153.015 USD
-8.9 (-5.49%)
Taking everything into account, PTC scores 7 out of 10 in our fundamental rating. PTC was compared to 278 industry peers in the Software industry. PTC gets an excellent profitability rating and is at the same time showing great financial health properties. PTC is not valued too expensively and it also shows a decent growth rate. These ratings could make PTC a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
- PTC had positive earnings in the past year.
- PTC had a positive operating cash flow in the past year.
- Each year in the past 5 years PTC has been profitable.
- PTC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- PTC's Return On Assets of 11.09% is amongst the best of the industry. PTC outperforms 86.69% of its industry peers.
- PTC's Return On Equity of 19.18% is amongst the best of the industry. PTC outperforms 87.05% of its industry peers.
- PTC's Return On Invested Capital of 14.98% is amongst the best of the industry. PTC outperforms 92.09% of its industry peers.
- PTC had an Average Return On Invested Capital over the past 3 years of 11.08%. This is in line with the industry average of 10.76%.
- The last Return On Invested Capital (14.98%) for PTC is above the 3 year average (11.08%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.09% | ||
| ROE | 19.18% | ||
| ROIC | 14.98% |
ROA(3y)6.96%
ROA(5y)7.63%
ROE(3y)13.35%
ROE(5y)15.42%
ROIC(3y)11.08%
ROIC(5y)10.4%
1.3 Margins
- With an excellent Profit Margin value of 26.80%, PTC belongs to the best of the industry, outperforming 87.77% of the companies in the same industry.
- PTC's Profit Margin has improved in the last couple of years.
- PTC's Operating Margin of 36.77% is amongst the best of the industry. PTC outperforms 94.96% of its industry peers.
- In the last couple of years the Operating Margin of PTC has grown nicely.
- PTC has a Gross Margin of 83.76%. This is amongst the best in the industry. PTC outperforms 89.93% of its industry peers.
- PTC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.77% | ||
| PM (TTM) | 26.8% | ||
| GM | 83.76% |
OM growth 3Y12.68%
OM growth 5Y16.28%
PM growth 3Y18.28%
PM growth 5Y24.49%
GM growth 3Y1.52%
GM growth 5Y1.68%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PTC is creating some value.
- Compared to 1 year ago, PTC has less shares outstanding
- Compared to 5 years ago, PTC has more shares outstanding
- PTC has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 5.54 indicates that PTC is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 5.54, PTC is doing good in the industry, outperforming 75.90% of the companies in the same industry.
- The Debt to FCF ratio of PTC is 1.40, which is an excellent value as it means it would take PTC, only 1.40 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of PTC (1.40) is better than 71.94% of its industry peers.
- PTC has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of PTC (0.31) is worse than 61.51% of its industry peers.
- Although PTC does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.4 | ||
| Altman-Z | 5.54 |
ROIC/WACC1.36
WACC11%
2.3 Liquidity
- PTC has a Current Ratio of 1.12. This is a normal value and indicates that PTC is financially healthy and should not expect problems in meeting its short term obligations.
- PTC's Current ratio of 1.12 is on the low side compared to the rest of the industry. PTC is outperformed by 69.42% of its industry peers.
- PTC has a Quick Ratio of 1.12. This is a normal value and indicates that PTC is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.12, PTC is not doing good in the industry: 68.70% of the companies in the same industry are doing better.
- PTC does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 57.17% over the past year.
- The Earnings Per Share has been growing by 25.59% on average over the past years. This is a very strong growth
- PTC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.18%.
- PTC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.44% yearly.
EPS 1Y (TTM)57.17%
EPS 3Y20.43%
EPS 5Y25.59%
EPS Q2Q%125.32%
Revenue 1Y (TTM)19.18%
Revenue growth 3Y12.32%
Revenue growth 5Y13.44%
Sales Q2Q%42.65%
3.2 Future
- Based on estimates for the next years, PTC will show a small growth in Earnings Per Share. The EPS will grow by 6.92% on average per year.
- PTC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.23% yearly.
EPS Next Y-1.03%
EPS Next 2Y4.3%
EPS Next 3Y6.68%
EPS Next 5Y6.92%
Revenue Next Year7.51%
Revenue Next 2Y7.94%
Revenue Next 3Y6.99%
Revenue Next 5Y8.23%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 19.13, which indicates a rather expensive current valuation of PTC.
- PTC's Price/Earnings ratio is a bit cheaper when compared to the industry. PTC is cheaper than 73.02% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, PTC is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 19.33, the valuation of PTC can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, PTC is valued a bit cheaper than the industry average as 71.58% of the companies are valued more expensively.
- PTC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.13 | ||
| Fwd PE | 19.33 |
4.2 Price Multiples
- PTC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PTC is cheaper than 77.70% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, PTC is valued a bit cheaper than 75.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.34 | ||
| EV/EBITDA | 18.34 |
4.3 Compensation for Growth
- PTC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.75
EPS Next 2Y4.3%
EPS Next 3Y6.68%
5. Dividend
5.1 Amount
- No dividends for PTC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
PTC INC / PTC FAQ
Can you provide the ChartMill fundamental rating for PTC INC?
ChartMill assigns a fundamental rating of 7 / 10 to PTC.
What is the valuation status of PTC INC (PTC) stock?
ChartMill assigns a valuation rating of 5 / 10 to PTC INC (PTC). This can be considered as Fairly Valued.
How profitable is PTC INC (PTC) stock?
PTC INC (PTC) has a profitability rating of 9 / 10.
What is the financial health of PTC INC (PTC) stock?
The financial health rating of PTC INC (PTC) is 7 / 10.
Can you provide the expected EPS growth for PTC stock?
The Earnings per Share (EPS) of PTC INC (PTC) is expected to decline by -1.03% in the next year.