NasdaqGS:PTC

Stock Analysis Report

Executive Summary

PTC Inc. operates as software and services company in Americas, Europe, and the Asia Pacific.

Snowflake

Fundamentals

High growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

How has PTC's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.1%

PTC

-2.7%

US Software

1.0%

US Market


1 Year Return

-28.4%

PTC

19.2%

US Software

8.0%

US Market

Return vs Industry: PTC underperformed the US Software industry which returned 19.2% over the past year.

Return vs Market: PTC underperformed the US Market which returned 8% over the past year.


Shareholder returns

PTCIndustryMarket
7 Day1.1%-2.7%1.0%
30 Day-2.4%-2.7%-0.07%
90 Day-27.0%-7.0%-1.0%
1 Year-28.4%-28.4%21.0%19.2%10.4%8.0%
3 Year43.4%43.4%111.2%102.7%46.2%36.7%
5 Year80.7%80.7%164.9%145.8%64.3%46.2%

Price Volatility Vs. Market

How volatile is PTC's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is PTC undervalued compared to its fair value and its price relative to the market?

32.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PTC ($66.12) is trading below our estimate of fair value ($97.21)

Significantly Below Fair Value: PTC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PTC is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: PTC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PTC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PTC is overvalued based on its PB Ratio (6.3x) compared to the US Software industry average (5.3x).


Next Steps

Future Growth

How is PTC forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

51.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PTC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: PTC is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: PTC's loss is forecast to worsen by 0% next year.

Revenue vs Market: PTC's revenue (13.7% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: PTC's revenue (13.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PTC's Return on Equity is forecast to be high in 3 years time (25%)


Next Steps

Past Performance

How has PTC performed over the past 5 years?

-40.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PTC is unprofitable, and losses have increased over the past 5 years at a rate of -40.6% per year.

Accelerating Growth: Unable to compare PTC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PTC is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (19.1%).


Return on Equity

High ROE: PTC has a negative Return on Equity (-1.98%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: PTC is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: PTC is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is PTC's financial position?


Financial Position Analysis

Short Term Liabilities: PTC's short term assets ($752.7M) exceeds its short term liabilities ($601.2M)

Long Term Liabilities: PTC's short term assets (752.7M) do not cover its long term liabilities (831.8M)


Debt to Equity History and Analysis

Debt Level: PTC's debt to equity ratio (57.5%) is considered high

Reducing Debt: PTC's debt to equity ratio has increased from 33.1% to 57.5% over the past 5 years.

Debt Coverage: PTC's debt is well covered by operating cash flow (41.8%).

Interest Coverage: PTC is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: PTC has a low level of unsold assets or inventory.

Debt Coverage by Assets: PTC's debt is covered by short term assets (assets are 1.076900x debt).


Next Steps

Dividend

What is PTC's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate PTC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate PTC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if PTC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PTC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PTC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of PTC's salary, the management and board of directors tenure and is there insider trading?

3.9yrs

Average management tenure


CEO

Jim Heppelmann (55yo)

9yrs

Tenure

US$49,969,163

Compensation

Mr. James E. Heppelmann, also known as Jim, has been the Chief Executive Officer of PTC Inc. since October 1, 2010 and has been its President since March 4, 2009. Mr. Heppelmann served as the Chief Operati ...


CEO Compensation Analysis

Compensation vs. Market: Jim's total compensation ($USD49.97M) is about average for companies of similar size in the US market ($USD6.88M).

Compensation vs Earnings: Jim's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.9yrs

Average Tenure

53yo

Average Age

Experienced Management: PTC's management team is considered experienced (3.9 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

64yo

Average Age

Experienced Board: PTC's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$440,67930 Nov 18
Robert Schechter
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board of Directors
Shares5,000
Max PriceUS$88.14
SellUS$4,008,89026 Nov 18
Barry Cohen
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Strategy Officer
Shares47,194
Max PriceUS$84.94
SellUS$154,14019 Nov 18
Kathleen Mitford
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Products
Shares1,750
Max PriceUS$88.08

Ownership Breakdown


Management Team

  • Barry Cohen (75yo)

    Executive VP & Chief Strategy Officer

    • Tenure: 17.2yrs
    • Compensation: US$3.26m
  • Jim Heppelmann (55yo)

    President

    • Tenure: 9yrs
    • Compensation: US$49.97m
  • Aaron Von Staats (53yo)

    Executive VP

    • Tenure: 16.7yrs
  • Kristian Talvitie (49yo)

    Executive VP & CFO

    • Tenure: 0.4yrs
  • Andrew Miller (59yo)

    Executive Officer

    • Tenure: 0.4yrs
    • Compensation: US$13.26m
  • Kathleen Mitford (46yo)

    Executive Vice President of Products

    • Tenure: 2.3yrs
    • Compensation: US$2.38m
  • Matt Cohen (43yo)

    Executive Vice President of Field Operations

    • Tenure: 5.5yrs
    • Compensation: US$3.69m
  • Gary Smith

    Senior Vice President of WW Channel Sales & Programs

    • Tenure: 0yrs
  • Mike DiTullio

    Executive Vice President of Global Marketing & Sales

    • Tenure: 3.9yrs
  • Steve Dertien

    CTO & MD of the Office of the CTO

    • Tenure: 0.8yrs

Board Members

  • Paul Lacy (72yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$354.97k
  • Bob Schechter (70yo)

    Independent Chairman of the Board of Directors

    • Tenure: 4.6yrs
    • Compensation: US$447.42k
  • Phil Fernandez (59yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$319.97k
  • Don Grierson (84yo)

    Independent Director

    • Tenure: 32.8yrs
    • Compensation: US$337.47k
  • Jim Heppelmann (55yo)

    President

    • Tenure: 9yrs
    • Compensation: US$49.97m
  • Janice Chaffin (64yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$333.72k
  • Klaus Hoehn (67yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$312.47k
  • Corinna Lathan (51yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$319.56k
  • Blake Moret (56yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$536.87k

Company Information

PTC Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PTC Inc.
  • Ticker: PTC
  • Exchange: NasdaqGS
  • Founded: 1985
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$7.616b
  • Shares outstanding: 115.18m
  • Website: https://www.ptc.com

Number of Employees


Location

  • PTC Inc.
  • 121 Seaport Boulevard
  • Boston Seaport District
  • Boston
  • Massachusetts
  • 2210
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PTCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1989
PMTADB (Deutsche Boerse AG)YesCommon StockDEEURDec 1989
PTC *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 1989

Biography

PTC Inc. operates as software and services company in Americas, Europe, and the Asia Pacific. The company operates in two segments, Software Products and Professional Services. It offers ThingWorx, an indu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:42
End of Day Share Price2019/10/21 00:00
Earnings2019/06/29
Annual Earnings2018/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.