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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. PTC has a decent growth rate and is not valued too expensively. These ratings could make PTC a good candidate for quality investing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
In the past 5 years PTC always reported a positive cash flow from operatings.

1.2 Ratios

With an excellent Return On Assets value of 11.09%, PTC belongs to the best of the industry, outperforming 86.69% of the companies in the same industry.
Looking at the Return On Equity, with a value of 19.18%, PTC belongs to the top of the industry, outperforming 87.05% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.98%, PTC belongs to the top 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

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.
Looking at the Operating Margin, with a value of 36.77%, PTC belongs to the top of the industry, outperforming 94.96% of the companies in the same industry.
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 89.93% of the companies in the same industry.
In the last couple of years the Gross Margin of PTC has grown nicely.

		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

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PTC is still creating some value.
Compared to 1 year ago, PTC has less shares outstanding
PTC has more shares outstanding than it did 5 years ago.
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.
With a decent Debt to FCF ratio value of 1.40, PTC is doing good in the industry, outperforming 71.94% 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 has a Debt to Equity ratio of 0.31. This is in the lower half of the industry: PTC underperforms 61.51% 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	5.32

ROIC/WACC1.36

WACC11.01%

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.
Looking at the Current ratio, with a value of 1.12, PTC is doing worse than 69.42% of the companies in the same industry.
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 has a Quick ratio of 1.12. This is in the lower half of the industry: PTC underperforms 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

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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.
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.
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.
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

The Price/Earnings ratio is 19.18, which indicates a rather expensive current valuation of PTC.
Based on the Price/Earnings ratio, PTC is valued a bit cheaper than 74.46% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.39. PTC is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 19.38, 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.
The average S&P500 Price/Forward Earnings ratio is at 25.72. PTC is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	19.18
Fwd PE	19.38

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.