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. 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
In the past year PTC was profitable.
In the past year PTC had a positive cash flow from operations.
Each year in the past 5 years PTC has been profitable.
Each year in the past 5 years PTC had a positive operating cash flow.
1.2 Ratios
PTC has a Return On Assets of 7.15%. This is in the better half of the industry: PTC outperforms 79.58% of its industry peers.
PTC's Return On Equity of 13.00% is amongst the best of the industry. PTC outperforms 80.99% of its industry peers.
PTC has a better Return On Invested Capital (9.74%) than 86.97% 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 12.30%.
The 3 year average ROIC (9.14%) for PTC is below the current ROIC(9.74%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.15% | ||
| ROE | 13% | ||
| ROIC | 9.74% |
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
With an excellent Profit Margin value of 18.77%, PTC belongs to the best of the industry, outperforming 86.62% of the companies in the same industry.
In the last couple of years the Profit Margin of PTC has declined.
PTC's Operating Margin of 27.02% is amongst the best of the industry. PTC outperforms 92.96% of its industry peers.
In the last couple of years the Operating Margin of PTC has grown nicely.
PTC's Gross Margin of 81.13% is amongst the best of the industry. PTC outperforms 84.51% of its industry peers.
PTC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.02% | ||
| PM (TTM) | 18.77% | ||
| GM | 81.13% |
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
PTC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
PTC has more shares outstanding than it did 1 year ago.
PTC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PTC has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.48 indicates that PTC is not in any danger for bankruptcy at the moment.
PTC has a Altman-Z score of 5.48. This is in the better half of the industry: PTC outperforms 72.89% of its industry peers.
PTC has a debt to FCF ratio of 1.70. This is a very positive value and a sign of high solvency as it would only need 1.70 years to pay back of all of its debts.
PTC's Debt to FCF ratio of 1.70 is fine compared to the rest of the industry. PTC outperforms 70.07% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that PTC is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.40, PTC is not doing good in the industry: 61.62% of the companies in the same industry are doing better.
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 | 0.4 | ||
| Debt/FCF | 1.7 | ||
| Altman-Z | 5.48 |
ROIC/WACC1.13
WACC8.64%
2.3 Liquidity
PTC has a Current Ratio of 0.99. 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 0.99, PTC is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.99 indicates that PTC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.99, PTC is doing worse than 73.94% of the companies in the same industry.
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 | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.66% 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 been growing slightly by 4.66% in the past year.
The Revenue has been growing by 12.85% on average over the past years. This is quite good.
EPS 1Y (TTM)13.66%
EPS 3Y8.55%
EPS 5Y23.66%
EPS Q2Q%22.6%
Revenue 1Y (TTM)4.66%
Revenue growth 3Y8.35%
Revenue growth 5Y12.85%
Sales Q2Q%5.52%
3.2 Future
PTC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.66% yearly.
The Revenue is expected to grow by 9.60% on average over the next years. This is quite good.
EPS Next Y20.95%
EPS Next 2Y17.16%
EPS Next 3Y14.92%
EPS Next 5Y13.66%
Revenue Next Year8.98%
Revenue Next 2Y9.09%
Revenue Next 3Y9.08%
Revenue Next 5Y9.6%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 31.30, the valuation of PTC can be described as expensive.
69.37% of the companies in the same industry are more expensive than PTC, based on the Price/Earnings ratio.
PTC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.31.
PTC is valuated rather expensively with a Price/Forward Earnings ratio of 24.24.
67.96% of the companies in the same industry are more expensive than PTC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.13. PTC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.3 | ||
| Fwd PE | 24.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PTC is valued a bit cheaper than 74.30% of the companies in the same industry.
76.41% of the companies in the same industry are more expensive than PTC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.97 | ||
| EV/EBITDA | 29.12 |
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.
A more expensive valuation may be justified as PTC's earnings are expected to grow with 14.92% in the coming years.
PEG (NY)1.49
PEG (5Y)1.32
EPS Next 2Y17.16%
EPS Next 3Y14.92%
5. Dividend
5.1 Amount
PTC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
169.34
-1.68 (-0.98%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners101.02%
Inst Owner Change2.19%
Ins Owners0.25%
Ins Owner Change0.85%
Market Cap20.37B
Analysts79.17
Price Target191.16 (12.89%)
Short Float %2.45%
Short Ratio3.07
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)24.49%
Min EPS beat(2)22.03%
Max EPS beat(2)26.94%
EPS beat(4)4
Avg EPS beat(4)13.77%
Min EPS beat(4)0.67%
Max EPS beat(4)26.94%
EPS beat(8)7
Avg EPS beat(8)11.19%
EPS beat(12)9
Avg EPS beat(12)7.16%
EPS beat(16)12
Avg EPS beat(16)11.53%
Revenue beat(2)2
Avg Revenue beat(2)2.57%
Min Revenue beat(2)1.35%
Max Revenue beat(2)3.79%
Revenue beat(4)2
Avg Revenue beat(4)0.34%
Min Revenue beat(4)-3.75%
Max Revenue beat(4)3.79%
Revenue beat(8)5
Avg Revenue beat(8)0.69%
Revenue beat(12)6
Avg Revenue beat(12)0.06%
Revenue beat(16)9
Avg Revenue beat(16)1.11%
PT rev (1m)0.18%
PT rev (3m)-13.35%
EPS NQ rev (1m)-2.93%
EPS NQ rev (3m)-11.91%
EPS NY rev (1m)0%
EPS NY rev (3m)6.9%
Revenue NQ rev (1m)-1.17%
Revenue NQ rev (3m)-4.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.3 | ||
| Fwd PE | 24.24 | ||
| P/S | 8.68 | ||
| P/FCF | 24.97 | ||
| P/OCF | 24.5 | ||
| P/B | 6.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.12 |
EPS(TTM)5.41
EY3.19%
EPS(NY)6.99
Fwd EY4.13%
FCF(TTM)6.78
FCFY4%
OCF(TTM)6.91
OCFY4.08%
SpS19.5
BVpS28.15
TBVpS-7.59
PEG (NY)1.49
PEG (5Y)1.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.15% | ||
| ROE | 13% | ||
| ROCE | 12.64% | ||
| ROIC | 9.74% | ||
| ROICexc | 10.22% | ||
| ROICexgc | 101.54% | ||
| OM | 27.02% | ||
| PM (TTM) | 18.77% | ||
| GM | 81.13% | ||
| FCFM | 34.77% |
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 Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 1.7 | ||
| Debt/EBITDA | 1.85 | ||
| Cap/Depr | 14.96% | ||
| Cap/Sales | 0.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 112.49% | ||
| Profit Quality | 185.28% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 5.48 |
F-Score9
WACC8.64%
ROIC/WACC1.13
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)13.66%
EPS 3Y8.55%
EPS 5Y23.66%
EPS Q2Q%22.6%
EPS Next Y20.95%
EPS Next 2Y17.16%
EPS Next 3Y14.92%
EPS Next 5Y13.66%
Revenue 1Y (TTM)4.66%
Revenue growth 3Y8.35%
Revenue growth 5Y12.85%
Sales Q2Q%5.52%
Revenue Next Year8.98%
Revenue Next 2Y9.09%
Revenue Next 3Y9.08%
Revenue Next 5Y9.6%
EBIT growth 1Y19.15%
EBIT growth 3Y14.06%
EBIT growth 5Y38.18%
EBIT Next Year28.27%
EBIT Next 3Y15.84%
EBIT Next 5YN/A
FCF growth 1Y57.45%
FCF growth 3Y28.66%
FCF growth 5Y27.09%
OCF growth 1Y52.01%
OCF growth 3Y26.69%
OCF growth 5Y21.34%