Bentley Systems (BSY) AI Stock Analysis

Compare

257 Followers

Top Page

Bentley Systems

(NASDAQ:BSY)

Rating:81Outperform

Price Target:

$55.00

▲(15.42%Upside)

Bentley Systems' overall score is driven by strong financial performance and positive earnings call sentiment, indicating a well-positioned company in its industry. Technical analysis supports the stock's upward trend, while valuation suggests caution due to a high P/E ratio.

Positive Factors

Earnings

Bentley Systems reported strong results with subscription revenue 2.2% above Street consensus.

Growth Outlook

Management reiterated revenue and ARR growth guidance, which is seen as an upbeat development.

Negative Factors

Economic Conditions

China continues to face challenges from economic conditions and state-owned enterprises' preferences for local software alternatives.

Market Challenges

Demand broadly strong, but FX and China weigh on growth.

Bentley Systems (BSY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$14.45B

Dividend Yield0.52%

Average Volume (3M)1.40M

Price to Earnings (P/E)60.6

Beta (1Y)0.83

Revenue Growth10.71%

EPS Growth-27.64%

CountryUS

Employees5,500

SectorTechnology

Sector Strength79

IndustrySoftware - Application

Share Statistics

EPS (TTM)0.35

Shares Outstanding291,843,800

10 Day Avg. Volume1,634,148

30 Day Avg. Volume1,397,615

Financial Highlights & Ratios

PEG Ratio-1.77

Price to Book (P/B)14.10

Price to Sales (P/S)0.00

P/FCF Ratio32.21

Enterprise Value/Market Cap1.03

Enterprise Value/Revenue2.87

Enterprise Value/Gross Profit13.83

Enterprise Value/Ebitda10.82

Forecast

1Y Price Target

$52.60

Price Target Upside10.39% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering11

Bentley Systems Business Overview & Revenue Model

Company DescriptionBentley Systems, Incorporated (BSY) is a leading global provider of software solutions for infrastructure engineering. The company operates in sectors such as architecture, engineering, construction, and operations, providing comprehensive software solutions to advance the design, construction, and operations of infrastructure, including roads, bridges, airports, and industrial facilities. Bentley's core products and services include a suite of applications for computer-aided design and engineering (CAD and CAE), building information modeling (BIM), and digital twin solutions to support project delivery and asset management throughout the infrastructure lifecycle.

How the Company Makes MoneyBentley Systems generates revenue primarily through the sale of software licenses and subscriptions for its infrastructure engineering solutions. The company offers its products on both perpetual license models and subscription-based models, including term licenses and enterprise agreements. Key revenue streams include software sales, subscriptions, and recurring maintenance and support services. Bentley also earns from its professional services, which provide consulting and implementation services to help clients optimize their use of Bentley's software. Significant partnerships with infrastructure engineering firms and government agencies enhance its market reach and contribute to earnings by integrating its solutions into large-scale infrastructure projects globally.

Bentley Systems Key Performance Indicators (KPIs)

Any

Annualized Recurring Revenue

Annualized Recurring Revenue
Measures the predictable revenue generated from subscriptions or long-term contracts, highlighting the company's stability and growth potential through consistent income streams.

Chart InsightsBentley Systems' ARR has shown consistent growth, with a notable 12% year-over-year increase in Q1 2025, driven by the E365 program and new customer acquisitions. Despite geopolitical challenges in China, the company maintains a strong outlook, supported by robust U.S. infrastructure demand and strategic geographical diversification. Subscription revenues now dominate, enhancing revenue predictability. However, a decline in professional services revenue and slightly slower sequential ARR growth suggest some volatility, though management remains optimistic about achieving low double-digit ARR growth and margin expansion.

Data provided by:

Main Street Data

Bentley Systems Earnings Call Summary

Earnings Call Date:May 07, 2025

(Q1-2025)

% Change Since: 9.04%|

Next Earnings Date:Aug 12, 2025

Earnings Call Sentiment Positive

The earnings call reflected a generally positive sentiment with strong ARR growth, robust subscription revenues, and a resilient business model. Despite some challenges in the professional services segment and geopolitical headwinds in China, the company remains well-positioned with solid geographical diversification and a positive outlook in the U.S. infrastructure market.

Q1-2025 Updates

Positive Updates

Strong ARR Growth

ARR growth was 12% year-over-year and 12.5% excluding the impact of China. The E365 program continues to be a growth driver, and 300 basis points of ARR growth came from new logos.

Record Subscription Revenue

Subscription revenues grew 11% year-over-year, now representing 92% of total revenues, improving growth consistency, predictability, and margin contribution.

Geographical Diversification

India was a key growth driver in the Asia-Pacific region, and Latin America stood out in the Americas. Solid growth was also recorded in EMEA, with significant investments in Europe and the Middle East.

Resilient Business Model

Recurring revenues reached a high watermark of 92% of total revenues, and our direct sales model is at 94%. ARR from infrastructure owner-operators has reached parity with ARR from engineering and construction contractors.

Positive U.S. Infrastructure Outlook

The U.S. market remains strong with IIJA funding continuing for at least another 18 months, and state and local government contract awards in Q1 were up 34% year-over-year.

Negative Updates

Decline in Professional Services Revenue

Professional services revenues declined 18% for the quarter, highlighting the volatility and lower margin contribution of this revenue segment.

Challenges in China

China, representing less than 2.5% of total ARR, faced economic and geopolitical headwinds, impacting overall growth.

Slower Sequential ARR Growth

The quarterly sequential ARR growth rate was 2.1%, slightly below the previous year's 2.2%, with expectations for back-half loaded growth.

Company Guidance

During the call, Bentley Systems provided detailed guidance for their fiscal year 2025, with a strong focus on metrics such as Annual Recurring Revenue (ARR) growth, profitability, and cash flow. They reported a 12% year-over-year ARR growth for Q1 2025, despite global macro uncertainties, with net revenue retention remaining at 110%. The company's subscription revenues now represent 92% of total revenues, up from the previous year, reflecting a strategic shift towards more predictable and consistent revenue streams. Bentley's E365 program continues to be a key growth driver, contributing significantly to ARR from both renewals and new logos. The company emphasized their intention to maintain low double-digit ARR growth and achieve 100 basis points of margin expansion. They also highlighted their strategic focus on infrastructure sectors such as public works and utilities, which continue to show robust growth, while their exposure to more cyclically sensitive sectors like commercial facilities has decreased. Bentley's strong balance sheet and free cash flow generation support their ongoing investments and shareholder returns, with their financial outlook for 2025 remaining intact.

Bentley Systems Financial Statement Overview

Summary

Bentley Systems demonstrates solid financial health with strong revenue growth and robust cash flow generation. Despite a decrease in net profit margin, high gross profit margins and effective cash management highlight efficient operations. The balance sheet shows moderate leverage, which requires cautious management.

Income Statement

Very Positive

Bentley Systems shows strong revenue growth with a 10.2% increase from 2023 to 2024. The gross profit margin is high at 80.9%, indicating effective cost management. However, the net profit margin decreased to 17.3% from 26.6% in the previous year, reflecting increased costs or reduced efficiency in operations.

Balance Sheet

Very Positive

The company's debt-to-equity ratio stands at 1.37, indicating moderate leverage relative to equity. Return on Equity (ROE) improved to 22.6%, showcasing efficient use of equity to generate profits. The equity ratio is stable at 30.6%, reflecting a balanced asset financing structure. However, the high debt level could pose a risk if not managed properly.

Cash Flow

Very Positive

Bentley Systems experienced a 7.5% growth in free cash flow, highlighting strong cash generation. The operating cash flow to net income ratio is robust at 1.85, suggesting effective cash management. The free cash flow to net income ratio is high, indicating that the company is generating more cash than its net income, which is a positive sign of liquidity.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.35B	1.23B	1.10B	965.05M	801.54M
	Gross Profit
1.10B	910.24M	862.07M	748.51M	634.39M
	EBIT
302.15M	230.54M	208.61M	94.59M	150.15M
	EBITDA
378.19M	288.44M	297.63M	152.34M	206.03M
	Net Income Common Stockholders
234.79M	326.79M	174.78M	93.19M	126.52M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
64.01M	68.41M	71.68M	329.34M	122.01M
	Total Assets
3.40B	3.32B	3.17B	2.66B	1.13B
	Total Debt
1.43B	1.57B	1.82B	1.49B	294.38M
	Net Debt
1.36B	1.50B	1.75B	1.16B	172.37M
	Total Liabilities
2.36B	2.44B	2.59B	2.25B	784.44M
	Stockholders Equity
1.04B	883.28M	572.75M	409.22M	341.60M
Cash Flow		Free Cash Flow
421.25M	391.69M	255.78M	270.49M	241.89M
	Operating Cash Flow
435.29M	416.70M	274.32M	288.02M	258.34M
	Investing Cash Flow
-143.27M	-60.50M	-770.13M	-1.06B	-117.33M
	Financing Cash Flow
-289.85M	-359.07M	243.03M	982.58M	-136.51M

Bentley Systems Technical Analysis

Technical Analysis Sentiment

Positive

Last Price47.65

Price Trends

50DMA

44.09

Positive

100DMA

44.44

Positive

200DMA

46.63

Positive

Market Momentum

MACD

0.99

Positive

RSI

60.99

Neutral

STOCH

39.38

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BSY, the sentiment is Positive. The current price of 47.65 is above the 20-day moving average (MA) of 47.41, above the 50-day MA of 44.09, and above the 200-day MA of 46.63, indicating a bullish trend. The MACD of 0.99 indicates Positive momentum. The RSI at 60.99 is Neutral, neither overbought nor oversold. The STOCH value of 39.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BSY.

Bentley Systems Risk Analysis

Bentley Systems disclosed 37 risk factors in its most recent earnings report. Bentley Systems reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 1 New Risks

We incorporate artificial intelligence and machine learning (collectively "AI" herein this item) into our software solutions and offerings, and challenges with properly managing its use could result in reputational harm, or liability, and adversely affect our operations. Q4, 2024

Bentley Systems Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NICE	84 Outperform	$10.86B	24.66	13.40%	―	12.62%	26.45%
BSY	81 Outperform	$14.45B	60.56	25.20%	0.52%	10.71%	-27.64%
PEGA	80 Outperform	$8.30B	47.14	39.29%	0.12%	14.29%	151.38%
DT	79 Outperform	$16.13B	33.73	20.86%	―	18.75%	208.06%
MANH	77 Outperform	$11.20B	53.30	89.60%	―	9.18%	14.35%
GWRE	67 Neutral	$18.05B	528.94	2.61%	―	18.61%	―
Sector *	61 Neutral	$11.55B	10.41	-6.86%	2.93%	7.50%	-8.30%

* Technology Sector Average

Performance Comparison

BSY

Bentley Systems

48.52

-1.87

-3.71%

GWRE

Guidewire

253.98

126.52

99.26%

MANH

Manhattan Associates

190.87

-29.22

-13.28%

NICE

176.79

15.01

9.28%

PEGA

Pegasystems

101.41

43.21

74.24%

Dynatrace

54.22

7.54

16.15%

Bentley Systems Corporate Events

Shareholder MeetingsDividends

Bentley Systems Announces Dividend at Annual Meeting

Positive

May 27, 2025

On May 22, 2025, Bentley Systems held its Annual Meeting of Stockholders, where key proposals were voted on, including the election of directors and the approval of executive compensation. The company also announced a $0.07 per share dividend for the second quarter of 2025, payable on June 12, 2025, reflecting its ongoing commitment to returning value to shareholders.

The most recent analyst rating on (BSY) stock is a Buy with a $61.00 price target. To see the full list of analyst forecasts on Bentley Systems stock, see the BSY Stock Forecast page.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.