📊 BSY Key Takeaways
Is Bentley Systems Inc. (BSY) a Good Investment?
Bentley Systems demonstrates solid fundamental strength with 11% revenue growth, exceptional profitability metrics (81.5% gross margin, 24.1% operating margin), and exceptional free cash flow generation of $520.2M (34.6% FCF margin). The company maintains strong operational efficiency with 47.8x interest coverage, though liquidity constraints and elevated leverage require monitoring.
Bentley Systems shows strong software fundamentals with high gross margins, solid operating profitability, and exceptional free cash flow generation. Revenue growth of 11.0% and a 34.6% FCF margin indicate durable business quality, though flat net income and a weak current ratio suggest some caution around earnings conversion and balance sheet flexibility.
Why Buy Bentley Systems Inc. Stock? BSY Key Strengths
- Outstanding gross margin of 81.5% indicates strong pricing power and operational efficiency in software delivery
- Exceptional free cash flow generation at $520.2M with 34.6% FCF margin demonstrates high-quality earnings conversion
- Strong operational leverage with 24.1% operating margin and 11% YoY revenue growth showing sustainable top-line expansion
- Excellent interest coverage ratio of 47.8x provides substantial debt service cushion despite high leverage
- High ROE of 23.4% demonstrates efficient capital deployment for shareholder returns
- High-margin software model with 81.5% gross margin and 24.1% operating margin
- Strong cash generation with $538.46M operating cash flow and $520.21M free cash flow
- Healthy profitability profile with 23.4% ROE and very strong 47.8x interest coverage
BSY Stock Risks: Bentley Systems Inc. Investment Risks
- Weak liquidity position with current ratio of 0.56x raises concerns about short-term obligations coverage despite strong cash generation
- Elevated leverage at 1.05x debt-to-equity ratio limits financial flexibility and increases refinancing risk
- Net income flat YoY despite 11% revenue growth suggests margin pressure from operating expenses or tax headwinds
- High insider activity (36 Form 4 filings in 90 days) warrants monitoring for potential confidence concerns
- Modest cash position of $123.3M relative to $1.2B long-term debt and $2.4B total liabilities
- Net income was flat year over year despite revenue growth, which may signal margin or cost pressure below the operating line
- Low current and quick ratios of 0.56x indicate limited short-term liquidity cushion
- Leverage remains meaningful with $1.25B long-term debt and debt-to-equity of 1.05x
Key Metrics to Watch
- Free cash flow conversion ratio and sustainability of 34.6% FCF margin amid growth scaling
- Quarterly revenue growth rate and operating margin trajectory to identify deceleration
- Debt reduction progress and liquidity improvement to strengthen current ratio above 0.70x
- Net income growth acceleration relative to revenue growth
- Operating cash flow stability and capital expenditure requirements
- Net income growth relative to revenue growth
- Current ratio and debt reduction trend
Bentley Systems Inc. (BSY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 34.6% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
BSY Profit Margin, ROE & Profitability Analysis
BSY vs Technology Sector: How Bentley Systems Inc. Compares
How Bentley Systems Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Bentley Systems Inc. Stock Overvalued? BSY Valuation Analysis 2026
Based on fundamental analysis, Bentley Systems Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Bentley Systems Inc. Balance Sheet: BSY Debt, Cash & Liquidity
BSY Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Bentley Systems Inc.'s revenue has grown significantly by 56% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.00 reflects profitable operations.
BSY Revenue Growth, EPS Growth & YoY Performance
BSY Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $335.2M | $42.3M | $0.13 |
| Q2 2025 | $330.3M | $70.5M | $0.22 |
| Q1 2025 | $337.8M | $70.3M | $0.22 |
| Q3 2024 | $306.6M | $42.3M | $0.13 |
| Q2 2024 | $296.7M | $48.7M | $0.15 |
| Q1 2024 | $314.4M | $45.5M | $0.14 |
| Q3 2023 | $268.3M | $37.0M | $0.12 |
| Q2 2023 | $268.3M | $48.7M | $0.15 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Bentley Systems Inc. Dividends, Buybacks & Capital Allocation
BSY SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Bentley Systems Inc. (CIK: 0001031308)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BSY
What is the AI rating for BSY?
Bentley Systems Inc. (BSY) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BSY's key strengths?
Claude: Outstanding gross margin of 81.5% indicates strong pricing power and operational efficiency in software delivery. Exceptional free cash flow generation at $520.2M with 34.6% FCF margin demonstrates high-quality earnings conversion. ChatGPT: High-margin software model with 81.5% gross margin and 24.1% operating margin. Strong cash generation with $538.46M operating cash flow and $520.21M free cash flow.
What are the risks of investing in BSY?
Claude: Weak liquidity position with current ratio of 0.56x raises concerns about short-term obligations coverage despite strong cash generation. Elevated leverage at 1.05x debt-to-equity ratio limits financial flexibility and increases refinancing risk. ChatGPT: Net income was flat year over year despite revenue growth, which may signal margin or cost pressure below the operating line. Low current and quick ratios of 0.56x indicate limited short-term liquidity cushion.
What is BSY's revenue and growth?
Bentley Systems Inc. reported revenue of $1.5B.
Does BSY pay dividends?
Bentley Systems Inc. pays dividends, with $85.0M distributed to shareholders in the trailing twelve months.
Where can I find BSY SEC filings?
Official SEC filings for Bentley Systems Inc. (CIK: 0001031308) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BSY's EPS?
Bentley Systems Inc. has a diluted EPS of $0.85.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is BSY a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Bentley Systems Inc. has a BUY rating with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is BSY stock overvalued or undervalued?
Valuation metrics for BSY: ROE of 23.4% (sector avg: 22%), net margin of 18.5% (sector avg: 18%). Higher ROE suggests strong returns relative to peers.
Should I buy BSY stock in 2026?
Our dual AI analysis gives Bentley Systems Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is BSY's free cash flow?
Bentley Systems Inc.'s operating cash flow is $538.5M, with capital expenditures of $18.3M. FCF margin is 34.6%.
How does BSY compare to other Technology stocks?
Vs Technology sector averages: Net margin 18.5% (avg: 18%), ROE 23.4% (avg: 22%), current ratio 0.56 (avg: 2.5).