PTC Story

<div class='circular--portrait' style='background:#000000;color: #f2f2f2;font-size:3em;'>PTC</div>
PTC -- USA Stock  

USD 136.94  2.46  1.83%

As many investors are getting excited about technology space, it is fair to go over PTC Inc. We will evaluate if PTC shares are reasonably priced going into February. Is the entity current valuation justified for 2021? Here i will cover my perspective on valuation to give PTC investors a better outlook on taking a position in the stock.
Published over a month ago
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Is PTC (NASDAQ:PTC) ready for a correction?
The company has 1.22 B in debt with debt to equity (D/E) ratio of 0.85, which is OK given its current industry classification. PTC is FAIRLY VALUED at 125.80 per share with modest projections ahead. The company has Net Profit Margin of 8.96 %, which may imply that it executes well on its competitive polices and has reasonable control over its expenses and variable costs. This is very large. In the same way, it shows Net Operating Margin of 17.26 %, which entails that for every 100 dollars of revenue, it generated 0.17 of operating income.
We determine the current worth of PTC Inc using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of PTC Inc based exclusively on its fundamental and basic technical indicators. By analyzing PTC's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of PTC's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of PTC. We calculate exposure to PTC's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to PTC's related companies.

PTC Inc Investment Alerts

PTC investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring PTC Inc performance across your portfolios.Please check all investment alerts for PTC

PTC Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare PTC value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across PTC competition to find correlations between indicators driving the intrinsic value of PTC.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for PTC, but it might be worth checking our own buy vs. sell analysis

Sale by Phillip Fernandez of 250 shares of PTC

Legal trades by PTC 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:
PTC insider trading alert for sale of common stock by Phillip Fernandez, the corporate stakeholder, on 24th of February 2021. This event was filed by Ptc Inc with SEC on 2021-02-24. 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.

Breaking down the case for PTC

The current price rise of PTC Inc may encourage investors to take a closer look at the company as it is trading at a share price of 129.05 on 174,818 in trading volume. The company management teams may have good odds in positioning the company resources to exploit market volatility in February. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.67. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
 2014 2015 2020 2021 (projected)
Interest Expense14.74 M29.88 M26.89 M29.02 M
Gross Profit920.51 M814.87 M733.38 M682.33 M

Margins Breakdown

PTC profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or PTC itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of PTC profit margins.
Profit Margin
Operating Margin
Operating Margin17.94
EBITDA Margin17.71
Gross Margin66.92
Profit Margin11.12

PTC Average Assets is increasing over the last 8 years. The current value of PTC Average Assets is 2,260,676,073. Also, PTC Revenue Per Employee is increasing over the last 8 years. The previous year's value of PTC Revenue Per Employee was 196,912.

Will PTC slip impact its fundamentals?

The skewness is down to -0.14 as of today. PTC Inc has relatively low volatility with skewness of -0.14 and kurtosis of 3.12. However, we advise all investors to independently investigate PTC Inc to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Final Takeaway

Whereas many other companies under the software?application industry are still a bit expensive, PTC may offer a potential longer-term growth to investors. Taking everything into account, as of the 26th of January 2021, we believe PTC is currently fairly valued. It barely shadows the market and projects very small odds of financial distress in the next two years. Our present 30 days 'Buy-Sell' recommendation on the company is Strong Buy.

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 Vlad Skutelnik do not own shares of PTC Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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