Progress Software Corporation — Earnings Quality Grade F
PRGS · Technology
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 73 days, change -6 days YoY
AR growth 19.7% vs revenue growth 29.8%
Revenue 29.8%, CFFO 11.2%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth 9.5% vs revenue 29.8%. Normal
SG&A/Gross Profit = 40.4%. Normal
Gross margin 80.8%, change -1.9pp. Stable
Cash Flow Quality
CFFO/NI = 3.22. Profits backed by cash
FCF $0.2B, FCF/NI = 3.14
Accruals ratio = -6.6%. Low accruals
Cash $0.1B covers only 7% of debt $1.4B
Balance Sheet Health
Goodwill+Intangibles $1.9B = 396% of equity. Over 50%
Debt/EBITDA = 4.7x (>4x). Financial stress
Other assets 39.3% vs revenue 29.8%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 2/3 years
Goodwill+Intangibles change -6% YoY. Normal
Manipulation Score
M-Score = -2.58 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
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Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25