Bentley Systems Inc (BSY) stock analysis

P/E below its 5-year median

Bentley Systems's P/E of 43.6 is below its own 5-year median of 65.1.

P/E above the industry

Bentley Systems's P/E of 43.6 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.

EV/EBITDA below its 5-year median

Bentley Systems's EV/EBITDA of 34.7 is below its 5-year median of 60.9.

P/B above the industry

Bentley Systems's price-to-book of 10.46 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.

Trading above fair value

The share price of $44.44 is above our fair value estimate of $37.55.

Margin of safety under 20%

The price is 18.3% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 11.0% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 15.6% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 19.8% over the last twelve months, against a 5-year average of 17.0% a year.

Growing faster than the industry

Revenue grew 12.9% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.

Guidance raised

Bentley Systems raised its full year 2026 Services revenues growth rate outlook on Feb 26, 2026.

Gross margin improving

Gross margin was 82.4% over the last twelve months, against 81.2% a year earlier.

Return on equity over 15%

Return on equity was 26.0% over the last twelve months and averaged 30.8% over five years.

Return on capital over 10%

Return on invested capital was 14.5%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Bentley Systems's return on equity of 26.0% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.

Earnings grew over 5 years

Net income grew 17.0% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 19.6% over the last twelve months, against a 5-year average of 17.6%.

Net margin above the industry

Bentley Systems's net margin of 19.6% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.

High debt

Debt is 90.6% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 72.0% five years ago to 90.6%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 44.4% of total debt.

Interest well covered

Operating income covers interest expense 15.3 times.

Short-term assets don't cover short-term debts

Current assets are 0.65 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 4.25; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Bentley Systems paid dividends worth 0.6% of the share price over the last twelve months.

Yield below Treasuries

The 0.6% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Bentley Systems yields 0.6%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 8 fiscal years.

Covered by earnings

Dividends take 26.3% of net income.

Covered by free cash flow

Dividends take 17.3% of free cash flow.