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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2599
Positioning
Market Dominance
Services
Computer Software
$15.6B
Gregory S. Bentley
Bentley Systems provides infrastructure engineering software solutions in the Americas, Europe, the Middle East, Africa, and Asia-Pacific. The company offers open modeling and open simulation applications for infrastructure design integration. It also provides project delivery systems that support collaboration, work-sharing, and 4D construction modeling for infrastructure project delivery enterprises.
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = BSY ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$YALA Yalla Group Ltd | 75 | 89 | 99 | 80 | - | - | 21.3% | 18.6% | 64.5% | 35.7% | 39.5% | 6.5% | 0.0% | 0.0x | $644M | VS | |
$GRVY GRAVITY Co., Ltd. | 75 | 82 | 96 | 71 | - | - | 15.4% | 12.6% | 38.7% | 17.1% | 17.0% | -39.7% | 0.0% | 0.0x | $439M | VS | |
$ISSC INNOVATIVE SOLUTIONS & SUPPORT INC | 73 | 81 | 88 | 94 | 25.0x | 14.1x | 28.1% | 16.8% | 48.1% | 23.8% | 18.5% | 78.6% | 0.0% | 37.0x | $220M | VS | |
$AER AerCap Holdings N.V. | 72 | 60 | 87 | 84 | - | - | 12.4% | 2.9% | 100.0% | 28.2% | 26.2% | 5.5% | 0.8% | 264.0x | $19.4B | VS | |
$HCSG HEALTHCARE SERVICES GROUP INC | 72 | 74 | 88 | 88 | 7.1x | 6.1x | 28.9% | 20.8% | 20.8% | 9.9% | 9.3% | 8.5% | 0.0% | 1.0x | $1.2B | VS | |
$LQDT LIQUIDITY SERVICES INC | 72 | 90 | 88 | 68 | 24.9x | 14.3x | 14.6% | 7.8% | 43.8% | 7.4% | 5.9% | 31.2% | 0.0% | 0.0x | $857M | VS | |
$TRTNpA Triton International Ltd | 71 | 70 | 89 | 70 | - | 1.7x | 18.0% | 4.6% | 97.3% | 52.2% | 32.7% | -3.4% | 0.0% | 271.0x | $8.0B | VS | |
$EDU New Oriental Education & Technology Group Inc. | 71 | 83 | 52 | 77 | - | - | 9.4% | 4.9% | 55.5% | 8.7% | 7.7% | 13.6% | 1.3% | 7.0x | $78.0B | VS | |
$NTES NetEase, Inc. | 71 | 88 | 93 | 68 | - | - | 22.1% | 15.6% | 62.5% | 28.1% | 28.7% | -1.0% | 2.8% | 9.0x | $56.6B | VS | |
$UTI UNIVERSAL TECHNICAL INSTITUTE INC | 70 | 86 | 86 | 72 | 43.2x | 16.0x | 21.4% | 8.0% | 100.0% | 10.0% | 7.5% | 14.1% | 0.0% | 27.0x | $1.8B | VS | |
$BSY BENTLEY SYSTEMS INC | 46 | 56 | 51 | 41 | 39.3x | 32.7x | 21.9% | 7.5% | 81.2% | 24.3% | 18.0% | 13.7% | 0.5% | 104.0x | $15.6B | ||
| SECTOR BENCH | - | - | - | - | - | 23.7x | 11.7x | 5.3% | 1.9% | 59.6% | 3.5% | 2.3% | 7.8% | 0.0% | 0.3x | - | REF |
BENTLEY SYSTEMS INC (BSY) receives a "Reduce" rating with a composite score of 46.3/100. It ranks #2599 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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YOY expansion rate
Core pricing power
Operating efficiency
Bottom-line conversion
Equity capital efficiency
Asset base utilization
Financial leverage load
Direct cash return
Gregory S. Bentley
Chief Executive Officer
Labor Force
5,000
56
27
79
Audit Verdict: Average governance indicators based on financial metrics.
No recent insider transactions available for BSY
In-line with peers — no strong momentum signal
Fair valuation relative to peers
Average quality profile
Low volatility — smoother ride and historically better risk-adjusted returns
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Services sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for BSY.
View All RatingsConservative accounting — High cash conversion efficiency
Material decline in asset turnover efficiency detected
High margin volatility — erratic forensic earnings quality
| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 56 | 69 | -13DRAG |
| MOMENTUM | 41 | 37 | +4NEUTRAL |
| VALUATION | 51 | 54 | -3NEUTRAL |
| INVESTMENT | 27 | 23 | +4NEUTRAL |
| STABILITY | 79 | 86 | -7DRAG |
| SHORT INT | 32 | 20 | +12ALPHA |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 5.4% vs WACC 9.1% (spread -3.7%)
GM 81% vs sector 60%, OM 24% vs sector 4%
Capital turnover 0.35x, R&D intensity 20.4%
Rev growth 14%, 6yr history
Interest coverage N/A, Net debt/EBITDA 12.8x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
BENTLEY SYSTEMS INC receives a Reduce rating from our analysis, with a composite score of 46.3/100 and 2 out of 5 stars, ranking #2599 out of 7,333 stocks. BSY's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
With a quality score of 56/100, BSY shows adequate but unremarkable business quality. The company reports a return on equity of 21.9% (sector avg: 5.3%), gross margins of 81.2% (sector avg: 59.6%), net margins of 18.0% (sector avg: 2.3%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
BSY's value score of 51/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 39.29x, an EV/EBITDA of 32.66x, a P/B ratio of 8.59x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
BENTLEY SYSTEMS INC's investment score of 27/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 13.7% vs. a sector average of 7.8% and a return on assets of 7.5% (sector: 1.9%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
BSY is currently showing below-average momentum at 41/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth stands at 13.7% year-over-year, while a beta of 0.81 reflects its sensitivity to broader market moves. Investors should note that declining momentum can precede further price weakness, though contrarian opportunities sometimes emerge at these levels.
BSY shows good financial stability with a score of 79/100. Key stability metrics include a beta of 0.81 and a debt-to-equity ratio of 104.00x (sector avg: 0.3x). This suggests manageable leverage and moderate price volatility, making it appropriate for investors seeking a balance between growth potential and capital preservation.
BENTLEY SYSTEMS INC's short interest score of 32/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. Specific risk factors include elevated leverage (D/E: 104.00x). At $15.6B (large-cap), BSY carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
BSY offers a modest dividend yield of 0.5%. While the income contribution is relatively small, even a small dividend signals management's commitment to shareholder returns and can serve as a signal of financial discipline.
BENTLEY SYSTEMS INC is a large-cap company in the Services sector, ranked #0 of 50 in its sector (100th percentile) and #2599 of 7,333 overall (65th percentile). Key comparisons include ROE of 21.9% exceeding the 5.3% sector median and operating margins of 24.3% above the 3.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Services peers.
While BSY currently exhibits a REDUCE profile, superior opportunities exist within the SERVICES sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
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Improvement in Investment (27) would have the largest impact on the composite score.
EV/EBITDA 178% ABOVE SECTOR MEDIAN
ROE 312% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 36% ABOVE SECTOR MEDIAN (FAVORABLE)
AUDIT DATA AS OF SEP 30, 2025 (Q2 FY2025)
We rate BENTLEY SYSTEMS INC (BSY) as a Reduce with a composite score of 46.3/100 at a current price of $32.00. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential and elevated risk of underperformance relative to peers over the next 12 months.
The rating is primarily driven by strength in stability (79th percentile) and quality (56th percentile), which together account for the majority of the composite score. Offsetting weakness in investment (27th percentile) and momentum (41th percentile) tempers our overall conviction. We assign a Narrow Moat rating (47/100), Medium uncertainty, and Standard capital allocation.
Key items to watch: balance sheet deleveraging progress. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
BENTLEY SYSTEMS INC holds a top-quartile position (#0 of 50) within the Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 46.3/100 places it at rank #2599 in our full 7,333-stock universe. With a $15.6B market capitalization, BENTLEY SYSTEMS INC operates at meaningful scale within the Services sector, providing competitive advantages in distribution, procurement, and customer reach.
Revenue is growing at 14%, though momentum at the 41th percentile suggests the market has not yet fully recognized this trajectory. This potential disconnect between fundamental improvement and market recognition could represent an opportunity for patient investors if the growth trend persists.
The margin cascade tells an important story: gross margins of 81% (+21.6pp vs sector) narrow to operating margins of 24% (+20.8pp vs sector) and net margins of 18.0%, yielding a gross-to-net conversion rate of 22%. This conversion rate is typical for the sector, suggesting a standard cost structure without notable efficiency advantages or disadvantages.
At a current price of $32.00, BENTLEY SYSTEMS INC is trading near fair value based on current fundamentals. Our value factor score of 51/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.
The stock currently trades at a P/E of 39.3x (a 66% premium to the sector median of 23.7x), EV/EBITDA of 32.7x (at a premium), P/B of 8.6x, P/S of 7.1x. The above-sector P/E multiple suggests the market is pricing in superior growth or quality, which our analysis finds only partially justified by current fundamentals.
Gross margins of 81% signal strong pricing power and brand/IP advantages — businesses with margins above 40% have historically demonstrated more resilient earnings through economic cycles.
Returns on equity of 21.9% exceed the cost of equity for most companies, indicating genuine shareholder value creation and a reinvestment engine that compounds wealth over time.
Revenue growth of 14% confirms the business is expanding its addressable market — growth at this level typically supports multiple expansion and attracts institutional capital.
The Reduce rating (composite 46.3/100) reflects multi-factor weakness, and historically, stocks in this scoring range have underperformed the market by a meaningful margin.
A P/E of 39.3x leaves little room for execution misses — any earnings disappointment could trigger a sharp multiple compression.
We assign a Medium uncertainty rating to BENTLEY SYSTEMS INC. The stock presents a balanced risk profile: significant leverage (104% debt-to-equity). While not risk-free, the core business fundamentals are adequate to withstand moderate economic stress, and the range of potential outcomes around our fair value estimate is manageable.
Specific risk factors that inform our assessment include: significant leverage (104% debt-to-equity). Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 79th percentile and quality factor at the 56th percentile provide a quantitative summary of the overall risk landscape.
Key risk mitigants include: healthy gross margins of 81% provide a buffer against cost pressures; above-average stability (79th percentile) suggests predictable business dynamics. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile is favorable for long-term investors.
We rate BENTLEY SYSTEMS INC's capital allocation as Standard. Management has shown adequate — though not exceptional — stewardship of shareholder capital. Returns on equity stand at 21.9%, and the balance sheet is managed within acceptable parameters (D/E: 104%). Exemplary allocators typically sustain ROE above 20% and D/E below 50%; BENTLEY SYSTEMS INC falls short on at least one dimension.
There is room for improvement in optimizing the capital structure or enhancing shareholder returns. The 0.52% dividend yield provides some income return, but the overall capital allocation framework would benefit from either higher reinvestment returns, improved balance sheet efficiency, or increased shareholder distributions. We will monitor for signs of strategic improvement that could warrant an upgrade.
In summary, BENTLEY SYSTEMS INC receives a Reduce rating with a composite score of 46.3/100 (rank #2599 of 7,333). Our quantitative framework assigns a Narrow Moat (47/100, trend: stable), Medium uncertainty, and Standard capital allocation. The average factor score across quality, value, momentum, stability, and investment is 51/100.
Our analysis does not support a constructive view on BENTLEY SYSTEMS INC at this time. The combination of the current quantitative profile, medium uncertainty, and standard capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We assign BENTLEY SYSTEMS INC a Narrow Moat rating with a composite moat score of 47/100. The ROIC-WACC spread of -3.7% is the primary signal of economic value creation. The company possesses identifiable competitive advantages, though they are less entrenched than those of wide-moat peers. Our analysis indicates that BENTLEY SYSTEMS INC can sustain above-average returns on invested capital for at least 10 years, with the strongest contributor being margin superiority at 18.4/20.
The strongest moat sources are margin superiority (18.4/20) and growth durability (14/20). GM 81% vs sector 60%, OM 24% vs sector 4%. Rev growth 14%, 6yr history. These pillars form the core of BENTLEY SYSTEMS INC's competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include financial resilience (2.5/20) and economic value creation (5/20). Interest coverage N/A, Net debt/EBITDA 12.8x. Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect BENTLEY SYSTEMS INC's moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers include gross margins of 81% providing a solid profitability foundation, operating margins of 24% reflecting effective cost management, moderate revenue growth of 14%. The margin cascade from 81% gross to 24% operating to 18.0% net reveals the company's cost structure and reinvestment intensity. Our analysis indicates that profit quality is adequate though not exceptional, with the quality factor at the 56th percentile.
The margin profile shows gross margins of 81%, operating margins of 24%, net margins of 18.0%. Return metrics include ROE of 21.9% and ROA of 7.5%. Relative to the Services sector, gross margins are 21.6 percentage points above the sector median of 60%, and ROE of 21.9% compares to a sector median of 5.3%.
The balance sheet reflects above-average leverage with D/E of 104%, a dividend yield of 0.52%, revenue growth of 14%. The sector median D/E is 0%, putting BENTLEY SYSTEMS INC at higher leverage than the typical peer. Overall balance sheet health is adequate for the current business environment.
Elevated leverage (104% D/E) amplifies downside risk and limits management's financial flexibility in adverse scenarios.
Above 50MA
37.18%
Net New Highs
+51081
UBS analyst Taylor McGinnis maintains Bentley Systems (NASDAQ:BSY) with a Neutral and lowers the price target from $60 to $40.
Conestoga Capital Advisors recently called out Bentley Systems (BSY) in its fourth quarter 2025 investor letter, after the stock moved lower on softer revenue growth, margin pressure from higher investments, and uncertainty around project timing and public-sector spending. See our latest analysis for Bentley Systems. Bentley Systems shares have come under pressure in recent months, with a 30 day share price return of 12.9% and a 90 day share price return decline of 17.6%. This has contributed...
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Evaluate the expected performance of Bentley Systems (BSY) for the quarter ended December 2025, looking beyond the conventional Wall Street top-and-bottom-line estimates and examining some of its key metrics for better insight.