Stock analysis · Bull Rankings model

BSY analysis

Bentley Systems, IncorporatedSoftware - Application. Scored on the same transparent model behind the daily rankings.

BSY
Bentley Systems, Incorporated · Software - Application
FCF$498mC
Rev+12.8%B+
D/E1.05C
P/E41.6xC+
PEG1.61C+
73.4Score
$37.47$11.3B
1Y Target$44.47Analyst consensus · 15 analysts
5Y Target$65.10Compound horizon
10Y Target$96.58Long-dated conviction
FCF$498mTTM
C
FCF $498m — modest; watch for margin expansion
Rev+12.8%TTM YoY
B+
Revenue +12.8% — above sector median, healthy trajectory
D/E1.05
C
D/E 1.05 — more levered than most Technology peers (≈90th pctile)
P/E41.6x
C+
P/E 41.6 — above the Technology median (≈75th pctile)
PEG1.61
C+
PEG 1.61 — modest premium; above fair value

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 73.4
Quality76.2
Growth87.8
Value59.1
Why this score
  • Raising its dividend
Entry · Margin of safety
52-week rangeNear 52-week low
35% off the 12-month high
vs DCF fair value22% aboveest. fair value ~$31
What the price assumes: free cash flow compounding at ~13% a year for the next decade — vs the ~13% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability37% · B+gross profit ÷ total assets (Novy-Marx)
ROIC12.3% · B+return on invested capital — not score-weighted

Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.

Why now
Bentley Systems' OpenRoads platform is now the de‑facto design suite for large‑scale transportation infrastructure, and its 12.2% FY revenue growth combined with a 18.1% profit margin fuels a compounding engine that will keep cash flowing into the business. The $492 m free‑cash‑flow generation at a $10.9 b market cap yields a 4.5% FCF yield, far above the sector average, confirming that earnings are not just paper. The thesis rests on the continued rollout of OpenRoads and OpenBuildings to megaprojects worldwide, which should keep the 13% implied FCF growth from the reverse‑DCF realistic and drive the stock toward the consensus $44.80 target.
Moat
Bentley’s moat lies in its integrated suite of open‑modeling applications—MicroStation, OpenRoads, OpenBuildings, and the geotechnical tools like GeoStudio—that lock in large engineering firms and government agencies with high switching costs and long‑term maintenance contracts. The 23% ROE reflects pricing power derived from category leadership in infrastructure design software, where customers value the seamless data interoperability across the entire project lifecycle, a capability rivals cannot replicate quickly.
Risk
The stock trades at a lofty 41.4× forward P/E, far above the sector median, and the implied 13% FCF growth outpaces the actual 12.2% revenue growth, suggesting the market is pricing in aggressive upside that could be derailed by a slowdown in global infrastructure spending or a win by rivals in the BIM space. A rise in the debt‑to‑equity ratio toward 1.0 would also strain the balance sheet. The bear case is confirmed if the next quarter’s revenue growth falls below 8% and the P/E compresses toward 30×.
Horizon
1-3 yr $44.47 (15-analyst consensus) — fundamentals + valuation re-rating. 5 yr $65.10 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $96.58 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

BSY vs the Top Picks average

PillarBSYBook avgDiff
Quality0.760.84-0.08
Growth0.880.84+0.04
Value0.590.78-0.19

Averaged across the 30 names in today's Top Picks (mean score 81.5). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
-2.5 over 47 daily scores
From 75.9 (Jun 22) → 73.4 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Analyst estimate revisions

30-day change-0.7%
90-day change-0.6%
Forward EPS estimate$1.57

Over the last 90 days, what analysts expect BSY to earn is essentially unchanged. The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

A rising estimate means expectations are improving, not that the price has failed to keep up — and estimates get cut as readily as they get raised. It is not part of the Bull Rankings score. Biggest movers across the market →

Shares to buy
53
Position size
$1,986
4.0% of portfolio
Stop price
$28.10
25% below $37.47
$ at risk if stopped
$496.41
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Latest BSY developments

Recent headlines from across the financial press · updated daily. Links open the source.

Bentley Systems, Incorporated (BSY): score, valuation & FAQ

Bentley Systems, Incorporated (BSY) is a Software - Application company that scores 73.4 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are Rev (B+). On valuation, BSY sits about 22% above our discounted-cash-flow fair value — the current price implies roughly 13% annual free-cash-flow growth over the next decade.

Is BSY a good stock to buy?

Bull Rankings scores BSY 73.4 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by Rev (B+). A score is a quantitative screen of Bentley Systems, Incorporated's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does BSY score 73.4 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). BSY earns its highest marks on Rev (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is BSY overvalued or undervalued?

Based on $37.47, BSY sits about 22% above our discounted-cash-flow fair value — the current price implies roughly 13% annual free-cash-flow growth over the next decade. It trades at a 41.6x P/E (graded C+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in BSY?

The stock trades at a lofty 41.4× forward P/E, far above the sector median, and the implied 13% FCF growth outpaces the actual 12.2% revenue growth, suggesting the market is pricing in aggressive upside that could be derailed by a slowdown in global infrastructure spending or a win by rivals in the BIM space. A rise in the debt‑to‑equity ratio toward 1.0 would also strain the balance sheet. The bear case is confirmed if the next quarter’s revenue growth falls below 8% and the P/E compresses toward 30×.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial advisor.

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