Ansys (ANSS) AI Stock Analysis

• Market Cap: $24.91B
• Dividend Yield: N/A
• Average Volume (3M): 594.66K
• Price to Earnings (P/E): 43.5
• Beta (1Y): 1.25
• Revenue Growth: 12.11%
• EPS Growth: 14.35%
• Country: US
• Employees: 6,500
• Sector: Technology
• Sector Strength: 40
• Industry: Software - Application
• EPS (TTM): 6.54
• Shares Outstanding: 87,651,780
• 10 Day Avg. Volume: 657,800
• 30 Day Avg. Volume: 594,663
• PEG Ratio: 3.03
• Price to Book (P/B): N/A
• Price to Sales (P/S): 11.17
• Price to Cash Flow (P/CF): 27.50
• P/FCF Ratio: 26.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $352.00
• Price Target Upside: 23.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

Ansys' strong financial performance, characterized by impressive revenue growth and solid cash flow, is the primary driver of its score. However, technical indicators suggest caution due to weak market momentum and potential oversold conditions. The high P/E ratio signals possible overvaluation, and the absence of a dividend yield detracts slightly from its overall attractiveness.

Positive Factors

Annual Contract Value

3Q24 Annual Contract Value increased 18% year-over-year in constant currency, beating estimates by 5% and consensus by 7%.

Revenue Growth

Ansys reported fourth-quarter results with top-line revenue growth of 11% in constant currency to $882 million.

Negative Factors

Acquisition Impact

Due to the pending acquisition by Synopsys, the company had suspended guidance and will not host an earnings call to discuss results.

Earnings Guidance

The company had suspended guidance and will not host an earnings call to discuss results.

Ansys Business Overview & Revenue Model

Company Description

Ansys, Inc. is a global leader in engineering simulation software, serving a wide range of industries including aerospace, automotive, electronics, energy, and manufacturing. The company's comprehensive suite of simulation solutions allows engineers and designers to predict how their products will perform in the real world, enabling them to improve designs, reduce physical prototypes, and accelerate product innovation. Ansys offers products that cover various physics including structural, fluid dynamics, electromagnetics, and thermal simulations, providing a robust platform for product lifecycle management.

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 demonstrates impressive financial health with strong revenue growth, robust margins, and efficient cash flow management. The balance sheet shows low leverage, ensuring financial stability. While profitability and cash flow metrics are strong, there is potential to further optimize return on equity.

Income Statement

Ansys has shown consistent revenue growth, with a 12.1% increase from 2023 to 2024. The gross profit margin is strong at 89%, indicating efficient cost management. Net profit margin improved to 22.6%, reflecting enhanced profitability. EBIT and EBITDA margins are stable at approximately 28.2%, showcasing operational efficiency.

Balance Sheet

Ansys maintains a solid balance sheet with a low debt-to-equity ratio of 0.14, indicating low financial leverage. The equity ratio stands at a robust 116.6%, emphasizing strong equity financing. Return on equity is healthy at 9.5%, but there is room for improvement in capital utilization.

Cash Flow

The company exhibits strong cash flow generation, with free cash flow growing by 8.7% from 2023 to 2024. Operating cash flow to net income ratio is favorable at 1.38, indicating efficient cash conversion. The free cash flow to net income ratio is 1.31, further highlighting robust cash flow relative to profitability.

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
	EBIT
717.89M	626.13M	592.66M	513.27M	496.36M
	EBITDA
908.56M	758.64M	707.22M	620.14M	581.63M
	Net Income Common Stockholders
575.69M	500.41M	523.71M	454.63M	433.89M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.50B	860.39M	614.57M	668.03M	913.15M
	Total Assets
8.05B	7.32B	6.69B	6.32B	5.94B
	Total Debt
841.14M	854.40M	753.57M	753.58M	798.12M
	Net Debt
-605.60M	-5.80M	139.18M	85.91M	-114.55M
	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: Negative
• Last Price: 284.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 284.83 is below the 20-day moving average (MA) of 315.88, below the 50-day MA of 328.41, and below the 200-day MA of 328.38, indicating a bearish trend. The MACD of -3.37 indicates Negative momentum. The RSI at 42.81 is Neutral, neither overbought nor oversold. The STOCH value of 30.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ANSS.

Ansys Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSY	78 Outperform	$11.86B	54.05	24.39%	0.64%	10.15%	-28.62%
ZM	77 Outperform	$20.77B	20.83	11.92%	―	3.05%	55.96%
TTD	66 Neutral	$22.99B	58.00	15.37%	―	25.63%	118.49%
ANSS	66 Neutral	$24.91B	43.53	10.03%	―	12.11%	14.35%
SNOW	63 Neutral	$43.78B	―	-31.43%	―	29.21%	-51.47%
PTC	61 Neutral	$16.81B	42.18	12.99%	―	6.05%	63.78%
Sector *	57 Neutral	$18.45B	9.41	-13.97%	2.74%	5.04%	-23.56%