PEGA PEGA

Name: PEGA Crucible Score
Creator: Kaladin Capital Intelligence

UnknownUnknownN/A📅 Scored April 7, 2026

Price at analysis: $42.69

Crucible Score

75.2

B+

Quality × Value Composite

KQI — Quality

78.3

A-

Fundamental Quality Index

KVI — Value

71.4

Valuation Attractiveness Index

Crucible Verdict — PEGA

Pegasystems (PEGA) demonstrates solid fundamentals with a strong competitive moat (83 rating) and effective management under CEO Craig Conway, though its market position lags at just 58. The stock trades at a meaningful 24% discount to fair value despite consistent earnings beats. PEGA's durable advantages in workflow automation should drive multiple expansion as market recognition improves.

— Kal, Kaladin Capital Intelligence

◆ KQI Quality Dimensions

Financial Quality

79.1

Growth Profile

72.6

Moat Durability

83.3

Management Effectiveness

79.5

Diversification & Resilience

79.2

Market Position

58.0

Weakest dimension: Market Position (58.0)

◆ KVI Value Dimensions

DCF Margin of Safety

69.0

FCF Yield & Cash Returns

82.1

Relative Valuation

77.0

Growth-Adjusted Value

37.2

Historical Valuation

94.5

Macro Context

88.1

◆ DCF Valuation Scenarios

Bear Case

$33.12

Base Case

$52.78

Bull Case

$79.45

Price at Analysis

$42.69

Scenario	Fair Value	Rev CAGR (5yr)	Terminal Margin	WACC
🔴 Bear	$33.12	6.0%	18.0%	10.5%
🟢 Base	$52.78	9.0%	22.0%	9.7%
🟢 Bull	$79.45	12.0%	26.0%	9.0%

Key Assumptions: PEGA has shown a strong recovery from negative operating margins to 15% most recently, with revenue growing from ~$1.2B to ~$1.75B over 5 years (~7.6% CAGR). FCF conversion has been excellent in the latest year ($491M on $1.75B revenue), driven by the cloud subscription transition completing. Tax rate normalized to 20% given historical volatility from NOL utilization and deferred tax adjustments; operating margins projected to expand toward 18-26% terminal range reflecting software scalability but tempered by continued R&D and sales investment in AI/automation platform.

◆ Financial Snapshot

Profitability

Gross Margin75.9%

Operating Margin15.1%

Net Margin22.5%

ROIC24.6%

ROE-20.3%

Balance Sheet

Balance SheetCR: 1.33

Cash ConversionFCF/EPS: 1.25x

Capital IntensityCapex/Rev: 0.8%

Altman Z-Score7.35 (Safe)

Piotroski F-Score8/9 (Strong)

Growth

Revenue CAGR9.6% CAGR

Earnings CAGR85.9% CAGR

Growth ConsistencyCV: 0.52

Segment Breadth3/4 growing (75%)

Quarterly TrendRev∆, Margin↑, Exp↓

Earnings CredibilityConsistent Beater

◆ Analyst Consensus & Leadership

Leadership & Governance

CEOCraig Conway · 3 years

CEO Ownership49.7%

Compensation98% performance-based

Insider ActivitySelling

Capital AllocationROIC 24.6% vs WACC 1.3%

Earnings Beat Rate79% (17/22)

◆ Related Companies in Our Universe

Other Unknown companies scored by the Crucible:

ADBE81.8A-NICE80.7A-DECK79.9A-INTU79.9A-EXEL78.3A-MTCH78.2A-TTD78.0B+

Methodology All Scores Crucible Briefs Performance @KaladinCI

Analysis conducted April 7, 2026 based on most recent SEC filings. Updated quarterly, after new SEC filings.

Point-in-time fundamental analysis. Not investment advice. Scores reflect company quality and valuation at time of analysis and may not reflect current market conditions.