ANSYS INC (ANSS) Stock Fundamental Analysis
NASDAQ:ANSS - Nasdaq - US03662Q1058 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to ANSS. ANSS was compared to 281 industry peers in the Software industry. ANSS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ANSS has a decent growth rate and is not valued too expensively. These ratings would make ANSS suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year ANSS was profitable.
In the past year ANSS had a positive cash flow from operations.
ANSS had positive earnings in each of the past 5 years.
Each year in the past 5 years ANSS had a positive operating cash flow.
1.2 Ratios
ANSS has a better Return On Assets (7.87%) than 83.75% of its industry peers.
ANSS has a better Return On Equity (10.31%) than 80.21% of its industry peers.
The Return On Invested Capital of ANSS (9.60%) is better than 85.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.87% | ||
| ROE | 10.31% | ||
| ROIC | 9.6% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
ANSS has a better Profit Margin (22.62%) than 89.40% of its industry peers.
In the last couple of years the Profit Margin of ANSS has declined.
The Operating Margin of ANSS (30.29%) is better than 95.05% of its industry peers.
In the last couple of years the Operating Margin of ANSS has declined.
The Gross Margin of ANSS (89.00%) is better than 95.05% of its industry peers.
In the last couple of years the Gross Margin of ANSS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.29% | ||
| PM (TTM) | 22.62% | ||
| GM | 89% |
OM growth 3Y4%
OM growth 5Y-2.27%
PM growth 3Y-1.74%
PM growth 5Y-5.34%
GM growth 3Y0.97%
GM growth 5Y-0.01%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ANSS is destroying value.
ANSS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
ANSS has an Altman-Z score of 11.84. This indicates that ANSS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.84, ANSS belongs to the top of the industry, outperforming 89.05% of the companies in the same industry.
ANSS has a debt to FCF ratio of 1.00. This is a very positive value and a sign of high solvency as it would only need 1.00 years to pay back of all of its debts.
ANSS has a Debt to FCF ratio of 1.00. This is in the better half of the industry: ANSS outperforms 71.38% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that ANSS is not too dependend on debt financing.
The Debt to Equity ratio of ANSS (0.13) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1 | ||
| Altman-Z | 11.84 |
ROIC/WACC0.69
WACC14%
2.3 Liquidity
ANSS has a Current Ratio of 2.95. This indicates that ANSS is financially healthy and has no problem in meeting its short term obligations.
ANSS has a Current ratio of 2.95. This is in the better half of the industry: ANSS outperforms 75.97% of its industry peers.
A Quick Ratio of 2.95 indicates that ANSS has no problem at all paying its short term obligations.
The Quick ratio of ANSS (2.95) is better than 76.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.95 | ||
| Quick Ratio | 2.95 |
3. Growth
3.1 Past
ANSS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.98%, which is quite impressive.
Measured over the past years, ANSS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.71% on average per year.
Looking at the last year, ANSS shows a quite strong growth in Revenue. The Revenue has grown by 12.11% in the last year.
Measured over the past years, ANSS shows a quite strong growth in Revenue. The Revenue has been growing by 10.92% on average per year.
EPS 1Y (TTM)23.98%
EPS 3Y13.97%
EPS 5Y10.71%
EPS Q2Q%12.69%
Revenue 1Y (TTM)12.11%
Revenue growth 3Y10.1%
Revenue growth 5Y10.92%
Sales Q2Q%9.57%
3.2 Future
The Earnings Per Share is expected to grow by 8.90% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.72% on average over the next years.
EPS Next Y4.31%
EPS Next 2Y9.69%
EPS Next 3Y8.63%
EPS Next 5Y8.9%
Revenue Next Year11.23%
Revenue Next 2Y10.85%
Revenue Next 3Y8.83%
Revenue Next 5Y6.72%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 29.85, the valuation of ANSS can be described as expensive.
Based on the Price/Earnings ratio, ANSS is valued a bit cheaper than the industry average as 68.55% of the companies are valued more expensively.
ANSS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.35.
ANSS is valuated quite expensively with a Price/Forward Earnings ratio of 28.61.
Based on the Price/Forward Earnings ratio, ANSS is valued a bit cheaper than the industry average as 68.55% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ANSS to the average of the S&P500 Index (22.10), we can say ANSS is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.85 | ||
| Fwd PE | 28.61 |
4.2 Price Multiples
ANSS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ANSS is cheaper than 75.62% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ANSS indicates a somewhat cheap valuation: ANSS is cheaper than 68.55% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.97 | ||
| EV/EBITDA | 30.82 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ANSS does not grow enough to justify the current Price/Earnings ratio.
ANSS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)6.92
PEG (5Y)2.79
EPS Next 2Y9.69%
EPS Next 3Y8.63%
5. Dividend
5.1 Amount
ANSS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
325.61
+0.47 (+0.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners97.16%
Inst Owner Change1.45%
Ins Owners0.39%
Ins Owner Change6.25%
Market Cap28.54B
Analysts70
Price Target367.81 (12.96%)
Short Float %1.78%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)28.71%
Min EPS beat(2)10.68%
Max EPS beat(2)46.75%
EPS beat(4)3
Avg EPS beat(4)14.19%
Min EPS beat(4)-28.53%
Max EPS beat(4)46.75%
EPS beat(8)7
Avg EPS beat(8)11.03%
EPS beat(12)11
Avg EPS beat(12)10.68%
EPS beat(16)15
Avg EPS beat(16)12.03%
Revenue beat(2)2
Avg Revenue beat(2)7.12%
Min Revenue beat(2)0.16%
Max Revenue beat(2)14.08%
Revenue beat(4)3
Avg Revenue beat(4)0.89%
Min Revenue beat(4)-16.73%
Max Revenue beat(4)14.08%
Revenue beat(8)4
Avg Revenue beat(8)-0.14%
Revenue beat(12)6
Avg Revenue beat(12)0.41%
Revenue beat(16)10
Avg Revenue beat(16)0.75%
PT rev (1m)1.98%
PT rev (3m)2.11%
EPS NQ rev (1m)2.63%
EPS NQ rev (3m)5.85%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)-0.44%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)1.4%
Revenue NY rev (1m)1.54%
Revenue NY rev (3m)1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.85 | ||
| Fwd PE | 28.61 | ||
| P/S | 11.21 | ||
| P/FCF | 37.97 | ||
| P/OCF | 35.87 | ||
| P/B | 5.11 | ||
| P/tB | 28.08 | ||
| EV/EBITDA | 30.82 |
EPS(TTM)10.91
EY3.35%
EPS(NY)11.38
Fwd EY3.5%
FCF(TTM)8.58
FCFY2.63%
OCF(TTM)9.08
OCFY2.79%
SpS29.03
BVpS63.74
TBVpS11.6
PEG (NY)6.92
PEG (5Y)2.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.87% | ||
| ROE | 10.31% | ||
| ROCE | 11.66% | ||
| ROIC | 9.6% | ||
| ROICexc | 11.56% | ||
| ROICexgc | 68.86% | ||
| OM | 30.29% | ||
| PM (TTM) | 22.62% | ||
| GM | 89% | ||
| FCFM | 29.54% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y4%
OM growth 5Y-2.27%
PM growth 3Y-1.74%
PM growth 5Y-5.34%
GM growth 3Y0.97%
GM growth 5Y-0.01%
F-Score8
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1 | ||
| Debt/EBITDA | 0.83 | ||
| Cap/Depr | 30.87% | ||
| Cap/Sales | 1.73% | ||
| Interest Coverage | 16.37 | ||
| Cash Conversion | 87.12% | ||
| Profit Quality | 130.57% | ||
| Current Ratio | 2.95 | ||
| Quick Ratio | 2.95 | ||
| Altman-Z | 11.84 |
F-Score8
WACC14%
ROIC/WACC0.69
Cap/Depr(3y)23.76%
Cap/Depr(5y)26.86%
Cap/Sales(3y)1.34%
Cap/Sales(5y)1.47%
Profit Quality(3y)128.22%
Profit Quality(5y)123.69%
High Growth Momentum
Growth
EPS 1Y (TTM)23.98%
EPS 3Y13.97%
EPS 5Y10.71%
EPS Q2Q%12.69%
EPS Next Y4.31%
EPS Next 2Y9.69%
EPS Next 3Y8.63%
EPS Next 5Y8.9%
Revenue 1Y (TTM)12.11%
Revenue growth 3Y10.1%
Revenue growth 5Y10.92%
Sales Q2Q%9.57%
Revenue Next Year11.23%
Revenue Next 2Y10.85%
Revenue Next 3Y8.83%
Revenue Next 5Y6.72%
EBIT growth 1Y22.38%
EBIT growth 3Y14.51%
EBIT growth 5Y8.4%
EBIT Next Year17.15%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y8.66%
FCF growth 3Y12.6%
FCF growth 5Y10.56%
OCF growth 1Y10.96%
OCF growth 3Y13.14%
OCF growth 5Y9.74%