PTC INC (PTC) Stock Fundamental Analysis
USA - NASDAQ:PTC - US69370C1009 - Common Stock
176.89 USD
+0.78 (+0.44%)
We assign a fundamental rating of 5 out of 10 to PTC. PTC was compared to 281 industry peers in the Software industry. PTC scores excellent on profitability, 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.
Of the past 5 years PTC 4 years were profitable.
Of the past 5 years PTC 4 years had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 8.23%, PTC belongs to the best of the industry, outperforming 82.56% of the companies in the same industry.
PTC has a better Return On Equity (14.60%) than 81.85% of its industry peers.
PTC has a Return On Invested Capital of 11.54%. This is amongst the best in the industry. PTC outperforms 88.26% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PTC is below the industry average of 11.82%.
The last Return On Invested Capital (11.54%) for PTC is above the 3 year average (9.14%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 20.74%, PTC belongs to the best of the industry, outperforming 85.05% of the companies in the same industry.
In the last couple of years the Profit Margin of PTC has declined.
The Operating Margin of PTC (30.32%) is better than 92.53% of its industry peers.
PTC's Operating Margin has improved in the last couple of years.
PTC has a better Gross Margin (82.16%) than 88.26% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PTC is creating some value.
PTC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
PTC has an Altman-Z score of 5.82. This indicates that PTC is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.82, PTC is doing good in the industry, outperforming 74.38% of the companies in the same industry.
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 better Debt to FCF ratio (1.46) than 71.17% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that PTC is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.34, PTC is not doing good in the industry: 60.14% of the companies in the same industry are doing better.
Although PTC does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.46 | ||
| Altman-Z | 5.82 |
ROIC/WACC1.07
WACC10.82%
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.
Looking at the Current ratio, with a value of 0.89, PTC is doing worse than 77.94% of the companies in the same industry.
A Quick Ratio of 0.89 indicates that PTC may have some problems paying its short term obligations.
PTC has a Quick ratio of 0.89. This is in the lower half of the industry: PTC underperforms 77.58% of its industry peers.
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 | 0.89 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 57.17% over the past year.
The Earnings Per Share has been growing by 25.59% on average over the past years. This is a very strong growth
EPS 1Y (TTM)57.17%
EPS 3Y20.43%
EPS 5Y25.59%
EPS Q2Q%125.32%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%42.65%
3.2 Future
Based on estimates for the next years, PTC will show a small growth in Earnings Per Share. The EPS will grow by 6.46% on average per year.
PTC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.65% yearly.
EPS Next Y-7.22%
EPS Next 2Y1.1%
EPS Next 3Y4.33%
EPS Next 5Y6.46%
Revenue Next Year7.7%
Revenue Next 2Y7.99%
Revenue Next 3Y8.61%
Revenue Next 5Y9.65%
3.3 Evolution
When comparing the EPS 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
Based on the Price/Earnings ratio of 22.11, the valuation of PTC can be described as rather expensive.
PTC's Price/Earnings ratio is a bit cheaper when compared to the industry. PTC is cheaper than 71.89% of the companies in the same industry.
PTC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.06.
PTC is valuated rather expensively with a Price/Forward Earnings ratio of 23.83.
Based on the Price/Forward Earnings ratio, PTC is valued a bit cheaper than 68.68% of the companies in the same industry.
PTC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 32.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.11 | ||
| Fwd PE | 23.83 |
4.2 Price Multiples
PTC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PTC is cheaper than 76.51% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PTC is valued a bit cheaper than 75.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.05 | ||
| EV/EBITDA | 25.22 |
4.3 Compensation for Growth
The excellent profitability rating of PTC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.86
EPS Next 2Y1.1%
EPS Next 3Y4.33%
5. Dividend
5.1 Amount
No dividends for PTC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:PTC (11/10/2025, 1:55:19 PM)
176.89
+0.78 (+0.44%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners103.49%
Inst Owner Change-1.42%
Ins Owners0.25%
Ins Owner Change0.19%
Market Cap21.19B
Revenue(TTM)N/A
Net Income(TTM)512.73M
Analysts79.17
Price Target231.67 (30.97%)
Short Float %2.14%
Short Ratio3.27
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)0.29%
PT rev (3m)0.89%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)2.54%
EPS NY rev (1m)0%
EPS NY rev (3m)11.34%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)0.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.11 | ||
| Fwd PE | 23.83 | ||
| P/S | 8.57 | ||
| P/FCF | 25.05 | ||
| P/OCF | 24.59 | ||
| P/B | 6.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.22 |
EPS(TTM)8
EY4.52%
EPS(NY)7.42
Fwd EY4.2%
FCF(TTM)7.06
FCFY3.99%
OCF(TTM)7.19
OCFY4.07%
SpS20.64
BVpS29.33
TBVpS-6.92
PEG (NY)N/A
PEG (5Y)0.86
Graham Number72.65
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%
ROICexgc growth 3Y138.24%
ROICexgc 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 | 5.82 |
F-Score9
WACC10.82%
ROIC/WACC1.07
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)57.17%
EPS 3Y20.43%
EPS 5Y25.59%
EPS Q2Q%125.32%
EPS Next Y-7.22%
EPS Next 2Y1.1%
EPS Next 3Y4.33%
EPS Next 5Y6.46%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%42.65%
Revenue Next Year7.7%
Revenue Next 2Y7.99%
Revenue Next 3Y8.61%
Revenue Next 5Y9.65%
EBIT growth 1Y44.83%
EBIT growth 3Y14.06%
EBIT growth 5Y38.18%
EBIT Next Year38.36%
EBIT Next 3Y18.24%
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%
PTC INC / PTC FAQ
Can you provide the ChartMill fundamental rating for PTC INC?
ChartMill assigns a fundamental rating of 5 / 10 to PTC.
Can you provide the valuation status for PTC INC?
ChartMill assigns a valuation rating of 4 / 10 to PTC INC (PTC). This can be considered as Fairly Valued.
How profitable is PTC INC (PTC) stock?
PTC INC (PTC) has a profitability rating of 8 / 10.
What is the valuation of PTC INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for PTC INC (PTC) is 22.11 and the Price/Book (PB) ratio is 6.03.