Ptc Inc. (NASDAQ: PTC)

Sector: Technology Industry: Software - Application CIK: 0000857005
Market Cap 20.57 Bn
P/B 5.38
P/E 28.03
P/S 7.51
ROIC (Qtr) 15.77
Div Yield % 0.00
Rev 1y % (Qtr) 42.65
Total Debt (Qtr) 1.37 Bn
Debt/Equity (Qtr) 0.36

About

PTC Inc., popularly known by its ticker symbol PTC, operates in the global software industry. The company is renowned for its innovative digital solutions that revolutionize the way physical products are designed, manufactured, and maintained. PTC's software offerings are categorized into computer-aided design (CAD) portfolio solutions and product lifecycle management (PLM) portfolio solutions, which can be deployed on-premises, in the cloud, or in a hybrid model. PTC's main business activities revolve around providing software solutions that enable...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 867.70M provides robust 0.63x coverage of total debt 1.37B, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 184.41M provide 3.75x coverage of short-term debt 49.18M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 867.70M provides exceptional 11.27x coverage of interest expenses 77.02M, showing strong debt service capability.
  • Robust free cash flow of 856.69M exceeds capital expenditure of 11.01M by 77.82x, indicating strong organic growth funding capability.
  • Free cash flow of 856.69M provides exceptional 11.12x coverage of interest expense 77.02M, showing strong debt service ability.

Bear case

  • Operating cash flow of 867.70M barely covers its investment activities of (38.29M), with a coverage ratio of -22.66, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (38.29M) provide weak support for R&D spending of 457.69M, which is -0.08x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 184.41M provide limited coverage of acquisition spending of (6.53M), which is -28.23x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 867.70M provides insufficient coverage of deferred revenue obligations of 827.07M, which is 1.05x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 867.70M shows concerning coverage of stock compensation expenses of 216.21M, with a 4.01 ratio indicating potential earnings quality issues.

Product and Service Breakdown of Revenue (2025)

Consolidation Items Breakdown of Revenue (2025)

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 288.31 Bn 34.60 6.72 10.73 Bn
2 CRM Salesforce, Inc. 248.32 Bn 34.38 6.16 11.14 Bn
3 SHOP Shopify Inc. 212.27 Bn 119.19 19.85 1.12 Bn
4 INTU Intuit Inc. 180.73 Bn 43.89 9.30 6.78 Bn
5 UBER Uber Technologies, Inc 178.38 Bn 10.72 3.60 12.19 Bn
6 NOW ServiceNow, Inc. 146.98 Bn 84.91 11.60 2.40 Bn
7 ADBE Adobe Inc. 144.48 Bn 20.77 6.23 6.64 Bn
8 ADP Automatic Data Processing Inc 108.20 Bn 26.16 5.18 9.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.29 2.65
EV to Cash from Ops. EV/CFO 25.10 13.37
EV to Debt EV to Debt 15.90 57.69
EV to EBIT EV/EBIT 21.84 19.12
EV to EBITDA EV/EBITDA 19.49 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF 25.43 14.69
EV to Market Cap EV to Market Cap 1.06 -92.28
EV to Revenue EV/Rev 7.95 4.60
Price to Book Value [P/B] P/B 5.38 4.26
Price to Earnings [P/E] P/E 28.03 -136.90
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -3.95
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.52
Interest Coverage Int. cover (Qtr) 12.95 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 23.44 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -30.62 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 68.40 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 53.23 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) 69.41 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) 96.22 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) 94.90 123.84
FCF Growth (1y) % FCF 1y % (Qtr) 16.46 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 23.77 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.41 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.15 3.75
Current Ratio Curr Ratio (Qtr) 1.12 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.36 0.17
Interest Cover Ratio Int Coverage (Qtr) 12.95 -52.32
Times Interest Earned Times Interest Earned (Qtr) 12.95 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 41.30 -100.06
EBIT Margin % EBIT Margin % (Qtr) 36.40 -164.24
EBT Margin % EBT Margin % (Qtr) 33.59 -116.94
Gross Margin % Gross Margin % (Qtr) 83.80 58.20
Net Profit Margin % Net Margin % (Qtr) 26.80 -121.65