PTC INC (PTC)
US69370C1009 - Common Stock
Overall PTC gets a fundamental rating of 5 out of 10. We evaluated PTC against 276 industry peers in the Software industry. PTC has an excellent profitability rating, but there are some minor concerns on its financial health. PTC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
PTC had positive earnings in the past year.
In the past year PTC had a positive cash flow from operations.
PTC had positive earnings in 4 of the past 5 years.
In the past 5 years PTC always reported a positive cash flow from operatings.
1.2 Ratios
PTC has a Return On Assets of 3.78%. This is in the better half of the industry: PTC outperforms 77.37% of its industry peers.
The Return On Equity of PTC (8.44%) is better than 81.39% of its industry peers.
PTC has a Return On Invested Capital of 6.98%. This is amongst the best in the industry. PTC outperforms 83.58% of its industry peers.
PTC had an Average Return On Invested Capital over the past 3 years of 8.59%. This is in line with the industry average of 10.44%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.78% | ||
| ROE | 8.44% | ||
| ROIC | 6.98% |
ROA(3y)7.05%
ROA(5y)4.8%
ROE(3y)15.4%
ROE(5y)10.6%
ROIC(3y)8.59%
ROIC(5y)7.46%
1.3 Margins
PTC's Profit Margin of 10.86% is amongst the best of the industry. PTC outperforms 82.48% of its industry peers.
PTC's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 22.31%, PTC belongs to the best of the industry, outperforming 92.34% 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 79.14%, PTC is in the better half of the industry, outperforming 79.93% of the companies in the same industry.
In the last couple of years the Gross Margin of PTC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.31% | ||
| PM (TTM) | 10.86% | ||
| GM | 79.14% |
OM growth 3Y9.54%
OM growth 5Y29.24%
PM growth 3Y9.31%
PM growth 5Y22.83%
GM growth 3Y0.81%
GM growth 5Y1.39%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PTC is destroying value.
PTC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for PTC has been increased compared to 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 4.40 indicates that PTC is not in any danger for bankruptcy at the moment.
PTC's Altman-Z score of 4.40 is fine compared to the rest of the industry. PTC outperforms 67.52% of its industry peers.
PTC has a debt to FCF ratio of 3.78. This is a good value and a sign of high solvency as PTC would need 3.78 years to pay back of all of its debts.
PTC's Debt to FCF ratio of 3.78 is fine compared to the rest of the industry. PTC outperforms 65.33% of its industry peers.
PTC has a Debt/Equity ratio of 0.80. This is a neutral value indicating PTC is somewhat dependend on debt financing.
PTC's Debt to Equity ratio of 0.80 is on the low side compared to the rest of the industry. PTC is outperformed by 68.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 3.78 | ||
| Altman-Z | 4.4 |
ROIC/WACC0.72
WACC9.75%
2.3 Liquidity
A Current Ratio of 1.19 indicates that PTC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.19, PTC is doing worse than 67.15% of the companies in the same industry.
PTC has a Quick Ratio of 1.19. This is a normal value and indicates that PTC is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of PTC (1.19) is worse than 64.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
The earnings per share for PTC have decreased by -3.46% in the last year.
PTC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.34% yearly.
Looking at the last year, PTC shows a quite strong growth in Revenue. The Revenue has grown by 12.35% in the last year.
PTC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.05% yearly.
EPS 1Y (TTM)-3.46%
EPS 3Y19.24%
EPS 5Y24.34%
EPS growth Q2Q12.12%
Revenue 1Y (TTM)12.35%
Revenue growth 3Y12.87%
Revenue growth 5Y11.05%
Revenue growth Q2Q18.1%
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 12.40% on average per year.
Based on estimates for the next years, PTC will show a quite strong growth in Revenue. The Revenue will grow by 11.30% on average per year.
EPS Next Y15.22%
EPS Next 2Y19.3%
EPS Next 3Y19.25%
EPS Next 5Y12.4%
Revenue Next Year10.18%
Revenue Next 2Y11.09%
Revenue Next 3Y10.92%
Revenue Next 5Y11.3%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 39.41, which means the current valuation is very expensive for PTC.
Based on the Price/Earnings ratio, PTC is valued a bit cheaper than the industry average as 68.25% of the companies are valued more expensively.
PTC's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.28.
PTC is valuated quite expensively with a Price/Forward Earnings ratio of 28.46.
Based on the Price/Forward Earnings ratio, PTC is valued a bit cheaper than the industry average as 73.36% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of PTC to the average of the S&P500 Index (20.88), we can say PTC is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.41 | ||
| Fwd PE | 28.46 |
4.2 Price Multiples
73.72% 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 72.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.18 | ||
| EV/EBITDA | 37.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PTC does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of PTC may justify a higher PE ratio.
PTC's earnings are expected to grow with 19.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.59
PEG (5Y)1.62
EPS Next 2Y19.3%
EPS Next 3Y19.25%
5. Dividend
5.1 Amount
No dividends for PTC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PTC INC
NASDAQ:PTC (5/3/2024, 7:13:53 PM)
After market: 175.77 0 (0%)175.77
+5.17 (+3.03%)
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 Cap21.01B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.41 | ||
| Fwd PE | 28.46 | ||
| 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)2.59
PEG (5Y)1.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.78% | ||
| ROE | 8.44% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 22.31% | ||
| PM (TTM) | 10.86% | ||
| GM | 79.14% | ||
| 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 Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 | ||
| 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)-3.46%
EPS 3Y19.24%
EPS 5Y
EPS growth Q2Q
EPS Next Y15.22%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.35%
Revenue growth 3Y12.87%
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
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FCF growth 3Y
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