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Bentley Systems Inc Ordinary Shares - Class B BSY

Morningstar Rating
$52.72 −0.57 (1.07%)
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Company Report

Bentley Systems Earnings: Subscriptions Continue to Drive Growth Despite Perpetual License Headwinds

We raise our fair value estimate for narrow-moat Bentley Systems to $48 from $42, following a solid first-quarter earnings report. Annualized recurring revenue, or ARR, continues to be affected by perpetual license sales in China, but the firm’s solid public services sales base and growing SMB market kept the firm’s top-line growth strong. Looking ahead, we expect savings from scaled-based operating leverage and increased sales from digitization in end markets to fatten margins. Shares were up marginally following the earnings release but continue to screen as overvalued relative to our raised valuation.

Price vs Fair Value

BSY is trading at a 876% premium.
Price
$52.72
Fair Value
$81.00
Uncertainty
Medium
1-Star Price
$12.50
5-Star Price
$56.40
Economic Moat
Gnbmn
Capital Allocation
Hcrjcdlns

Bulls Say, Bears Say

Bulls

Bentley has a strong competitive position in its niche territory and should grow its business nicely as a result.

Bears

Autodesk could more aggressively try to convert Bentley customers to their Civil3D CAD software.

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News

Trading Information

Previous Close Price
$53.29
Day Range
$52.0753.47
52-Week Range
$44.7657.19
Bid/Ask
$52.01 / $53.99
Market Cap
$15.82 Bil
Volume/Avg
1.6 Mil / 1.6 Mil

Key Statistics

Price/Earnings (Normalized)
54.65
Price/Sales
14.03
Dividend Yield (Trailing)
0.40%
Dividend Yield (Forward)
0.46%
Total Yield
0.78%

Company Profile

Bentley Systems is a software vendor that caters to engineers, architects, constructors, and geospatial professionals by enabling design, modeling, simulation and project, and data management of infrastructure assets. The firm delivers solutions via the cloud, desktop, and hybrid environments. While Bentley is relatively small in comparison with peers like Autodesk, it shines in core specialty areas, like bridge or rail design, as opposed to being more broad-based in its applications. As of fiscal 2022, approximately 58% of revenue is derived from outside the U.S. (with 28% of revenue coming from EMEA and 18% coming from APAC as of fiscal 2022). Bentley’s largest end market is the public works and utilities sector, which represents approximately two thirds of revenue.
Sector
Technology
Industry
Software - Application
Stock Style Box
Mid Growth
Total Number of Employees
5,200

Competitors

Valuation

Metric
BSY
ADSK
DSY
Price/Earnings (Normalized)
54.6528.4831.33
Price/Book Value
16.8624.276.11
Price/Sales
14.038.278.52
Price/Cash Flow
50.2927.9929.46
Price/Earnings
BSY
ADSK
DSY

Financial Strength

Metric
BSY
ADSK
DSY
Quick Ratio
0.500.651.59
Current Ratio
0.570.751.72
Interest Coverage
6.50
Quick Ratio
BSY
ADSK
DSY

Profitability

Metric
BSY
ADSK
DSY
Return on Assets (Normalized)
9.85%17.53%11.19%
Return on Equity (Normalized)
42.30%141.41%20.98%
Return on Invested Capital (Normalized)
14.74%41.05%14.08%
Return on Assets
BSY
ADSK
DSY
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