Latest news with #PTCInc
Yahoo
2 days ago
- Business
- Yahoo
Why PTC Inc. (PTC) is a Top Value Stock for the Long-Term
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum. Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks. Boston, MA-based PTC Inc is a software provider offering a range of cutting-edge digital technologies that collectively revolutionize the engineering, production, and maintenance of tangible goods. Founded in 1985, the company was formerly known as Parametric Technology Corporation and changed its name to PTC Inc in January 2013. PTC sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of A. Compared to the Computer - Software industry's P/E of 27.8X, shares of PTC Inc. are trading at a forward P/E of 27.8X. PTC also has a PEG Ratio of 1.8, a Price/Cash Flow ratio of 34.6X, and a Price/Sales ratio of 8.6X. Many value investors pay close attention to a company's earnings as well. For PTC, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.25 to $6.03 per share for 2025. Per share PTC boasts an average earnings surprise of 14.6%. Investors should take the time to consider PTC for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PTC Inc. (PTC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
20-05-2025
- Business
- Yahoo
Calculating The Fair Value Of PTC Inc. (NASDAQ:PTC)
PTC's estimated fair value is US$186 based on 2 Stage Free Cash Flow to Equity Current share price of US$172 suggests PTC is potentially trading close to its fair value Our fair value estimate is similar to PTC's analyst price target of US$186 Today we will run through one way of estimating the intrinsic value of PTC Inc. (NASDAQ:PTC) by estimating the company's future cash flows and discounting them to their present value. We will use the Discounted Cash Flow (DCF) model on this occasion. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine. Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) US$846.5m US$968.3m US$1.08b US$1.16b US$1.23b US$1.29b US$1.35b US$1.40b US$1.45b US$1.50b Growth Rate Estimate Source Analyst x13 Analyst x12 Analyst x6 Est @ 7.66% Est @ 6.18% Est @ 5.15% Est @ 4.43% Est @ 3.93% Est @ 3.57% Est @ 3.33% Present Value ($, Millions) Discounted @ 7.8% US$785 US$833 US$859 US$857 US$844 US$823 US$797 US$768 US$738 US$707 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$8.0b We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.8%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 7.8%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$1.5b× (1 + 2.8%) ÷ (7.8%– 2.8%) = US$30b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$30b÷ ( 1 + 7.8%)10= US$14b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$22b. In the final step we divide the equity value by the number of shares outstanding. Relative to the current share price of US$172, the company appears about fair value at a 7.2% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at PTC as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.8%, which is based on a levered beta of 1.175. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for PTC Strength Earnings growth over the past year exceeded the industry. Debt is not viewed as a risk. Weakness No major weaknesses identified for PTC. Opportunity Annual revenue is forecast to grow faster than the American market. Current share price is below our estimate of fair value. Threat Annual earnings are forecast to grow slower than the American market. Whilst important, the DCF calculation shouldn't be the only metric you look at when researching a company. DCF models are not the be-all and end-all of investment valuation. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For PTC, we've compiled three relevant elements you should assess: Financial Health: Does PTC have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk. Future Earnings: How does PTC's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NASDAQGS every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-04-2025
- Business
- Yahoo
PTC Inc.: Fiscal Q2 Earnings Snapshot
BOSTON (AP) — BOSTON (AP) — PTC Inc. (PTC) on Wednesday reported fiscal second-quarter earnings of $162.6 million. The Boston-based company said it had net income of $1.35 per share. Earnings, adjusted for one-time gains and costs, were $1.79 per share. The results exceeded Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $1.38 per share. The product development software maker posted revenue of $636.4 million in the period, which also topped Street forecasts. Six analysts surveyed by Zacks expected $608.3 million. For the current quarter ending in June, PTC Inc. expects its per-share earnings to range from $1.05 to $1.30. The company said it expects revenue in the range of $560 million to $600 million for the fiscal third quarter. PTC Inc. expects full-year earnings in the range of $5.80 to $6.55 per share, with revenue ranging from $2.44 billion to $2.57 billion. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on PTC at
Yahoo
09-02-2025
- Business
- Yahoo
PTC Inc. Just Recorded A 27% EPS Beat: Here's What Analysts Are Forecasting Next
There's been a notable change in appetite for PTC Inc. (NASDAQ:PTC) shares in the week since its first-quarter report, with the stock down 13% to US$169. Revenues were US$565m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.68, an impressive 27% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year. Check out our latest analysis for PTC Taking into account the latest results, the current consensus from PTC's 19 analysts is for revenues of US$2.49b in 2025. This would reflect a reasonable 7.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to expand 20% to US$3.90. In the lead-up to this report, the analysts had been modelling revenues of US$2.54b and earnings per share (EPS) of US$3.99 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year. It might be a surprise to learn that the consensus price target was broadly unchanged at US$214, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values PTC at US$240 per share, while the most bearish prices it at US$179. This is a very narrow spread of estimates, implying either that PTC is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions. Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of PTC'shistorical trends, as the 10% annualised revenue growth to the end of 2025 is roughly in line with the 11% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 12% annually. So although PTC is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry. The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for PTC. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates. With that in mind, we wouldn't be too quick to come to a conclusion on PTC. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for PTC going out to 2027, and you can see them free on our platform here.. We don't want to rain on the parade too much, but we did also find 1 warning sign for PTC that you need to be mindful of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
