PTC INC (PTC) Stock Fundamental Analysis
NASDAQ:PTC - US69370C1009 - Common Stock
213.5 USD
-1.53 (-0.71%)
213.5 USD
0 (0%)
Overall PTC gets a fundamental rating of 6 out of 10. We evaluated PTC against 281 industry peers in the Software industry. PTC scores excellent on profitability, but there are some minor concerns on its financial health. PTC is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make PTC a good candidate for growth 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.
PTC had positive earnings in each of the past 5 years.
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 8.23%, PTC belongs to the best of the industry, outperforming 81.91% of the companies in the same industry.
The Return On Equity of PTC (14.60%) is better than 82.27% of its industry peers.
PTC's Return On Invested Capital of 11.54% is amongst the best of the industry. PTC outperforms 88.30% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PTC is below the industry average of 11.98%.
The 3 year average ROIC (9.14%) for PTC is below the current ROIC(11.54%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.23% | ||
| ROE | 14.6% | ||
| ROIC | 11.54% |
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's Profit Margin of 20.74% is amongst the best of the industry. PTC outperforms 85.82% of its industry peers.
PTC's Profit Margin has declined in the last couple of years.
PTC's Operating Margin of 30.32% is amongst the best of the industry. PTC outperforms 92.55% of its industry peers.
PTC's Operating Margin has improved in the last couple of years.
The Gross Margin of PTC (82.16%) is better than 89.36% of its industry peers.
PTC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.32% | ||
| PM (TTM) | 20.74% | ||
| GM | 82.16% |
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
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 more shares outstanding
The number of shares outstanding for PTC has been increased compared to 5 years ago.
Compared to 1 year ago, PTC has a worse debt to assets ratio.
2.2 Solvency
PTC has an Altman-Z score of 6.85. This indicates that PTC is financially healthy and has little risk of bankruptcy at the moment.
PTC has a better Altman-Z score (6.85) than 77.66% of its industry peers.
The Debt to FCF ratio of PTC is 1.46, which is an excellent value as it means it would take PTC, only 1.46 years of fcf income to pay off all of its debts.
PTC has a Debt to FCF ratio of 1.46. This is in the better half of the industry: PTC outperforms 70.57% of its industry peers.
PTC has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of PTC (0.34) is worse than 61.35% 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 | 0.34 | ||
| Debt/FCF | 1.46 | ||
| Altman-Z | 6.85 |
ROIC/WACC1.04
WACC11.11%
2.3 Liquidity
PTC has a Current Ratio of 0.89. This is a bad value and indicates that PTC is not financially healthy enough and could expect problems in meeting its short term obligations.
PTC has a worse Current ratio (0.89) than 77.31% of its industry peers.
A Quick Ratio of 0.89 indicates that PTC may have some problems paying its short term obligations.
PTC's Quick ratio of 0.89 is on the low side compared to the rest of the industry. PTC is outperformed by 76.60% 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 | 0.89 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.79% 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
PTC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.42%.
Measured over the past years, PTC shows a quite strong growth in Revenue. The Revenue has been growing by 12.85% on average per year.
EPS 1Y (TTM)27.79%
EPS 3Y8.55%
EPS 5Y23.66%
EPS Q2Q%67.35%
Revenue 1Y (TTM)11.42%
Revenue growth 3Y8.35%
Revenue growth 5Y12.85%
Sales Q2Q%24.16%
3.2 Future
The Earnings Per Share is expected to grow by 14.34% on average over the next years. This is quite good.
Based on estimates for the next years, PTC will show a quite strong growth in Revenue. The Revenue will grow by 10.49% on average per year.
EPS Next Y32.76%
EPS Next 2Y20.3%
EPS Next 3Y16.87%
EPS Next 5Y14.34%
Revenue Next Year12.78%
Revenue Next 2Y10.23%
Revenue Next 3Y9.69%
Revenue Next 5Y10.49%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 35.17 indicates a quite expensive valuation of PTC.
Compared to the rest of the industry, the Price/Earnings ratio of PTC indicates a somewhat cheap valuation: PTC is cheaper than 62.77% of the companies listed in the same industry.
PTC is valuated rather expensively when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 28.99, PTC can be considered very expensive at the moment.
63.83% of the companies in the same industry are more expensive than PTC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of PTC to the average of the S&P500 Index (22.72), we can say PTC is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.17 | ||
| Fwd PE | 28.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PTC is valued a bit cheaper than 73.40% of the companies in the same industry.
PTC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PTC is cheaper than 73.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.24 | ||
| EV/EBITDA | 30.53 |
4.3 Compensation for Growth
PTC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of PTC may justify a higher PE ratio.
PTC's earnings are expected to grow with 16.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.07
PEG (5Y)1.49
EPS Next 2Y20.3%
EPS Next 3Y16.87%
5. Dividend
5.1 Amount
No dividends for PTC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
213.5
-1.53 (-0.71%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners101.42%
Inst Owner Change0.72%
Ins Owners0.25%
Ins Owner Change0.03%
Market Cap25.58B
Analysts79.17
Price Target230.43 (7.93%)
Short Float %2.79%
Short Ratio2.77
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)30.61%
Min EPS beat(2)26.94%
Max EPS beat(2)34.28%
EPS beat(4)4
Avg EPS beat(4)22.17%
Min EPS beat(4)5.44%
Max EPS beat(4)34.28%
EPS beat(8)8
Avg EPS beat(8)15.67%
EPS beat(12)10
Avg EPS beat(12)10.77%
EPS beat(16)12
Avg EPS beat(16)11.87%
Revenue beat(2)2
Avg Revenue beat(2)6.58%
Min Revenue beat(2)3.79%
Max Revenue beat(2)9.37%
Revenue beat(4)3
Avg Revenue beat(4)3.62%
Min Revenue beat(4)-0.03%
Max Revenue beat(4)9.37%
Revenue beat(8)5
Avg Revenue beat(8)1.55%
Revenue beat(12)7
Avg Revenue beat(12)1.11%
Revenue beat(16)9
Avg Revenue beat(16)1.39%
PT rev (1m)15.57%
PT rev (3m)20.75%
EPS NQ rev (1m)10.75%
EPS NQ rev (3m)21.33%
EPS NY rev (1m)9.53%
EPS NY rev (3m)9.76%
Revenue NQ rev (1m)4.44%
Revenue NQ rev (3m)6.59%
Revenue NY rev (1m)3.4%
Revenue NY rev (3m)3.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.17 | ||
| Fwd PE | 28.99 | ||
| P/S | 10.35 | ||
| P/FCF | 30.24 | ||
| P/OCF | 29.68 | ||
| P/B | 7.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 30.53 |
EPS(TTM)6.07
EY2.84%
EPS(NY)7.37
Fwd EY3.45%
FCF(TTM)7.06
FCFY3.31%
OCF(TTM)7.19
OCFY3.37%
SpS20.64
BVpS29.33
TBVpS-6.92
PEG (NY)1.07
PEG (5Y)1.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.23% | ||
| ROE | 14.6% | ||
| ROCE | 14.98% | ||
| ROIC | 11.54% | ||
| ROICexc | 12.02% | ||
| ROICexgc | 125.22% | ||
| OM | 30.32% | ||
| PM (TTM) | 20.74% | ||
| GM | 82.16% | ||
| FCFM | 34.22% |
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-Score9
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.46 | ||
| Debt/EBITDA | 1.38 | ||
| Cap/Depr | 12.48% | ||
| Cap/Sales | 0.65% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 98.2% | ||
| Profit Quality | 164.96% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 6.85 |
F-Score9
WACC11.11%
ROIC/WACC1.04
Cap/Depr(3y)22%
Cap/Depr(5y)26.86%
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)27.79%
EPS 3Y8.55%
EPS 5Y23.66%
EPS Q2Q%67.35%
EPS Next Y32.76%
EPS Next 2Y20.3%
EPS Next 3Y16.87%
EPS Next 5Y14.34%
Revenue 1Y (TTM)11.42%
Revenue growth 3Y8.35%
Revenue growth 5Y12.85%
Sales Q2Q%24.16%
Revenue Next Year12.78%
Revenue Next 2Y10.23%
Revenue Next 3Y9.69%
Revenue Next 5Y10.49%
EBIT growth 1Y44.83%
EBIT growth 3Y14.06%
EBIT growth 5Y38.18%
EBIT Next Year36.76%
EBIT Next 3Y17.75%
EBIT Next 5YN/A
FCF growth 1Y48.1%
FCF growth 3Y28.66%
FCF growth 5Y27.09%
OCF growth 1Y43.73%
OCF growth 3Y26.69%
OCF growth 5Y21.34%