PTC (PTC) AI Stock Analysis

• Market Cap: $25.73B
• Dividend Yield: N/A
• Average Volume (3M): 1.38M
• Price to Earnings (P/E): 50.9
• Beta (1Y): 1.06
• Revenue Growth: 11.42%
• EPS Growth: 72.60%
• Country: US
• Employees: 7,512
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Application
• EPS (TTM): 1.64
• Shares Outstanding: 119,792,700
• 10 Day Avg. Volume: 1,161,061
• 30 Day Avg. Volume: 1,378,620
• PEG Ratio: 1.11
• Price to Book (P/B): 6.73
• Price to Sales (P/S): 9.41
• P/FCF Ratio: 29.39
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 8.89
• Enterprise Value/Gross Profit: 10.82
• Enterprise Value/Ebitda: 25.53
• 1Y Price Target: $224.36
• Price Target Upside: 8.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 79 Outperform
• Price Target: $246.00 ▲(19.33% Upside)

PTC's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. Technical analysis supports a bullish outlook despite overbought signals, while high valuation may pose a constraint. The company's strategic initiatives and partnerships further enhance its growth potential.

Positive Factors

Acquisition and Industry Support

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

FCF Generation

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

Product Opportunities

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

ARR Guidance

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

Demand Environment

The challenging demand environment continues to temper sentiment.

Revenue Guidance and FX

FY25 revenue guidance was lowered mainly due to FX headwinds.

PTC Business Overview & Revenue Model

Company Description

PTC Inc. operates as software and services company in the Americas, Europe, and the Asia Pacific. The company operates in two segments, Software Products and Professional Services. It offers ThingWorx platform, which offers a set of capabilities that enable enterprises to digitally transform every aspect of their business with innovative solutions that are simple to create, easy to implement, scalable to meet future needs, and designed to enable customers to accelerate time to value; and Vuforia, which enables the visualization of digital information in a physical context and the creation of AR. The company also provides Onshape, a software-as-a-service product development platform unites computer-aided design with data management, collaboration tools, and real-time analytics; Arena, a PLM solution enables product teams to collaborate virtually anytime and anywhere; Creo, a 3D CAD technology enables the digital design, testing, and modification of product models; and Windchill, a product lifecycle management software. In addition, it offers Integrity, an application lifecycle management solution; Servigistics, service parts management solution; and consulting, implementation, training, cloud, and license and support services. The company was formerly known as Parametric Technology Corporation and changed its name to PTC Inc. in January 2013. PTC Inc. was incorporated in 1985 and is headquartered in Boston, Massachusetts.

How the Company Makes Money

PTC Inc. generates revenue through a combination of software licensing, subscription-based services, and maintenance and support services. The company offers its software products through both perpetual licenses and subscription models, with a growing emphasis on recurring subscription revenues. Additionally, PTC provides professional services, including consulting, training, and implementation support, which contribute to its earnings. Strategic partnerships and collaborations with technology companies, as well as a strong global sales network, further support PTC's revenue growth by expanding its market reach and enhancing its product offerings.

PTC Financial Statement Overview

Summary

PTC shows strong financial health with significant revenue and profit growth, efficient cost management, and robust cash flow generation. The balance sheet is stable with moderate leverage, highlighting the company's ability to support strategic initiatives.

Income Statement

PTC demonstrates strong revenue growth with a TTM revenue of $2.35 billion, a 2.1% increase from the previous year. The gross profit margin is substantial at 80.7%, indicating efficient cost management. Net profit margin improved to 18.8%, reflecting profitability. EBIT and EBITDA margins are healthy at 26.8% and 31.8%, respectively, showcasing operational efficiency.

Balance Sheet

The company's financial position is stable with a debt-to-equity ratio of 0.46, indicating moderate leverage. Return on Equity (ROE) is impressive at 13.0%, suggesting effective use of equity. The equity ratio stands at 55.0%, highlighting a strong equity base relative to assets, reducing financial risk.

Cash Flow

PTC shows robust cash flow performance with a TTM free cash flow of $819.9 million, a 11.5% growth from the previous year. The operating cash flow to net income ratio is strong at 1.89, indicating efficient cash generation. Free cash flow to net income ratio is 1.86, demonstrating effective cash conversion.

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	1.56B	1.65B	1.22B
Total Liabilities	2.72B	3.17B	3.61B	2.39B	2.48B	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: 206.15
• 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 206.15 is above the 20-day moving average (MA) of 203.39, above the 50-day MA of 184.72, and above the 200-day MA of 177.22, indicating a bullish trend. The MACD of 8.27 indicates Positive momentum. The RSI at 57.55 is Neutral, neither overbought nor oversold. The STOCH value of 62.54 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	79 Outperform	$25.73B	50.85	15.71%	―	11.42%	72.60%
SSNC	78 Outperform	$20.99B	27.07	12.07%	1.16%	6.75%	15.99%
TYL	78 Outperform	$26.33B	87.48	9.07%	―	10.69%	45.43%
DOCU	75 Outperform	$14.92B	14.20	70.20%	―	7.85%	935.80%
ZM	74 Outperform	$21.69B	21.97	12.19%	―	2.98%	24.11%
GWRE	68 Neutral	$18.78B	572.80	2.61%	―	18.61%	―
Sector *	57 Neutral	HK$14.13B	9.47	-2.83%	4.86%	9.29%	-48.65%

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.