PTC Inc. (PTC)

FairStock Score: 76/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At $193.96 on 2026-10-13, PTC has a $21.0B market value and trades at 18.81 times trailing earnings and 6.19 times book, both FairStock calculations. I see a 7,000-employee software company whose Windchill and ThingWorx products sit inside engineering and manufacturing workflows, which can create switching costs. The filed record is impressive: in fiscal 2023 revenue was $2.1B and net income $245.5M; in fiscal 2024 revenue was $2.3B and net income $376.3M; in fiscal 2025 revenue was $2.7B and net income $734.0M. Diluted EPS rose from $2.06 to $3.12 to $6.08 across those years. FairStock's Lynch category is FAST GROWER — profit 41.2% a year over five years, revenue 13.4%. Cash is strong: TTM free cash flow is $935.5M, a 4.4% FCF yield, with ROE of 35.05% and Altman Z-Score of 4.97. But the latest filed quarter, fiscal Q3 2026 ended 2026-06-30, showed revenue of $600.0M and net income of $118.8M, down from $643.9M and $141.3M in fiscal Q3 2025. Fiscal Q2 2026 had $590.7M of net income on $774.3M of revenue, so trailing profit may be uneven. Piotroski is 4/9, ROCE is 11.54%, and FairStock's Graham Number of $85.26 is far below the $193.96 close, leaving no asset-based margin of safety. I like the cash and installed base, but the recent decline and rich asset valuation keep me cautious.

In plain English: PTC makes software used by manufacturers to design products and run factory operations. The company has been very profitable and generates strong cash, but its latest reported quarter showed sales and profit falling from a year earlier. At the recent price, the shares look expensive compared with a conservative asset-based check.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-30) · fiscal Q2 2026 10-Q (period ended 2026-03-31) · fiscal Q1 2026 10-Q (period ended 2025-12-31) · fiscal Q3 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-09-30) · FY2024 10-K (period ended 2024-09-30) · FY2023 10-K (period ended 2023-09-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer