Bentley Story

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BSY -- USA Stock  

USD 34.16  0.80  2.40%

Bentley Systems Inco is scheduled to announce its earnings today. As many risky investors are excited about technology space, it is only fair to break down Bentley Systems Incorporated based on its current volatility. We will evaluate why we are still confident in anticipation of a recovery. Bentley Systems Incorporated chance of bankruptcy is under 26 percent. Will Bentley Systems investors continue to buy in December?
Published over three weeks ago
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Does Bentley Systems (NASDAQ:BSY) have strong essential indicators based on the current rise?
Bentley Systems appears to be very steady, given 1 month investment horizon. Bentley Systems Inco secures Sharpe Ratio (or Efficiency) of 0.11, which signifies that the company had 0.11% of return per unit of risk over the last month. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Bentley Systems Incorporated, which you can use to evaluate future volatility of the firm. Please makes use of Bentley Systems Inco Risk Adjusted Performance of 0.1145, mean deviation of 3.05, and Downside Deviation of 4.11 to double-check if our risk estimates are consistent with your expectations.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Bentley Systems income statement, its balance sheet, and the statement of cash flows. Potential Bentley Systems investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Bentley Systems investors may use each financial statement separately, they are all related. The changes in Bentley Systems's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Bentley Systems's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages. The goal of Bentley Systems fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Bentley Systems performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Bentley Systems shares is the value that is considered the true value of the share. If the intrinsic value Bentley is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Bentley Systems. Please read more on our fundamental analysis page.

Are Bentley Systems Earnings Expected to grow?

The future earnings power of Bentley Systems involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Bentley Systems factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Bentley Systems stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Bentley expected earnings.

How Bentley utilizes its cash?

To perform a cash flow analysis of Bentley Systems, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Bentley Systems is receiving and how much cash it distributes out in a given period. The Bentley Systems cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Bentley Systems Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Bentley Systems reported Net Cash Flow from Operations of 170.77 Million in 2019

Bentley Systems Gross Profit

Bentley Systems Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Bentley Systems previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Bentley Systems Gross Profit growth over the last 10 years. Please check Gross Profit in more details.

Bentley Systems exotic insider transaction detected

Legal trades by Bentley Systems insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Bentley insider trading alert for general transaction of class b common stock by Hollister David J, Title: Chief Financial Officer and Chief Operations Advancement Officer, on 19th of November 2020. This event was filed by Bentley Systems Inc with SEC on 2020-11-19. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

An Additional Perspective On Bentley Systems Inco

Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Bentley Systems is not uncomon. Many companies such as Bentley Systems have both institutions investors and insiders sharing the ownership. Retail investors typically buy and sell stocks in round lots of 100 shares or more. Other other hand institutional investors are known to buy and sell in block trades of 10,000 shares or more. Let's take a look at how the ownership of Bentley is distributed among investors.

Ownership Allocation

Bentley Systems Inco retains a total of 249.63 Million outstanding shares. Bentley Systems Incorporated retains significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.

Retail Investors
60.24%
Insiders
37.79%
Retail Investors60.24
Insiders37.79
Institutions1.97

Asset Utilization

The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The current return on assets of Bentley suggests not a very effective usage of assets in November.

Current Assets
370.4 M
Assets Non Current
708.3 M
Goodwill
574.2 M
Current Assets370.41 Million21.64
Assets Non Current708.33 Million41.37
Goodwill574.24 Million33.54
Tax Assets59.11 Million3.45

Will Bentley price slide impact its balance sheet?

Bentley Systems current downside deviation rises over 4.11. Bentley Systems Incorporated shows above-average downside volatility for the selected time horizon. We advise investors to inspect Bentley Systems Incorporated further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Bentley Systems future alpha.

Our Final Take On Bentley Systems

While few other entities in the software?application industry are either recovering or due for a correction, Bentley may not be as strong as the others in terms of longer-term growth potentials. The inconsistency in the assessment between current Bentley valuation and our trade advice on Bentley Systems is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Bentley Systems.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Bentley Systems Incorporated. Please refer to our Terms of Use for any information regarding our disclosure principles.

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