BENTLEY SYSTEMS INC-CLASS B (BSY)

US08265T2087 - Common Stock

52.11  +0.53 (+1.03%)

Fundamental Rating

6

Overall BSY gets a fundamental rating of 6 out of 10. We evaluated BSY against 279 industry peers in the Software industry. BSY scores excellent on profitability, but there are concerns on its financial health. BSY is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!



8

1. Profitability

1.1 Basic Checks

In the past year BSY was profitable.
In the past year BSY had a positive cash flow from operations.
BSY had positive earnings in each of the past 5 years.
BSY had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

BSY has a better Return On Assets (9.84%) than 91.73% of its industry peers.
The Return On Equity of BSY (36.99%) is better than 96.40% of its industry peers.
With an excellent Return On Invested Capital value of 8.66%, BSY belongs to the best of the industry, outperforming 87.77% of the companies in the same industry.
BSY had an Average Return On Invested Capital over the past 3 years of 8.07%. This is below the industry average of 10.09%.
The 3 year average ROIC (8.07%) for BSY is below the current ROIC(8.66%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 9.84%
ROE 36.99%
ROIC 8.66%
ROA(3y)6.29%
ROA(5y)8.09%
ROE(3y)30.09%
ROE(5y)31.61%
ROIC(3y)8.07%
ROIC(5y)13.81%

1.3 Margins

BSY has a Profit Margin of 26.60%. This is amongst the best in the industry. BSY outperforms 94.60% of its industry peers.
BSY's Profit Margin has improved in the last couple of years.
BSY's Operating Margin of 20.23% is amongst the best of the industry. BSY outperforms 90.65% of its industry peers.
In the last couple of years the Operating Margin of BSY has grown nicely.
BSY has a Gross Margin of 78.34%. This is in the better half of the industry: BSY outperforms 77.70% of its industry peers.
BSY's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 20.23%
PM (TTM) 26.6%
GM 78.34%
OM growth 3Y-2.76%
OM growth 5Y2.87%
PM growth 3Y19.06%
PM growth 5Y5.3%
GM growth 3Y-0.34%
GM growth 5Y-0.67%

3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BSY is destroying value.
The number of shares outstanding for BSY has been increased compared to 1 year ago.
Compared to 5 years ago, BSY has more shares outstanding
Compared to 1 year ago, BSY has an improved debt to assets ratio.

2.2 Solvency

BSY has an Altman-Z score of 4.20. This indicates that BSY is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.20, BSY is in the better half of the industry, outperforming 62.95% of the companies in the same industry.
BSY has a debt to FCF ratio of 3.90. This is a good value and a sign of high solvency as BSY would need 3.90 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.90, BSY is in the better half of the industry, outperforming 66.55% of the companies in the same industry.
A Debt/Equity ratio of 1.72 is on the high side and indicates that BSY has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.72, BSY is doing worse than 81.30% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.72
Debt/FCF 3.9
Altman-Z 4.2
ROIC/WACC0.95
WACC9.11%

2.3 Liquidity

A Current Ratio of 0.55 indicates that BSY may have some problems paying its short term obligations.
The Current ratio of BSY (0.55) is worse than 91.73% of its industry peers.
A Quick Ratio of 0.55 indicates that BSY may have some problems paying its short term obligations.
With a Quick ratio value of 0.55, BSY is not doing good in the industry: 91.73% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.55
Quick Ratio 0.55

7

3. Growth

3.1 Past

BSY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.33%, which is quite good.
Measured over the past years, BSY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.66% on average per year.
The Revenue has grown by 11.77% in the past year. This is quite good.
BSY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.17% yearly.
EPS 1Y (TTM)8.33%
EPS 3Y32.64%
EPS 5Y12.66%
EPS growth Q2Q5.26%
Revenue 1Y (TTM)11.77%
Revenue growth 3Y15.3%
Revenue growth 5Y12.17%
Revenue growth Q2Q8.28%

3.2 Future

The Earnings Per Share is expected to grow by 19.87% on average over the next years. This is quite good.
The Revenue is expected to grow by 14.03% on average over the next years. This is quite good.
EPS Next Y10.99%
EPS Next 2Y12.73%
EPS Next 3Y11.53%
EPS Next 5Y19.87%
Revenue Next Year10.85%
Revenue Next 2Y10.83%
Revenue Next 3Y11.71%
Revenue Next 5Y14.03%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

4

4. Valuation

4.1 Price/Earnings Ratio

BSY is valuated quite expensively with a Price/Earnings ratio of 57.26.
BSY's Price/Earnings ratio is a bit cheaper when compared to the industry. BSY is cheaper than 65.83% of the companies in the same industry.
BSY is valuated expensively when we compare the Price/Earnings ratio to 26.42, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 51.59, the valuation of BSY can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BSY indicates a somewhat cheap valuation: BSY is cheaper than 60.07% of the companies listed in the same industry.
BSY's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.74.
Industry RankSector Rank
PE 57.26
Fwd PE 51.59

4.2 Price Multiples

BSY's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BSY is cheaper than 69.42% of the companies in the same industry.
71.22% of the companies in the same industry are more expensive than BSY, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 39.56
EV/EBITDA 52.44

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BSY does not grow enough to justify the current Price/Earnings ratio.
BSY has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.21
PEG (5Y)4.52
EPS Next 2Y12.73%
EPS Next 3Y11.53%

4

5. Dividend

5.1 Amount

With a yearly dividend of 0.46%, 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 11.46. BSY pays more dividend than 90.29% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, BSY's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.46%

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 Years1
Div Non Decr Years3

5.3 Sustainability

BSY pays out 17.98% of its income as dividend. This is a sustainable payout ratio.
DP17.98%
EPS Next 2Y12.73%
EPS Next 3Y11.53%

BENTLEY SYSTEMS INC-CLASS B

NASDAQ:BSY (3/28/2024, 3:04:43 PM)

52.11

+0.53 (+1.03%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap15.49B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 0.46%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 57.26
Fwd PE 51.59
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)5.21
PEG (5Y)4.52
Profitability
Industry RankSector Rank
ROA 9.84%
ROE 36.99%
ROCE
ROIC
ROICexc
ROICexgc
OM 20.23%
PM (TTM) 26.6%
GM 78.34%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.37
Health
Industry RankSector Rank
Debt/Equity 1.72
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.55
Quick Ratio 0.55
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)8.33%
EPS 3Y32.64%
EPS 5Y
EPS growth Q2Q
EPS Next Y10.99%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.77%
Revenue growth 3Y15.3%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y