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PTC Inc PTC

Morningstar Rating
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Stock XNAS Rating as of
$175.54 +1.06 (0.61%)
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As of Delayed Price Post-Trading: $175.54 0.00
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Company Report

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PTC Earnings: Strong Revenue and Margin Performance, but Guidance Likely Underwhelms

Brian Colello, Verushka Shetty

We maintain our $138 per share fair value estimate for narrow-moat PTC after the firm reported fiscal second-quarter results above our expectations. We are pleased with the continued business momentum under PTC’s new CEO, and believe the firm is positioning its portfolio well to capitalize on digital transformation opportunities in end markets. Management narrowed its 2024 guidance ranges for both the top and bottom line, and also adjusted its medium-term target for annualized recurring revenue growth. While shares dropped 5% after hours, likely due to lower-than-expected third-quarter guidance, we continue to view the stock as overvalued.

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Price vs Fair Value

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PTC is trading at a 747% premium.
Price
$174.48
Fair Value
$546.00
Uncertainty
Medium
1-Star Price
$179.70
5-Star Price
$77.20
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

PTC’s revenue should be able to grow significantly as its Internet of Things solutions take off.

Bears

PTC’s Internet of Things offering could struggle gaining momentum due to its lack of recognition on the factory floor.

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News

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Trading Information

Previous Close Price
$174.48
Day Range
$173.00–176.18
52-Week Range
$134.61–194.24
Bid/Ask
$148.50 / $185.00
Market Cap
$21.02 Bil
Volume/Avg
577,049 / 752,998

Key Statistics

Price/Earnings (Normalized)
36.66
Price/Sales
9.35
Dividend Yield (Trailing)
—
Dividend Yield (Forward)
—
Total Yield
—

Company Profile

PTC offers high-end computer-assisted design (Creo) and product lifecycle management (Windchill) software as well as Internet of Things and AR industrial solutions. Founded in 1985, PTC has 28,000 customers, with revenue stemming mostly from North America (45%) and Europe (40%).
Sector
Technology
Industry
Software - Application
Stock Style Box
Mid Growth
Total Number of Employees
7,231
Website
https://www.ptc.com

Competitors

Valuation

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Metric
PTC
SIE
ADSK
Price/Earnings (Normalized)
 36.6618.3429.24
Price/Book Value
 7.102.9824.91
Price/Sales
 9.351.798.49
Price/Cash Flow
 31.2712.1428.74
Price/Earnings
PTC
SIE
ADSK

Financial Strength

Metric
PTC
SIE
ADSK
Quick Ratio
 0.631.070.65
Current Ratio
 0.761.410.75
Interest Coverage
 3.825.75—
Quick Ratio
PTC
SIE
ADSK

Profitability

Metric
PTC
SIE
ADSK
Return on Assets (Normalized)
 9.13%4.09%17.53%
Return on Equity (Normalized)
 21.09%12.81%141.41%
Return on Invested Capital (Normalized)
 13.84%5.07%41.05%
Return on Assets
PTC
SIE
ADSK
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