PTC INC (PTC) Stock Fundamental Analysis
NASDAQ:PTC - Nasdaq - US69370C1009 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to PTC. PTC was compared to 281 industry peers in the Software industry. PTC has an excellent profitability rating, but there are some minor concerns on its financial health. PTC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year PTC was profitable.
In the past year PTC had a positive cash flow from operations.
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
The Return On Assets of PTC (6.46%) is better than 80.07% of its industry peers.
PTC has a Return On Equity of 12.14%. This is amongst the best in the industry. PTC outperforms 81.49% of its industry peers.
PTC has a better Return On Invested Capital (10.00%) than 86.48% of its industry peers.
PTC had an Average Return On Invested Capital over the past 3 years of 9.14%. This is in line with the industry average of 10.86%.
The 3 year average ROIC (9.14%) for PTC is below the current ROIC(10.00%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.46% | ||
| ROE | 12.14% | ||
| ROIC | 10% |
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
PTC has a Profit Margin of 16.95%. This is amongst the best in the industry. PTC outperforms 82.56% of its industry peers.
PTC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 25.32%, PTC belongs to the top of the industry, outperforming 91.81% of the companies in the same industry.
In the last couple of years the Operating Margin of PTC has grown nicely.
PTC's Gross Margin of 80.70% is amongst the best of the industry. PTC outperforms 83.27% of its industry peers.
PTC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.32% | ||
| PM (TTM) | 16.95% | ||
| GM | 80.7% |
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
PTC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, PTC has more shares outstanding
The number of shares outstanding for PTC has been increased compared to 5 years ago.
The debt/assets ratio for PTC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.06 indicates that PTC is not in any danger for bankruptcy at the moment.
PTC has a Altman-Z score of 5.06. This is in the better half of the industry: PTC outperforms 68.33% of its industry peers.
PTC has a debt to FCF ratio of 1.97. This is a very positive value and a sign of high solvency as it would only need 1.97 years to pay back of all of its debts.
The Debt to FCF ratio of PTC (1.97) is better than 66.19% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that PTC is not too dependend on debt financing.
The Debt to Equity ratio of PTC (0.32) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.97 | ||
| Altman-Z | 5.06 |
ROIC/WACC0.79
WACC12.58%
2.3 Liquidity
A Current Ratio of 0.69 indicates that PTC may have some problems paying its short term obligations.
PTC's Current ratio of 0.69 is on the low side compared to the rest of the industry. PTC is outperformed by 86.48% of its industry peers.
PTC has a Quick Ratio of 0.69. This is a bad value and indicates that PTC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of PTC (0.69) is worse than 85.77% 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 | 0.69 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
PTC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.90%, 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
PTC shows a small growth in Revenue. In the last year, the Revenue has grown by 6.05%.
The Revenue has been growing by 12.85% on average over the past years. This is quite good.
EPS 1Y (TTM)13.9%
EPS 3Y8.55%
EPS 5Y23.66%
EPS Q2Q%-0.9%
Revenue 1Y (TTM)6.05%
Revenue growth 3Y8.35%
Revenue growth 5Y12.85%
Sales Q2Q%2.71%
3.2 Future
PTC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.92% yearly.
The Revenue is expected to grow by 9.92% on average over the next years. This is quite good.
EPS Next Y13.15%
EPS Next 2Y15.92%
EPS Next 3Y15.79%
EPS Next 5Y13.92%
Revenue Next Year8.55%
Revenue Next 2Y9.38%
Revenue Next 3Y9.26%
Revenue Next 5Y9.92%
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
PTC is valuated quite expensively with a Price/Earnings ratio of 32.02.
Based on the Price/Earnings ratio, PTC is valued a bit cheaper than 67.26% of the companies in the same industry.
PTC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 23.78, the valuation of PTC can be described as rather expensive.
PTC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PTC is cheaper than 72.60% of the companies in the same industry.
PTC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.02 | ||
| Fwd PE | 23.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PTC is valued a bit cheaper than 75.80% of the companies in the same industry.
PTC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PTC is cheaper than 76.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.95 | ||
| EV/EBITDA | 30.21 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PTC does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of PTC may justify a higher PE ratio.
A more expensive valuation may be justified as PTC's earnings are expected to grow with 15.79% in the coming years.
PEG (NY)2.43
PEG (5Y)1.35
EPS Next 2Y15.92%
EPS Next 3Y15.79%
5. Dividend
5.1 Amount
PTC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
162.65
+2.09 (+1.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners99.9%
Inst Owner Change0.29%
Ins Owners0.26%
Ins Owner Change1.72%
Market Cap19.57B
Analysts80.83
Price Target220.62 (35.64%)
Short Float %2%
Short Ratio2.24
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)13.73%
Min EPS beat(2)5.44%
Max EPS beat(2)22.03%
EPS beat(4)4
Avg EPS beat(4)11.42%
Min EPS beat(4)0.67%
Max EPS beat(4)22.03%
EPS beat(8)7
Avg EPS beat(8)7.94%
EPS beat(12)9
Avg EPS beat(12)6.66%
EPS beat(16)12
Avg EPS beat(16)13.14%
Revenue beat(2)1
Avg Revenue beat(2)0.66%
Min Revenue beat(2)-0.03%
Max Revenue beat(2)1.35%
Revenue beat(4)2
Avg Revenue beat(4)0.29%
Min Revenue beat(4)-3.75%
Max Revenue beat(4)3.57%
Revenue beat(8)4
Avg Revenue beat(8)0.17%
Revenue beat(12)6
Avg Revenue beat(12)0.02%
Revenue beat(16)9
Avg Revenue beat(16)1.49%
PT rev (1m)-0.1%
PT rev (3m)2.1%
EPS NQ rev (1m)-13.87%
EPS NQ rev (3m)-15.49%
EPS NY rev (1m)-3.68%
EPS NY rev (3m)-3.96%
Revenue NQ rev (1m)-6.5%
Revenue NQ rev (3m)-7.45%
Revenue NY rev (1m)-1.76%
Revenue NY rev (3m)-2.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.02 | ||
| Fwd PE | 23.78 | ||
| P/S | 8.46 | ||
| P/FCF | 24.95 | ||
| P/OCF | 24.43 | ||
| P/B | 6.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 30.21 |
EPS(TTM)5.08
EY3.12%
EPS(NY)6.84
Fwd EY4.2%
FCF(TTM)6.52
FCFY4.01%
OCF(TTM)6.66
OCFY4.09%
SpS19.23
BVpS26.84
TBVpS-8.86
PEG (NY)2.43
PEG (5Y)1.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.46% | ||
| ROE | 12.14% | ||
| ROCE | 12.97% | ||
| ROIC | 10% | ||
| ROICexc | 10.45% | ||
| ROICexgc | 2045.64% | ||
| OM | 25.32% | ||
| PM (TTM) | 16.95% | ||
| GM | 80.7% | ||
| FCFM | 33.91% |
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-Score7
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.97 | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | 15.53% | ||
| Cap/Sales | 0.72% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 115.7% | ||
| Profit Quality | 200.04% | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 5.06 |
F-Score7
WACC12.58%
ROIC/WACC0.79
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)13.9%
EPS 3Y8.55%
EPS 5Y23.66%
EPS Q2Q%-0.9%
EPS Next Y13.15%
EPS Next 2Y15.92%
EPS Next 3Y15.79%
EPS Next 5Y13.92%
Revenue 1Y (TTM)6.05%
Revenue growth 3Y8.35%
Revenue growth 5Y12.85%
Sales Q2Q%2.71%
Revenue Next Year8.55%
Revenue Next 2Y9.38%
Revenue Next 3Y9.26%
Revenue Next 5Y9.92%
EBIT growth 1Y20.33%
EBIT growth 3Y14.06%
EBIT growth 5Y38.18%
EBIT Next Year27.69%
EBIT Next 3Y18.16%
EBIT Next 5YN/A
FCF growth 1Y75.42%
FCF growth 3Y28.66%
FCF growth 5Y27.09%
OCF growth 1Y67.41%
OCF growth 3Y26.69%
OCF growth 5Y21.34%