Pros Holdings Inc's Meteoric Rise: Unpacking the 23% Surge in Just 3 Months

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Pros Holdings Inc (PRO, Financial), a leading provider of cloud-based revenue and profit realization software solutions, has seen a significant surge in its stock price over the past three months. The company's stock price has risen by 22.70%, from $28.01 to $36.84, with a market cap of $1.7 billion. Despite a slight dip of 0.91% over the past week, the overall upward trend is noteworthy. The current GF Value of the company is $34.13, indicating that the stock is fairly valued. This is a shift from three months ago when the stock was modestly undervalued with a GF Value of $35.44. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates.

Company Overview

Pros Holdings Inc operates in the software industry, offering cloud-based solutions to business-to-business and business-to-consumer companies. The company's solutions leverage prescriptive analytics and data science-based decision-making technology to assist customers in growing revenue, modernizing business processes, and supporting profitability. Pros Holdings Inc has a global presence, generating revenue in the United States, Europe, Africa, Asia-Pacific, and Middle East regions. 1696904550511804416.png

Profitability Analysis

Pros Holdings Inc's Profitability Rank stands at 3/10, indicating a need for improvement. The company's operating margin is -21.78%, better than 26.17% of companies in the same industry. The ROA is -14.13%, outperforming 25.94% of companies, while the ROIC is -19.15%, better than 25.29% of companies. Over the past 10 years, the company has been profitable for only one year, better than 9.95% of companies. 1696904572397682688.png

Growth Prospects

The company's Growth Rank is 3/10, indicating a need for improvement in terms of revenue and profitability growth. The 3-year revenue growth rate per share is -0.70%, better than 28.8% of companies, while the 5-year revenue growth rate per share is 1.70%, outperforming 35.68% of companies. The future total revenue growth rate is estimated to be 8.56%, better than 37.47% of companies. The 3-year EPS without NRI growth rate is -1.90%, better than 37.35% of companies, while the 5-year EPS without NRI growth rate is 4.30%, outperforming 34.51% of companies. 1696904589061652480.png

Major Stock Holders

PRIMECAP Management (Trades, Portfolio) is the top holder of Pros Holdings Inc stock, holding 308,740 shares, which accounts for 0.67% of the company's shares. Chuck Royce (Trades, Portfolio) holds the second-largest number of shares, with 254,971 shares, accounting for 0.55% of the company's shares. Jim Simons (Trades, Portfolio) holds the third-largest number of shares, with 74,600 shares, accounting for 0.16% of the company's shares.

Competitive Landscape

Pros Holdings Inc faces competition from several companies within the software industry. Sapiens International Corp NV (SPNS, Financial) with a stock market cap of $1.66 billion, Alkami Technology Inc (ALKT, Financial) with a stock market cap of $1.64 billion, and Diebold Nixdorf Inc (DBD, Financial) with a stock market cap of $4.159 million are among the top competitors.

Conclusion

In conclusion, Pros Holdings Inc has shown a significant surge in its stock price over the past three months. Despite a slight dip over the past week, the overall upward trend is noteworthy. However, the company's profitability and growth ranks indicate a need for improvement. The company faces stiff competition within the software industry, but its global presence and innovative solutions position it well for future growth.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.