# PTC (PTC.US) Canonical: https://gigainvestors.com/s/PTC Analysis as of: 2026-10-01T09:07:02.478Z. Financial observations: FY2008–FY2025. Listing currency: USD. Reporting currency: USD. ## Verdict Not a wonderful business Quality tests for Buy: not passed. Published buy qualification: no. Share price: $193.15 per share; close as of 2026-10-15. Estimated value: low $28.20 per share, central $34.74 per share, high $40.33 per share. Buy at or below the central value $34.74 per share. Valuation as of 2026-10-01T09:07:02.478Z; scenarios are not confidence intervals. Expected annual return: 4.2% at the stated quote. About 4.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.3% + 4 points). ## Checklist ### understandable: fail - 1 revenue decline in the last 10 years (informational) - operating margin variation exceeds 0.35 - Financial history: 10 years - Years with declining revenue: 1 - Years with a net loss: 2 - Operating margin variation: 0.76× Chart: Operating margin; fiscal year observations. - FY2016: -0.03× - FY2017: 0.04× - FY2018: 0.06× - FY2019: 0.05× - FY2020: 0.14× - FY2021: 0.21× - FY2022: 0.23× - FY2023: 0.22× - FY2024: 0.26× - FY2025: 0.36× ### moat: fail - Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%. - ROIC worst years below threshold (more than 1 bad year allowed) - ROIC, median of available years: 30.9% - ROIC, second-lowest year: 3.7% - Typical minus recent gross margin: -3.4 pp - Years with nonpositive capital: 2 - Capital spending / revenue: 1.4% - ROIC including acquisitions, ten-year median: 3.9% Chart: ROIC excluding acquisitions; fiscal year observations. - FY2016: -3.5% - FY2017: 3.7% - FY2018: 96.2% - FY2019: 11.3% - FY2020: 27.0% - FY2021: 32.6% - FY2022: 29.1% - FY2023: 36.8% - FY2024: 33.3% - FY2025: 51.6% ### economics: fail - owner earnings cash conversion below threshold - working capital as a share of revenue rose more than 10pp and ends positive - Owner earnings / net income, 5-yr: 0.72× - Cash conversion uses consolidated totals: No - Owner earnings, five-year total: $1.5B - Net income, five-year total: $2.1B - Return on incremental invested capital: 453.3% - Working capital / revenue, annual change: 3.4 pp - Working capital / revenue, change between three-year averages: 26.8 pp - Working capital / revenue, final three-year average: 36.4% Chart: Annual owner cash / profit; fiscal year observations. - FY2021: 0.76× - FY2022: 0.66× - FY2023: 0.49× - FY2024: 0.66× - FY2025: 0.83× ### management: pass - $1 retained earnings test: 2017 to 2025 (8 years) - potential debt-funded buybacks (informational) - buybacks unrelated to price (informational) - ROIC first 3 years vs last 3 years: 3.7% vs 36.8% - Market cap gain: $18B - Cumulative retained earnings: $2.7B - Diluted shares, 10-year annual growth: 0.4% - Diluted shares, 5-year annual growth: 0.8% - $1 test, starting fiscal year: FY2017 - $1 test, ending fiscal year: FY2025 - Per-share value growth: 66.3% - Per-share value change: $3.06 - Per-share value, starting three-year median: $0.05 - Per-share value, ending three-year median: $3.12 - Buybacks concentrated in cheaper years (correlation): -0.49 - Average buyback yield: 2.2% - Buyback history: 6 years - Debt-funded buybacks: Yes - Acquisition spending: $2.7B - Cumulative net income, 10 years: $2.3B - ROIC, first three-year median: 3.7% - ROIC, last three-year median: 36.8% ### accounting: fail - restructuring or one-time charges in at least three of five years - stock compensation exceeds 15% of operating cash flow - Sloan accruals: -2.0% - Receivables to sales index (DSRI): 0.97× - Restructuring years, last five: 3 - Stock compensation / operating cash flow: 24.9% - Earnings backed by cash: Yes - Operating cash / earnings: 1.18× - Accounting red flags: 2 - Goodwill and intangibles / equity: 1.13× Chart: Sloan accruals; fiscal year observations. - FY2016: -10.1% - FY2017: -5.5% - FY2018: -8.4% - FY2019: -11.7% - FY2020: -3.0% - FY2021: 2.4% - FY2022: -2.6% - FY2023: -5.8% - FY2024: -5.9% - FY2025: -2.0% ## Holders ## Price story Down 33% since Jul 2025 · "PTC (NASDAQ:PTC) Reports Sales Below Analyst Estimates In Q2 CY2026 Earnings" (finance.yahoo.com, Jul 2026) · sales +19.2% Story as of 2026-10-03T17:10:00Z; price observation 2026-10-02. Price needs cash profits to grow 21.6% a year for ten years - 2025-05-01: PTC (NasdaqGS:PTC) Raises 2025 Earnings Guidance, Schaeffler Adopts Windchill+ US$601M Revenue ([finance.yahoo.com](https://finance.yahoo.com/news/ptc-nasdaqgs-ptc-raises-2025-173741825.html)) - 2025-07-30: Industrial software maker PTC raises annual forecast ([finance.yahoo.com](https://finance.yahoo.com/news/industrial-software-maker-ptc-raises-205659885.html)) - 2026-05-06: PTC lifts annual revenue forecast on steady software demand ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/ptc-lifts-annual-revenue-forecast-205555601.html)) - 2026-07-31: PTC's AI-Led Lifecycle Strategy Reshapes Its Long-Term Growth Outlook ([finance.yahoo.com](https://finance.yahoo.com/technology/ai/articles/ptcs-ai-led-lifecycle-strategy-155700241.html)) - 2026-08-28: Will PTC's (PTC) AI-Fueled ARR Guidance Hike and Buybacks Change Its Long-Term Narrative ([finance.yahoo.com](https://finance.yahoo.com/technology/ai/articles/ptcs-ptc-ai-fueled-arr-230559401.html)) ### Sales · FY2024–2025 sales +19.2%; source https://www.sec.gov/Archives/edgar/data/857005/000119312525291326/ptc-20250930.htm; observed 2025-11-21. - FY2016: $1.1B - FY2017: $1.2B - FY2018: $1.2B - FY2019: $1.3B - FY2020: $1.5B - FY2021: $1.8B - FY2022: $1.9B - FY2023: $2.1B - FY2024: $2.3B - FY2025: $2.7B ### Gross margin · FY2025 gross margin 83.8%; source https://www.sec.gov/Archives/edgar/data/857005/000119312525291326/ptc-20250930.htm; observed 2025-11-21. - FY2016: 71.4% - FY2017: 71.8% - FY2018: 73.7% - FY2019: 74.1% - FY2020: 77.1% - FY2021: 79.5% - FY2022: 80.0% - FY2023: 79.0% - FY2024: 80.6% - FY2025: 83.8% ## Owner memo Memo as of 2026-10-02T06:52:09.009Z. ### How it makes money Annual sales are USD 2.7 billion. - Source: https://www.sec.gov/Archives/edgar/data/857005/000119312525291326/ptc-20250930.htm (filed 2025-11-21); FY2025: revenue 2739226000; grossProfit 2294243000; margin = grossProfit / revenue. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-02); PTC.US: 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, field service, and end-of-life processes; ThingWorx, an Industrial Internet of Things software; ServiceMax, a service lifecycle 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 platform for merchandising and line planning, materials management, sampling, and others. In addition, it offers Kepware, an enterprise industrial connectivity solution; Kepware Edge, a Linux-based industrial communications platform; KEPServerEX, an industrial connectivity solution for small projects; Creo, a 3D CAD technology enables the digital design, testing, and modification of product models; and Onshape, a SaaS product development platform that delivers computer-aided design with data management, collaboration tools, and real-time analytics. Further, it offers Vuforia, an augmented reality (AR) software; and Arbortext, a dynamic publishing solution streamlines how organizations create, manage, and publish technical documentation. Additionally, the company provides PTC Products; PTC Mathcad; and augmented reality product. PTC Inc. was incorporated in 1985 and is headquartered in Boston, Massachusetts. ### Why customers stay Margins ranged from 79% to 83.8% during 2023–25; it earns 30.9% on its capital. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2023: grossProfit / revenue = 79%. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2024: grossProfit / revenue = 80.6%. - Source: https://www.sec.gov/Archives/edgar/data/857005/000119312525291326/ptc-20250930.htm (filed 2025-11-21); FY2025: grossProfit / revenue = 83.8%. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); 10-year return on capital observations [[2016,-0.03470065245304783],[2017,0.0372642856174811],[2018,0.9623479205873777],[2019,0.11276893778861448],[2020,0.270135054722683],[2021,0.3258938697393434],[2022,0.29139951867619207],[2023,0.3680739862488847],[2024,0.3330276198683256],[2025,0.5160935714642655]]; median 0.30864669420776775. ROIC follows the displayed moat series; financial companies use return on tangible equity. ### Where the cash goes Paid dividends in 5 of 10 years; bought back USD 300 million of shares. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2018: growth capex 0; upkeep 39041000; owner earnings 17415000. Growth capex / owner earnings = 0. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2020: growth capex 0; upkeep 31246000; owner earnings 103804000. Growth capex / owner earnings = 0. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2021: growth capex 0; upkeep 25263000; owner earnings 396905000. Growth capex / owner earnings = 0. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2022: growth capex 0; upkeep 25947000; owner earnings 234311000. Growth capex / owner earnings = 0. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2023: growth capex 0; upkeep 24614000; owner earnings 151629000. Growth capex / owner earnings = 0. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); FY2024: growth capex 0; upkeep 18368000; owner earnings 275911000. Growth capex / owner earnings = 0. - Source: https://www.sec.gov/Archives/edgar/data/857005/000119312525291326/ptc-20250930.htm (filed 2025-11-21); FY2025: growth capex 0; upkeep 11008000; owner earnings 642200000. Growth capex / owner earnings = 0. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); Dividend observations: [[2016,0],[2017,0],[2018,250000000],[2019,205000000],[2020,33740000],[2021,600354000],[2022,0],[2023,82448000],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement. - Source: https://www.sec.gov/Archives/edgar/data/857005/000119312525291326/ptc-20250930.htm (filed 2025-11-21); FY2025: cash repurchases 299998000 USD. ### Are managers owners Insiders own 0.4% of the company. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-02); PTC.US SharesStats.PercentInsiders = 0.35400000000000004 percentage points; cache date 2026-10-02. ### What could break it "We depend on sales within the discrete manufacturing sector" (SEC filing, Nov 2025) - Source: https://www.sec.gov/Archives/edgar/data/857005/000119312525291326/ptc-20250930.htm (filed 2025-11-21); We depend on sales within the discrete manufacturing sector ### What the price says The price assumes cash profits grow 21.9% yearly over ten years; actual growth was 27.6%. - Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-21); Ten-year compound average after fade. Initial solved rate 0.305440792276234. Price 146.47; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.4411612591800848 → FY2025 5.044735338682034. Closing-price date 2026-10-01. ## Monthly share-price history (USD per share) - 2016-10: $47.44 per share - 2016-11: $48.71 per share - 2016-12: $46.27 per share - 2017-01: $52.57 per share - 2017-02: $53.89 per share - 2017-03: $52.55 per share - 2017-04: $54.05 per share - 2017-05: $57.58 per share - 2017-06: $55.12 per share - 2017-07: $55.19 per share - 2017-08: $56.00 per share - 2017-09: $56.28 per share - 2017-10: $66.45 per share - 2017-11: $63.68 per share - 2017-12: $60.77 per share - 2018-01: $72.68 per share - 2018-02: $73.76 per share - 2018-03: $78.01 per share - 2018-04: $82.35 per share - 2018-05: $86.24 per share - 2018-06: $93.81 per share - 2018-07: $91.91 per share - 2018-08: $99.94 per share - 2018-09: $106.19 per share - 2018-10: $82.41 per share - 2018-11: $86.49 per share - 2018-12: $82.90 per share - 2019-01: $84.79 per share - 2019-02: $92.82 per share - 2019-03: $92.18 per share - 2019-04: $90.47 per share - 2019-05: $84.06 per share - 2019-06: $89.76 per share - 2019-07: $67.78 per share - 2019-08: $65.47 per share - 2019-09: $68.18 per share - 2019-10: $66.91 per share - 2019-11: $76.60 per share - 2019-12: $74.89 per share - 2020-01: $83.12 per share - 2020-02: $75.55 per share - 2020-03: $61.21 per share - 2020-04: $69.25 per share - 2020-05: $76.38 per share - 2020-06: $77.79 per share - 2020-07: $85.56 per share - 2020-08: $91.41 per share - 2020-09: $82.72 per share - 2020-10: $83.88 per share - 2020-11: $107.85 per share - 2020-12: $119.61 per share - 2021-01: $132.91 per share - 2021-02: $136.94 per share - 2021-03: $137.65 per share - 2021-04: $130.94 per share - 2021-05: $134.14 per share - 2021-06: $141.26 per share - 2021-07: $135.45 per share - 2021-08: $131.66 per share - 2021-09: $119.79 per share - 2021-10: $127.35 per share - 2021-11: $109.58 per share - 2021-12: $121.15 per share - 2022-01: $116.26 per share - 2022-02: $111.28 per share - 2022-03: $107.72 per share - 2022-04: $114.21 per share - 2022-05: $116.53 per share - 2022-06: $106.34 per share - 2022-07: $123.38 per share - 2022-08: $114.89 per share - 2022-09: $104.60 per share - 2022-10: $117.83 per share - 2022-11: $127.21 per share - 2022-12: $120.04 per share - 2023-01: $134.88 per share - 2023-02: $125.33 per share - 2023-03: $128.23 per share - 2023-04: $125.79 per share - 2023-05: $134.40 per share - 2023-06: $142.30 per share - 2023-07: $145.81 per share - 2023-08: $147.17 per share - 2023-09: $141.68 per share - 2023-10: $140.42 per share - 2023-11: $157.36 per share - 2023-12: $174.96 per share - 2024-01: $180.65 per share - 2024-02: $183.01 per share - 2024-03: $188.94 per share - 2024-04: $177.44 per share - 2024-05: $176.24 per share - 2024-06: $181.67 per share - 2024-07: $177.85 per share - 2024-08: $179.09 per share - 2024-09: $180.66 per share - 2024-10: $185.33 per share - 2024-11: $200.06 per share - 2024-12: $183.87 per share - 2025-01: $193.48 per share - 2025-02: $163.63 per share - 2025-03: $154.95 per share - 2025-04: $154.97 per share - 2025-05: $168.32 per share - 2025-06: $172.34 per share - 2025-07: $214.81 per share - 2025-08: $213.50 per share - 2025-09: $203.02 per share - 2025-10: $198.54 per share - 2025-11: $175.43 per share - 2025-12: $174.21 per share - 2026-01: $156.13 per share - 2026-02: $156.59 per share - 2026-03: $142.49 per share - 2026-04: $136.30 per share - 2026-05: $138.73 per share - 2026-06: $113.61 per share - 2026-07: $137.20 per share - 2026-08: $155.74 per share - 2026-09: $140.30 per share ## Annual estimated value (USD per share) - FY2018: low $3.88 per share, central $4.14 per share, high $4.49 per share - FY2021: low $4.34 per share, central $4.60 per share, high $4.94 per share - FY2022: low $9.02 per share, central $9.99 per share, high $11.28 per share - FY2023: low $13.06 per share, central $14.57 per share, high $16.59 per share - FY2024: low $21.47 per share, central $25.39 per share, high $29.27 per share - FY2025: low $25.33 per share, central $31.21 per share, high $36.24 per share Historical values use today's bond yield for every fiscal year Historical values use today's FX rate into trading currency for every fiscal year Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates ## Sources [Original 10-K filing](https://www.sec.gov/Archives/edgar/data/857005/000119312525291326/ptc-20250930.htm); period 2025-09-30, filed 2025-11-21. Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights. ## Reported holder observations # PTC — PTC Inc. Held by 1 investor · USD 231,006 total · 2025 Q3 · reported price USD 203.35 (split-adjusted). Page: https://gigainvestors.com/s/PTC ## Holders (2025 Q3) | Investor | Value | % of their portfolio | This quarter | |---|---:|---:|---| | Henry Ellenbogen (https://gigainvestors.com/DCP) | USD 48,032,881 | 0.0% | sold | | Robert Torray (https://gigainvestors.com/T) | USD 231,006 | <0.1% | new | ## Total held by quarter - 2022 Q3: USD 263,590,745 · 1 holder · USD 104.60 - 2022 Q4: USD 321,880,898 · 1 holder · USD 120.04 - 2023 Q1: USD 343,841,949 · 1 holder · USD 128.23 - 2023 Q2: USD 450,738,096 · 1 holder · USD 142.30 - 2023 Q3: USD 448,624,478 · 1 holder · USD 141.68 - 2023 Q4: USD 678,106,818 · 2 holders · USD 174.96 - 2024 Q1: USD 708,663,116 · 2 holders · USD 188.94 - 2024 Q2: USD 591,974,420 · 2 holders · USD 181.67 - 2024 Q3: USD 582,371,013 · 3 holders · USD 180.66 - 2024 Q4: USD 508,990,714 · 3 holders · USD 183.87 - 2025 Q1: USD 36,423,322 · 1 holder · USD 154.95 - 2025 Q2: USD 48,032,881 · 1 holder · USD 172.34 - 2025 Q3: USD 231,006 · 1 holder · USD 203.35 - 2025 Q4: USD 0 · 0 holders