PTC (PTC) AI Stock Analysis

• Market Cap: $20.43B
• Dividend Yield: N/A
• Average Volume (3M): 830.45K
• Price to Earnings (P/E): 46.8
• Beta (1Y): 1.13
• Revenue Growth: 4.66%
• EPS Growth: 51.72%
• Country: US
• Employees: 7,512
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Application
• EPS (TTM): 1.79
• Shares Outstanding: 119,947,850
• 10 Day Avg. Volume: 737,497
• 30 Day Avg. Volume: 830,454
• PEG Ratio: 1.11
• Price to Book (P/B): 6.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 29.39
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 2.54
• Enterprise Value/Gross Profit: 12.30
• Enterprise Value/Ebitda: 8.27
• 1Y Price Target: $183.86
• Price Target Upside: 7.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 76 Outperform
• Price Target: $182.00 ▲(6.48%Upside)

PTC demonstrates strong financial performance and strategic initiatives, with robust cash flow and operational efficiency. Technical indicators show positive momentum, yet valuation concerns arise due to a high P/E ratio. Despite solid earnings, macroeconomic uncertainties necessitate caution. New board appointment is a positive strategic move, potentially strengthening future governance.

Positive Factors

Acquisition Strategy

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.

Growth Potential

The pathway towards a multi-year growth runway in the low- to mid-teens remains achievable with potential for profit upside.

Operational Efficiency

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

Negative Factors

Currency Exchange Impact

Unfavorable change in the FX environment presents the potential for a headwind this year.

Market Demand

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

Tariff and Macro Uncertainty

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

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 exhibits strong financial health with notable revenue and profit growth, efficient cost management, and robust cash flow generation. The balance sheet is stable with moderate leverage, supporting operational and strategic initiatives, but attention to debt levels and market conditions is essential.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
2.35B	2.30B	2.10B	1.93B	1.81B	1.46B
	Gross Profit
1.89B	1.85B	1.66B	1.55B	1.44B	1.12B
	EBIT
628.98M	588.06M	458.47M	447.36M	380.75M	210.86M
	EBITDA
745.55M	730.02M	599.14M	573.41M	564.77M	291.95M
	Net Income Common Stockholders
440.38M	376.33M	245.54M	313.08M	476.92M	130.69M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
266.28M	265.81M	288.10M	272.18M	326.53M	303.59M
	Total Assets
3.28B	6.38B	6.29B	4.69B	4.52B	3.38B
	Total Debt
1.35B	1.93B	1.89B	1.56B	1.65B	1.22B
	Net Debt
1.11B	1.66B	1.60B	1.29B	1.32B	944.88M
	Total Liabilities
2.03B	3.17B	3.61B	2.39B	2.48B	1.94B
	Stockholders Equity
1.25B	3.21B	2.68B	2.30B	2.04B	1.44B
Cash Flow		Free Cash Flow
819.90M	735.61M	586.25M	409.38M	343.55M	202.56M
	Operating Cash Flow
831.65M	749.98M	610.86M	435.33M	368.81M	233.81M
	Investing Cash Flow
2.73M	-124.81M	-858.51M	-229.47M	-688.82M	-525.97M
	Financing Cash Flow
-844.46M	-650.73M	260.71M	-235.82M	371.23M	297.41M

PTC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 170.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 170.92 is above the 20-day moving average (MA) of 169.92, above the 50-day MA of 158.90, and below the 200-day MA of 174.78, indicating a neutral trend. The MACD of 2.36 indicates Positive momentum. The RSI at 60.44 is Neutral, neither overbought nor oversold. The STOCH value of 83.01 is Negative, 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
ZM	80 Outperform	$24.31B	24.10	12.19%	―	2.98%	24.11%
SSNC	78 Outperform	$20.18B	25.47	12.34%	1.22%	6.92%	28.43%
TYL	78 Outperform	$24.85B	87.48	8.87%	―	9.96%	50.93%
PTC	76 Outperform	$20.43B	46.76	13.91%	―	4.66%	51.72%
DOCU	73 Outperform	$15.24B	14.85	70.20%	―	7.85%	935.80%
Sector *	62 Neutral	$11.90B	10.64	-7.50%	2.90%	7.41%	-8.19%
GWRE	59 Neutral	$21.20B	639.26	2.61%	―	18.61%	―

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.