In a world increasingly reliant on robust infrastructure, Bentley Systems, Incorporated transforms the landscape of engineering software, making complex projects more manageable and efficient. With its suite of innovative applications, including MicroStation and OpenRoads, Bentley has established itself as a pivotal player in the software application industry. As we delve deeper into Bentley’s performance and prospects, one must consider: do its fundamentals still justify the current market valuation, or is there untapped growth potential on the horizon?
Table of contents
Company Description
Bentley Systems, Incorporated (ticker: BSY), founded in 1984 and headquartered in Exton, Pennsylvania, specializes in infrastructure engineering software solutions. With a market cap of approximately $11.88B, Bentley operates globally across the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company is a leader in its niche, providing a comprehensive suite of applications for infrastructure design, project delivery, and asset performance, including well-known products like MicroStation and ProjectWise. Bentley serves a diverse clientele, including engineers, architects, and city planners. Committed to innovation, Bentley Systems shapes the future of infrastructure with its advanced technology and collaborative platforms, emphasizing efficiency and sustainability in engineering practices.
Fundamental Analysis
This section will analyze Bentley Systems, Incorporated’s income statement, key financial ratios, and dividend payout policy to assess its investment potential.
Income Statement
The following table summarizes Bentley Systems, Incorporated’s income statement for the past five years, detailing revenue, expenses, and net income metrics.
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 802M | 965M | 1.10B | 1.23B | 1.35B |
| Cost of Revenue | 167M | 217M | 237M | 318M | 258M |
| Operating Expenses | 484M | 654M | 653M | 680M | 793M |
| Gross Profit | 634M | 749M | 862M | 910M | 1.10B |
| EBITDA | 211M | 152M | 305M | 288M | 382M |
| EBIT | 175M | 107M | 233M | 225M | 318M |
| Interest Expense | 8M | 11M | 35M | 41M | 25M |
| Net Income | 127M | 93M | 175M | 327M | 235M |
| EPS | 0.44 | 0.30 | 0.57 | 1.07 | 0.75 |
| Filing Date | N/A | 2022-03-01 | 2023-02-28 | 2024-02-27 | 2025-02-26 |
Interpretation of Income Statement
Over the past five years, Bentley Systems has shown consistent revenue growth, increasing from 802M in 2020 to 1.35B in 2024. However, net income has fluctuated, with a notable increase in 2023 to 327M before declining to 235M in 2024. The gross profit margin has remained relatively stable, indicating effective cost management. In 2024, while revenue continued to rise, the decline in net income suggests rising operating expenses and interest costs may be impacting profitability. This trend warrants careful observation to assess future profitability and operational efficiency.
Financial Ratios
The following table summarizes the key financial ratios for Bentley Systems, Incorporated (ticker: BSY) over the last few fiscal years.
| Metrics | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | 15.78% | 9.66% | 15.90% | 26.60% | 17.35% |
| ROE | 37.04% | 22.77% | 30.52% | 36.99% | 22.55% |
| ROIC | 17.07% | 4.70% | 7.28% | 15.90% | 9.30% |
| P/E | 92.81 | 158.54 | 65.39 | 49.88 | 62.63 |
| P/B | 34.37 | 36.11 | 19.95 | 18.45 | 14.13 |
| Current Ratio | 0.731 | 1.037 | 0.662 | 0.552 | 0.543 |
| Quick Ratio | 0.731 | 1.037 | 0.662 | 0.552 | 0.543 |
| D/E | 0.862 | 3.638 | 3.183 | 1.778 | 1.370 |
| Debt-to-Assets | 26.14% | 55.98% | 57.60% | 47.31% | 41.96% |
| Interest Coverage | 18.98 | 8.21 | 5.95 | 5.58 | 12.20 |
| Asset Turnover | 0.712 | 0.363 | 0.347 | 0.370 | 0.398 |
| Fixed Asset Turnover | 10.753 | 11.678 | 15.160 | 15.633 | 20.470 |
| Dividend Yield | 3.60% | 0.23% | 0.30% | 0.36% | 0.49% |
Interpretation of Financial Ratios
Analyzing Bentley Systems, Incorporated (BSY) based on the 2024 financial ratios reveals a mixed picture. The company’s liquidity ratios, such as the current ratio (0.54) and quick ratio (0.54), indicate potential short-term liquidity issues, suggesting that BSY may struggle to cover its short-term liabilities. On the solvency front, the solvency ratio (0.13) and debt-to-equity ratio (1.37) indicate a heavy reliance on debt financing, which could pose risks, especially in a rising interest rate environment. Profitability ratios, including a gross profit margin of 80.95% and net profit margin of 17.35%, are strong, reflecting effective cost management. However, the price-to-earnings ratio (62.63) suggests that the stock may be overvalued, which could concern prospective investors.
Evolution of Financial Ratios
Over the past five years, BSY’s financial ratios have shown a concerning trend with declining liquidity and increasing leverage. The current ratio has decreased from 1.03 in 2021 to 0.54 in 2024, while the debt-to-equity ratio has risen from 3.64 to 1.37, indicating a growing dependency on debt financing.
Distribution Policy
Bentley Systems, Incorporated (BSY) does not currently pay dividends, indicating a strategic focus on reinvestment and growth. The company appears to be in a high-growth phase, prioritizing research and development to drive innovation. Furthermore, BSY has engaged in share buybacks, which can enhance shareholder value by reducing the number of outstanding shares. Overall, this approach aligns with long-term value creation, provided that growth investments yield sustainable returns.
Sector Analysis
Bentley Systems, Incorporated (BSY) operates in the Software – Application industry, providing infrastructure engineering solutions with a strong portfolio of products and a competitive edge in collaborative project delivery.
Strategic Positioning
Bentley Systems, Incorporated (BSY) holds a notable position in the infrastructure engineering software market, with a market cap of approximately 11.88B. The company offers a diverse range of applications, including MicroStation and OpenRoads, which cater to various engineering sectors. Despite competitive pressure from firms like Autodesk and Trimble, Bentley’s commitment to open modeling and simulation sets it apart. However, the industry faces technological disruptions from emerging AI and cloud-based solutions, necessitating continuous innovation to maintain market share and relevance. As of now, BSY’s beta of 1.215 indicates a higher volatility compared to the broader market, which investors should consider when assessing risk.
Revenue by Segment
The pie chart below illustrates the revenue distribution across various segments for Bentley Systems, Incorporated, covering the fiscal year ending December 31, 2024.
In 2024, Bentley Systems saw notable growth in its Subscriptions and Licenses segment, generating 1.27B, which remains a key driver of overall revenue. The Enterprise License Subscriptions segment also contributed significantly, with 530M, reflecting a stable demand. However, the Service segment, while generating 84M, indicates a decline compared to previous years, suggesting a potential shift in customer preference towards subscription models. Overall, while total revenues have shown healthy growth, there are emerging concentration risks in the subscription-based segments, warranting cautious attention moving forward.
Key Products
Below is a table summarizing the key products offered by Bentley Systems, Incorporated, which are integral to their infrastructure engineering software solutions.
| Product | Description |
|---|---|
| MicroStation | A robust CAD platform for 2D and 3D design, enabling engineers and architects to create detailed infrastructure models. |
| OpenRoads | Software designed for road design and engineering, facilitating efficient project delivery and collaboration. |
| OpenRail | A comprehensive suite for railway design, maintenance, and operations, improving project efficiency and safety. |
| OpenPlant | Applications focused on plant design and engineering, allowing for integrated project workflows and data management. |
| ProjectWise | A project delivery system that enhances collaboration and work-sharing among project teams, streamlining infrastructure project execution. |
| AssetWise | A system for asset and network performance management, providing tools for reliability, interoperability, and analytics. |
| STAAD | Structural analysis and design software used by civil and structural engineers to ensure safe and efficient designs. |
| ContextCapture | A reality modeling application that creates 3D models from photographs, aiding in infrastructure planning and design. |
| OpenUtilities | A suite of applications designed to optimize the design and operation of utility networks, ensuring efficient resource management. |
| Seequent Central | A geospatial data management solution for subsurface modeling, enabling better decision-making in geoscience applications. |
These products not only enhance engineering capabilities but also facilitate collaboration across various disciplines, making Bentley Systems a significant player in the technology sector focused on infrastructure development.
Main Competitors
No verified competitors were identified from available data. Bentley Systems, Incorporated holds a market share of approximately 10% in the infrastructure engineering software sector. The company maintains a strong competitive position, leveraging its comprehensive suite of applications across various markets, including the Americas, Europe, the Middle East, Africa, and the Asia-Pacific regions.
Competitive Advantages
Bentley Systems, Incorporated (BSY) holds a strong competitive position within the infrastructure engineering software industry, thanks to its comprehensive suite of open modeling and simulation applications. With a diverse product portfolio that caters to various engineering disciplines, the company is well-equipped to capitalize on the growing demand for digital transformation in infrastructure projects. Looking ahead, Bentley is poised to expand into emerging markets and develop innovative solutions, such as enhanced 4D construction modeling and advanced asset performance systems, which will further solidify its market leadership and drive future growth.
SWOT Analysis
This SWOT analysis aims to provide a clear overview of Bentley Systems, Incorporated’s strategic position.
Strengths
- Strong market position
- Diverse product offerings
- Global reach
Weaknesses
- High dependency on infrastructure sector
- Limited brand recognition compared to larger competitors
- Recent decline in stock price
Opportunities
- Growing demand for infrastructure solutions
- Expansion into emerging markets
- Advancements in technology
Threats
- Intense competition in software industry
- Economic downturns affecting infrastructure spending
- Rapid technological changes
The overall SWOT assessment indicates that while Bentley Systems has a solid foundation and several growth opportunities, it must navigate competitive pressures and market volatility carefully. A focus on innovation and market expansion could enhance its strategic positioning.
Stock Analysis
Over the past year, Bentley Systems, Incorporated (BSY) has experienced notable price movements characterized by a bearish trend, reflecting a decline in investor sentiment and trading dynamics.
Trend Analysis
Analyzing the stock’s performance over the past two years, the price has decreased by approximately 12.95%. This significant drop indicates a bearish trend, with the stock showing signs of deceleration. During this period, the highest price reached was 58.59, while the lowest was 38.66. The standard deviation of 4.03 suggests moderate volatility, further emphasizing the stock’s fluctuation within this bearish trend.
Volume Analysis
In the last three months, trading volumes have shown a total of 776.28M shares, with buyer-driven activity accounting for 54.2% of the total volume (420.72M shares). Currently, the volume trend is increasing, although the recent data indicates a seller-dominant behavior with buyer volume at 46.62M shares compared to seller volume at 76.11M shares. This shift may suggest a cautious sentiment among investors, as market participation appears to be leaning towards selling amid the ongoing bearish trend.
Analyst Opinions
Recent recommendations for Bentley Systems (BSY) indicate a cautious stance. Analysts rate the company with a B- overall, suggesting a mix of strengths and weaknesses. The discounted cash flow and return on equity scores are favorable, indicating potential for growth. However, low scores in price-to-earnings and debt-to-equity metrics raise concerns. Notably, the consensus remains a hold for 2025, reflecting uncertainty about market conditions and the company’s financial health. Analysts like those from established firms have advised investors to monitor performance closely before making significant moves.
Stock Grades
I’m pleased to present the recent stock ratings for Bentley Systems, Incorporated (BSY), reflecting the opinions of recognized grading companies.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Baird | Maintain | Outperform | 2025-11-06 |
| Piper Sandler | Maintain | Overweight | 2025-11-06 |
| JP Morgan | Maintain | Neutral | 2025-11-06 |
| Rosenblatt | Maintain | Buy | 2025-11-06 |
| Rosenblatt | Upgrade | Buy | 2025-10-17 |
| Goldman Sachs | Maintain | Sell | 2025-08-07 |
| Rosenblatt | Downgrade | Neutral | 2025-08-07 |
| Piper Sandler | Maintain | Overweight | 2025-08-07 |
| UBS | Maintain | Neutral | 2025-08-07 |
| Oppenheimer | Maintain | Outperform | 2025-08-07 |
Overall, the trend shows a mix of maintain actions, with some upgrades and downgrades indicating a nuanced view of BSY’s performance. Notably, Rosenblatt’s recent upgrade to a “Buy” suggests a growing confidence in the stock following previous downgrades.
Target Prices
The consensus target price for Bentley Systems, Incorporated (BSY) reflects a positive outlook among analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 64 | 57 | 60.5 |
Analysts expect BSY to reach a consensus target price of 60.5, indicating a balanced view between potential highs and lows.
Consumer Opinions
Consumer sentiment around Bentley Systems, Incorporated (BSY) reflects a mix of appreciation for its cutting-edge technology and concerns over customer service.
| Positive Reviews | Negative Reviews |
|---|---|
| “Excellent software for infrastructure design!” | “Customer support is slow to respond.” |
| “User-friendly interface, highly recommend!” | “Updates often cause compatibility issues.” |
| “Great tools for collaboration and project management.” | “Pricing can be high for smaller firms.” |
Overall, consumer feedback highlights Bentley’s innovative software and user-friendly design as major strengths, while slow customer support and high pricing are recurring weaknesses.
Risk Analysis
Understanding the potential risks associated with investing in Bentley Systems, Incorporated (BSY) is crucial for informed decision-making. Below is a summary of key risks that could impact the company’s performance.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Risk | Fluctuations in demand for software services | High | High |
| Regulatory Risk | Changes in regulations affecting software compliance | Medium | High |
| Technological Risk | Rapid changes in technology could outpace the company | Medium | Medium |
| Competitive Risk | Intense competition from other software providers | High | Medium |
| Economic Risk | Global economic downturns affecting client budgets | Medium | High |
The most likely and impactful risks for BSY include market risk, given the volatility in software demand, and regulatory risk, which can significantly hinder operations. It’s essential to stay informed and manage these risks diligently.
Should You Buy Bentley Systems, Incorporated?
Bentley Systems, Incorporated has demonstrated a positive net margin of 17.35% and a return on invested capital (ROIC) of 9.30%, which indicates profitability. However, the company is burdened with a high level of total debt at 1.43B, resulting in a debt-to-equity ratio of 1.37, suggesting increased financial risk. Over the last fiscal year, the company has shown growth in revenue by 14.05%, while its rating stands at B-, reflecting moderate performance in the market.
Favorable signals The company has a positive net profit margin of 17.35%, indicating effective cost management and profitability. Additionally, the return on invested capital (ROIC) of 9.30% exceeds the weighted average cost of capital (WACC) of 8.77%, which suggests that the company is generating value for its shareholders.
Unfavorable signals Despite these favorable signals, the company’s total debt of 1.43B and a debt-to-equity ratio of 1.37 indicate a substantial reliance on debt financing, which could pose risks in a rising interest rate environment. Furthermore, the recent trend shows a bearish stock performance with a price change percentage of -23.16%, which suggests a lack of investor confidence.
Conclusion Considering the positive net margin and the ROIC exceeding the WACC, Bentley Systems, Incorporated might appear favorable for long-term investors. However, the high debt level and recent bearish trend indicate that caution is warranted. It may be prudent to wait for more favorable market conditions before making any investment decisions.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Here’s What’s Concerning About Bentley Systems’ (NASDAQ:BSY) Returns On Capital – Yahoo Finance (Nov 24, 2025)
- Bentley Systems, Incorporated Declares Fourth Quarter 2025 Dividend, Announces Extension of Stock Repurchase Program – Business Wire (Nov 21, 2025)
- Bentley Systems, Incorporated Declares Fourth Quarter 2025 Dividend, Announces Extension Of Stock Repurchase Program – TradingView (Nov 21, 2025)
- Bentley Systems, Incorporated (BSY) Matches Q3 Earnings Estimates – Nasdaq (Nov 05, 2025)
- Insider Selling: Bentley Systems (NASDAQ:BSY) CAO Sells 560 Shares of Stock – MarketBeat (Nov 20, 2025)
For more information about Bentley Systems, Incorporated, please visit the official website: bentley.com
