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Ansys (ANSS)
NASDAQ:ANSS

Ansys (ANSS) AI Stock Analysis

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Ansys

(NASDAQ:ANSS)

Rating:75Outperform
Price Target:
$377.00
▲(2.59%Upside)
Ansys' stock score is driven by its strong financial performance and stable technical indicators. The high P/E ratio suggests a premium valuation, which may limit upside potential unless supported by continued growth. The absence of earnings call data and notable corporate events leaves the strategic implications of recent trends open to interpretation. Overall, Ansys is well-positioned in its industry, but investors should be mindful of its valuation.
Positive Factors
Recurring Revenue
Trailing-12-month recurring ACV saw a significant increase, growing 14% in constant currency.
Revenue Growth
Ansys reported first-quarter results with top-line revenue growth of 10% in constant currency, reaching $505 million.
Negative Factors
Earnings Call
Due to the pending acquisition with Synopsys, the company will not host an earnings call to discuss results.
Revenue Recognition
Lumpiness of revenue recognition due to ASC 606 accounting makes top-line results highly variable based on timing and duration of contracts.

Ansys (ANSS) vs. SPDR S&P 500 ETF (SPY)

Ansys Business Overview & Revenue Model

Company DescriptionANSYS, 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 MoneyAnsys 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 Key Performance Indicators (KPIs)

Any
Any
Annual Contract Value
Annual Contract Value
Measures the total value of recurring contracts on an annual basis, highlighting the stability and predictability of revenue streams and customer commitment.
Chart InsightsAnsys' Annual Contract Value shows a consistent pattern of strong year-end peaks followed by declines in the first quarter, indicating a cyclical trend in contract renewals or new business acquisition. The recent uptick in the third quarter of 2024 suggests potential stabilization or growth in customer contracts, which could be a positive sign for future revenue streams. Without additional earnings call insights, the sustained year-end growth highlights Ansys' ability to secure substantial contracts, possibly reflecting strong market demand or effective sales strategies.
Data provided by:Main Street Data

Ansys Financial Statement Overview

Summary
Ansys demonstrates robust financial performance with strong revenue and profit growth, high profitability margins, a stable balance sheet with low leverage, and strong cash flow generation. This positions Ansys well for continued growth and resilience in the software application industry.
Income Statement
85
Very Positive
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
78
Positive
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
82
Very Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.58B2.54B2.27B2.07B1.91B1.68B
Gross Profit2.29B2.26B2.00B1.81B1.65B1.46B
EBITDA926.17M908.56M758.64M707.22M620.14M581.63M
Net Income592.78M575.69M500.41M523.71M454.63M433.89M
Balance Sheet
Total Assets7.98B8.05B7.32B6.69B6.32B5.94B
Cash, Cash Equivalents and Short-Term Investments1.83B1.50B860.39M614.57M668.03M913.15M
Total Debt836.09M841.14M854.40M753.57M753.58M798.12M
Total Liabilities1.80B1.96B1.93B1.82B1.84B1.84B
Stockholders Equity6.18B6.09B5.39B4.87B4.48B4.10B
Cash Flow
Free Cash Flow866.87M751.70M691.80M606.63M526.46M511.94M
Operating Cash Flow911.86M795.74M717.12M631.00M549.48M547.31M
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-245.85M96.60M

Ansys Technical Analysis

Technical Analysis Sentiment
Positive
Last Price367.48
Price Trends
50DMA
335.88
Positive
100DMA
328.39
Positive
200DMA
332.21
Positive
Market Momentum
MACD
3.97
Negative
RSI
68.03
Neutral
STOCH
94.00
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 367.48 is above the 20-day moving average (MA) of 342.02, above the 50-day MA of 335.88, and above the 200-day MA of 332.21, indicating a bullish trend. The MACD of 3.97 indicates Negative momentum. The RSI at 68.03 is Neutral, neither overbought nor oversold. The STOCH value of 94.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ANSS.

Ansys Risk Analysis

Ansys disclosed 28 risk factors in its most recent earnings report. Ansys reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Ansys Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TTTTD
80
Outperform
$36.16B89.9816.88%25.07%103.30%
ZMZM
78
Outperform
$23.77B23.5912.19%2.98%24.11%
78
Outperform
$72.52B-40.16%27.50%-49.96%
PTPTC
76
Outperform
$20.79B47.6213.91%4.66%51.72%
75
Outperform
$31.05B52.4410.23%15.98%35.52%
BSBSY
74
Outperform
$16.79B70.3625.20%0.52%10.71%-27.64%
63
Neutral
$33.61B6.06-11.53%1.82%5.53%-18.79%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ANSS
Ansys
353.21
21.96
6.63%
PTC
PTC
175.98
-10.48
-5.62%
TTD
Trade Desk
74.41
-25.49
-25.52%
ZM
Zoom Video Communications
78.58
20.32
34.88%
SNOW
Snowflake
221.49
78.47
54.87%
BSY
Bentley Systems
55.34
6.14
12.48%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 04, 2025