Bentley Systems (BSY) AI Stock Analysis

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Bentley Systems

(NASDAQ:BSY)

Rating:66Neutral

Price Target:

$58.00

▲(8.43% Upside)

Bentley Systems' strong earnings call and financial performance are offset by technical weakness and high valuation concerns. The company's strategic focus on ARR growth and infrastructure positions it well for the future, but current market conditions and valuation metrics suggest caution.

Positive Factors

Financial Performance

Bentley reported solid second-quarter results, with subscription revenue growth and constant-currency ARR both growing 12% alongside 34% operating margins, which are all ahead of expectations.

Market Demand

Robust global demand for infrastructure projects supported by positive long-term sentiment and ongoing growth of civil project backlogs fuels execution momentum.

Strategic Outlook

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

Negative Factors

International Challenges

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

Limited Upside Potential

Analyst sees a limited catalyst path to drive upside to shares.

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

Market Cap

$16.24B

Dividend Yield0.49%

Average Volume (3M)1.66M

Price to Earnings (P/E)68.3

Beta (1Y)0.75

Revenue Growth10.45%

EPS Growth-32.43%

CountryUS

Employees5,500

SectorTechnology

Sector Strength94

IndustrySoftware - Application

Share Statistics

EPS (TTM)0.32

Shares Outstanding292,093,300

10 Day Avg. Volume1,878,725

30 Day Avg. Volume1,664,666

Financial Highlights & Ratios

PEG Ratio-2.09

Price to Book (P/B)14.13

Price to Sales (P/S)10.87

P/FCF Ratio34.91

Enterprise Value/Market Cap1.18

Enterprise Value/Revenue13.49

Enterprise Value/Gross Profit16.62

Enterprise Value/Ebitda49.43

Forecast

1Y Price Target

$59.90

Price Target Upside11.98% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering11

Bentley Systems Business Overview & Revenue Model

Company DescriptionBentley 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 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
Shows the predictable revenue Bentley Systems expects to generate annually from its subscription services, highlighting the stability and growth of its business model.

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:Aug 06, 2025

(Q2-2025)

% Change Since: -6.24%|

Next Earnings Date:Nov 11, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong ARR growth, a robust SMB segment, geographic expansion, and significant investments in AI and infrastructure. Although challenges in China and asset analytics volatility were noted, the overall performance and strategic positioning were positive.

Q2-2025 Updates

Positive Updates

Strong ARR and Revenue Growth

ARR grew 11.5% year-over-year and 12% when excluding China. Total revenues for the second quarter were $364 million, up 10% year-over-year on a reported basis and 9% on a constant currency basis.

Record SMB Segment Performance

For the 14th consecutive quarter, Bentley added more than 600 new SMB logos through the online store with high retention rates, indicating strong demand even from smaller accounts.

Geographic Expansion and Infrastructure Investment

Solid growth in Americas and EMEA regions. Middle East led EMEA growth, and the U.S. showed optimism due to potential permitting reforms. The U.K. and Europe announced significant long-term infrastructure investments.

Positive Impact of AI and Innovation

Bentley is integrating AI into its offerings, with significant interest in agentic AI. OpenSite+ early access shows promising engagement from accounts.

Increased Free Cash Flow Guidance

Free cash flow guidance increased to a range of $430 million to $470 million due to tax benefits from the recently enacted One Big Beautiful Bill.

Negative Updates

Challenges in China

China represented only about 2% of total ARR, indicating ongoing economic and geopolitical headwinds affecting performance.

Seasonal and Volatile Asset Analytics

Asset analytics business contributes to revenue volatility due to large, lumpy deals, and reliance on construction phases.

Company Guidance

In the call discussing Bentley Systems' Q2 2025 results, the company provided guidance indicating a strong performance trajectory, with a focus on maintaining low double-digit ARR growth and continued margin expansion. Key metrics highlighted include ARR growth of 11.5% year-over-year, 12% excluding the impact of China, and a net revenue retention rate of 109%. The company also reported robust free cash flow generation, prompting an increase in the 2025 free cash flow outlook to a range of $430 million to $470 million due to recent tax policy changes. Bentley Systems emphasized its strategic focus on digital transformation in infrastructure engineering, with software spending per engineer/technician reportedly growing at a compounded annual growth rate of about 10% over recent years. The company also noted optimism regarding market opportunities, particularly in sectors such as resources and public works, and expressed confidence in achieving its full-year financial targets.

Bentley Systems Financial Statement Overview

Summary

Bentley Systems demonstrates strong financial health with robust revenue growth, high profitability margins, and excellent cash flow generation. The balance sheet is stable with manageable leverage, supporting its expansion strategies.

Income Statement

Very Positive

Bentley Systems shows robust revenue growth of 26.9% year-over-year in TTM, indicating strong demand for its software solutions. Gross profit margin remains high at 80.6%, reflecting efficient cost management. Net profit margin is solid at 18.5%, with a slight improvement over the previous year, showing consistent profitability. EBIT and EBITDA margins are stable at 23.6% and 28.9% respectively, underscoring operational efficiency.

Balance Sheet

Positive

The company maintains a moderate debt-to-equity ratio of 1.17, which is typical for its industry, though improved from previous years. Return on Equity (ROE) is strong at 23.3% in TTM, showcasing effective use of equity capital. The equity ratio is 32.2%, indicating a solid balance between equity and debt financing, although there is room for strengthening the equity position.

Cash Flow

Very Positive

Operating cash flow has increased, providing a strong base for future investments and debt servicing. Free cash flow growth is healthy at 3.6% year-over-year, aligning with the company's expansion strategies. The operating cash flow to net income ratio is robust at 1.76, highlighting excellent cash conversion from earnings. Free cash flow to net income ratio is 1.71, indicating substantial liquidity to support growth initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.42B	1.35B	1.23B	1.10B	965.05M	801.54M
Gross Profit	1.15B	1.10B	910.24M	862.07M	748.51M	634.39M
EBITDA	387.50M	378.19M	288.44M	297.63M	152.34M	206.03M
Net Income	254.28M	234.79M	326.79M	174.78M	93.19M	126.52M
Balance Sheet
Total Assets	3.42B	3.40B	3.32B	3.17B	2.66B	1.13B
Cash, Cash Equivalents and Short-Term Investments	89.65M	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	2.26B	2.36B	2.44B	2.59B	2.25B	784.44M
Stockholders Equity	1.16B	1.04B	883.28M	572.75M	409.22M	341.60M
Cash Flow
Free Cash Flow	433.75M	421.25M	391.69M	255.78M	270.49M	241.89M
Operating Cash Flow	448.24M	435.29M	416.70M	274.32M	288.02M	258.34M
Investing Cash Flow	-139.46M	-143.27M	-60.50M	-770.13M	-1.06B	-117.33M
Financing Cash Flow	-276.36M	-289.85M	-359.07M	243.03M	982.58M	-136.51M

Bentley Systems Technical Analysis

Technical Analysis Sentiment

Negative

Last Price53.49

Price Trends

50DMA

53.78

Negative

100DMA

48.70

Positive

200DMA

47.73

Positive

Market Momentum

MACD

0.25

Positive

RSI

33.69

Neutral

STOCH

22.72

Neutral

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 53.49 is below the 20-day moving average (MA) of 57.33, below the 50-day MA of 53.78, and above the 200-day MA of 47.73, indicating a neutral trend. The MACD of 0.25 indicates Positive momentum. The RSI at 33.69 is Neutral, neither overbought nor oversold. The STOCH value of 22.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 0 New Risks

Bentley Systems Peers Comparison

Overall Rating

UnderperformOutperform

Sector (57)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PEGA	79 Outperform	$9.86B	49.87	41.55%	0.15%	12.47%	65.19%
NICE	79 Outperform	$9.72B	20.70	13.42%	―	12.62%	26.45%
MANH	75 Outperform	$13.06B	58.88	85.16%	―	6.13%	9.17%
DT	71 Outperform	$13.94B	28.46	20.69%	―	18.70%	214.47%
GWRE	68 Neutral	$17.96B	541.57	2.61%	―	18.61%	―
BSY	66 Neutral	$16.24B	68.35	23.69%	0.49%	10.45%	-32.43%
Sector *	57 Neutral	€1.73B	11.34	1.00%	3.76%	3.99%	-87.85%

* Technology Sector Average

Performance Comparison

BSY

Bentley Systems

53.49

5.42

11.28%

GWRE

Guidewire

213.27

67.47

46.28%

MANH

Manhattan Associates

205.80

-41.27

-16.70%

NICE

148.66

-6.29

-4.06%

PEGA

Pegasystems

51.22

18.81

58.04%

Dynatrace

46.24

-0.75

-1.60%

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

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 08, 2025