Ansys (ANSS) AI Stock Analysis

• Market Cap: $30.47B
• Dividend Yield: N/A
• Average Volume (3M): 675.16K
• Price to Earnings (P/E): 51.5
• Beta (1Y): 1.16
• Revenue Growth: 15.98%
• EPS Growth: 35.52%
• Country: US
• Employees: 6,600
• Sector: Technology
• Sector Strength: 80
• Industry: Software - Application
• EPS (TTM): 1.64
• Shares Outstanding: 87,916,145
• 10 Day Avg. Volume: 579,796
• 30 Day Avg. Volume: 675,162
• PEG Ratio: 17.08
• Price to Book (P/B): 4.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 33.85
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 2.86
• Enterprise Value/Gross Profit: 12.39
• Enterprise Value/Ebitda: 8.25
• 1Y Price Target: $346.80
• Price Target Upside: 0.05% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

Ansys's overall score reflects its strong financial performance characterized by high profitability and robust cash flow. The technical indicators suggest positive momentum, though caution is advised due to potential overbought signals. The valuation based on P/E ratio suggests high growth expectations, but the lack of a dividend yield might be seen as a drawback for some investors.

Positive Factors

Profitability

The company's non-GAAP operating margin was an impressive 53%, reflecting efficient management and cost control.

Revenue Growth

Ansys reported first-quarter top-line revenue growth of 10% in constant currency, indicating strong financial performance.

Negative Factors

Earnings Call

Due to the pending acquisition with Synopsys, Ansys will not host an earnings call to discuss results, limiting transparency for investors.

Revenue Recognition

ASC 606 accounting causes revenue recognition to be highly variable, adding uncertainty to top-line results.

Ansys Business Overview & Revenue Model

Company Description

ANSYS, Inc. develops and markets engineering simulation software and services worldwide. It offers ANSYS Workbench, a framework upon which its multiphysics engineering simulation technologies are built and enables engineers to simulate the interactions between structures, heat transfer, fluids, electronics, and optical elements in a unified engineering simulation environment; high-performance computing product suite; power analysis and optimization software suite that manages the power budget, power delivery integrity, and power-induced noise in an electronic design; and structural analysis product suite that provides simulation tools for product design and optimization. The company also provides electronics product suite that offers field simulation software for designing electronic and electromechanical products; SCADE product suite, a solution for embedded software simulation, code production, and automated certification; fluids product suite that enables modeling of fluid flow and other related physical phenomena; Ansys Granta products to give access to material intelligence; photonic design and simulation tools; and optical sensor and closed-loop, and real-time simulation, as well as safety-certified embedded software solutions. In addition, the company provides Discovery product family for use in the simulation of product design; and academic product suite used in research and teaching settings, which allows students to become familiar with its simulation software. It serves engineers, designers, researchers, and students in the aerospace and defense, automotive transportation and mobility, construction, consumer products, energy, healthcare, high-tech, industrial equipment, materials and chemical processing, and sports industries. The company was founded in 1970 and is headquartered in Canonsburg, Pennsylvania.

How the Company Makes Money

Ansys generates revenue primarily through the sale of its software products and the accompanying maintenance and support services. The company's core revenue streams include perpetual licenses, which provide customers with the right to use the software indefinitely, and lease licenses, which allow use for a specified period. Ansys also offers subscription-based licenses, which have been increasingly popular due to their flexibility and lower upfront costs. Additionally, maintenance and support services offer a recurring revenue stream as customers pay for software updates and technical support. Ansys collaborates with various academic institutions, research organizations, and industry leaders, contributing to its product development and market reach. The company also engages in strategic partnerships and acquisitions to enhance its technology offerings and expand its customer base.

Ansys Financial Statement Overview

Summary

Ansys exhibits robust financial performance with strong revenue and profit growth, high profitability margins, a stable balance sheet with low leverage, and strong cash flow generation. These factors position Ansys well for continued growth and resilience in the software application industry.

Income Statement

Ansys demonstrates strong financial performance with consistent revenue growth and robust profitability margins. Gross profit margin is high at 88.8% in TTM, indicating efficient cost management. The net profit margin has remained strong, increasing to 22.9% in TTM. Revenue growth rate for the recent year is 3.5%, showing positive sales momentum. EBIT and EBITDA margins are solid at 28.9% and 35.9%, respectively, reflecting effective operational management.

Balance Sheet

The balance sheet of Ansys reveals a solid financial structure with a low debt-to-equity ratio of 0.14, indicating low financial leverage and risk. The equity ratio stands at a healthy 77.4%, showcasing financial stability and a strong equity base. Return on equity is impressive at 9.6%, highlighting effective utilization of shareholder funds. The company's strong cash position enhances its financial flexibility.

Cash Flow

Ansys displays strong cash flow generation with a positive free cash flow growth rate of 15.3% in the latest period. The operating cash flow to net income ratio is robust at 1.54, indicating efficient cash conversion. The free cash flow to net income ratio is high at 1.46, suggesting a solid ability to generate cash relative to earnings, supporting future growth and shareholder returns.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.58B	2.54B	2.27B	2.07B	1.91B	1.68B
	Gross Profit
2.29B	2.26B	2.00B	1.81B	1.65B	1.46B
	EBIT
745.85M	717.89M	626.13M	592.66M	513.27M	496.36M
	EBITDA
926.17M	908.56M	758.64M	707.22M	620.14M	581.63M
	Net Income Common Stockholders
592.78M	575.69M	500.41M	523.71M	454.63M	433.89M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.07B	1.50B	860.39M	614.57M	668.03M	913.15M
	Total Assets
7.15B	8.05B	7.32B	6.69B	6.32B	5.94B
	Total Debt
849.29M	841.14M	854.40M	753.57M	753.58M	798.12M
	Net Debt
-201.22M	-605.60M	-5.80M	139.18M	85.91M	-114.55M
	Total Liabilities
1.74B	1.96B	1.93B	1.82B	1.84B	1.84B
	Stockholders Equity
5.41B	6.09B	5.39B	4.87B	4.48B	4.10B
Cash Flow		Free Cash Flow
866.87M	751.70M	691.80M	606.63M	526.46M	511.94M
	Operating Cash Flow
911.86M	795.74M	717.12M	631.00M	549.48M	547.31M
	Investing Cash Flow
-95.81M	-99.56M	-240.04M	-411.37M	-536.81M	-614.25M
	Financing Cash Flow
-111.95M	-98.54M	-231.32M	-245.51M	-245.85M	96.60M

Ansys Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 346.63
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ANSS, the sentiment is Positive. The current price of 346.63 is above the 20-day moving average (MA) of 326.36, above the 50-day MA of 318.45, and above the 200-day MA of 328.19, indicating a bullish trend. The MACD of 8.89 indicates Negative momentum. The RSI at 67.49 is Neutral, neither overbought nor oversold. The STOCH value of 84.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ANSS.

Ansys Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSY	80 Outperform	$14.55B	60.96	25.20%	0.52%	10.71%	-27.64%
ANSS	78 Outperform	$30.47B	51.46	10.23%	―	15.98%	35.52%
ZM	77 Outperform	$25.40B	26.18	11.92%	―	3.05%	55.96%
PTC	76 Outperform	$20.74B	47.51	13.91%	―	4.66%	51.72%
TTD	73 Outperform	$38.89B	94.78	16.88%	―	25.07%	103.30%
SNOW	72 Outperform	$61.08B	―	-31.43%	―	29.21%	-51.47%
Sector *	60 Neutral	$11.62B	10.48	-7.27%	2.93%	7.46%	-10.64%