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 284 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
In the past year PTC was profitable.
PTC had a positive operating cash flow in the past year.
PTC had positive earnings in each of the past 5 years.
PTC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.90%, PTC is in the better half of the industry, outperforming 78.34% of the companies in the same industry.
With an excellent Return On Equity value of 11.71%, PTC belongs to the best of the industry, outperforming 81.59% of the companies in the same industry.
PTC has a Return On Invested Capital of 9.64%. This is amongst the best in the industry. PTC outperforms 85.56% of its industry peers.
PTC had an Average Return On Invested Capital over the past 3 years of 9.14%. This is below the industry average of 12.13%.
The last Return On Invested Capital (9.64%) for PTC is above the 3 year average (9.14%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.9% | ||
| ROE | 11.71% | ||
| ROIC | 9.64% |
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 16.37%. This is amongst the best in the industry. PTC outperforms 83.39% of its industry peers.
PTC's Profit Margin has declined in the last couple of years.
PTC's Operating Margin of 25.68% is amongst the best of the industry. PTC outperforms 92.42% of its industry peers.
PTC's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 80.65%, PTC belongs to the best of the industry, outperforming 82.67% of the companies in the same industry.
PTC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.68% | ||
| PM (TTM) | 16.37% | ||
| GM | 80.65% |
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.
Compared to 1 year ago, PTC has more shares outstanding
Compared to 5 years ago, PTC has more shares outstanding
PTC has a worse debt/assets ratio than last year.
2.2 Solvency
PTC has an Altman-Z score of 5.21. This indicates that PTC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PTC (5.21) is better than 63.18% of its industry peers.
PTC has a debt to FCF ratio of 2.39. This is a good value and a sign of high solvency as PTC would need 2.39 years to pay back of all of its debts.
PTC has a better Debt to FCF ratio (2.39) than 64.98% of its industry peers.
A Debt/Equity ratio of 0.38 indicates that PTC is not too dependend on debt financing.
PTC has a worse Debt to Equity ratio (0.38) than 64.62% of its industry peers.
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 | 0.38 | ||
| Debt/FCF | 2.39 | ||
| Altman-Z | 5.21 |
ROIC/WACC0.89
WACC10.79%
2.3 Liquidity
PTC has a Current Ratio of 0.78. This is a bad value and indicates that PTC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.78, PTC is not doing good in the industry: 83.75% of the companies in the same industry are doing better.
PTC has a Quick Ratio of 0.78. This is a bad value and indicates that PTC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.78, PTC is not doing good in the industry: 83.75% of the companies in the same industry are doing better.
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 | 0.78 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.90% over the past year.
The Earnings Per Share has been growing by 23.66% on average over the past years. This is a very strong growth
The Revenue has grown by 9.60% in the past year. This is quite good.
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)9.6%
Revenue growth 3Y8.35%
Revenue growth 5Y12.85%
Sales Q2Q%2.71%
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 13.92% on average per year.
PTC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.92% yearly.
EPS Next Y17.48%
EPS Next 2Y16.48%
EPS Next 3Y16.1%
EPS Next 5Y13.92%
Revenue Next Year10.49%
Revenue Next 2Y10.31%
Revenue Next 3Y9.63%
Revenue Next 5Y9.92%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
A Price/Earnings ratio of 37.35 indicates a quite expensive valuation of PTC.
68.23% of the companies in the same industry are more expensive than PTC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.58, PTC is valued a bit more expensive.
A Price/Forward Earnings ratio of 27.48 indicates a quite expensive valuation of PTC.
PTC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PTC is cheaper than 72.56% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 95.03. PTC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.35 | ||
| Fwd PE | 27.48 |
4.2 Price Multiples
73.65% of the companies in the same industry are more expensive than PTC, based on the Enterprise Value to EBITDA ratio.
PTC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PTC is cheaper than 77.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.16 | ||
| EV/EBITDA | 34.76 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of PTC may justify a higher PE ratio.
PTC's earnings are expected to grow with 16.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.14
PEG (5Y)1.58
EPS Next 2Y16.48%
EPS Next 3Y16.1%
5. Dividend
5.1 Amount
No dividends for PTC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PTC INC
NASDAQ:PTC (2/5/2025, 8:22:24 PM)
After market: 184 -5.76 (-3.04%)189.76
-1.31 (-0.69%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.44%
Inst Owner Change-0.11%
Ins Owners1.1%
Ins Owner Change1.12%
Market Cap22.80B
Analysts80.83
Price Target220.85 (16.38%)
Short Float %2.13%
Short Ratio3.08
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)3.05%
Min EPS beat(2)0.67%
Max EPS beat(2)5.44%
EPS beat(4)4
Avg EPS beat(4)9.45%
Min EPS beat(4)0.67%
Max EPS beat(4)17.56%
EPS beat(8)6
Avg EPS beat(8)4.61%
EPS beat(12)8
Avg EPS beat(12)3.97%
EPS beat(16)12
Avg EPS beat(16)14.68%
Revenue beat(2)0
Avg Revenue beat(2)-1.89%
Min Revenue beat(2)-3.75%
Max Revenue beat(2)-0.03%
Revenue beat(4)2
Avg Revenue beat(4)0.22%
Min Revenue beat(4)-3.75%
Max Revenue beat(4)3.57%
Revenue beat(8)3
Avg Revenue beat(8)-0.3%
Revenue beat(12)5
Avg Revenue beat(12)-0.26%
Revenue beat(16)9
Avg Revenue beat(16)2.09%
PT rev (1m)0.88%
PT rev (3m)7.74%
EPS NQ rev (1m)-0.28%
EPS NQ rev (3m)-33.95%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)1.43%
Revenue NQ rev (1m)-0.56%
Revenue NQ rev (3m)-9.89%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.35 | ||
| Fwd PE | 27.48 | ||
| P/S | 9.92 | ||
| P/FCF | 31.16 | ||
| P/OCF | 30.4 | ||
| P/B | 7.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 34.76 |
EPS(TTM)5.08
EY2.68%
EPS(NY)6.91
Fwd EY3.64%
FCF(TTM)6.09
FCFY3.21%
OCF(TTM)6.24
OCFY3.29%
SpS19.13
BVpS26.76
TBVpS-9.53
PEG (NY)2.14
PEG (5Y)1.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.9% | ||
| ROE | 11.71% | ||
| ROCE | 12.52% | ||
| ROIC | 9.64% | ||
| ROICexc | 10.22% | ||
| ROICexgc | 498.88% | ||
| OM | 25.68% | ||
| PM (TTM) | 16.37% | ||
| GM | 80.65% | ||
| FCFM | 31.83% |
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-Score8
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 2.39 | ||
| Debt/EBITDA | 1.76 | ||
| Cap/Depr | 16.99% | ||
| Cap/Sales | 0.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 107.37% | ||
| Profit Quality | 194.41% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 5.21 |
F-Score8
WACC10.79%
ROIC/WACC0.89
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 Y17.48%
EPS Next 2Y16.48%
EPS Next 3Y16.1%
EPS Next 5Y13.92%
Revenue 1Y (TTM)9.6%
Revenue growth 3Y8.35%
Revenue growth 5Y12.85%
Sales Q2Q%2.71%
Revenue Next Year10.49%
Revenue Next 2Y10.31%
Revenue Next 3Y9.63%
Revenue Next 5Y9.92%
EBIT growth 1Y23.84%
EBIT growth 3Y14.06%
EBIT growth 5Y38.18%
EBIT Next Year27.69%
EBIT Next 3Y18.16%
EBIT Next 5YN/A
FCF growth 1Y24.79%
FCF growth 3Y28.66%
FCF growth 5Y27.09%
OCF growth 1Y22.77%
OCF growth 3Y26.69%
OCF growth 5Y21.34%