156.13 USD
+2.65 (+1.73%)
At close: Jan 30, 2026
156.13 USD
0 (0%)
After Hours: 1/30/2026, 8:14:08 PM
We assign a fundamental rating of 7 out of 10 to PTC. PTC was compared to 278 industry peers in the Software industry. PTC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. PTC has a correct valuation and a medium growth rate. This makes PTC very considerable for quality investing!
1. Profitability
1.1 Basic Checks
- In the past year PTC was profitable.
- PTC had a positive operating cash flow in the past year.
- In the past 5 years PTC has always 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 has a better Return On Equity (19.18%) than 87.05% of its industry peers.
- With an excellent Return On Invested Capital value of 14.98%, PTC belongs to the best of the industry, outperforming 92.09% of the companies in the same industry.
- 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 10.73%.
- The 3 year average ROIC (11.08%) for PTC is below the current ROIC(14.98%), indicating increased profibility in the last year.
| 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 better Profit Margin (26.80%) than 87.77% of its industry peers.
- PTC's Profit Margin has improved in the last couple of years.
- PTC has a Operating Margin of 36.77%. This is amongst the best in the industry. PTC outperforms 94.96% of its industry peers.
- In the last couple of years the Operating Margin of PTC has grown nicely.
- With an excellent Gross Margin value of 83.76%, PTC belongs to the best of the industry, outperforming 89.93% 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%
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
- The debt/assets ratio for PTC has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 5.32 indicates that PTC is not in any danger for bankruptcy at the moment.
- PTC has a Altman-Z score of 5.32. This is in the better half of the industry: PTC outperforms 75.18% of its industry peers.
- 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.
- PTC has a better Debt to FCF ratio (1.40) 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.
- With a Debt to Equity ratio value of 0.31, PTC is not doing good in the industry: 61.51% of the companies in the same industry are doing better.
- 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 | 5.32 |
ROIC/WACC1.36
WACC10.98%
2.3 Liquidity
- A Current Ratio of 1.12 indicates that PTC should not have too much problems paying 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.
- The Quick ratio of PTC (1.12) is worse than 68.70% 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 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 57.17% over the past year.
- PTC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.59% yearly.
- PTC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.18%.
- Measured over the past years, PTC shows a quite strong growth in Revenue. The Revenue has been growing by 13.44% on average per year.
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
- PTC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.92% yearly.
- Based on estimates for the next years, PTC will show a quite strong growth in Revenue. The Revenue will grow by 8.23% on average per year.
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- PTC is valuated rather expensively with a Price/Earnings ratio of 19.52.
- 74.46% of the companies in the same industry are more expensive than PTC, based on the Price/Earnings ratio.
- PTC is valuated rather cheaply when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 19.72, PTC is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, PTC is valued a bit cheaper than 71.58% of the companies in the same industry.
- PTC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.52 | ||
| Fwd PE | 19.72 |
4.2 Price Multiples
- PTC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PTC is cheaper than 78.42% 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 | 21.77 | ||
| EV/EBITDA | 17.43 |
4.3 Compensation for Growth
- The excellent profitability rating of PTC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.76
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.