Pegasystems Inc. cash flow to debt ratio of 665.06% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

Pegasystems Inc.'s free cash flow has increased 45.09% from $338.21M last year to $490.72M, signaling increasing performance

Pegasystems Inc.'s debt to equity ratio is 0.10, which means that the company's assets are healthy financed, signaling financial stability.

Pegasystems Inc.'s debt has decreased relative to shareholder equity from 0.94 last year to 0.10 today, signaling strengthened financials

Pegasystems Inc. has a net cash position, so leverage is healthy.

Pegasystems Inc. earns at least as much interest as it pays. Interest obligations are fully covered.

Pegasystems Inc.'s profit margin has increased (181.69%) in the last year from 6.63% to 18.66%, signaling increasing performance

Pegasystems Inc.'s short-term assets of $978.29M exceed its short-term liabilities of $737.78M

Pegasystems Inc.'s return on assets of 23.41% is higher than the 5.00% threshold, indicating efficient asset utilization

Pegasystems Inc.'s return on equity of 48.90%, is higher than 15.00%, indicating good performance

Pegasystems Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Pegasystems Inc. had positive net income in 3 out of 5 years, indicating stable and consistent earnings

Pegasystems Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Pegasystems Inc. has a free cash flow yield of 9.04%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Pegasystems Inc.'s yearly earnings has increased 296.65% since last year from $99.19M to $393.44M, signaling increasing performance

Pegasystems Inc.'s yearly revenue has increased 16.61% since last year from $1.50B to $1.75B, signaling increasing performance

ROIC 25.97% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Pegasystems Inc.'s 3-year revenue CAGR of 9.83% is positive, indicating growing revenue over the past 3 years

Pegasystems Inc. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Pegasystems Inc. had positive ROE in 3 out of 5 years, indicating consistent and reliable returns on equity

Pegasystems Inc. has insufficient data to evaluate this check.

Pegasystems Inc. has an earnings yield of 5.87%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Pegasystems Inc. is overvalued relative to its fair value price of 13.50 based on EBITDA multiple model

Pegasystems Inc. has an EV/EBITDA ratio of 16.49x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Pegasystems Inc. is overvalued relative to its fair value price of 8.62 based on Earnings Fair Value model

Pegasystems Inc. had non-positive diluted EPS five years ago; the PEG ratio is not meaningful and the check fails.

Pegasystems Inc. has a price-to-book ratio of 9.85x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Pegasystems Inc. has a price-to-sales ratio of 3.18x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue