Ansys (ANSS) AI Stock Analysis

• Market Cap: $32.91B
• Dividend Yield: N/A
• Average Volume (3M): 1.43M
• Price to Earnings (P/E): 55.6
• Beta (1Y): 1.11
• Revenue Growth: 15.98%
• EPS Growth: 35.52%
• Country: US
• Employees: 6,600
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Application
• EPS (TTM): 1.64
• Shares Outstanding: 85,581,000
• 10 Day Avg. Volume: 3,116,089
• 30 Day Avg. Volume: 1,433,743
• PEG Ratio: 20.07
• Price to Book (P/B): 5.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 39.77
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 3.39
• Enterprise Value/Gross Profit: 14.65
• Enterprise Value/Ebitda: 9.75
• 1Y Price Target: $362.20
• Price Target Upside: -3.23% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 73 Outperform
• Price Target: $418.00 ▲(11.68%Upside)

Ansys' strong financial performance is the most significant factor contributing to its overall score, driven by robust profitability and cash flow generation. The technical analysis shows a bullish trend, although overbought conditions could pose short-term risks. Valuation is a concern due to a high P/E ratio, suggesting potential overvaluation.

Positive Factors

Profitability

Ansys achieved a non-GAAP operating margin of 53% with non-GAAP EPS at $4.44.

Revenue Growth

Ansys reported first-quarter results with top-line revenue growth of 10% in constant currency, reaching $505 million.

Negative Factors

Communication

Due to the pending acquisition with Synopsys, the company will not host an earnings call to discuss results.

Revenue Variability

Lumpiness of revenue recognition due to ASC 606 accounting makes top-line results highly variable based on timing and duration of contracts.

Ansys Business Overview & Revenue Model

Company Description

Ansys, Inc. is a leading provider of engineering simulation software solutions that enable companies to predict how product designs will behave in real-world environments. The company operates in the technology and software sectors, offering a comprehensive suite of products for various industries including aerospace, automotive, manufacturing, electronics, and energy. Ansys' core products and services focus on computer-aided engineering (CAE), providing simulation tools for structural analysis, fluid dynamics, electromagnetics, and thermal analysis, among others.

How the Company Makes Money

Ansys generates revenue primarily through the sale of software licenses and subscription services. The company offers perpetual licenses, which provide customers with the right to use the software indefinitely with optional maintenance, and lease licenses, which allow usage for a specified period. Ansys also offers cloud-based solutions and software as a service (SaaS) models, providing customers with flexible access options. In addition to license revenues, Ansys earns revenue from maintenance and support services, consulting, and training services. Key partnerships with major technology companies and ongoing investments in research and development further enhance its product offerings and market reach, contributing to its financial performance.

Ansys Financial Statement Overview

Summary

Ansys demonstrates strong financial performance with high profitability margins and robust cash flow generation. The company maintains a solid financial structure with low leverage, indicating financial stability 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.54B	2.27B	2.07B	1.91B	1.68B
Gross Profit	2.26B	2.00B	1.81B	1.65B	1.46B
EBITDA	908.56M	758.64M	707.22M	620.14M	581.63M
Net Income	575.69M	500.41M	523.71M	454.63M	433.89M
Balance Sheet
Total Assets	8.05B	7.32B	6.69B	6.32B	5.94B
Cash, Cash Equivalents and Short-Term Investments	1.50B	860.39M	614.57M	668.03M	913.15M
Total Debt	841.14M	854.40M	753.57M	753.58M	798.12M
Total Liabilities	1.96B	1.93B	1.82B	1.84B	1.84B
Stockholders Equity	6.09B	5.39B	4.87B	4.48B	4.10B
Cash Flow
Free Cash Flow	751.70M	691.80M	606.63M	526.46M	511.94M
Operating Cash Flow	795.74M	717.12M	631.00M	549.48M	547.31M
Investing Cash Flow	-99.56M	-240.04M	-411.37M	-536.81M	-614.25M
Financing Cash Flow	-98.54M	-231.32M	-245.51M	-245.85M	96.60M

Ansys Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 374.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 374.3 is above the 20-day moving average (MA) of 362.61, above the 50-day MA of 349.05, and above the 200-day MA of 335.44, indicating a bullish trend. The MACD of 9.96 indicates Negative momentum. The RSI at 62.41 is Neutral, neither overbought nor oversold. The STOCH value of 33.53 is Neutral, 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
SNOW	78 Outperform	$71.74B	―	-40.16%	―	27.50%	-49.96%
TTD	77 Outperform	$41.46B	103.50	16.88%	―	25.07%	103.30%
PTC	75 Outperform	$24.15B	55.32	13.91%	―	4.66%	51.72%
ZM	74 Outperform	$22.88B	22.71	12.19%	―	2.98%	24.11%
BSY	74 Outperform	$17.70B	74.38	25.20%	0.45%	10.71%	-27.64%
ANSS	73 Outperform	$32.91B	55.57	10.23%	―	15.98%	35.52%
Sector *	63 Neutral	$34.70B	4.89	-11.39%	1.66%	5.53%	-19.00%