NasdaqGS:ANSS

Stock Analysis Report

Executive Summary

ANSYS, Inc. develops and markets engineering simulation software and services worldwide.

Rewards

Earnings are forecast to grow 8.81% per year

Earnings grew by 37.6% over the past year

Risk Analysis

No risks detected for ANSS from our risk checks.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has ANSYS's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ANSS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.6%

ANSS

-0.7%

US Software

-1.3%

US Market


1 Year Return

71.6%

ANSS

38.6%

US Software

22.0%

US Market

Return vs Industry: ANSS exceeded the US Software industry which returned 39.8% over the past year.

Return vs Market: ANSS exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

ANSSIndustryMarket
7 Day2.6%-0.7%-1.3%
30 Day7.4%5.2%1.6%
90 Day25.9%16.3%8.9%
1 Year71.6%71.6%39.8%38.6%24.7%22.0%
3 Year195.2%195.2%136.1%126.7%49.4%39.7%
5 Year243.8%243.8%224.1%201.6%78.1%58.5%

Price Volatility Vs. Market

How volatile is ANSYS's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is ANSYS undervalued compared to its fair value and its price relative to the market?

53.04x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ANSS ($262.87) is trading above our estimate of fair value ($183.92)

Significantly Below Fair Value: ANSS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ANSS is poor value based on its PE Ratio (50.3x) compared to the Software industry average (47.3x).

PE vs Market: ANSS is poor value based on its PE Ratio (50.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: ANSS is poor value based on its PEG Ratio (5.7x)


Price to Book Ratio

PB vs Industry: ANSS is overvalued based on its PB Ratio (7.6x) compared to the US Software industry average (5.9x).


Next Steps

Future Growth

How is ANSYS forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ANSS's forecast earnings growth (8.8% per year) is above the savings rate (1.7%).

Earnings vs Market: ANSS's earnings (8.8% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: ANSS's earnings are forecast to grow, but not significantly.

Revenue vs Market: ANSS's revenue (9.3% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: ANSS's revenue (9.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ANSS's Return on Equity is forecast to be low in 3 years time (15.7%).


Next Steps

Past Performance

How has ANSYS performed over the past 5 years?

11.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ANSS has high quality earnings.

Growing Profit Margin: ANSS's current net profit margins (30.4%) are higher than last year (27%).


Past Earnings Growth Analysis

Earnings Trend: ANSS's earnings have grown by 11.7% per year over the past 5 years.

Accelerating Growth: ANSS's earnings growth over the past year (37.6%) exceeds its 5-year average (11.7% per year).

Earnings vs Industry: ANSS earnings growth over the past year (37.6%) exceeded the Software industry 20.8%.


Return on Equity

High ROE: ANSS's Return on Equity (15%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ANSYS's financial position?


Financial Position Analysis

Short Term Liabilities: ANSS's short term assets ($1.2B) exceed its short term liabilities ($473.8M).

Long Term Liabilities: ANSS's short term assets ($1.2B) exceed its long term liabilities ($184.9M).


Debt to Equity History and Analysis

Debt Level: ANSS is debt free.

Reducing Debt: ANSS had no debt 5 years ago.

Debt Coverage: ANSS has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ANSS has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: ANSS has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if ANSS's debt is covered by short term assets.


Next Steps

Dividend

What is ANSYS's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate ANSS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ANSS's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ANSS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ANSS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ANSS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of ANSYS's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Ajei Gopal (57yo)

3yrs

Tenure

US$10,164,184

Compensation

Dr. Ajei S. Gopal, Ph.D., has been the Chief Executive Officer of Ansys, Inc. since January 1, 2017. Dr. Gopal has been the President of ANSYS, Inc. since August 29, 2016. He served in leadership roles at  ...


CEO Compensation Analysis

Compensation vs Market: Ajei's total compensation ($USD10.16M) is about average for companies of similar size in the US market ($USD10.76M).

Compensation vs Earnings: Ajei's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.3yrs

Average Tenure

54.5yo

Average Age

Experienced Management: ANSS's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

2.1yrs

Average Tenure

58yo

Average Age

Experienced Board: ANSS's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: ANSS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$232,92719 Nov 19
Shane Emswiler
EntityIndividual
Role
Senior Key Executive
Senior VP & GM of Physics Business Units
Shares990
Max PriceUS$235.28
SellUS$328,78113 Nov 19
Matthew Zack
EntityIndividual
Role
Head of Corporate Development
Vice President of Corporate Development & Global Partnerships
Shares1,427
Max PriceUS$230.40
SellUS$20,41609 Aug 19
Richard Mahoney
EntityIndividual
Role
Head of Sales
Senior Vice President of Worldwide Sales & Customer Excellence
Shares97
Max PriceUS$210.47
SellUS$320,40028 May 19
William McDermott
EntityIndividual
Shares1,765
Max PriceUS$181.53
SellUS$1,678,27803 Apr 19
Ajei Gopal
EntityIndividual
Role
Chief Executive Officer
President
Shares9,023
Max PriceUS$186.00
SellUS$3,132,77015 Mar 19
Ajei Gopal
EntityIndividual
Role
Chief Executive Officer
President
Shares17,255
Max PriceUS$182.26

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Maria Shields (54yo)

    CFO, Senior VP of Finance and Administration & Principal Accounting Officer

    • Tenure: 21.3yrs
    • Compensation: US$3.71m
  • Lynn Ledwith

    Vice President of Marketing

    • Tenure: 0.5yrs
  • Ajei Gopal (57yo)

    President

    • Tenure: 3yrs
    • Compensation: US$10.16m
  • Annette Arribas (54yo)

    Global Investor Relations & Insurance Officer

    • Prith Banerjee (59yo)

      Chief Technology Officer

      • Tenure: 1.3yrs
    • Shane Emswiler (43yo)

      Senior VP & GM of Physics Business Units

      • Tenure: 1yrs
      • Compensation: US$2.22m
    • Matt Zack (49yo)

      Vice President of Corporate Development & Global Partnerships

      • Tenure: 1yrs
    • Rick Mahoney (56yo)

      Senior Vice President of Worldwide Sales & Customer Excellence

      • Tenure: 3.1yrs
      • Compensation: US$3.89m
    • Julie Murphy

      Vice President of Human Resources

      • Tenure: 0.4yrs
    • Janet Lee (55yo)

      VP, General Counsel & Secretary

      • Tenure: 2.6yrs
      • Compensation: US$1.83m

    Board Members

    • Barbara Scherer (63yo)

      Independent Director

      • Tenure: 7yrs
      • Compensation: US$359.60k
    • Guy Dubois (64yo)

      Independent Director

      • Tenure: 4.3yrs
      • Compensation: US$356.51k
    • Glenda Dorchak (65yo)

      Independent Director

      • Tenure: 1.5yrs
      • Compensation: US$249.25k
    • Ron Hovsepian (58yo)

      Chairman of the Board & Lead Independent Director

      • Tenure: 0.8yrs
      • Compensation: US$393.43k
    • Ajei Gopal (57yo)

      President

      • Tenure: 3yrs
      • Compensation: US$10.16m
    • Nicole Anasenes (46yo)

      Independent Director

      • Tenure: 1.5yrs
      • Compensation: US$249.25k
    • Alec Gallimore (55yo)

      Independent Director

      • Tenure: 2.1yrs
      • Compensation: US$350.34k

    Company Information

    ANSYS, Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: ANSYS, Inc.
    • Ticker: ANSS
    • Exchange: NasdaqGS
    • Founded: 1970
    • Industry: Application Software
    • Sector: Software
    • Market Cap: US$23.735b
    • Shares outstanding: 85.58m
    • Website: https://www.ansys.com

    Number of Employees


    Location

    • ANSYS, Inc.
    • 2600 ANSYS Drive
    • Canonsburg
    • Pennsylvania
    • 15317
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    ANSSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 1996
    AKXDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1996
    0HG3LSE (London Stock Exchange)YesCommon StockGBUSDJun 1996
    ANSS *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 1996

    Biography

    ANSYS, Inc. develops and markets engineering simulation software and services worldwide. The company offers ANSYS Workbench, a framework upon which the company’s engineering simulation technologies are built; ANSYS multiphysics software to simulate the interactions between structures, heat transfer, fluids, and electronics in a unified engineering simulation environment; and structural analysis product suite that provides simulation tools for product design and optimization. It also provides fluids product suite that enables modeling of fluid flow and other related physical phenomena; and electromagnetics product suite, which provides field simulation software for designing electronic. In addition, the company offers power analysis and optimization software suite that manages the power budget, power delivery integrity, and power-induced noise in an electronic design; SCADE product suite, a solution for embedded software simulation, code production, and automated certification; system simulation capability for the design of automated products; and high-performance computing product suite, which delivers cross-physics parallel processing capabilities for simulation software. Further, it provides Discovery product family for use in the simulation of product design; academic product suite with a portfolio of academic products based on associate, research, and teaching; ANSYS Fluent that enhance workflow process; and ANSYS medini analyze, a suite for functional safety analysis. The company serves engineers, designers, researchers, and students in the aerospace and defense, automotive, electronics, semiconductors, energy, materials and chemical processing, turbomachinery, consumer products, healthcare, and sports industries and academia. ANSYS, Inc. was founded in 1970 and is headquartered in Canonsburg, Pennsylvania. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/25 23:32
    End of Day Share Price2020/01/24 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.