Bentley Systems, Incorporated
Bentley Systems, Incorporated Fundamental Analysis
Bentley Systems, Incorporated (BSY) shows moderate financial fundamentals with a PE ratio of 39.37, profit margin of 18.45%, and ROE of 23.96%. The company generates $1.4B in annual revenue with strong year-over-year growth of 10.15%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze BSY's fundamental strength across five key dimensions:
Efficiency Score
WeakBSY struggles to generate sufficient returns from assets.
Valuation Score
WeakBSY trades at a premium to fair value.
Growth Score
ModerateBSY shows steady but slowing expansion.
Financial Health Score
WeakBSY carries high financial risk with limited liquidity.
Profitability Score
ExcellentBSY achieves industry-leading margins.
Key Financial Metrics
Is BSY Expensive or Cheap?
P/E Ratio
BSY trades at 39.37 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, BSY's PEG of 7.97 indicates potential overvaluation.
Price to Book
The market values Bentley Systems, Incorporated at 8.87 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 20.50 times EBITDA. This signals the market has high growth expectations.
How Well Does BSY Make Money?
Net Profit Margin
For every $100 in sales, Bentley Systems, Incorporated keeps $18.45 as profit after all expenses.
Operating Margin
Core operations generate 23.67 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.96 in profit for every $100 of shareholder equity.
ROA
Bentley Systems, Incorporated generates $7.77 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Bentley Systems, Incorporated generates strong operating cash flow of $443.84M, reflecting robust business health.
Free Cash Flow
Bentley Systems, Incorporated generates strong free cash flow of $426.79M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.46 in free cash annually.
FCF Yield
BSY converts 4.66% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
39.37
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.97
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.87
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.74
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.61
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How BSY Stacks Against Its Sector Peers
| Metric | BSY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 39.37 | 35.19 | Worse (Expensive) |
| ROE | 23.96% | 1155.00% | Weak |
| Net Margin | 18.45% | -127067.00% (disorted) | Strong |
| Debt/Equity | 1.07 | 0.41 | Weak (High Leverage) |
| Current Ratio | 0.61 | 4.71 | Weak Liquidity |
| ROA | 7.77% | -314918.00% (disorted) | Weak |
BSY outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Bentley Systems, Incorporated's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
52.38%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
88.93%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
111.46%
Industry Style: Growth, Innovation, High Beta
High Growth