PTC INC (PTC) Stock Fundamental Analysis
NASDAQ:PTC - Nasdaq - US69370C1009 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to PTC. PTC was compared to 283 industry peers in the Software industry. While PTC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PTC is not overvalued while it is showing excellent growth. This is an interesting combination. This makes PTC very considerable for growth investing!
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.
PTC had positive earnings in each of the past 5 years.
PTC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PTC has a better Return On Assets (8.23%) than 81.56% of its industry peers.
With an excellent Return On Equity value of 14.60%, PTC belongs to the best of the industry, outperforming 81.56% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.54%, PTC belongs to the best of the industry, outperforming 88.30% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PTC is below the industry average of 12.03%.
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 has a Profit Margin of 20.74%. This is amongst the best in the industry. PTC outperforms 88.30% 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 94.33% of its industry peers.
In the last couple of years the Operating Margin of PTC has grown nicely.
PTC has a Gross Margin of 82.16%. This is amongst the best in the industry. PTC outperforms 89.36% of its industry peers.
In the last couple of years the Gross Margin of PTC has grown nicely.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PTC is 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.
PTC has a worse debt/assets ratio than last year.
2.2 Solvency
PTC has an Altman-Z score of 6.62. This indicates that PTC is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.62, PTC is in the better half of the industry, outperforming 76.24% of the companies in the same industry.
PTC has a debt to FCF ratio of 1.46. This is a very positive value and a sign of high solvency as it would only need 1.46 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.46, PTC is doing good in the industry, outperforming 70.21% of the companies in the same industry.
PTC has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.34, PTC is not doing good in the industry: 61.70% 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 | 0.34 | ||
| Debt/FCF | 1.46 | ||
| Altman-Z | 6.62 |
ROIC/WACC1.1
WACC10.53%
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 Current ratio of 0.89. This is in the lower half of the industry: PTC underperforms 78.01% of its industry peers.
A Quick Ratio of 0.89 indicates that PTC may have some problems paying its short term obligations.
The Quick ratio of PTC (0.89) is worse than 77.66% 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
Looking at the last year, PTC shows a quite strong growth in Revenue. The Revenue has grown by 11.42% in the last year.
The Revenue has been growing by 12.85% on average over the past years. This is quite good.
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
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.
Based on estimates for the next years, PTC will show a quite strong growth in Revenue. The Revenue will grow by 9.60% on average per year.
EPS Next Y21.2%
EPS Next 2Y17.15%
EPS Next 3Y15.02%
EPS Next 5Y13.66%
Revenue Next Year9.11%
Revenue Next 2Y9.07%
Revenue Next 3Y9.08%
Revenue Next 5Y9.6%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 33.84, 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 63.48% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.48. PTC is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 29.41, the valuation of PTC can be described as expensive.
63.48% 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 34.04. PTC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.84 | ||
| Fwd PE | 29.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PTC is valued a bit cheaper than the industry average as 74.11% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PTC indicates a somewhat cheap valuation: PTC is cheaper than 71.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.13 | ||
| EV/EBITDA | 29.35 |
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 15.02% in the coming years.
PEG (NY)1.6
PEG (5Y)1.43
EPS Next 2Y17.15%
EPS Next 3Y15.02%
5. Dividend
5.1 Amount
No dividends for PTC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
205.42
-0.73 (-0.35%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners101.42%
Inst Owner Change0.18%
Ins Owners0.25%
Ins Owner Change0.29%
Market Cap24.64B
Analysts79.17
Price Target229.64 (11.79%)
Short Float %3.67%
Short Ratio3.95
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)3.68%
PT rev (3m)-1.22%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)-11.67%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)7.5%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-5.15%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.84 | ||
| Fwd PE | 29.41 | ||
| P/S | 9.97 | ||
| P/FCF | 29.13 | ||
| P/OCF | 28.59 | ||
| P/B | 7.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.35 |
EPS(TTM)6.07
EY2.95%
EPS(NY)6.99
Fwd EY3.4%
FCF(TTM)7.05
FCFY3.43%
OCF(TTM)7.18
OCFY3.5%
SpS20.61
BVpS29.29
TBVpS-6.91
PEG (NY)1.6
PEG (5Y)1.43
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 | 6.62 |
F-Score9
WACC10.53%
ROIC/WACC1.1
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 Y21.2%
EPS Next 2Y17.15%
EPS Next 3Y15.02%
EPS Next 5Y13.66%
Revenue 1Y (TTM)11.42%
Revenue growth 3Y8.35%
Revenue growth 5Y12.85%
Sales Q2Q%24.16%
Revenue Next Year9.11%
Revenue Next 2Y9.07%
Revenue Next 3Y9.08%
Revenue Next 5Y9.6%
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%