PTC
PTC Inc.
Recurring SaaS
★ Quality 68/100Price today
$141.02
This company value is already calculated
We know what it is worth from its audited numbers, and whether it trades above or below that today. Create your free account to see it.
See what it is worthcharlieapp.co
What this business is made of
The business
PTC is the product's nervous system: once you're in, you don't leave.
PTC sells industrial software to design and manage products: CAD (Creo), PLM (Windchill), and cloud-native SaaS (Onshape, Arena). It charges via recurring subscription — ARR near $2.4B on revenue of $2.7B in FY2025, with 84% gross margin.
PLM software embeds into the customer's engineering workflow: once Windchill manages your product data, switching costs years and expensive errors. That creates real switching costs and high renewals. It's no monopoly — Dassault and Siemens fight for the same ground with serious products.
Revenue history
From $1.8B to $2.7B in 4 years. The business grows steadily.
Where each $100 of sales goes
Revenue $2.7B · FY2025
Of every $100 in sales, $73 goes to costs and operations; $27 is left as net profit (27% margin).
Catalysts and risks
Migration of the installed base to SaaS (Onshape/Arena), lifting ARR and margins toward 2026-2027.
ARR growth ~11% annually with FCF expansion from $0.9B toward more than $1B.
Net debt reduction: $1.2B of debt against $0.2B of cash, with FCF that pays it down fast.
No dominant moat: competes against Siemens and Dassault, both with more muscle in certain verticals.
Revenue tied to industrial capex — a manufacturing recession slows renewals.
The SaaS transition can compress reported growth before the model matures.
Charlie's note
“Sticky software with 84% gross margin and high renewals, but 24x for 11% growth pays for the full moat upfront. Excellent business, an entry that demands patience.”
Analysis · June 2026
Want to follow PTC Inc.?
We do not calculate a value here: PTC Inc. does not generate cash flows you can project, and putting a number on it would be making it up. What you can do is follow it and tell us the price you care about — we will email you when it gets there.
🔔 Email meFree · no card
Charlie informs, it doesn't advise. No information should be taken as a recommendation to buy or sell.