ANSYS, Inc.
ANSYS, Inc. Fundamental Analysis
ANSYS, Inc. (ANSS) shows moderate financial fundamentals with a PE ratio of 70.74, profit margin of 23.27%, and ROE of 7.67%. The company generates $2.0B in annual revenue with strong year-over-year growth of 12.11%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 77.1/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ANSS's fundamental strength across five key dimensions:
Efficiency Score
WeakANSS struggles to generate sufficient returns from assets.
Valuation Score
WeakANSS trades at a premium to fair value.
Growth Score
ExcellentANSS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentANSS maintains a strong and stable balance sheet.
Profitability Score
ModerateANSS maintains healthy but balanced margins.
Key Financial Metrics
Is ANSS Expensive or Cheap?
P/E Ratio
ANSS trades at 70.74 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ANSS's PEG of 24.54 indicates potential overvaluation.
Price to Book
The market values ANSYS, Inc. at 5.30 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 46.53 times EBITDA. This signals the market has high growth expectations.
How Well Does ANSS Make Money?
Net Profit Margin
For every $100 in sales, ANSYS, Inc. keeps $23.27 as profit after all expenses.
Operating Margin
Core operations generate 28.96 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.67 in profit for every $100 of shareholder equity.
ROA
ANSYS, Inc. generates $5.80 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ANSYS, Inc. generates strong operating cash flow of $835.53M, reflecting robust business health.
Free Cash Flow
ANSYS, Inc. generates strong free cash flow of $803.66M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $9.14 in free cash annually.
FCF Yield
ANSS converts 2.43% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
70.74
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
24.54
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.30
vs 25 benchmark
P/S Ratio
Price to sales ratio
16.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.14
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.66
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How ANSS Stacks Against Its Sector Peers
| Metric | ANSS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 70.74 | 35.19 | Worse (Expensive) |
| ROE | 7.67% | 1155.00% | Weak |
| Net Margin | 23.27% | -127067.00% (disorted) | Strong |
| Debt/Equity | 0.14 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 3.66 | 4.71 | Strong Liquidity |
| ROA | 5.80% | -314918.00% (disorted) | Weak |
ANSS outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ANSYS, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
62.00%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
23.10%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
53.60%
Industry Style: Growth, Innovation, High Beta
High Growth