PTC INC (PTC) Stock Fundamental Analysis
NASDAQ:PTC - Nasdaq - US69370C1009 - Common Stock - Currency: USD
Taking everything into account, PTC scores 6 out of 10 in our fundamental rating. PTC was compared to 282 industry peers in the Software industry. While PTC has a great profitability rating, there are some minor concerns on its financial health. PTC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
PTC had positive earnings in the past year.
In the past year PTC had a positive cash flow from operations.
PTC had positive earnings in each of the past 5 years.
In the past 5 years PTC always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 7.15%, PTC is doing good in the industry, outperforming 79.43% of the companies in the same industry.
With an excellent Return On Equity value of 13.00%, PTC belongs to the best of the industry, outperforming 81.21% of the companies in the same industry.
PTC's Return On Invested Capital of 9.74% is amongst the best of the industry. PTC outperforms 86.88% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PTC is below the industry average of 12.28%.
The 3 year average ROIC (9.14%) for PTC is below the current ROIC(9.74%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.15% | ||
| ROE | 13% | ||
| ROIC | 9.74% |
ROA(3y)5.49%
ROA(5y)6.18%
ROE(3y)11.5%
ROE(5y)13.4%
ROIC(3y)9.14%
ROIC(5y)8.57%
1.3 Margins
The Profit Margin of PTC (18.77%) is better than 86.52% of its industry peers.
In the last couple of years the Profit Margin of PTC has declined.
With an excellent Operating Margin value of 27.02%, PTC belongs to the best of the industry, outperforming 92.91% of the companies in the same industry.
PTC's Operating Margin has improved in the last couple of years.
PTC has a Gross Margin of 81.13%. This is amongst the best in the industry. PTC outperforms 84.40% of its industry peers.
PTC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.02% | ||
| PM (TTM) | 18.77% | ||
| GM | 81.13% |
OM growth 3Y5.27%
OM growth 5Y22.44%
PM growth 3Y-14.71%
PM growth 5YN/A
GM growth 3Y0.49%
GM growth 5Y1.71%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PTC is destroying value.
The number of shares outstanding for PTC has been increased compared to 1 year ago.
Compared to 5 years ago, PTC has more shares outstanding
The debt/assets ratio for PTC is higher compared to a year ago.
2.2 Solvency
PTC has an Altman-Z score of 6.10. This indicates that PTC is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 6.10, PTC is doing good in the industry, outperforming 72.69% of the companies in the same industry.
PTC has a debt to FCF ratio of 1.70. This is a very positive value and a sign of high solvency as it would only need 1.70 years to pay back of all of its debts.
PTC's Debt to FCF ratio of 1.70 is fine compared to the rest of the industry. PTC outperforms 69.86% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that PTC is not too dependend on debt financing.
PTC's Debt to Equity ratio of 0.40 is on the low side compared to the rest of the industry. PTC is outperformed by 62.06% of its industry peers.
Even though the debt/equity ratio score it not favorable for PTC, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 1.7 | ||
| Altman-Z | 6.1 |
ROIC/WACC0.92
WACC10.64%
2.3 Liquidity
A Current Ratio of 0.99 indicates that PTC may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.99, PTC is doing worse than 74.82% of the companies in the same industry.
PTC has a Quick Ratio of 0.99. This is a bad value and indicates that PTC is not financially healthy enough and could expect problems in meeting its short term obligations.
PTC has a worse Quick ratio (0.99) than 73.76% of its industry peers.
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 | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
PTC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.66%, which is quite good.
The Earnings Per Share has been growing by 23.66% on average over the past years. This is a very strong growth
Looking at the last year, PTC shows a small growth in Revenue. The Revenue has grown by 4.66% in the last year.
The Revenue has been growing by 12.85% on average over the past years. This is quite good.
EPS 1Y (TTM)13.66%
EPS 3Y8.55%
EPS 5Y23.66%
EPS Q2Q%22.6%
Revenue 1Y (TTM)4.66%
Revenue growth 3Y8.35%
Revenue growth 5Y12.85%
Sales Q2Q%5.52%
3.2 Future
Based on estimates for the next years, PTC will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.66% on average per year.
PTC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.60% yearly.
EPS Next Y21.2%
EPS Next 2Y17.15%
EPS Next 3Y15.02%
EPS Next 5Y13.66%
Revenue Next Year9.07%
Revenue Next 2Y9.03%
Revenue Next 3Y9.03%
Revenue Next 5Y9.6%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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
With a Price/Earnings ratio of 35.09, PTC can be considered very expensive at the moment.
Based on the Price/Earnings ratio, PTC is valued a bit cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.41, PTC is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 27.18, the valuation of PTC can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PTC indicates a somewhat cheap valuation: PTC is cheaper than 68.09% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of PTC to the average of the S&P500 Index (35.19), we can say PTC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.09 | ||
| Fwd PE | 27.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PTC indicates a somewhat cheap valuation: PTC is cheaper than 73.40% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PTC is valued a bit cheaper than the industry average as 74.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.91 | ||
| EV/EBITDA | 32.96 |
4.3 Compensation for Growth
PTC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PTC has an outstanding profitability rating, which may justify a higher PE ratio.
PTC's earnings are expected to grow with 15.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.65
PEG (5Y)1.48
EPS Next 2Y17.15%
EPS Next 3Y15.02%
5. Dividend
5.1 Amount
No dividends for PTC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:PTC (7/14/2025, 3:32:05 PM)
189.84
-3.67 (-1.9%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners101.02%
Inst Owner Change0%
Ins Owners0.25%
Ins Owner Change0.29%
Market Cap22.77B
Analysts79.17
Price Target192.29 (1.29%)
Short Float %3.26%
Short Ratio4.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)24.49%
Min EPS beat(2)22.03%
Max EPS beat(2)26.94%
EPS beat(4)4
Avg EPS beat(4)13.77%
Min EPS beat(4)0.67%
Max EPS beat(4)26.94%
EPS beat(8)7
Avg EPS beat(8)11.19%
EPS beat(12)9
Avg EPS beat(12)7.16%
EPS beat(16)12
Avg EPS beat(16)11.53%
Revenue beat(2)2
Avg Revenue beat(2)2.57%
Min Revenue beat(2)1.35%
Max Revenue beat(2)3.79%
Revenue beat(4)2
Avg Revenue beat(4)0.34%
Min Revenue beat(4)-3.75%
Max Revenue beat(4)3.79%
Revenue beat(8)5
Avg Revenue beat(8)0.69%
Revenue beat(12)6
Avg Revenue beat(12)0.06%
Revenue beat(16)9
Avg Revenue beat(16)1.11%
PT rev (1m)0.59%
PT rev (3m)-11.8%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-12.14%
EPS NY rev (1m)0.21%
EPS NY rev (3m)7.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.92%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.09 | ||
| Fwd PE | 27.18 | ||
| P/S | 9.7 | ||
| P/FCF | 27.91 | ||
| P/OCF | 27.38 | ||
| P/B | 6.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 32.96 |
EPS(TTM)5.41
EY2.85%
EPS(NY)6.99
Fwd EY3.68%
FCF(TTM)6.8
FCFY3.58%
OCF(TTM)6.93
OCFY3.65%
SpS19.56
BVpS28.23
TBVpS-7.62
PEG (NY)1.65
PEG (5Y)1.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.15% | ||
| ROE | 13% | ||
| ROCE | 12.64% | ||
| ROIC | 9.74% | ||
| ROICexc | 10.22% | ||
| ROICexgc | 101.54% | ||
| OM | 27.02% | ||
| PM (TTM) | 18.77% | ||
| GM | 81.13% | ||
| FCFM | 34.77% |
ROA(3y)5.49%
ROA(5y)6.18%
ROE(3y)11.5%
ROE(5y)13.4%
ROIC(3y)9.14%
ROIC(5y)8.57%
ROICexc(3y)9.76%
ROICexc(5y)9.28%
ROICexgc(3y)591.51%
ROICexgc(5y)369.55%
ROCE(3y)11.87%
ROCE(5y)11.12%
ROICexcg growth 3Y138.24%
ROICexcg growth 5Y77.71%
ROICexc growth 3Y4.28%
ROICexc growth 5Y14.37%
OM growth 3Y5.27%
OM growth 5Y22.44%
PM growth 3Y-14.71%
PM growth 5YN/A
GM growth 3Y0.49%
GM growth 5Y1.71%
F-Score9
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 1.7 | ||
| Debt/EBITDA | 1.85 | ||
| Cap/Depr | 14.96% | ||
| Cap/Sales | 0.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 112.49% | ||
| Profit Quality | 185.28% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 6.1 |
F-Score9
WACC10.64%
ROIC/WACC0.92
Cap/Depr(3y)23.33%
Cap/Depr(5y)27.66%
Cap/Sales(3y)1.1%
Cap/Sales(5y)1.37%
Profit Quality(3y)187.99%
Profit Quality(5y)158.2%
High Growth Momentum
Growth
EPS 1Y (TTM)13.66%
EPS 3Y8.55%
EPS 5Y23.66%
EPS Q2Q%22.6%
EPS Next Y21.2%
EPS Next 2Y17.15%
EPS Next 3Y15.02%
EPS Next 5Y13.66%
Revenue 1Y (TTM)4.66%
Revenue growth 3Y8.35%
Revenue growth 5Y12.85%
Sales Q2Q%5.52%
Revenue Next Year9.07%
Revenue Next 2Y9.03%
Revenue Next 3Y9.03%
Revenue Next 5Y9.6%
EBIT growth 1Y19.15%
EBIT growth 3Y14.06%
EBIT growth 5Y38.18%
EBIT Next Year28.27%
EBIT Next 3Y15.84%
EBIT Next 5YN/A
FCF growth 1Y57.45%
FCF growth 3Y28.66%
FCF growth 5Y27.09%
OCF growth 1Y52.01%
OCF growth 3Y26.69%
OCF growth 5Y21.34%