PTC Inc. (PTC) stock analysis

P/E below its 5-year median

PTC's P/E of 19.1 is below its own 5-year median of 46.5.

P/E below the industry

PTC's P/E of 19.1 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.

EV/EBITDA below its 5-year median

PTC's EV/EBITDA of 17.2 is below its 5-year median of 28.2.

P/B above the industry

PTC's price-to-book of 6.13 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.

Trading below fair value

The share price of $196.14 is below our fair value estimate of $328.00.

Margin of safety over 20%

The price is 40.2% below fair value, more than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 12.3% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 31.9% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 139% over the last twelve months, against a 5-year average of 41.2% a year.

Growing faster than the industry

Revenue grew 19.5% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.

Guidance raised

PTC raised its FY’26 Guidance Constant currency ARR excluding divested businesses (FY’26 Plan FX rates) outlook on Jul 29, 2026.

Gross margin improving

Gross margin was 84.5% over the last twelve months, against 82.2% a year earlier.

Return on equity over 15%

Return on equity was 35.1% over the last twelve months and averaged 17.1% over five years.

Return on capital over 10%

Return on invested capital was 27.6%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

PTC's return on equity of 35.1% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.

Earnings grew over 5 years

Net income grew 41.2% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 41.4% over the last twelve months, against a 5-year average of 19.5%.

Net margin above the industry

PTC's net margin of 41.4% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.

Low debt

Debt is 0.7% of shareholders' equity, under the 40% we consider low.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 3810% of total debt.

Interest well covered

Operating income covers interest expense 17.1 times.

Short-term assets cover short-term debts

Current assets are 1.03 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 5.86; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

PTC has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.