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 284 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. With these ratings, ANSS could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
ANSS had positive earnings in the past year.
In the past year ANSS had a positive cash flow from operations.
In the past 5 years ANSS has always been profitable.
Each year in the past 5 years ANSS had a positive operating cash flow.
1.2 Ratios
ANSS has a Return On Assets of 7.43%. This is amongst the best in the industry. ANSS outperforms 80.63% of its industry peers.
The Return On Equity of ANSS (9.59%) is better than 77.82% of its industry peers.
ANSS's Return On Invested Capital of 8.88% is amongst the best of the industry. ANSS outperforms 84.51% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ANSS is below the industry average of 12.30%.
The 3 year average ROIC (8.45%) for ANSS is below the current ROIC(8.88%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.43% | ||
| ROE | 9.59% | ||
| ROIC | 8.88% |
ROA(3y)7.27%
ROA(5y)7.26%
ROE(3y)9.84%
ROE(5y)10.05%
ROIC(3y)8.45%
ROIC(5y)8.16%
1.3 Margins
ANSS's Profit Margin of 22.95% is amongst the best of the industry. ANSS outperforms 91.20% of its industry peers.
In the last couple of years the Profit Margin of ANSS has declined.
The Operating Margin of ANSS (30.07%) is better than 94.37% of its industry peers.
In the last couple of years the Operating Margin of ANSS has declined.
The Gross Margin of ANSS (89.02%) is better than 96.48% 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 | 30.07% | ||
| PM (TTM) | 22.95% | ||
| GM | 89.02% |
OM growth 3Y4.01%
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
ANSS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ANSS has more shares outstanding
Compared to 5 years ago, ANSS has more shares outstanding
ANSS has a better debt/assets ratio than last year.
2.2 Solvency
ANSS has an Altman-Z score of 12.05. This indicates that ANSS is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 12.05, ANSS belongs to the best of the industry, outperforming 88.38% of the companies in the same industry.
ANSS has a debt to FCF ratio of 0.87. This is a very positive value and a sign of high solvency as it would only need 0.87 years to pay back of all of its debts.
ANSS has a Debt to FCF ratio of 0.87. This is in the better half of the industry: ANSS outperforms 74.65% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that ANSS is not too dependend on debt financing.
ANSS has a Debt to Equity ratio (0.12) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.87 | ||
| Altman-Z | 12.05 |
ROIC/WACC0.8
WACC11.08%
2.3 Liquidity
ANSS has a Current Ratio of 3.66. This indicates that ANSS is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.66, ANSS belongs to the best of the industry, outperforming 80.99% of the companies in the same industry.
ANSS has a Quick Ratio of 3.66. This indicates that ANSS is financially healthy and has no problem in meeting its short term obligations.
ANSS's Quick ratio of 3.66 is amongst the best of the industry. ANSS outperforms 80.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.66 | ||
| Quick Ratio | 3.66 |
3. Growth
3.1 Past
ANSS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.81%, which is quite impressive.
The Earnings Per Share has been growing by 10.71% on average over the past years. This is quite good.
Looking at the last year, ANSS shows a quite strong growth in Revenue. The Revenue has grown by 15.98% in the last year.
The Revenue has been growing by 10.92% on average over the past years. This is quite good.
EPS 1Y (TTM)33.81%
EPS 3Y13.97%
EPS 5Y10.71%
EPS Q2Q%17.99%
Revenue 1Y (TTM)15.98%
Revenue growth 3Y10.1%
Revenue growth 5Y10.92%
Sales Q2Q%8.21%
3.2 Future
The Earnings Per Share is expected to grow by 8.12% on average over the next years. This is quite good.
ANSS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.36% yearly.
EPS Next Y9.88%
EPS Next 2Y9.8%
EPS Next 3Y8.04%
EPS Next 5Y8.12%
Revenue Next Year11.19%
Revenue Next 2Y10.59%
Revenue Next 3Y9.24%
Revenue Next 5Y8.36%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 30.29, which means the current valuation is very expensive for ANSS.
Based on the Price/Earnings ratio, ANSS is valued a bit cheaper than the industry average as 69.72% of the companies are valued more expensively.
ANSS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 25.70, ANSS can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, ANSS is valued a bit cheaper than the industry average as 67.61% of the companies are valued more expensively.
ANSS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.29 | ||
| Fwd PE | 25.7 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ANSS indicates a somewhat cheap valuation: ANSS is cheaper than 73.24% of the companies listed 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 71.13% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.28 | ||
| EV/EBITDA | 31.53 |
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.
The decent profitability rating of ANSS may justify a higher PE ratio.
PEG (NY)3.07
PEG (5Y)2.83
EPS Next 2Y9.8%
EPS Next 3Y8.04%
5. Dividend
5.1 Amount
No dividends for ANSS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
338.01
-5.49 (-1.6%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners97.16%
Inst Owner Change-0.52%
Ins Owners0.39%
Ins Owner Change6.57%
Market Cap29.72B
Analysts69.47
Price Target355.64 (5.22%)
Short Float %1.95%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.08%
Min EPS beat(2)-4.51%
Max EPS beat(2)10.68%
EPS beat(4)3
Avg EPS beat(4)20.2%
Min EPS beat(4)-4.51%
Max EPS beat(4)46.75%
EPS beat(8)6
Avg EPS beat(8)8.91%
EPS beat(12)10
Avg EPS beat(12)8.9%
EPS beat(16)14
Avg EPS beat(16)9.84%
Revenue beat(2)1
Avg Revenue beat(2)-2.41%
Min Revenue beat(2)-4.97%
Max Revenue beat(2)0.16%
Revenue beat(4)3
Avg Revenue beat(4)3.83%
Min Revenue beat(4)-4.97%
Max Revenue beat(4)14.08%
Revenue beat(8)3
Avg Revenue beat(8)-0.94%
Revenue beat(12)5
Avg Revenue beat(12)-0.2%
Revenue beat(16)9
Avg Revenue beat(16)0.38%
PT rev (1m)-0.1%
PT rev (3m)-3.31%
EPS NQ rev (1m)-0.32%
EPS NQ rev (3m)4.93%
EPS NY rev (1m)1.51%
EPS NY rev (3m)5.33%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)1.62%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.29 | ||
| Fwd PE | 25.7 | ||
| P/S | 11.5 | ||
| P/FCF | 34.28 | ||
| P/OCF | 32.59 | ||
| P/B | 4.81 | ||
| P/tB | 17.63 | ||
| EV/EBITDA | 31.53 |
EPS(TTM)11.16
EY3.3%
EPS(NY)13.15
Fwd EY3.89%
FCF(TTM)9.86
FCFY2.92%
OCF(TTM)10.37
OCFY3.07%
SpS29.38
BVpS70.29
TBVpS19.17
PEG (NY)3.07
PEG (5Y)2.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.43% | ||
| ROE | 9.59% | ||
| ROCE | 10.79% | ||
| ROIC | 8.88% | ||
| ROICexc | 11.9% | ||
| ROICexgc | 72.74% | ||
| OM | 30.07% | ||
| PM (TTM) | 22.95% | ||
| GM | 89.02% | ||
| FCFM | 33.56% |
ROA(3y)7.27%
ROA(5y)7.26%
ROE(3y)9.84%
ROE(5y)10.05%
ROIC(3y)8.45%
ROIC(5y)8.16%
ROICexc(3y)9.98%
ROICexc(5y)9.62%
ROICexgc(3y)57.69%
ROICexgc(5y)61.05%
ROCE(3y)10.26%
ROCE(5y)9.91%
ROICexcg growth 3Y-1.79%
ROICexcg growth 5Y-12.59%
ROICexc growth 3Y9.28%
ROICexc growth 5Y-2.7%
OM growth 3Y4.01%
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 Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.87 | ||
| Debt/EBITDA | 0.82 | ||
| Cap/Depr | 31.12% | ||
| Cap/Sales | 1.74% | ||
| Interest Coverage | 17.23 | ||
| Cash Conversion | 98.96% | ||
| Profit Quality | 146.24% | ||
| Current Ratio | 3.66 | ||
| Quick Ratio | 3.66 | ||
| Altman-Z | 12.05 |
F-Score8
WACC11.08%
ROIC/WACC0.8
Cap/Depr(3y)23.75%
Cap/Depr(5y)26.85%
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)33.81%
EPS 3Y13.97%
EPS 5Y10.71%
EPS Q2Q%17.99%
EPS Next Y9.88%
EPS Next 2Y9.8%
EPS Next 3Y8.04%
EPS Next 5Y8.12%
Revenue 1Y (TTM)15.98%
Revenue growth 3Y10.1%
Revenue growth 5Y10.92%
Sales Q2Q%8.21%
Revenue Next Year11.19%
Revenue Next 2Y10.59%
Revenue Next 3Y9.24%
Revenue Next 5Y8.36%
EBIT growth 1Y37.91%
EBIT growth 3Y14.51%
EBIT growth 5Y8.4%
EBIT Next Year18.29%
EBIT Next 3Y11.66%
EBIT Next 5YN/A
FCF growth 1Y32.42%
FCF growth 3Y12.61%
FCF growth 5Y10.56%
OCF growth 1Y33.93%
OCF growth 3Y13.14%
OCF growth 5Y9.74%