PTC (PTC) AI Stock Analysis

• Market Cap: $19.20B
• Dividend Yield: N/A
• Average Volume (3M): 1.02M
• Price to Earnings (P/E): 44.0
• Beta (1Y): 1.15
• Revenue Growth: 4.66%
• EPS Growth: 51.72%
• Country: US
• Employees: 7,512
• Sector: Technology
• Sector Strength: 66
• Industry: Software - Application
• EPS (TTM): 1.79
• Shares Outstanding: 119,947,850
• 10 Day Avg. Volume: 941,212
• 30 Day Avg. Volume: 1,023,177
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 10.82
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $183.57
• Price Target Upside: 14.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

PTC's overall stock score reflects a strong financial performance with robust revenue growth and profitability. However, concerns arise from balance sheet anomalies and high valuation metrics. While technical indicators suggest potential short-term resistance, the company's strategic advancements and governance improvements offer a positive outlook. Macroeconomic uncertainties pose near-term risks, warranting cautious optimism.

Positive Factors

Earnings

PTC reported good F1Q25 results, with a ~2% beat on revenue and a $0.21 beat on EPS.

Shareholder Returns

Management aims to maintain a strong cash position for company operations while returning excess to shareholders through initiatives such as the recently announced $2B share repurchase authorization.

Strategic Initiatives

PTC is integrating GenAI across its product portfolio, beginning with ServiceMax AI launch.

Negative Factors

Currency Impact

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

Guidance

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

Market Environment

The challenging demand environment continues to temper sentiment.

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. makes money through a variety of revenue streams primarily centered around its software solutions and services. The company generates revenue from the sale of perpetual licenses, subscription-based licenses, and software maintenance agreements for its CAD, PLM, IoT, and AR platforms. Additionally, PTC earns revenue from consulting, implementation, and training services that support the deployment and utilization of its software products. The company also benefits from strategic partnerships and collaborations with leading technology companies, which help expand its market reach and enhance its product offerings. PTC's revenue model emphasizes recurring income through subscriptions and long-term customer relationships, contributing significantly to its financial stability and growth.

PTC Financial Statement Overview

Summary

PTC demonstrates strong revenue growth and profitability, with healthy margins indicating efficient operations. However, the balance sheet shows a lack of stockholders' equity in the TTM report, raising concerns about financial stability. Cash flows are robust, supporting operational flexibility despite fluctuations in financing activities.

Income Statement

PTC has demonstrated strong growth in revenue, with a notable 10.5% increase from 2023 to 2024 (TTM). The company maintains healthy gross and net profit margins at approximately 79.8% and 16.9% respectively for TTM, reflecting its efficient cost management. EBIT and EBITDA margins are also robust at 25.3% and 28.9%, indicating strong operational efficiency. However, the slight decrease in EBIT from the previous annual report highlights the need for cautious monitoring of operational expenses.

Balance Sheet

The balance sheet reveals a concerning lack of stockholders' equity in the TTM report, which suggests financial restructuring or a very high payout. Previously, the debt-to-equity ratio was moderate at 0.60, indicating manageable leverage. The equity ratio stood at 50.4%, showing a solid equity base before the recent data anomaly. Despite these strengths, the absence of equity and liabilities in the latest TTM report poses potential financial risks and warrants further investigation.

Cash Flow

PTC shows a strong free cash flow growth of 7.2% in the TTM period, indicating efficient cash management and operational performance. The operating cash flow to net income ratio is 2.04, reflecting the company's ability to generate cash from operations. The free cash flow to net income ratio is also strong at 2.01, showcasing PTC's capability to convert profits into cash. However, fluctuations in financing activities suggest the company should monitor its capital structure closely.

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

PTC Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 160.09
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PTC, the sentiment is Neutral. The current price of 160.09 is above the 20-day moving average (MA) of 147.47, above the 50-day MA of 154.65, and below the 200-day MA of 175.53, indicating a neutral trend. The MACD of 0.39 indicates Negative momentum. The RSI at 61.07 is Neutral, neither overbought nor oversold. The STOCH value of 87.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PTC.

PTC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZM	77 Outperform	$21.78B	22.28	11.92%	―	3.05%	55.96%
DOCU	76 Outperform	$16.63B	16.06	68.18%	―	7.78%	1345.45%
SSNC	75 Outperform	$19.17B	24.19	12.34%	1.27%	6.92%	28.43%
TYL	68 Neutral	$23.72B	82.93	8.87%	―	9.96%	50.93%
GWRE	67 Neutral	$17.59B	528.94	-1.34%	―	17.16%	67.81%
PTC	63 Neutral	$19.20B	43.99	13.91%	―	4.66%	51.72%
Sector *	60 Neutral	$10.94B	10.48	-7.04%	2.99%	7.55%	-12.20%

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.