BENTLEY SYSTEMS INC-CLASS B (BSY) Stock Fundamental Analysis
NASDAQ:BSY - Nasdaq - US08265T2087 - Common Stock - Currency: USD
BSY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 284 industry peers in the Software industry. While BSY belongs to the best of the industry regarding profitability, there are concerns on its financial health. BSY is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
BSY had positive earnings in the past year.
In the past year BSY had a positive cash flow from operations.
BSY had positive earnings in each of the past 5 years.
Each year in the past 5 years BSY had a positive operating cash flow.
1.2 Ratios
BSY's Return On Assets of 7.52% is amongst the best of the industry. BSY outperforms 81.34% of its industry peers.
BSY has a better Return On Equity (23.30%) than 88.38% of its industry peers.
BSY has a better Return On Invested Capital (10.70%) than 87.32% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BSY is below the industry average of 12.36%.
The 3 year average ROIC (8.00%) for BSY is below the current ROIC(10.70%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.52% | ||
| ROE | 23.3% | ||
| ROIC | 10.7% |
ROA(3y)7.42%
ROA(5y)7.4%
ROE(3y)30.01%
ROE(5y)29.96%
ROIC(3y)8%
ROIC(5y)10.54%
1.3 Margins
BSY's Profit Margin of 18.46% is amongst the best of the industry. BSY outperforms 85.56% of its industry peers.
In the last couple of years the Profit Margin of BSY has grown nicely.
BSY has a better Operating Margin (24.11%) than 91.20% of its industry peers.
BSY's Operating Margin has improved in the last couple of years.
BSY has a better Gross Margin (81.12%) than 84.15% of its industry peers.
BSY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.11% | ||
| PM (TTM) | 18.46% | ||
| GM | 81.12% |
OM growth 3Y5.52%
OM growth 5Y3.69%
PM growth 3Y21.55%
PM growth 5Y4.39%
GM growth 3Y1.43%
GM growth 5Y0.13%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BSY is creating some value.
Compared to 1 year ago, BSY has more shares outstanding
The number of shares outstanding for BSY has been increased compared to 5 years ago.
The debt/assets ratio for BSY has been reduced compared to a year ago.
2.2 Solvency
BSY has an Altman-Z score of 4.56. This indicates that BSY is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.56, BSY is doing good in the industry, outperforming 68.66% of the companies in the same industry.
The Debt to FCF ratio of BSY is 2.85, which is a good value as it means it would take BSY, 2.85 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.85, BSY is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
A Debt/Equity ratio of 1.13 is on the high side and indicates that BSY has dependencies on debt financing.
With a Debt to Equity ratio value of 1.13, BSY is not doing good in the industry: 74.65% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 2.85 | ||
| Altman-Z | 4.56 |
ROIC/WACC1.29
WACC8.32%
2.3 Liquidity
A Current Ratio of 0.49 indicates that BSY may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.49, BSY is doing worse than 90.49% of the companies in the same industry.
A Quick Ratio of 0.49 indicates that BSY may have some problems paying its short term obligations.
BSY has a worse Quick ratio (0.49) than 90.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
BSY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.43%, which is quite good.
The Earnings Per Share has been growing by 12.41% on average over the past years. This is quite good.
BSY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.72%.
BSY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.93% yearly.
EPS 1Y (TTM)14.43%
EPS 3Y8.4%
EPS 5Y12.41%
EPS Q2Q%12.9%
Revenue 1Y (TTM)10.72%
Revenue growth 3Y11.93%
Revenue growth 5Y12.93%
Sales Q2Q%9.7%
3.2 Future
BSY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.77% yearly.
The Revenue is expected to grow by 9.11% on average over the next years. This is quite good.
EPS Next Y11.41%
EPS Next 2Y12.24%
EPS Next 3Y14.01%
EPS Next 5Y14.77%
Revenue Next Year9.8%
Revenue Next 2Y10.06%
Revenue Next 3Y9.77%
Revenue Next 5Y9.11%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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
BSY is valuated quite expensively with a Price/Earnings ratio of 45.70.
Compared to the rest of the industry, the Price/Earnings ratio of BSY indicates a somewhat cheap valuation: BSY is cheaper than 61.97% of the companies listed in the same industry.
BSY's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.34.
BSY is valuated quite expensively with a Price/Forward Earnings ratio of 37.63.
The rest of the industry has a similar Price/Forward Earnings ratio as BSY.
When comparing the Price/Forward Earnings ratio of BSY to the average of the S&P500 Index (21.03), we can say BSY is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.7 | ||
| Fwd PE | 37.63 |
4.2 Price Multiples
BSY's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BSY is cheaper than 68.31% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BSY indicates a somewhat cheap valuation: BSY is cheaper than 70.07% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.28 | ||
| EV/EBITDA | 41.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
BSY has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as BSY's earnings are expected to grow with 14.01% in the coming years.
PEG (NY)4
PEG (5Y)3.68
EPS Next 2Y12.24%
EPS Next 3Y14.01%
5. Dividend
5.1 Amount
With a yearly dividend of 0.55%, BSY is not a good candidate for dividend investing.
BSY's Dividend Yield is rather good when compared to the industry average which is at 16.54. BSY pays more dividend than 91.20% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, BSY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
5.2 History
BSY has been paying a dividend for over 5 years, so it has already some track record.
BSY has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years4
5.3 Sustainability
29.50% of the earnings are spent on dividend by BSY. This is a low number and sustainable payout ratio.
DP29.5%
EPS Next 2Y12.24%
EPS Next 3Y14.01%
50.73
+0.01 (+0.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners42.78%
Inst Owner Change-1.5%
Ins Owners40.87%
Ins Owner Change-0.71%
Market Cap15.39B
Analysts77.89
Price Target53.26 (4.99%)
Short Float %5.01%
Short Ratio4.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
Yearly Dividend0.24
Dividend Growth(5Y)N/A
DP29.5%
Div Incr Years2
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.89%
Min EPS beat(2)-4.04%
Max EPS beat(2)13.82%
EPS beat(4)2
Avg EPS beat(4)9.93%
Min EPS beat(4)-4.04%
Max EPS beat(4)31.97%
EPS beat(8)6
Avg EPS beat(8)13.6%
EPS beat(12)10
Avg EPS beat(12)13.7%
EPS beat(16)14
Avg EPS beat(16)17.3%
Revenue beat(2)1
Avg Revenue beat(2)-0.56%
Min Revenue beat(2)-1.14%
Max Revenue beat(2)0.02%
Revenue beat(4)2
Avg Revenue beat(4)-0.78%
Min Revenue beat(4)-2.61%
Max Revenue beat(4)0.61%
Revenue beat(8)3
Avg Revenue beat(8)-0.72%
Revenue beat(12)5
Avg Revenue beat(12)-0.26%
Revenue beat(16)9
Avg Revenue beat(16)0.37%
PT rev (1m)0.8%
PT rev (3m)-8.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.37%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.7 | ||
| Fwd PE | 37.63 | ||
| P/S | 11.11 | ||
| P/FCF | 35.28 | ||
| P/OCF | 34.22 | ||
| P/B | 14.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 41.59 |
EPS(TTM)1.11
EY2.19%
EPS(NY)1.35
Fwd EY2.66%
FCF(TTM)1.44
FCFY2.83%
OCF(TTM)1.48
OCFY2.92%
SpS4.57
BVpS3.62
TBVpS-4.9
PEG (NY)4
PEG (5Y)3.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.52% | ||
| ROE | 23.3% | ||
| ROCE | 13.38% | ||
| ROIC | 10.7% | ||
| ROICexc | 11.07% | ||
| ROICexgc | N/A | ||
| OM | 24.11% | ||
| PM (TTM) | 18.46% | ||
| GM | 81.12% | ||
| FCFM | 31.48% |
ROA(3y)7.42%
ROA(5y)7.4%
ROE(3y)30.01%
ROE(5y)29.96%
ROIC(3y)8%
ROIC(5y)10.54%
ROICexc(3y)8.22%
ROICexc(5y)11.91%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)10%
ROCE(5y)13.18%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y4.29%
ROICexc growth 5Y-15.93%
OM growth 3Y5.52%
OM growth 5Y3.69%
PM growth 3Y21.55%
PM growth 5Y4.39%
GM growth 3Y1.43%
GM growth 5Y0.13%
F-Score7
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 2.85 | ||
| Debt/EBITDA | 3.13 | ||
| Cap/Depr | 21.12% | ||
| Cap/Sales | 0.97% | ||
| Interest Coverage | 23.7 | ||
| Cash Conversion | 113.01% | ||
| Profit Quality | 170.57% | ||
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 4.56 |
F-Score7
WACC8.32%
ROIC/WACC1.29
Cap/Depr(3y)27.47%
Cap/Depr(5y)32.2%
Cap/Sales(3y)1.59%
Cap/Sales(5y)1.72%
Profit Quality(3y)148.6%
Profit Quality(5y)185.51%
High Growth Momentum
Growth
EPS 1Y (TTM)14.43%
EPS 3Y8.4%
EPS 5Y12.41%
EPS Q2Q%12.9%
EPS Next Y11.41%
EPS Next 2Y12.24%
EPS Next 3Y14.01%
EPS Next 5Y14.77%
Revenue 1Y (TTM)10.72%
Revenue growth 3Y11.93%
Revenue growth 5Y12.93%
Sales Q2Q%9.7%
Revenue Next Year9.8%
Revenue Next 2Y10.06%
Revenue Next 3Y9.77%
Revenue Next 5Y9.11%
EBIT growth 1Y24.6%
EBIT growth 3Y18.11%
EBIT growth 5Y17.09%
EBIT Next Year16.34%
EBIT Next 3Y15.74%
EBIT Next 5Y10.9%
FCF growth 1Y32.12%
FCF growth 3Y15.91%
FCF growth 5Y22.26%
OCF growth 1Y28.94%
OCF growth 3Y14.76%
OCF growth 5Y20.58%