PTC (PTC) AI Stock Analysis

• Market Cap: $25.47B
• Dividend Yield: N/A
• Average Volume (3M): 946.59K
• Price to Earnings (P/E): 51.0
• Beta (1Y): 1.03
• Revenue Growth: 11.42%
• EPS Growth: 72.60%
• Country: US
• Employees: 7,512
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Application
• EPS (TTM): 1.64
• Shares Outstanding: 119,792,700
• 10 Day Avg. Volume: 809,137
• 30 Day Avg. Volume: 946,588
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 8.89
• Enterprise Value/Gross Profit: 10.82
• Enterprise Value/Ebitda: 25.53
• 1Y Price Target: $224.93
• Price Target Upside: 4.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 77 Outperform
• Price Target: $233.00 ▲(8.36% Upside)

PTC's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The technical analysis supports a stable upward trend, while the high valuation poses a risk. Overall, PTC is well-positioned in the market, with strategic initiatives and partnerships enhancing its growth prospects.

Positive Factors

Acquisitions

The company's acquisition of ServiceMax and strength in ALM should provide longer-term opportunity to complete the digital thread to support asset-intensive industries in design.

Financial Performance

The trajectory of FCF generation remains solid, and strong measures are in place to drive efficiencies.

Product Development

SaaS and AI implementations were called out as future product opportunities, and optimizations have been a steady feature of the business for some time.

Negative Factors

Customer Behavior

Customer conversations indicate an increasing potential for second half deals to be smaller, done in phases, or potentially delayed.

Guidance and Forecasts

PTC management lowered FY25 ARR guidance to embed more caution about tariff and macro uncertainty.

Market Demand

PTC lowered its FY25 guidance for constant currency ARR growth due to significant deterioration in end market demand.

PTC Business Overview & Revenue Model

Company Description

PTC Inc. is a global technology company specializing in augmented reality (AR), Internet of Things (IoT), and product lifecycle management (PLM) software solutions. Founded in 1985, PTC operates across various sectors, including manufacturing, automotive, aerospace, and consumer products. The company’s core products include Windchill for PLM, ThingWorx for IoT applications, and Vuforia for AR experiences, enabling businesses to enhance product development and operational efficiencies.

How the Company Makes Money

PTC generates revenue primarily through software licensing, subscription services, and professional services. The company offers a range of software solutions that are sold as perpetual licenses or through subscription-based models, with recurring revenue being a significant component due to the increasing demand for cloud-based solutions. Key revenue streams include software maintenance and support services, which provide ongoing updates and technical assistance to customers. Additionally, PTC earns revenue from consulting and training services that help clients implement and optimize their software solutions. The company has established strategic partnerships with major technology firms and industry leaders, enhancing its market presence and contributing to its earnings through joint ventures and integrated solutions.

PTC Financial Statement Overview

Summary

PTC exhibits strong financial health with robust profitability, a solid balance sheet, and healthy cash flows. The company maintains high gross and net profit margins, a moderate debt-to-equity ratio, and strong cash flow metrics, supporting its financial flexibility and stability.

Income Statement

PTC's income statement shows strong profitability with a high gross profit margin of 82.16% and a net profit margin of 20.74% for TTM (Trailing-Twelve-Months). Revenue growth is steady at 5.34%, indicating consistent demand. EBIT and EBITDA margins are robust at 29.22% and 34.82%, respectively, reflecting efficient operations. The company has demonstrated consistent revenue growth over the years, although the growth rate has slowed compared to earlier periods.

Balance Sheet

The balance sheet reflects a solid financial position with a debt-to-equity ratio of 0.40, indicating moderate leverage. Return on equity is healthy at 15.37%, showcasing effective use of equity to generate profits. The equity ratio stands at 56.38%, suggesting a strong equity base relative to total assets. The company has improved its leverage position over the years, enhancing financial stability.

Cash Flow

PTC's cash flow statement reveals a positive trajectory with a free cash flow growth rate of 3.64% for TTM. The operating cash flow to net income ratio is 1.68, indicating strong cash generation relative to earnings. The free cash flow to net income ratio is high at 98.61%, reflecting efficient conversion of earnings into cash. The company has consistently improved its cash flow metrics, supporting its financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.47B	2.30B	2.10B	1.93B	1.81B	1.46B
Gross Profit	2.03B	1.85B	1.66B	1.55B	1.44B	1.12B
EBITDA	860.64M	730.02M	599.14M	573.41M	564.77M	291.95M
Net Income	512.73M	376.33M	245.54M	313.08M	476.92M	130.69M
Balance Sheet
Total Assets	6.23B	6.38B	6.29B	4.69B	4.52B	3.38B
Cash, Cash Equivalents and Short-Term Investments	199.32M	265.81M	288.10M	272.18M	326.53M	303.59M
Total Debt	1.41B	1.93B	1.89B	1.54B	1.65B	1.22B
Total Liabilities	2.72B	3.17B	3.61B	2.39B	2.47B	1.94B
Stockholders Equity	3.51B	3.21B	2.68B	2.30B	2.04B	1.44B
Cash Flow
Free Cash Flow	849.78M	735.61M	586.25M	409.38M	343.55M	202.56M
Operating Cash Flow	861.78M	749.98M	610.86M	435.33M	368.81M	233.81M
Investing Cash Flow	-39.34M	-124.81M	-858.51M	-229.47M	-688.82M	-525.97M
Financing Cash Flow	-861.41M	-650.73M	260.71M	-235.82M	371.23M	297.41M

PTC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 215.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PTC, the sentiment is Positive. The current price of 215.03 is above the 20-day moving average (MA) of 210.75, above the 50-day MA of 196.03, and above the 200-day MA of 178.84, indicating a bullish trend. The MACD of 4.59 indicates Positive momentum. The RSI at 65.11 is Neutral, neither overbought nor oversold. The STOCH value of 78.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PTC.

PTC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PTC	77 Outperform	$25.47B	51.05	15.71%	―	11.42%	72.60%
TYL	71 Outperform	$23.67B	80.19	9.07%	―	10.69%	45.43%
GWRE	69 Neutral	$17.86B	549.57	2.61%	―	18.61%	―
TTD	66 Neutral	$25.53B	63.48	16.36%	―	23.18%	63.48%
HUBS	65 Neutral	$24.10B	7,452.21	-0.65%	―	18.96%	58.78%
U	63 Neutral	$16.93B	―	-13.62%	―	-13.74%	48.10%
Sector *	61 Neutral	$36.05B	6.66	-10.10%	1.86%	8.68%	-8.81%

PTC Corporate Events

PTC Appoints Trac Pham to Board of Directors

On March 9, 2025, PTC Inc. announced the appointment of Trac Pham to its Board of Directors, effective March 17, 2025. Mr. Pham will also serve on the Audit Committee. His previous roles include Co-CEO and Interim COO at Sprinklr, and CFO at Synopsys, Inc., bringing extensive financial and strategic expertise to PTC. This appointment is expected to enhance PTC’s governance and strategic direction, potentially impacting its market positioning positively.