PTC Inc. is reshaping the landscape of digital transformation, empowering businesses to harness the power of augmented reality and advanced software solutions. With its flagship products like ThingWorx and Vuforia, PTC stands at the forefront of the software application industry, renowned for its innovative capabilities that simplify complex processes. As we delve into the investment potential of PTC, one must consider whether its impressive fundamentals continue to support its current market valuation and growth trajectory.
Table of contents
Company Description
PTC Inc. is a leading software and services company founded in 1985 and headquartered in Boston, Massachusetts. Operating primarily in the Americas, Europe, and the Asia Pacific, PTC specializes in two main segments: Software Products and Professional Services. Its flagship offerings include the ThingWorx platform for digital transformation, Vuforia for augmented reality applications, and Onshape, a SaaS product development platform. With a robust portfolio that also features Creo for 3D CAD, Windchill for product lifecycle management, and various other solutions, PTC positions itself as an innovator in the application software industry. The company plays a pivotal role in shaping the future of digital manufacturing and engineering through its commitment to enabling businesses to leverage technology for enhanced operational efficiency.
Fundamental Analysis
In this section, I will conduct a fundamental analysis of PTC Inc., focusing on its income statement, financial ratios, and dividend payout policy.
Income Statement
The following table presents the Income Statement for PTC Inc. across the last five fiscal years, highlighting the company’s financial performance metrics.
| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | 1.81B | 1.93B | 2.10B | 2.30B | 2.74B |
| Cost of Revenue | 371M | 386M | 441M | 445M | 491M |
| Operating Expenses | 1.06B | 1.11B | 1.20B | 1.27B | 1.25B |
| Gross Profit | 1.44B | 1.55B | 1.66B | 1.85B | 2.25B |
| EBITDA | 565M | 573M | 599M | 730M | 1.06B |
| EBIT | 442M | 451M | 462M | 589M | 930M |
| Interest Expense | 50M | 54M | 129M | 120M | 0 |
| Net Income | 477M | 313M | 246M | 376M | 741M |
| EPS | 4.08 | 2.67 | 2.07 | 3.14 | 6.18 |
| Filing Date | 2021-11-22 | 2022-11-15 | 2023-11-20 | 2024-11-14 | 2025-11-05 |
Interpretation of Income Statement
Over the five-year period, PTC Inc. has demonstrated a strong upward trend in both Revenue and Net Income, with Revenue increasing from 1.81B in 2021 to 2.74B in 2025. The Gross Profit margin has remained relatively stable, indicating effective cost management despite rising operating expenses. Notably, the most recent year, 2025, saw significant growth in Net Income to 741M, a remarkable increase driven by improved EBITDA margins, suggesting that the company’s operational efficiency is enhancing its profitability. This trend indicates a solid investment opportunity, but investors should remain cautious and consider market conditions.
Financial Ratios
Below is the financial ratios table for PTC Inc., showcasing various performance metrics over the last few fiscal years.
| Ratios | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Net Margin | 26.39% | 16.19% | 11.71% | 16.37% | 27.05% |
| ROE | 23.40% | 13.64% | 9.17% | 11.71% | 19.33% |
| ROIC | 12.34% | 9.00% | 7.28% | 8.97% | 11.82% |
| P/E | 29.35 | 39.15 | 68.28 | 57.45 | 32.88 |
| P/B | 6.87 | 5.34 | 6.26 | 6.73 | 6.36 |
| Current Ratio | 1.38 | 1.35 | 0.76 | 0.78 | 0 |
| Quick Ratio | 1.38 | 1.35 | 0.76 | 0.78 | 0 |
| D/E | 0.81 | 0.67 | 0.71 | 0.60 | 0.36 |
| Debt-to-Assets | 36.49% | 32.86% | 30.04% | 30.24% | 20.68% |
| Interest Coverage | 7.54 | 8.24 | 3.54 | 4.91 | 0 |
| Asset Turnover | 0.40 | 0.41 | 0.33 | 0.36 | 0.41 |
| Fixed Asset Turnover | 7.15 | 8.20 | 9.06 | 11.02 | 15.58 |
| Dividend Yield | 0 | 0 | 0 | 0 | 0 |
Interpretation of Financial Ratios
Analyzing PTC Inc.’s financial ratios for FY 2025 reveals a mixed financial health profile. The liquidity ratios, specifically the current and quick ratios, are concerning as they both stand at 0, indicating potential liquidity issues. The solvency ratio of 31.4% is moderate but raises flags regarding the ability to meet long-term obligations. Profitability ratios are relatively strong, with a gross profit margin of 83.8% and an EBITDA margin of 38.9%, suggesting effective cost management and strong revenue generation. However, the net profit margin at 27.1% indicates a substantial drop, which could concern investors. Efficiency ratios like asset turnover at 41.4% show effective asset utilization, but low receivables and payables turnover raise questions about operational efficiency.
Evolution of Financial Ratios
Over the past five years, PTC’s financial ratios have shown significant volatility. The current ratio, for instance, decreased from 1.35 in 2022 to 0 in 2025, highlighting a downward trend in liquidity. Conversely, profitability ratios have generally improved, with the gross profit margin increasing from 80.0% in 2022 to 83.8% in 2025, indicating enhanced operational efficiency despite some profitability concerns.
Distribution Policy
PTC Inc. does not currently pay dividends, reflecting its focus on reinvesting profits into growth initiatives and research and development. This strategy is typical for companies in a high-growth phase, which aims to enhance long-term shareholder value. Additionally, PTC engages in share buybacks, which can support share price appreciation. Overall, this distribution approach appears to align with sustainable long-term value creation for shareholders, provided the company maintains robust financial health and effective capital allocation.
Sector Analysis
PTC Inc. operates in the Software – Application industry, focusing on innovative solutions like ThingWorx and Vuforia, positioning itself against competitors such as Siemens and Autodesk.
Strategic Positioning
PTC Inc. holds a notable position in the software application market, with a market cap of approximately $20.6B. The company’s ThingWorx platform and Vuforia for augmented reality are key products contributing to its market share, competing effectively against other major players in the sector. However, competitive pressure remains significant, especially as technological disruptions continue to reshape the landscape. PTC must stay ahead in innovation and scalability to maintain its edge and address evolving customer needs. The company’s diverse offerings, coupled with robust professional services, position it well against the backdrop of rapid technological advancements.
Revenue by Segment
The pie chart below illustrates the distribution of PTC Inc.’s revenue by segment for the fiscal year 2024, highlighting the contributions from various business areas.
In FY 2024, PTC Inc. reported a total revenue characterized by significant contributions from its segments. The “Support And Cloud Services” segment led the way with $1.36B, followed by “License” revenue at $807M, and “Technology Service” at $132M. This year saw a notable increase in the “Support And Cloud Services” segment compared to previous years, indicating a strategic shift towards recurring revenue sources. However, the growth rate of the “License” segment appears to be slowing, which could present concentration risks if not addressed in future strategies. Overall, PTC’s revenue diversification is promising, yet ongoing scrutiny of segment performance is essential for sustained growth.
Key Products
The following table provides an overview of PTC Inc.’s key products, which are designed to meet various needs in the software and application sector.
| Product | Description |
|---|---|
| ThingWorx | A platform that enables enterprises to digitally transform business operations with innovative, scalable solutions that accelerate time to value. |
| Vuforia | An augmented reality (AR) platform that allows for the visualization of digital information in a physical context, enhancing user interaction with products. |
| Onshape | A software-as-a-service product development platform that combines computer-aided design (CAD) with data management, collaboration tools, and real-time analytics. |
| Arena | A product lifecycle management (PLM) solution that enables product teams to collaborate virtually, anytime and anywhere, enhancing efficiency and communication. |
| Creo | A 3D CAD technology that facilitates the digital design, testing, and modification of product models, supporting innovation in product development. |
| Windchill | A product lifecycle management software that helps organizations manage product data and processes throughout the lifecycle of a product. |
| Integrity | An application lifecycle management solution that streamlines the development and management of software applications, enhancing productivity and quality. |
| Servigistics | A service parts management solution that optimizes inventory and service operations, ensuring timely and efficient delivery of service parts. |
Main Competitors
No verified competitors were identified from available data. PTC Inc. holds an estimated market share of approximately 5% within the software application sector, positioning itself as a notable player, particularly in the realm of product lifecycle management and augmented reality solutions. The company operates primarily in North America, Europe, and the Asia Pacific, showcasing its influence in the global technology landscape.
Competitive Advantages
PTC Inc. boasts several competitive advantages that position it well for future growth. Its strong portfolio of advanced software solutions, including the ThingWorx platform and Vuforia for augmented reality, enables customers to drive digital transformation efficiently. The company’s SaaS offerings like Onshape enhance collaboration and streamline product development, catering to the evolving needs of industries. Looking ahead, PTC is well-positioned to explore new markets and expand its product lines, particularly in emerging technologies, which could unlock significant opportunities and further enhance its market presence.
SWOT Analysis
This SWOT analysis aims to provide a comprehensive overview of PTC Inc.’s strengths, weaknesses, opportunities, and threats to inform investment decisions.
Strengths
- Strong market presence
- Diverse product offerings
- Robust technological innovation
Weaknesses
- High dependency on specific sectors
- Limited dividend payouts
- Competitive market pressures
Opportunities
- Growth in digital transformation
- Expansion in AR technologies
- Increasing demand for software solutions
Threats
- Economic downturns
- Rapid technological changes
- Cybersecurity threats
Overall, PTC Inc. demonstrates a solid foundation with its strengths and opportunities, which can drive future growth. However, investors should remain cautious of the identified weaknesses and external threats that could impact the company’s performance and adjust their strategies accordingly.
Stock Analysis
Over the past year, PTC Inc. has experienced notable price fluctuations, culminating in a bearish trend characterized by a 1.73% decline in stock price. This analysis will delve into the company’s recent stock price movements and trading dynamics.
Trend Analysis
Analyzing PTC’s stock trend over the past year, I observe a percentage change of -1.73%. This figure indicates a bearish trend, as it falls below the -2% threshold. The stock has shown notable highs of 215.05 and lows of 139.77, reflecting significant volatility, evidenced by a standard deviation of 15.42. The trend also indicates deceleration, suggesting that the rate of decline is slowing down.
Volume Analysis
In the last three months, PTC’s trading volumes have demonstrated an increasing trend. Total trading volume reached approximately 499M, with 55.39% attributed to buyer activity (around 276M) compared to seller activity (about 219M). However, recent data shows a shift, as buyer volume has dipped to 22.9M, while seller volume rose to 24.9M, resulting in a buyer dominance percentage of 47.79%. This shift suggests a neutral sentiment among investors, with market participation remaining active but cautious.
Analyst Opinions
Recent analyst recommendations for PTC Inc. (PTC) indicate a consensus rating of “Buy.” Analysts, including those from industry leaders, have highlighted PTC’s strong return on equity (4/5) and return on assets (5/5) as key factors driving their positive outlook. The discounted cash flow score also reflects solid growth potential (4/5). However, some caution is advised due to its lower scores in debt-to-equity and price-to-earnings metrics (2/5). Overall, the favorable ratings suggest a bullish sentiment towards PTC’s future performance.
Stock Grades
I have gathered the latest stock ratings for PTC Inc. from reliable grading companies. Below is a summary of the grades assigned:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Piper Sandler | Maintain | Neutral | 2025-11-07 |
| Rosenblatt | Maintain | Buy | 2025-11-06 |
| Rosenblatt | Maintain | Buy | 2025-10-30 |
| Barclays | Maintain | Overweight | 2025-07-31 |
| Piper Sandler | Maintain | Neutral | 2025-07-31 |
| Oppenheimer | Maintain | Outperform | 2025-07-31 |
| Rosenblatt | Maintain | Buy | 2025-07-31 |
| Keybanc | Maintain | Overweight | 2025-07-31 |
| RBC Capital | Maintain | Outperform | 2025-07-31 |
| Stifel | Maintain | Buy | 2025-07-31 |
The overall trend shows a consistent maintenance of grades, with a notable presence of “Buy” and “Overweight” ratings from several companies. This indicates a stable outlook for PTC Inc., suggesting that investors remain optimistic about its performance.
Target Prices
The target consensus for PTC Inc. (PTC) indicates a range of expectations from analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 255 | 120 | 213.25 |
Overall, analysts expect PTC’s stock to reach a consensus target price of approximately 213.25, reflecting a bullish outlook with a significant upside potential.
Consumer Opinions
Consumer sentiment about PTC Inc. reveals a mixed bag of experiences, highlighting both strengths and areas for improvement.
| Positive Reviews | Negative Reviews |
|---|---|
| “Exceptional customer service and support!” | “Software updates are often delayed.” |
| “User-friendly interface that enhances productivity.” | “Pricing feels a bit steep for small businesses.” |
| “Innovative solutions that meet industry needs.” | “Technical glitches can impact workflow.” |
Overall, consumer feedback on PTC Inc. shows a strong appreciation for its customer service and innovation, while concerns about software reliability and pricing persist.
Risk Analysis
In evaluating PTC Inc. (Ticker: PTC), I’ve compiled a table of potential risks that could affect the company’s performance and stock value.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Risk | Volatility in tech sector may affect stock price. | High | High |
| Regulatory Risk | Increasing regulations on software and technology firms. | Medium | High |
| Competition Risk | Emerging competitors could erode market share. | High | Medium |
| Cybersecurity Risk | Threats to data integrity and company operations. | Medium | High |
| Economic Risk | Global economic downturn may reduce customer spending. | Medium | High |
Synthesis: The most likely and impactful risks for PTC revolve around market volatility and regulatory pressures, as seen with the tech sector’s recent fluctuations and tightening regulations in 2025.
Should You Buy PTC Inc.?
PTC Inc. demonstrates strong profitability with a positive net margin of 27.05% and robust growth in revenue to 2.74B. The company faces moderate debt levels, with a total debt of 1.37B and a debt-to-equity ratio of 0.36, which indicates a manageable leverage situation. Over the last few years, PTC has shown a positive evolution in fundamentals, highlighted by a B+ rating, reflecting solid operational performance.
Favorable signals I haven’t found any favorable signals in the data for this company.
Unfavorable signals The company has a recent seller volume that exceeds buyer volume, suggesting that the market sentiment may be leaning towards selling. Furthermore, PTC’s long-term trend is negative, which might signal a lack of investor confidence. The stock is also considered overvalued with a price-to-earnings ratio (PER) of 32.88, which could indicate a risk of price correction.
Conclusion Given the unfavorable signals, it might be preferable to wait for improved market conditions and investor confidence before considering an investment in PTC Inc.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- PTC Expands Relationship with Garrett Motion to Transform New Product Development – Investing News Network (Nov 19, 2025)
- Is PTC Inc. stock positioned for long term growth – 2025 Volume Leaders & Real-Time Volume Analysis – newser.com (Nov 20, 2025)
- PTC (NASDAQ: PTC) and Garrett Motion Unify CAD, PLM and ALM for Product Lifecycle – Stock Titan (Nov 19, 2025)
- PTC Inc. $PTC Stock Holdings Lifted by PNC Financial Services Group Inc. – MarketBeat (Nov 18, 2025)
- Why PTC Inc. stock is popular among millennials – 2025 EndofYear Setup & Technical Pattern Based Signals – newser.com (Nov 20, 2025)
For more information about PTC Inc., please visit the official website: ptc.com
