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. PTC scores excellent on profitability, but there are some minor concerns on its financial health. PTC has a decent growth rate and is not valued too expensively.
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.
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 79.51% of its industry peers.
PTC has a better Return On Equity (13.00%) than 80.92% of its industry peers.
PTC has a better Return On Invested Capital (9.74%) than 86.22% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PTC is below the industry average of 12.21%.
The last Return On Invested Capital (9.74%) for PTC is above the 3 year average (9.14%), which is a sign of increasing profitability.
| 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 85.16% of the companies in the same industry.
PTC's Profit Margin has declined in the last couple of years.
The Operating Margin of PTC (27.02%) is better than 93.29% of its industry peers.
PTC's Operating Margin has improved in the last couple of years.
PTC has a Gross Margin of 81.13%. This is amongst the best in the industry. PTC outperforms 84.81% of its industry peers.
In the last couple of years the Gross Margin of PTC has grown nicely.
| 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 below the Cost of Capital (WACC), which means it 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 is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.48 indicates that PTC is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.48, PTC is doing good in the industry, outperforming 72.08% of the companies in the same industry.
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 68.55% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that PTC is not too dependend on debt financing.
The Debt to Equity ratio of PTC (0.40) is worse than 62.54% 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 | 0.4 | ||
| Debt/FCF | 1.7 | ||
| Altman-Z | 5.48 |
ROIC/WACC0.89
WACC10.89%
2.3 Liquidity
A Current Ratio of 0.99 indicates that PTC may have some problems paying its short term obligations.
PTC has a Current ratio of 0.99. This is in the lower half of the industry: PTC underperforms 75.97% of its industry peers.
A Quick Ratio of 0.99 indicates that PTC may have some problems paying its short term obligations.
With a Quick ratio value of 0.99, PTC is not doing good in the industry: 75.27% of the companies in the same industry are doing better.
PTC does not score too well on the current and quick ratio evaluation. However, as it has 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
PTC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.66%, which is quite good.
PTC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.66% yearly.
The Revenue has been growing slightly by 4.66% in the past year.
PTC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.85% yearly.
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
The Earnings Per Share is expected to grow by 12.64% on average over the next years. This is quite good.
PTC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.54% yearly.
EPS Next Y20.95%
EPS Next 2Y17.16%
EPS Next 3Y14.92%
EPS Next 5Y12.64%
Revenue Next Year8.98%
Revenue Next 2Y9.11%
Revenue Next 3Y8.74%
Revenue Next 5Y9.54%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 31.49, 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 67.14% 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 26.03.
Based on the Price/Forward Earnings ratio of 24.38, the valuation of PTC can be described as rather expensive.
PTC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PTC is cheaper than 69.61% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PTC to the average of the S&P500 Index (21.94), we can say PTC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.49 | ||
| Fwd PE | 24.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PTC is valued a bit cheaper than the industry average as 75.27% of the companies are valued more expensively.
75.62% 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 | 25.12 | ||
| EV/EBITDA | 29.09 |
4.3 Compensation for Growth
PTC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PTC has an outstanding profitability rating, which 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)1.5
PEG (5Y)1.33
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 |
170.37
+1.24 (+0.73%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners99.9%
Inst Owner Change1.92%
Ins Owners0.26%
Ins Owner Change-0.01%
Market Cap20.50B
Analysts79.17
Price Target190.82 (12%)
Short Float %2.06%
Short Ratio2.41
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)-12.48%
PT rev (3m)-13.6%
EPS NQ rev (1m)-9.53%
EPS NQ rev (3m)-9.33%
EPS NY rev (1m)7.28%
EPS NY rev (3m)6.95%
Revenue NQ rev (1m)-3.79%
Revenue NQ rev (3m)-3.78%
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)-1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.49 | ||
| Fwd PE | 24.38 | ||
| P/S | 8.74 | ||
| P/FCF | 25.12 | ||
| P/OCF | 24.65 | ||
| P/B | 6.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.09 |
EPS(TTM)5.41
EY3.18%
EPS(NY)6.99
Fwd EY4.1%
FCF(TTM)6.78
FCFY3.98%
OCF(TTM)6.91
OCFY4.06%
SpS19.5
BVpS28.15
TBVpS-7.59
PEG (NY)1.5
PEG (5Y)1.33
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
WACC10.89%
ROIC/WACC0.89
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 5Y12.64%
Revenue 1Y (TTM)4.66%
Revenue growth 3Y8.35%
Revenue growth 5Y12.85%
Sales Q2Q%5.52%
Revenue Next Year8.98%
Revenue Next 2Y9.11%
Revenue Next 3Y8.74%
Revenue Next 5Y9.54%
EBIT growth 1Y19.15%
EBIT growth 3Y14.06%
EBIT growth 5Y38.18%
EBIT Next Year25.05%
EBIT Next 3Y16.49%
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%