Bentley Story

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Bentley Systems Inco is scheduled to announce its earnings today. While many traders are getting carried away by overanalyzing technology space, it is reasonable to break down Bentley Systems Incorporated as an investment alternative. Here we also measure the ability of Bentley Systems to meet its long-term debt obligations, such as interest payments on debt, the final principal payment on the debt, and any other fixed obligations like lease payments.
Published over a month ago
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How much will Bentley Systems owe in April?
This firm has 641.46 M in debt. The company has a current ratio of 0.78, suggesting that it has not enough short term capital to pay financial commitments when the payables are due.
On a scale of 0 to 100, Bentley Systems holds a performance score of 9. The firm shows a Beta (market volatility) of 0.2619, which signifies not very significant fluctuations relative to the market. Let's try to break down what Bentley's beta means in this case. As returns on the market increase, Bentley Systems returns are expected to increase less than the market. However, during the bear market, the loss on holding Bentley Systems will be expected to be smaller as well. Although it is vital to follow Bentley Systems Inco historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. The philosophy towards foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Bentley Systems Inco technical indicators, you can presently evaluate if the expected return of 0.48% will be sustainable into the future. Please makes use of Bentley Systems Inco maximum drawdown, as well as the relationship between the skewness and day typical price to make a quick decision on whether Bentley Systems price patterns will revert.

Understanding Bentley Total Debt

Bentley Systems Inco liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Bentley Systems Inco has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Bentley Systems balance sheet include debt obligations and money owed to different Bentley Systems vendors, workers, and loan providers. Below is the chart of Bentley main long-term debt accounts currently reported on its balance sheet.
You can use Bentley Systems Incorporated financial leverage analysis tool to get a better grip on understanding its financial position

How important is Bentley Systems's Liquidity

Bentley Systems financial leverage refers to using borrowed capital as a funding source to finance Bentley Systems Incorporated ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Bentley Systems financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Bentley Systems's total debt and its cash.

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 a common stock by Bentley Richard P, the corporate stakeholder, on 13th of April 2021. This event was filed by Bentley Systems Inc with SEC on 2021-04-13. 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.

Another Deeper Perspective

The current price rise of Bentley Systems Inco could raise concerns from investors as the firm it trading at a share price of 44.50 on 564,700 in volume. The company directors and management may have good odds in positioning the firm resources to exploit market volatility in April. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.55. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Bentley Systems partners.

Liabilities Breakdown

360.2 M
Current Liabilities
254.7 M
Long-Term Liabilities
Total Liabilities614.97 Million
Current Liabilities360.23 Million
Long-Term Liabilities254.74 Million
Tax Liabilities18.26 Million

Some Bentley technical indicators suggest bounce back

Current coefficient of variation is at 823.29. 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. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Bentley Systems' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Bentley Systems' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Takeaway

While many other companies under the software?application industry are still a bit expensive, Bentley Systems may offer a potential longer-term growth to investors. Taking everything into account, as of the 2nd of March 2021, we believe Bentley Systems is currently overvalued. It slowly supersedes the market and projects low probability of financial unrest in the next two years. Our ongoing 30 days buy-hold-sell recommendation on the company is Hold.

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 Ellen Johnson 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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