📊 PTC Key Takeaways
Is Ptc Inc.. (PTC) a Good Investment?
PTC demonstrates exceptional financial health with robust revenue growth of 19.2% YoY coupled with extraordinary net income growth of 95%, indicating significant operational leverage and improving profitability. The company generates substantial free cash flow of $267.4M (39% FCF margin) with minimal debt burden (0.31x D/E ratio), providing financial flexibility for reinvestment or shareholder returns.
PTC shows strong fundamental momentum, with revenue up 19.2% year over year and net income nearly doubling, indicating both demand strength and meaningful operating leverage. The business is highly profitable, with 82.8% gross margin, 32.2% operating margin, and a very strong 39.0% free cash flow margin, supporting high-quality growth. Financial health appears solid overall, though moderate debt, relatively low cash on hand, and modest ROE/ROA suggest the story is stronger on margins and cash generation than on balance sheet conservatism or asset efficiency.
Why Buy Ptc Inc.. Stock? PTC Key Strengths
- Exceptional net income growth of 95% YoY significantly outpacing revenue growth of 19.2%, demonstrating strong operational leverage
- Industry-leading margins with 82.8% gross margin, 32.2% operating margin, and 24.3% net margin reflecting strong pricing power and efficient operations
- Excellent free cash flow generation at $267.4M (39% FCF margin) with minimal capital intensity ($2.3M capex)
- Conservative leverage with 0.31x debt-to-equity ratio and 12.8x interest coverage ratio providing substantial financial flexibility
- Strong liquidity position with 1.22x current and quick ratios supporting operational needs
- High-quality growth with 19.2% revenue growth and 95.0% net income growth
- Excellent software economics with 82.8% gross margin and 32.2% operating margin
- Very strong cash generation, with $267.40M in free cash flow and a 39.0% FCF margin
PTC Stock Risks: Ptc Inc.. Investment Risks
- Low ROE of 4.3% and ROA of 2.6% suggest inefficient capital deployment relative to equity and asset base, despite strong absolute profitability
- Significant insider selling activity with 16 Form 4 filings in last 90 days may indicate insider concern about valuation or business trajectory
- Modest current and quick ratios (1.22x) indicate tighter working capital management that could be challenged by operational disruptions
- Growth deceleration risk if the 19.2% revenue growth momentum cannot be sustained in competitive software markets
- Cash balance is relatively modest versus $1.17B in long-term debt
- ROE of 4.3% and ROA of 2.6% indicate limited capital and asset efficiency
- Current ratio of 1.22x leaves less liquidity cushion if growth slows or obligations rise
Key Metrics to Watch
- Revenue growth rate trend - sustainability of 19.2% YoY growth in coming quarters
- Net income margin progression - whether 24.3% margin can be maintained or expanded
- Free cash flow consistency and deployment - allocation decisions for capital deployment
- Debt levels and interest coverage - management of the $1.2B long-term debt position
- Return on equity improvement - ability to generate better returns on the $3.8B equity base
- Recurring revenue growth and operating margin sustainability
- Free cash flow conversion and net debt reduction
Ptc Inc.. (PTC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 39.0% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
PTC Profit Margin, ROE & Profitability Analysis
PTC vs Technology Sector: How Ptc Inc.. Compares
How Ptc Inc.. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Ptc Inc.. Stock Overvalued? PTC Valuation Analysis 2026
Based on fundamental analysis, Ptc 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.
Ptc Inc.. Balance Sheet: PTC Debt, Cash & Liquidity
PTC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Ptc Inc..'s revenue has grown significantly by 52% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.06 reflects profitable operations.
PTC Revenue Growth, EPS Growth & YoY Performance
PTC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $565.1M | $82.2M | $0.68 |
| Q3 2025 | $518.6M | $69.0M | $0.57 |
| Q2 2025 | $603.1M | $114.4M | $0.95 |
| Q1 2025 | $550.2M | $66.4M | $0.55 |
| Q3 2024 | $518.6M | $61.4M | $0.51 |
| Q2 2024 | $542.2M | $63.5M | $0.53 |
| Q1 2024 | $465.9M | $66.4M | $0.55 |
| Q3 2023 | $462.5M | $61.4M | $0.51 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Ptc Inc.. Dividends, Buybacks & Capital Allocation
PTC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Ptc Inc.. (CIK: 0000857005)
📋 Recent SEC Filings
❓ Frequently Asked Questions about PTC
What is the AI rating for PTC?
Ptc Inc.. (PTC) has a Combined AI Rating of BUY from Claude (STRONG BUY) and ChatGPT (BUY) with 87% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are PTC's key strengths?
Claude: Exceptional net income growth of 95% YoY significantly outpacing revenue growth of 19.2%, demonstrating strong operational leverage. Industry-leading margins with 82.8% gross margin, 32.2% operating margin, and 24.3% net margin reflecting strong pricing power and efficient operations. ChatGPT: High-quality growth with 19.2% revenue growth and 95.0% net income growth. Excellent software economics with 82.8% gross margin and 32.2% operating margin.
What are the risks of investing in PTC?
Claude: Low ROE of 4.3% and ROA of 2.6% suggest inefficient capital deployment relative to equity and asset base, despite strong absolute profitability. Significant insider selling activity with 16 Form 4 filings in last 90 days may indicate insider concern about valuation or business trajectory. ChatGPT: Cash balance is relatively modest versus $1.17B in long-term debt. ROE of 4.3% and ROA of 2.6% indicate limited capital and asset efficiency.
What is PTC's revenue and growth?
Ptc Inc.. reported revenue of $685.8M.
Does PTC pay dividends?
Ptc Inc.. does not currently pay dividends.
Where can I find PTC SEC filings?
Official SEC filings for Ptc Inc.. (CIK: 0000857005) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PTC's EPS?
Ptc Inc.. has a diluted EPS of $1.39.
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 PTC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Ptc Inc.. has a BUY rating with 87% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is PTC stock overvalued or undervalued?
Valuation metrics for PTC: ROE of 4.3% (sector avg: 22%), net margin of 24.3% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy PTC stock in 2026?
Our dual AI analysis gives Ptc Inc.. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is PTC's free cash flow?
Ptc Inc..'s operating cash flow is $269.7M, with capital expenditures of $2.3M. FCF margin is 39.0%.
How does PTC compare to other Technology stocks?
Vs Technology sector averages: Net margin 24.3% (avg: 18%), ROE 4.3% (avg: 22%), current ratio 1.22 (avg: 2.5).