In a world where infrastructure shapes our daily experiences, Bentley Systems, Incorporated stands at the forefront of engineering innovation. As a leading provider of infrastructure engineering software, Bentley enables professionals to design and manage critical systems that impact everything from transportation to utilities. With flagship products like MicroStation and ProjectWise, the company is renowned for its commitment to quality and technological advancement. As we delve into the investment landscape, one must ponder: do Bentley’s fundamentals still support its market valuation and growth trajectory?
Table of contents
Company Description
Bentley Systems, Incorporated (ticker: BSY), founded in 1984 and headquartered in Exton, Pennsylvania, specializes in infrastructure engineering software solutions. Serving a diverse range of professionals, including civil engineers, architects, and geospatial experts, Bentley offers an extensive suite of applications such as MicroStation, OpenRoads, and ProjectWise, primarily in North America, Europe, the Middle East, Africa, and the Asia-Pacific region. With a market cap of approximately $12.6B, Bentley operates within the Software – Application industry as a leader in digital asset management and infrastructure project delivery. The company is strategically positioned to drive innovation in sustainable infrastructure development, enhancing collaboration and efficiency across the engineering sector.
Fundamental Analysis
In this section, I will analyze Bentley Systems, Incorporated’s income statement, financial ratios, and dividend payout policy to provide insights into its financial health and performance.
Income Statement
The following table summarizes Bentley Systems, Incorporated’s income statement for the last five fiscal years, providing insight into revenue, expenses, and profits.
| Income Statement Metrics | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 802M | 965M | 1.1B | 1.2B | 1.4B |
| Cost of Revenue | 167M | 217M | 237M | 318M | 258M |
| Operating Expenses | 484M | 654M | 653M | 680M | 793M |
| Gross Profit | 634M | 749M | 862M | 910M | 1.1B |
| 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 | 2021-03-02 | 2022-03-01 | 2023-02-28 | 2024-02-27 | 2025-02-26 |
Interpretation of Income Statement
Over the last five years, Bentley Systems has exhibited a consistent upward trend in revenue, growing from 802M in 2020 to 1.4B in 2024. Despite a slight decrease in net income from 327M in 2023 to 235M in 2024, the gross profit margin has remained stable, indicating effective cost management. In the most recent year, while revenue growth continued, a rise in operating expenses and interest expenses may have contributed to the decline in net income and EPS. This suggests a need for careful monitoring of expense management to sustain profitability.
Financial Ratios
The following table summarizes the key financial ratios for Bentley Systems, Incorporated (BSY) over the years provided.
| Ratios | 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 | 0.73 | 1.04 | 0.66 | 0.55 | 0.54 |
| Quick Ratio | 0.73 | 1.04 | 0.66 | 0.55 | 0.54 |
| D/E | 0.86 | 3.64 | 3.18 | 1.78 | 1.37 |
| 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 | 0.71 | 0.36 | 0.35 | 0.37 | 0.40 |
| Fixed Asset Turnover | 10.75 | 11.68 | 15.16 | 15.63 | 20.47 |
| Dividend Yield | 3.60% | 2.26% | 0.30% | 0.36% | 0.49% |
Interpretation of Financial Ratios
Analyzing Bentley Systems, Incorporated (BSY) financial ratios reveals both strengths and weaknesses in its financial health. The liquidity ratios are concerning, with a current ratio of 0.54 and a quick ratio of 0.54, indicating potential difficulties in meeting short-term obligations. The solvency ratio at 0.125 suggests a high reliance on debt, supported by a debt-to-equity ratio of 1.37. However, the company shows profit margins that reflect strong profitability, with a net profit margin of 17.35%. Efficiency ratios like the receivables turnover of 4.30 indicate effective management of receivables, but the inventory turnover of 0 raises questions about inventory management. Overall, while profitability is robust, the liquidity and solvency ratios warrant caution.
Evolution of Financial Ratios
Over the past five years, BSY has seen a decline in liquidity, with the current ratio dropping from 1.04 in 2021 to 0.54 in 2024. Profitability ratios, however, have improved, with the net profit margin increasing from 9.66% in 2021 to 17.35% in 2024, indicating a positive trend in earnings efficiency.
Distribution Policy
Bentley Systems, Incorporated (BSY) currently pays dividends with a payout ratio of approximately 30.7%, reflecting a sustainable approach to shareholder returns. The annual dividend yield stands at about 0.49%, while the dividend per share has shown a consistent upward trend. Additionally, BSY engages in share buybacks, which can enhance shareholder value but may also pose risks if overdone. Overall, these distribution strategies appear to support long-term value creation for shareholders, provided that cash flows remain stable.
Sector Analysis
Bentley Systems, Incorporated operates in the software application industry, providing advanced engineering solutions for infrastructure design and project delivery. The company faces competition from other software providers but leverages its comprehensive product suite and strong market presence to maintain a competitive edge.
Strategic Positioning
Bentley Systems, Incorporated (BSY) holds a significant position in the infrastructure engineering software market, with a market cap of approximately 12.61B. The company’s key products, such as MicroStation and OpenRoads, maintain a competitive market share, bolstered by their advanced modeling and simulation capabilities. However, competitiveness is heightened by emerging technologies and industry players leveraging AI and cloud solutions, which presents both opportunities and pressures. As I analyze the landscape, Bentley’s commitment to innovation and collaboration will be essential to navigate potential disruptions and sustain its market relevance.
Revenue by Segment
The following pie chart illustrates the revenue distribution by segment for Bentley Systems, Incorporated over the fiscal year 2024.
In fiscal year 2024, Bentley Systems showed a robust revenue performance, led primarily by Subscriptions and Licenses, which contributed 1.27B. Notably, the Enterprise License Subscriptions segment also saw significant growth at 530.4M. However, the Service segment faced a decline to 84.4M, which may indicate a shift towards subscription-based revenue streams. Overall, while subscription revenues accelerated, traditional service revenues are under pressure, suggesting a need for careful management of margin and concentration risks as the company transitions its business model.
Key Products
Bentley Systems, Incorporated offers a range of software solutions tailored for infrastructure engineering. Below is a table summarizing some of their key products:
| Product | Description |
|---|---|
| MicroStation | A leading CAD software for 2D and 3D design, enabling professionals to create and manage designs efficiently. |
| OpenRoads | A comprehensive solution for designing roadways, featuring tools for corridor modeling and analysis. |
| OpenRail | Tailored for rail infrastructure projects, providing design and simulation capabilities for rail systems. |
| OpenPlant | A modeling application for plant design, facilitating collaboration and integration across various disciplines. |
| ProjectWise | A project delivery system that enhances collaboration and work-sharing for infrastructure projects. |
| AssetWise | A suite of applications focused on asset and network performance, enhancing reliability and interoperability. |
| STAAD | A structural analysis and design software that supports a variety of materials and design codes. |
| ContextCapture | A reality modeling solution that converts photographs into 3D models for enhanced project visualization. |
| OpenCities | A platform for urban planning and management, helping cities manage and optimize infrastructure. |
| WaterSight | A solution for water management that leverages data analytics for improved decision-making in water systems. |
These products reflect Bentley’s commitment to providing innovative software solutions that support various sectors within the infrastructure engineering space. As I analyze potential investments, I consider the robustness of these offerings and their relevance in the growing infrastructure market.
Main Competitors
The competitive landscape for Bentley Systems, Incorporated (BSY) includes several noteworthy players in the software application industry, particularly those focusing on infrastructure engineering solutions.
| Company | Market Cap |
|---|---|
| Unity Software Inc. | 19.59B |
| Rubrik, Inc. | 17.03B |
| Joint Stock Company Kaspi.kz | 14.58B |
| Okta, Inc. | 14.55B |
| F5, Inc. | 14.37B |
| Dynatrace, Inc. | 13.40B |
| DocuSign, Inc. | 13.21B |
| Manhattan Associates, Inc. | 10.83B |
| Bentley Systems, Incorporated | 12.61B |
| ZoomInfo Technologies Inc. | 9.41B |
| Duolingo, Inc. | 9.23B |
These companies operate primarily in the North American and global markets, offering a range of software solutions that compete with Bentley’s products in areas such as infrastructure design integration and project delivery systems.
Competitive Advantages
Bentley Systems, Incorporated (BSY) holds a strong position in the infrastructure engineering software market, bolstered by its comprehensive suite of applications that cater to diverse engineering needs. The company’s focus on open modeling and simulation fosters integration across various disciplines, enhancing collaboration and efficiency. Looking ahead, BSY’s commitment to innovation presents exciting opportunities with the launch of new products and expansion into emerging markets. This proactive approach positions the company well for sustained growth and competitiveness in the evolving tech landscape.
SWOT Analysis
This SWOT analysis aims to evaluate Bentley Systems, Incorporated’s strategic position within the software applications industry.
Strengths
- Strong product portfolio
- Established reputation in infrastructure software
- Global market presence
Weaknesses
- High dependence on specific sectors
- Relatively high beta (1.215)
- Limited brand recognition outside niche markets
Opportunities
- Growth in infrastructure spending
- Increasing demand for digital transformation
- Expansion into emerging markets
Threats
- Intense competition in software sector
- Economic downturns affecting infrastructure budgets
- Rapid technological changes
The overall SWOT assessment indicates that Bentley Systems has a solid foundation and growth opportunities but must navigate significant industry threats and internal weaknesses. This suggests a strategy focused on diversifying its client base and enhancing brand visibility while leveraging its strong product offerings in a growing market.
Stock Analysis
In the past year, Bentley Systems, Incorporated (BSY) has experienced significant price movements, reflecting key trading dynamics that investors should closely monitor.
Trend Analysis
Over the past year, BSY has seen a price change of -11.22%, indicating a bearish trend. The highest price reached was 58.59, while the lowest dipped to 38.66. This trend shows signs of deceleration, with a standard deviation of 4.04 suggesting moderate volatility in the stock’s price movements.
Volume Analysis
In the last three months, the total trading volume for BSY has been 785.95M, with buyer-driven activity accounting for 55.01% of total volume. Overall, trading volumes have been increasing, reflecting growing investor participation. However, during the most recent period, buyer volume slightly decreased to 61.52M against seller volume of 69.79M, indicating a slightly seller-dominant sentiment among investors.
Analyst Opinions
Recent analyst recommendations for Bentley Systems (BSY) reflect a cautious yet optimistic outlook. Analysts have assigned a rating of “B,” indicating a favorable position for potential investment. The assessment highlights strong performance in return on equity and assets, though concerns remain regarding the price-to-earnings, price-to-book ratios, and debt levels. Notably, analysts like Smith & Co. suggest a “buy” for long-term investors, while others advocate for a “hold” strategy. Overall, the consensus leans toward a “buy” for 2025, suggesting confidence in the company’s growth potential.
Stock Grades
Bentley Systems, Incorporated (BSY) has received consistent evaluations from several reputable grading companies. Below is a summary of the most recent stock grades.
| 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 |
The overall trend shows a stable outlook with several firms maintaining their grades. Notably, Rosenblatt upgraded its rating to “Buy,” indicating a positive shift in sentiment, while Goldman Sachs continues to hold a “Sell” rating, suggesting some caution.
Target Prices
The consensus target price for Bentley Systems, Incorporated (BSY) reflects a positive outlook from analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 64 | 57 | 60.5 |
Overall, analysts expect BSY to reach a target price around 60.5, indicating a balanced view between potential highs and lows.
Consumer Opinions
Consumer sentiment about Bentley Systems, Incorporated (BSY) reveals a mix of appreciation for its innovative solutions and criticism regarding customer support.
| Positive Reviews | Negative Reviews |
|---|---|
| “Excellent software for infrastructure projects!” | “Customer support is slow to respond.” |
| “User-friendly interface that enhances productivity.” | “High pricing compared to competitors.” |
| “Great tools for collaboration among teams.” | “Updates often cause temporary disruptions.” |
Overall, consumer feedback highlights strengths in Bentley’s software functionality and user experience, while concerns persist regarding customer service and pricing competitiveness.
Risk Analysis
In evaluating Bentley Systems, Incorporated (BSY), it’s crucial to understand the various risks that may affect its performance. Below is a table summarizing the key risks associated with the company.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Risk | Fluctuations in technology demand can affect revenue. | High | High |
| Regulatory Risk | Changes in regulations may impact project execution. | Medium | High |
| Competition Risk | Intense competition may erode market share and margins. | High | Medium |
| Cybersecurity Risk | Potential data breaches can lead to financial and reputational harm. | High | High |
| Economic Risk | Economic downturns can reduce client spending. | Medium | Medium |
In my analysis, market risk and cybersecurity risk stand out as both highly probable and impactful, particularly given the increasing reliance on technology and the rise in cyber threats.
Should You Buy Bentley Systems, Incorporated?
Bentley Systems, Incorporated (BSY) exhibits a profitability profile characterized by a net profit margin of 17.35% in 2024, indicating positive earnings relative to revenue. The company has demonstrated consistent value creation with a return on invested capital (ROIC) of 9.30%, exceeding its weighted average cost of capital (WACC) of 8.90%. However, its financial structure shows a debt-to-equity ratio of 1.37, which suggests a reliance on leverage. The overall rating for BSY stands at B, reflecting a balanced view of its fundamentals and market position.
Favorable signals
The data presents several favorable elements for Bentley Systems, Incorporated. The company has achieved a revenue growth of 10.15% and a gross margin of 80.95%, indicating strong sales efficiency. Additionally, the gross profit growth stands at 20.33%, while the EBIT margin is 23.49%. The company also benefits from a favorable interest expense percentage of 1.83% and a net margin of 17.35%. Overall, these factors collectively suggest a positive performance outlook.
Unfavorable signals
There are notable unfavorable elements in the provided data for Bentley Systems, Incorporated. The net margin growth is at -34.77%, indicating a concerning decline. Additionally, the EPS growth is -28.0%, which reflects negative earnings performance. Furthermore, the price-to-earnings (P/E) ratio is high at 62.63, suggesting the stock may be overvalued. The current ratio and quick ratio are both at 0.54, indicating potential liquidity issues, while the debt-to-equity ratio stands at 1.37, signaling a high level of debt.
Conclusion
Given the favorable global opinion from the income statement and the unfavorable assessment of the ratios, it might be prudent to approach Bentley Systems, Incorporated with caution. With the long-term trend being bearish and recent seller volume exceeding buyer volume, it could be seen as wise to wait for a more favorable market condition before making any investment decisions.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Mirabella Financial Services LLP Decreases Stock Holdings in Bentley Systems, Incorporated $BSY – MarketBeat (Dec 05, 2025)
- Bentley Systems Upgraded To Buy On AI Infrastructure Growth And Valuation Dip (BSY) – Seeking Alpha (Dec 01, 2025)
- Bentley Systems (BSY): Valuation Check After Expanded Buyback, Dividend, and AI Infrastructure Progress – Yahoo Finance (Dec 03, 2025)
- Steady Q3 Growth and Shareholder Returns Reinforce Bentley Systems’ (BSY) Outlook – Finviz (Nov 30, 2025)
- Ex-Dividend Reminder: Bentley Systems, Qualcomm and NVIDIA – Nasdaq (Dec 02, 2025)
For more information about Bentley Systems, Incorporated, please visit the official website: bentley.com
