
Valuation
82.8×15%12.4
Moat
47.0×25%11.8
Total
65.1Good

Financial Data

More Stock Analysis

How is the PEGA UQS Score Calculated?

The UQS (Unified Quality Score) for Pegasystems Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Pegasystems Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Pegasystems Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.