Overall PTC gets a fundamental rating of 6 out of 10. We evaluated PTC against 277 industry peers in the Software industry. PTC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. PTC is not valued too expensively and it also shows a decent growth rate. This makes PTC very considerable for quality investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
In the past 5 years PTC has always been profitable.
Each year in the past 5 years PTC had a positive operating cash flow.

1.2 Ratios

PTC's Return On Assets of 11.09% is amongst the best of the industry. PTC outperforms 86.64% of its industry peers.
The Return On Equity of PTC (19.18%) is better than 87.00% of its industry peers.
The Return On Invested Capital of PTC (14.98%) is better than 92.06% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PTC is in line with the industry average of 10.78%.
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

PTC has a Profit Margin of 26.80%. This is amongst the best in the industry. PTC outperforms 87.73% of its industry peers.
In the last couple of years the Profit Margin of PTC has grown nicely.
PTC's Operating Margin of 36.77% is amongst the best of the industry. PTC outperforms 94.95% of its industry peers.
In the last couple of years the Operating Margin of PTC has grown nicely.
Looking at the Gross Margin, with a value of 83.76%, PTC belongs to the top of the industry, outperforming 89.89% of the companies in the same industry.
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

PTC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, PTC has less shares outstanding
Compared to 5 years ago, PTC has more shares outstanding
The debt/assets ratio for PTC has been reduced compared to a year ago.

2.2 Solvency

PTC has an Altman-Z score of 5.61. This indicates that PTC is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.61, PTC is doing good in the industry, outperforming 75.45% of the companies in the same industry.
PTC has a debt to FCF ratio of 1.40. This is a very positive value and a sign of high solvency as it would only need 1.40 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.40, PTC is doing good in the industry, outperforming 72.20% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that PTC is not too dependend on debt financing.
PTC's Debt to Equity ratio of 0.31 is on the low side compared to the rest of the industry. PTC is outperformed by 61.37% 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	0.31
Debt/FCF	1.4
Altman-Z	5.61

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 has a worse Current ratio (1.12) than 70.04% 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.
PTC's Quick ratio of 1.12 is on the low side compared to the rest of the industry. PTC is outperformed by 69.31% of its industry peers.
The current and quick ratio evaluation for PTC is rather negative, while it does have 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

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

PTC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 57.17%, which is quite impressive.
Measured over the past years, PTC shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.59% on average per year.
The Revenue has grown by 19.18% in the past year. This is quite good.
The Revenue has been growing by 13.44% on average over the past years. This is quite good.

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.
The Revenue is expected to grow by 8.23% on average over the next years. This is quite good.

EPS Next Y-1.9%

EPS Next 2Y3.78%

EPS Next 3Y8.17%

EPS Next 5Y6.92%

Revenue Next Year7.51%

Revenue Next 2Y7.94%

Revenue Next 3Y6.99%

Revenue Next 5Y8.23%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 20.27, the valuation of PTC can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of PTC indicates a somewhat cheap valuation: PTC is cheaper than 74.01% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.21, PTC is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 20.66, the valuation of PTC can be described as rather expensive.
71.12% of the companies in the same industry are more expensive than PTC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, PTC is valued at the same level.

		Industry Rank	Sector Rank
PE	20.27
Fwd PE	20.66

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, PTC is valued a bit cheaper than the industry average as 77.62% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PTC indicates a somewhat cheap valuation: PTC is cheaper than 75.81% of the companies listed in the same industry.