Is PTC Therapeutics, Inc. (PTCT) a Warren Buffett Stock?
Partial Buffett fit - meets 4/9 key criteria, but with reservations.
4/9 criteria passed
+2 sector-quality lift. Top-quintile within its sector on 1 of 5 quality metrics. Raw pillar score 55 → lifted to 57 before grade derivation.
Capped from C to D. ROIC negative on the most recent TTM - currently losing money on capital deployed regardless of historical averages; Share count growing by more than 3%/year over 5y - dilutes future per-share value; Net debt is more than 5x EBITDA - balance sheet is stretched What are deal-breaker caps?
Warren Buffett's Criteria, Applied to PTCT
ROIC ≥ 15%
Gross margin ≥ 40%
Owner earnings yield ≥ 5%
5y profitable
Net Debt / EBITDA ≤ 3
Revenue CAGR ≥ 8%
EPS CAGR ≥ 8%
FCF / Net income ≥ 0.8
Debt / Equity ≤ 1
How PTCT Scores on Other Strategies
Live Financial Snapshot
Market cap
$6.12B
P/E (TTM)
-
ROIC (TTM)
-2.38%
Gross margin
77.84%
Other Warren Buffett fit reports
Frequently Asked Questions
What is PTCT's Warren Buffett fit score?
Does Warren Buffett actually own PTCT?
How often is this score updated?
Key terms in this analysis
Educational tool, not investment advice. Scores are computed from publicly-available financial data against published investing-strategy criteria. We do not claim that Warren Buffett personally owns or recommends PTCT.