Bentley Systems Incorporated Class B Common Stock (BSY)

FairStock Score: 50/100 — MIXED

Key Financials

Strengths

• Generates $468 million in annual free cash flow (4.7% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• High return on equity of 24.9% demonstrating efficient capital deployment

Concerns

• Trades significantly above Graham Number ($9) with negative 275% margin of safety—limited downside protection

AI Analysis

Bentley Systems Incorporated Class B Common Stock is a small-cap technology company valued at $9.9 billion. The business generates $1.5 billion in annual revenue with a 3.9% net margin and $468 million in free cash flow. From a quality standpoint, Bentley shows solid Piotroski F-Score of 7/9 and Altman Z-Score of 2.5 in the grey zone. On valuation, the stock is trading at a premium 38.4x earnings, with trades far above its Graham Number ($9) with no margin of safety. Growth dynamics show revenue growing at 11.9% and profit growth of 17.1%. Our composite FairStock Score of 50/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $468 million in annual free cash flow (4.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 38x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer