PTC (PTC)
Information Technology · $21.3B market cap · SEC CIK 0000857005
$196.55
▲+0.35% on the day
close of Nov 10, 2026
90
Screens strongly
ahead of 90% of the S&P 500 · #9 of 73 in Information Technology
ahead of 90% of the S&P 500 · #9 of 73 in Information Technology
Next reports on Feb 3, 2027, with analysts expecting $1.98 in earnings per share.
52-week range $108.50 to $196.05. At its 52-week high and 81% above its low.
The case for PTC
- Earns 28% back on shareholder equity.
- Generated $857M of free cash flow in FY2025, 31% of revenue.
- 38% of revenue drops through to net profit.
- Earnings per share up 45.4%.
- Gross margin of 83% absorbs cost shocks.
- Within 1% of its 52-week high: the trend is up.
The case against
- Priced at 7.8× sales with revenue falling 0.2%.
- Revenue was flat on the year (−0.2%).
- Long-term debt of $1.2B against $184M of cash.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 52 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 50 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 84 |
| Momentumhow the price has behaved lately | 84 |
| Stabilityhow violently it moves, what it owes and what it pays you | 80 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
The financials
Revenue growth
Is the business growing? No, flat
| Last 12 months | −0.2% |
|---|---|
| Over 5 years | +8.6% a year |
| FY2025 revenue | $2.7B (+19%) |
Free cash flow
Is it generating real cash? Yes, plenty
| FY2025 free cash flow | $857M |
|---|---|
| Of revenue | 31% |
| Of profit | 117% |
Profit margins
Is profitability improving? Yes, improving
| Gross margin | 83% |
|---|---|
| Operating margin | 33% |
| Net margin, FY24 → FY25 → now | 16.4% → 26.8% → 37.8% |
Debt vs. cash
Is the balance sheet healthy? Yes, the debt is manageable
| Cash | $184M |
|---|---|
| Long-term debt | $1.2B |
| Net debt | $988M |
| Years to repay | 1.4 yrs |
Valuation
Is the stock price reasonable? Yes, about fair
| P/E | 20.6× |
|---|---|
| Fair P/E for its growth | 21× |
| P/FCF | 24.9× |
| Forward P/E | 21.9× |
| EV / EBITDA | 24.0× |
At 20.6× earnings it trades close to the 21× that 9% a year of growth would justify. At 24.9× free cash flow it trades close to that same mark.
The financials, five years deep
Pulled from PTC's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $2.7B | $2.3B | $2.1B | $1.9B | $1.8B |
| Change on the year | +19% | +10% | +8% | +7% | — |
| Free cash flow | |||||
| Free cash flow | $857M | $736M | $587M | $416M | $344M |
| Of revenue | 31% | 32% | 28% | 22% | 19% |
| Profit margins | |||||
| Gross margin | 83.8% | 80.6% | 79.0% | 80.0% | 79.5% |
| Operating margin | 35.9% | 25.6% | 21.9% | 23.1% | 21.1% |
| Net margin | 26.8% | 16.4% | 11.7% | 16.2% | 26.4% |
| Debt vs. cash | |||||
| Cash | $184M | $266M | $288M | $272M | $327M |
| Long-term debt | $1.2B | $1.2B | $1.7B | $1.4B | $1.4B |
| Net cash (debt) | −$988M | −$961M | −$1.4B | −$1.1B | −$1.1B |
Risk factors PTC lists in its 10-K
- Talent Development & Employee Engagement
- Additional Information About Our Employee Initiatives
- I. Risks Related to Our Business Operations and Industry
- We face significant competition, which could adversely affect our business, financial condition, operating results, and prospects if we are unable to successfully compete
- If we fail to successfully develop competitive SaaS solutions and to transform our operations to support the sale of SaaS solutions, our business and prospects could be adversely affected
- Because our sales and operations are globally dispersed, we face additional compliance risks, and any compliance failure could adversely affect our business and prospects
- II. Risks Related to Our Intellectual Property
- We may be unable to adequately protect our proprietary rights, which could adversely affect our competitive position, business and prospects
- III. Risks Related to Acquisitions and Divestitures
- Businesses we acquire may not generate the sales and earnings we anticipate and may otherwise adversely affect our business and prospects
- or assets may not achieve the intended strategic or financial benefits and may otherwise adversely affect our business and prospects
- We may incur significant debt or issue a material amount of debt or equity securities to finance an acquisition, which could adversely affect our operating flexibility, business and prospects
- IV. Risks Related to Our Indebtedness
- Our substantial indebtedness could adversely affect our business, financial condition, results of operations, and prospects, as well as our ability to meet our payment obligations under our debt
- V. Risks Related to Our Common Stock
- Our stock price has been volatile, which may make it harder to resell shares at a favorable time and price
- Our international businesses present economic and operating risks, which could adversely affect our business and prospects
- We may have exposure to additional tax liabilities and our effective tax rate may increase or fluctuate, which could increase our income tax expense, reduce our net income, and increase our tax payment obligations