Bentley Systems (BSY) AI Stock Analysis

• Market Cap: $12.17B
• Dividend Yield: 0.7%
• Average Volume (3M): 2.07M
• Price to Earnings (P/E): 48.4
• Beta (1Y): 0.84
• Revenue Growth: 11.12%
• EPS Growth: -26.24%
• Country: US
• Employees: 5,500
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.27
• Shares Outstanding: 292,019,440
• 10 Day Avg. Volume: 2,173,018
• 30 Day Avg. Volume: 2,069,252
• PEG Ratio: -2.09
• Price to Book (P/B): 14.13
• Price to Sales (P/S): 10.87
• P/FCF Ratio: 34.91
• Enterprise Value/Market Cap: 1.42
• Enterprise Value/Revenue: 11.87
• Enterprise Value/Gross Profit: 14.61
• Enterprise Value/Ebitda: 40.74
• 1Y Price Target: $60.00
• Price Target Upside: 50.30% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 1.18
• Revenue Forecast (FY): $1.49B

• Rating: 71 Outperform
• Price Target: $48.00 ▲(20.24% Upside)

Bentley Systems' overall stock score is driven by strong financial performance and positive earnings call insights, highlighting robust ARR growth and strategic investments in AI. However, the high P/E ratio and bearish technical indicators suggest caution. The company's strategic focus on infrastructure and digital transformation, along with its solid financial foundation, supports a positive long-term outlook, but short-term valuation and technical challenges remain.

Positive Factors

Revenue Growth

Consistent ARR growth indicates strong demand for Bentley's software solutions, enhancing revenue visibility and supporting long-term financial stability.

AI and Digital Twin Initiatives

Investments in AI and digital twin technologies position Bentley at the forefront of infrastructure innovation, potentially driving future growth and competitive advantage.

Strong Cash Flow Management

Strong cash flow management supports ongoing operations and growth initiatives, providing financial flexibility and resilience against market fluctuations.

Negative Factors

Decline in Professional Services Revenue

A decline in professional services revenue may indicate challenges in service delivery or market demand, potentially impacting overall revenue diversification.

China Market Challenges

Ongoing challenges in the China market could limit growth opportunities and expose Bentley to geopolitical risks, affecting its international expansion strategy.

Pressure on Operational Margins

Decreasing operational margins suggest potential inefficiencies or cost pressures, which could impact profitability if not addressed over the long term.

Bentley Systems Business Overview & Revenue Model

Company Description

Bentley Systems, Incorporated, together with its subsidiaries, provides infrastructure engineering software solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company offers open modeling and open simulation applications for infrastructure design integration, which include MicroStation, OpenRoads, OpenRail, OpenPlant, OpenBuildings, OpenBridge, OpenSite, OpenFlows, STAAD and RAM, SACS, MOSES, AutoPIPE, SITEOPS, CUBE, DYNAMEQ, EMME, and LEGION; and geoprofessional applications for modeling and simulation of near and deep subsurface conditions, including Leapfrog, AGS Workbench, GeoStudio, Imago, MX Deposit, Oasis montaj, PLAXIS, and OpenGround. It also provides project delivery systems that support collaboration, work-sharing, and 4D construction modeling for infrastructure project delivery enterprises, such as ProjectWise, ProjectWise Design Review Service, and SYNCHRO; and asset and network performance systems, such as AssetWise ALIM, AssetWise Asset Reliability, AssetWise Enterprise Interoperability, AssetWise 4D Analytics, AssetWise Linear, and Seequent Central. In addition, it offers industry solutions comprising AssetWise Linear SUPERLOAD, AssetWise Linear Analytics, AssetWise Inspections, ContextCapture, OpenCities, OpenUtilities, OpenTower, OpenWindPower, Power Line, SPIDA, OrbitGT, sensemetrics, PlantSight, and WaterSight. The company serves civil, structural, geotechnical, geoscience subsurface engineers, architects, geospatial professionals, city and regional planners, contractors, fabricators, and operations and maintenance engineers. Bentley Systems, Incorporated was incorporated in 1984 and is headquartered in Exton, Pennsylvania.

How the Company Makes Money

Bentley Systems generates revenue through a subscription-based model, offering software licenses, maintenance, and support services. Key revenue streams include recurring subscriptions for its software products, which provide customers with continuous access to updates and technical support. Additionally, Bentley earns revenue from professional services, such as consulting and training, that assist clients in implementing their software solutions. Significant partnerships with major engineering and construction firms enhance its market reach and contribute to its earnings by embedding Bentley's software within large-scale infrastructure projects.

Bentley Systems Financial Statement Overview

Summary

Bentley Systems shows a strong financial position with consistent revenue growth and profitability. The company has effectively managed its debt levels, improving financial leverage while maintaining strong returns on equity. Cash flow generation is robust, supporting ongoing operations and potential growth initiatives. However, slight declines in operational margins and cash flow efficiency indicate areas for potential improvement.

Income Statement

Bentley Systems demonstrates strong revenue growth with a TTM (Trailing-Twelve-Months) revenue growth rate of 2.84%, maintaining a high gross profit margin of 81.20%. The net profit margin is healthy at 18.44%, indicating efficient cost management. However, the EBIT and EBITDA margins have slightly decreased compared to the previous year, suggesting potential pressure on operational efficiency.

Balance Sheet

The company has improved its debt-to-equity ratio to 1.07 in the TTM, down from 1.37 in the previous year, indicating better financial leverage management. Return on equity is strong at 23.47%, reflecting effective use of equity capital. However, the equity ratio remains moderate, suggesting a balanced but cautious approach to leveraging assets.

Cash Flow

Operating cash flow has increased, with a TTM operating cash flow to net income ratio of 0.56, indicating solid cash generation relative to net income. Free cash flow growth is positive at 6.08%, and the free cash flow to net income ratio is robust at 0.96, highlighting strong cash flow management. However, the operating cash flow coverage ratio suggests room for improvement in cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.46B	1.35B	1.23B	1.10B	965.05M	801.54M
Gross Profit	1.19B	1.10B	910.24M	862.07M	748.51M	634.39M
EBITDA	425.26M	382.44M	288.44M	304.87M	152.34M	210.95M
Net Income	269.32M	234.79M	326.79M	174.78M	93.19M	126.52M
Balance Sheet
Total Assets	3.46B	3.40B	3.32B	3.17B	2.66B	1.13B
Cash, Cash Equivalents and Short-Term Investments	165.41M	64.01M	68.41M	71.68M	329.34M	122.01M
Total Debt	1.28B	1.43B	1.57B	1.82B	1.49B	294.38M
Total Liabilities	2.27B	2.36B	2.44B	2.59B	2.25B	784.44M
Stockholders Equity	1.20B	1.04B	883.28M	572.75M	409.22M	341.60M
Cash Flow
Free Cash Flow	460.13M	421.25M	391.69M	255.78M	270.49M	241.89M
Operating Cash Flow	478.51M	435.29M	416.70M	274.32M	288.02M	258.34M
Investing Cash Flow	-21.36M	-143.27M	-60.50M	-770.13M	-1.06B	-117.33M
Financing Cash Flow	-367.84M	-289.85M	-359.07M	243.03M	982.58M	-136.51M

Bentley Systems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 39.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BSY, the sentiment is Negative. The current price of 39.92 is below the 20-day moving average (MA) of 41.26, below the 50-day MA of 45.55, and below the 200-day MA of 48.49, indicating a bearish trend. The MACD of -1.42 indicates Negative momentum. The RSI at 29.59 is Positive, neither overbought nor oversold. The STOCH value of 7.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BSY.

Bentley Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSNC	78 Outperform	$21.17B	25.83	12.40%	1.19%	6.67%	21.21%
MANH	75 Outperform	$10.61B	50.30	73.58%	―	4.10%	-0.21%
BSY	71 Outperform	$12.17B	48.41	24.16%	0.70%	11.12%	-26.24%
PEGA	69 Neutral	$9.75B	38.93	51.96%	0.16%	17.00%	120.21%
TYL	66 Neutral	$19.42B	63.42	9.17%	―	10.62%	31.43%
GWRE	63 Neutral	$16.49B	187.25	6.57%	―	22.80%	198.93%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Bentley Systems Corporate Events

Bentley Systems Announces Q4 2025 Dividend

On November 21, 2025, Bentley Systems announced a $0.07 per share dividend for the fourth quarter of 2025, payable on December 11, 2025, to stockholders of record as of December 4, 2025. Additionally, the company extended its stock repurchase program, authorizing the repurchase of up to $500 million in Class B common stock and convertible notes through December 31, 2028, which is expected to impact the company’s financial strategy and shareholder value positively.

Bentley Systems Alters Convertible Notes Settlement Method

On October 14, 2025, Bentley Systems announced a change in the settlement method for its 0.125% Convertible Senior Notes due 2026. Effective October 15, 2025, all conversions of these notes will be settled through the delivery of shares of the company’s Class B common stock, potentially impacting the company’s financial operations and shareholder structure.

Bentley Systems Announces Q3 2025 Dividend Payment

On September 12, 2025, Bentley Systems announced a $0.07 per share dividend for the third quarter of 2025, payable on September 30, 2025, to stockholders of record as of September 23, 2025. This announcement underscores Bentley Systems’ commitment to providing shareholder value and reflects its stable financial position, potentially impacting investor confidence and market perception positively.