Is the business good?
How good a business is PTC?
PTC Inc. earns 20% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
20%
Return on invested capital · cost of capital 9.0% · 11 points above what the capital costs: growth creates value
- Operating margin
- 39%
Operating margin · Software - Application median 8.2% · 12 months to Q2 2026
- Cash conversion
- 0.74×
Cash conversion · 1.86× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- −1.9%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 14% |
| FY2021 | 21% |
| FY2022 | 23% |
| FY2023 | 22% |
| FY2024 | 26% |
| FY2025 | 36% |
Details›
- Gross margin12 months to Q2 2026
- 85%
- Operating margin12 months to Q2 2026
- 39%
- Net margin12 months to Q2 2026
- 42%
- Free cash flow margin
- 31%
- R&D as % of revenue
- 16%
- Revenue, trailing twelve months
- $3.00B
- Free cash flow, trailing twelve months
- $928M
- Net income, trailing twelve months
- $1.25B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 20%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Application
Ranks #12 of 90 by Smart Score