Stock of the Day

December 4, 2020

PTC (PTC)

$161.65
-$4.11 (-2.5%)
Market Cap: $19.94B

About PTC

PTC Inc. operates as software company in the Americas, Europe, and the Asia Pacific. The company provides Windchill, a suite that manages all aspects of the product development lifecycle(PLM) that provides real-time information sharing, dynamic data visualization, collaborate across geographically distributed teams, and enabling manufacturers to elevate product development, manufacturing, and field service processes; ThingWorx, a platform for Industrial Internet of Things; ServiceMax, a field service management solutions enable companies to asset uptime with optimized in-person and remote service and technician productivity with mobile tools. and deliver metrics; and Arena, a SaaS PLM solution enables product teams to collaborate virtually to share product and quality information with internal teams and supply chain partners and deliver products to customers. It offers Codebeamer, an application lifecycle management for products and software development; Servigistics, a service parts management solution; and FlexPLM, a solution provides retailers with a single platform for merchandising and line planning, materials management, sampling, and others. In addition, it offers Kepware, a portfolio of industrial connectivity solutions helps companies connect diverse automation devices and software applications; Creo, a 3D CAD technology enables the digital design, testing, and modification of product models; and Onshape, a cloud product development platform that delivers computer-aided design with data management tools. Further, it offers Vuforia, an augmented reality (AR) technology enables the visualization of digital information in a physical context and the creation of AR enabling companies to drive results in manufacturing, service, engineering, and operations; and Arbortext, a dynamic publishing solution streamlines how organizations create, manage, and publish technical documentation. PTC Inc. was incorporated in 1985 and is headquartered in Boston, Massachusetts.

PTC Bull Case

Here are some ways that investors could benefit from investing in PTC Inc.:

  • PTC Inc. has a strong consensus rating of "Moderate Buy" from analysts, indicating positive sentiment and potential for stock appreciation.
  • The company reported a net margin of 16.95%, showcasing its ability to convert revenue into profit effectively, which is a positive indicator of financial health.
  • With a current stock price of $168.44, PTC Inc. is trading below its 12-month high of $203.09, suggesting potential for price recovery and growth.
  • PTC Inc. has a return on equity of 14.49%, reflecting efficient management and the ability to generate profits from shareholders' equity, which is attractive to investors.
  • The company is actively involved in innovative technologies such as Windchill and ThingWorx, positioning itself well in the growing markets of product lifecycle management and the Industrial Internet of Things.

PTC Bear Case

Investors should be bearish about investing in PTC Inc. for these reasons:

  • PTC Inc. recently missed earnings expectations, reporting $0.79 earnings per share compared to the consensus estimate of $0.91, which may raise concerns about its short-term performance.
  • The stock has experienced insider selling, with significant shares sold by executives, which could indicate a lack of confidence in the company's near-term prospects.
  • With a PE ratio of 52.00, PTC Inc. may be considered overvalued compared to its earnings, suggesting that the stock price may not be justified by its current profitability.
  • The company has a quick ratio of 0.78, which is below 1, indicating potential liquidity issues that could affect its ability to meet short-term obligations.
  • Despite a strong market cap of $20.27 billion, the competitive landscape in technology and software could pose risks to PTC Inc.'s market share and growth potential.

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