📊 PTC Key Takeaways
Is Ptc Inc.. (PTC) a Good Investment?
PTC demonstrates exceptional financial fundamentals with 84.2% gross margins, 51.9% net margins, and 40.1% free cash flow margin, indicating a highly efficient, capital-light business model. Revenue growth of 19.2% coupled with 95% net income growth reflects strong operating leverage, while conservative leverage (0.30x D/E) and 15.9x interest coverage provide substantial financial flexibility.
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 profitability metrics: 84.2% gross margin, 35.4% operating margin, 51.9% net margin indicate a premium software business with strong pricing power
- Outstanding cash generation: $585.7M free cash flow with 40.1% FCF margin demonstrates high-quality earnings and minimal capital requirements
- Strong growth with leverage: 19.2% revenue growth accelerating to 95% net income growth suggests favorable operating leverage and potential margin expansion
- Conservative balance sheet: 0.30x debt-to-equity ratio and 15.9x interest coverage provide significant financial flexibility and low solvency risk
- Strong returns: 19.6% ROE and 11.6% ROA demonstrate efficient capital deployment
- 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
- Unsustainable net income growth: 95% YoY net income growth significantly exceeds 19.2% revenue growth, raising sustainability questions about one-time items or accounting changes
- Low current ratio: 1.23x liquidity ratio is functional but below-average, potentially constraining short-term flexibility
- Elevated insider activity: 13 Form 4 filings in 90 days warrant scrutiny to determine if executives are reducing positions
- 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
- Operating cash flow sustainability relative to net income
- Revenue growth trajectory and gross margin stability
- Insider Form 4 activity patterns and share purchase vs. sale composition
- Current ratio trend and working capital management
- 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 40.1% 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 |
|---|---|---|---|
| Q2 2026 | $636.4M | $162.6M | $1.35 |
| 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 |
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 86% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are PTC's key strengths?
Claude: Exceptional profitability metrics: 84.2% gross margin, 35.4% operating margin, 51.9% net margin indicate a premium software business with strong pricing power. Outstanding cash generation: $585.7M free cash flow with 40.1% FCF margin demonstrates high-quality earnings and minimal capital requirements. 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: Unsustainable net income growth: 95% YoY net income growth significantly exceeds 19.2% revenue growth, raising sustainability questions about one-time items or accounting changes. Low current ratio: 1.23x liquidity ratio is functional but below-average, potentially constraining short-term flexibility. 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 $1.5B.
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 $6.35.
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 May 2026, Ptc Inc.. has a BUY rating with 86% 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 19.6% (sector avg: 22%), net margin of 51.9% (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 $590.7M, with capital expenditures of $5.0M. FCF margin is 40.1%.
How does PTC compare to other Technology stocks?
Vs Technology sector averages: Net margin 51.9% (avg: 18%), ROE 19.6% (avg: 22%), current ratio 1.23 (avg: 2.5).