ANSS  Ansys Inc.

Exchange

NASDAQ

Sector

Technology

Industry

Computer Software: Prepackaged Software

Market Cap.

10.75B

Vuru Grade

78.22/100

Current Price

$125.72
-0.49 (-0.39%)

Growth Price

$71.22
Overvalued by 43.35%

Stability Price

$36.39
Overvalued by 71.05%

Company Metrics

  • P/E 40.65
  • P/S 10.62
  • P/B 4.88
  • EPS 3.09
  • Cash ROIC 21.81%
  • Cash Ratio 1.53
  • Dividend 0 / N/A %
  • Avg. Vol. 450,475.00
  • Shares 85.51M
  • Market Cap. 10.75B

Company Description

ANSYS, Inc. engages in the development and marketing of engineering simulation software and services used by engineers and designers in aerospace, automotive, manufacturing, electronics, biomedical, energy, and defense industries. Its products include ANSYS Workbench, which is the framework upon the company's suite of engineering simulation technology is built; Multiphysics that combines solver te... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

ANSYS 18.1 Expands Pervasive Engineering Simulation
PR Newswire (press release) - May 16, 2017
PITTSBURGH, May 16, 2017 /PRNewswire/ -- Engineers can create next-generation products quicker and easier with today's release of ANSYS® 18.1. ANSYS (NASDAQ: ANSS) continues to build upon the digital exploration and digital prototyping ...
First Trust Advisors LP Buys 35920 Shares of ANSYS, Inc. (ANSS)
BNB Daily (blog) - 22 hours ago
ANSYS logo First Trust Advisors LP increased its stake in ANSYS, Inc. (NASDAQ:ANSS) by 133.9% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission.
ANSYS, Inc. (ANSS) Position Cut by Comerica Bank - The Cerbat Gem
Brokerages Expect ANSYS, Inc. (ANSS) Will Announce Earnings of $0.84 Per Share - Chaffey Breeze
Aristotle Capital Management, LLC Buys Acadia Healthcare Co Inc, Ansys Inc ...
Nasdaq - May 17, 2017
Aristotle Capital Management, LLC initiated holdings in Acadia Healthcare Co Inc. The purchase prices were between $32.89 and $45.53, with an estimated average price of $40.58.
Arxis Securities Llc Buys Ansys Inc, S&P Global Inc, WisdomTree Europe Hedged ...
GuruFocus.com - May 9, 2017
Investment company Arxis Securities Llc buys Ansys Inc, S&P Global Inc, WisdomTree Europe Hedged Equity Fund, PowerShares QQQ Trust Series 1, Vanguard Short-Term Corporate Bond ETF, WEX Inc, CME Group Inc, CBOE Holdings Inc, IPG Photonics ...
Equity Watch: Focus on Technicals for Ansys, Inc. (NASDAQ:ANSS)
Baxter Review - 7 hours ago
Ansys, Inc. (NASDAQ:ANSS)'s 12 month volatility is presently 19.300500. The 6 month volatility is seen at 15.955300, and the 3 month is seen at 18.768100.
ANSYS Self-Heat, Power Integrity And Electromigration Solutions Enabled On ...
PR Newswire (press release) - May 24, 2017
ANSYS and any and all ANSYS, Inc. brand, product, service and feature names, logos and slogans are registered trademarks or trademarks of ANSYS, Inc. or its subsidiaries in the United States or other countries. All other brand, product, service and ...
The Secret to Option Trading Right Before Earnings in ANSYS Inc
CML News - May 27, 2017
There is a wonderful secret to trading options right before earnings announcements in ANSYS Inc (NASDAQ:ANSS) , and really many stocks, that benefits from the rising implied volatility but avoids the risk into the actual earnings release and also ...
Stock Volatility Risk Alert: Ansys Inc Realized Volatility Hits An Escalated Level
CML News - May 19, 2017
Before we cover the full analysis we make a quick alert here that Ansys Inc (NASDAQ:ANSS) has seen its stock price whip around at an unsually high level.
Pratt & Whitney Standardizes on ANSYS Engineering Simulation
PR Newswire (press release) - May 2, 2017
ANSYS and any and all ANSYS, Inc. brand, product, service and feature names, logos and slogans are registered trademarks or trademarks of ANSYS, Inc. or its subsidiaries in the United States or other countries. All other brand, product, service and ...
ANSYS Inc. (ANSS) Moves Higher on Volume Spike for May 04 - Equities.com
ANSYS, Inc. (ANSS) Reaches New 52-Week High on Better-Than-Expected Earnings - BNB Daily (blog)
ANSYS, Inc. (ANSS) Sees Large Increase in Short Interest
The Cerbat Gem - May 24, 2017
ANSYS logo ANSYS, Inc. (NASDAQ:ANSS) was the target of a significant growth in short interest during the month of April.
ANSYS Inc. (ANSS) Moves Lower on Volume Spike for May 24 - Equities.com
ANSYS, Inc. (ANSS) Rating Lowered to Neutral at Citigroup Inc - Sports Perspectives
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for ANSS to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate ANSS's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$125.72 Current Price

$71.22 Growth Price (DCF)

Overvalued by 43.35%


Growth Rate Assumed by Market: 32.67%


Future Free Cash Flow Growth Rate: 13.9%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$36.39 Stability Price (EPV)

Overvalued by 71.05%


Discount Rate: 15.0%

$6.75 NCA Price

Overvalued by 94.63%

$88.84 Book Price

Overvalued by 29.33%


Excellent Cash Return on Invested Capital over the past 5 years

ANSS has efficiently invested its financial resources in buildings, projects, and equipment, resulting in strong returns. Annual Reports can be useful in identifying the cause of one-time events and future sustainability.

ANSS has created $21.81 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 274.44M 304.14M 359.28M 351.38M 344.38M
divided by
Invested Capital 1.55B 1.54B 1.52B 1.46B 1.44B
Cash ROIC 17.67% 19.76% 23.63% 24.05% 23.94%

Satisfactory Return on Equity over the past 5 years

ANSS has generated adequate returns with capital that shareholders have invested. This is sufficient and implies that management performance has been good.

ANSS has generated $11.40 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 203.48M 245.33M 254.69M 252.52M 265.64M
divided by
Stockholders' Equity 1.94B 2.14B 2.22B 2.19B 2.21B
Return on Equity 10.49% 11.48% 11.49% 11.51% 12.03%

Excellent Business Performance over the past 10 years

ANSS has been able to maintain profitability in good times and bad. This could mean ANSS has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

ANSS has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow 116.27M 180.07M 165.38M 152.62M 285.60M 274.44M 304.14M 359.28M 351.38M 344.38M

Very Strong Balance Sheet

ANSS has more Cash than its Total Liabilities, resulting in $2.70 Net Cash per share. In other words, if you buy ANSS today, the price you're paying for shares is actually $123.02 because $2.70 of Cash is included in the current share price. This much Cash is very healthy. It can help ANSS sustain itself in the face of any economic turmoil and makes a stock buyback more of a possibility.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 171.85M 233.88M 343.84M 472.93M 472.40M 577.16M 742.99M 788.78M 784.61M 822.86M
Current Assets 305.17M 397.15M 515.49M 714.63M 740.03M 913.36M 1.07B 1.11B 1.08B 1.17B
Total Assets 969.29M 1.86B 1.92B 2.13B 2.45B 2.61B 2.72B 2.77B 2.73B 2.80B
Current Liabilities 195.87M 267.66M 266.77M 311.37M 438.75M 477.39M 440.43M 465.10M 484.15M 539.10M
Total Liabilities 328.08M 681.62M 607.55M 596.95M 694.00M 667.13M 586.14M 556.60M 535.48M 592.12M
Stockholder' Equity 641.21M 1.18B 1.31B 1.53B 1.75B 1.94B 2.14B 2.22B 2.19B 2.21B
Current Ratio 1.56 1.48 1.93 2.30 1.69 1.91 2.42 2.39 2.22 2.17
TL-to-TA 0.34 0.37 0.32 0.28 0.28 0.26 0.22 0.20 0.20 0.21

Consistent Reinvestment of Profits over the past 10 years

ANSS has consistently retained profits. This may put ANSS in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, ANSS can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 274.14M 385.81M 502.20M 655.33M 836.01M 1.04B 1.28B 1.54B 1.79B 2.06B
Retained Earnings Growth - 40.74% 30.17% 30.49% 27.57% 24.34% 23.60% 19.82% 16.40% 14.82%

Competitive Advantage over the past 10 years

ANSS likely has a competitive advantage which prevents other companies from entering or competing in their industry. This could be strong branding, the ability to keep costs low, or some other characteristic that is hard to replicate. Look at future prospects to determine its sustainability.

$25.46 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 82.39M 111.67M 116.39M 153.13M 180.68M 203.48M 245.33M 254.69M 252.52M 265.64M
divided by
Revenue 385.34M 478.34M 516.89M 580.24M 691.45M 798.02M 861.26M 936.02M 942.75M 988.47M
Net Profit Margin 21.38% 23.35% 22.52% 26.39% 26.13% 25.50% 28.48% 27.21% 26.79% 26.87%

Strong Pricing Power over the past 10 years

ANSS has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$82.74 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 307.29M 386.93M 419.65M 479.36M 582.92M 658.50M 714.57M 782.64M 795.51M 841.61M
divided by
Revenue 385.34M 478.34M 516.89M 580.24M 691.45M 798.02M 861.26M 936.02M 942.75M 988.47M
Gross Margin 79.75% 80.89% 81.19% 82.61% 84.30% 82.52% 82.97% 83.61% 84.38% 85.14%

Low Capital Intensity over the past 10 years

ANSS has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that ANSS may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

10.16% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 10.86M 16.64M 8.31M 14.26M 22.06M 23.98M 28.85M 26.02M 16.15M 12.44M
divided by
Net Income 82.39M 111.67M 116.39M 153.13M 180.68M 203.48M 245.33M 254.69M 252.52M 265.64M
Capital Expenditure Ratio 13.18% 14.90% 7.14% 9.31% 12.21% 11.78% 11.76% 10.22% 6.39% 4.68%

No Dividend History over the past 10 years

ANSS has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 81.14M 86.77M 91.79M 93.21M 94.38M 94.95M 95.14M 94.19M 91.50M 88.97M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 42.02 28.38 43.78 52.54 57.28 67.00 86.62 82.76 93.72 92.49
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

ANSS has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 81.14M 86.77M 91.79M 93.21M 94.38M 94.95M 95.14M 94.19M 91.50M 88.97M
Stock Bought Back - -6.49% -5.47% -1.53% -1.24% -0.60% -0.19% 1.00% 2.94% 2.85%
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Posted by alexrasmussen  (on March 22, 2012)
http://seekingalpha.com/article/445411-identifying-8-predictable-cash-machines One of 8 cash machines I identified recently.