ANSS  Ansys Inc.

Exchange

NASDAQ

Sector

Technology

Industry

Computer Software: Prepackaged Software

Market Cap.

11.61B

Vuru Grade

77.87/100

Current Price

$136.99
+0.28 (+0.20%)

Growth Price

$75.11
Overvalued by 45.17%

Stability Price

$40.50
Overvalued by 70.43%

Company Metrics

  • P/E 44.02
  • P/S 11.21
  • P/B 5.29
  • EPS 3.11
  • Cash ROIC 23.94%
  • Cash Ratio 1.45
  • Dividend 0 / 0%
  • Avg. Vol. 433,755.00
  • Shares 84.75M
  • Market Cap. 11.61B

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

There is no news available at this time.
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.

$136.99 Current Price

$75.11 Growth Price (DCF)

Overvalued by 45.17%


Growth Rate Assumed by Market: 30.65%


Future Free Cash Flow Growth Rate: 11.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$40.50 Stability Price (EPV)

Overvalued by 70.43%


Discount Rate: 15.0%

$6.78 NCA Price

Overvalued by 95.05%

$88.76 Book Price

Overvalued by 35.21%


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 $23.94 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20132014201520162017
Free Cash Flow 304.14M 359.28M 351.38M 344.38M 411.29M
divided by
Invested Capital 1.54B 1.52B 1.46B 1.44B 1.45B
Cash ROIC 19.76% 23.63% 24.05% 23.94% 28.34%

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 $11.61 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20132014201520162017
Net Income 245.33M 254.69M 252.52M 265.64M 259.25M
divided by
Stockholders' Equity 2.14B 2.22B 2.19B 2.21B 2.25B
Return on Equity 11.48% 11.49% 11.51% 12.03% 11.54%

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
2008200920102011201220132014201520162017
Free Cash Flow 180.07M 165.38M 152.62M 285.60M 274.44M 304.14M 359.28M 351.38M 344.38M 411.29M

Very Strong Balance Sheet

ANSS has more Cash than its Total Liabilities, resulting in $2.19 Net Cash per share. In other words, if you buy ANSS today, the price you're paying for shares is actually $134.80 because $2.19 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
2008200920102011201220132014201520162017
Cash 233.88M 343.84M 472.93M 472.40M 577.16M 742.99M 788.78M 784.61M 822.86M 881.79M
Current Assets 397.15M 515.49M 714.63M 740.03M 913.36M 1.07B 1.11B 1.08B 1.17B 1.27B
Total Assets 1.86B 1.92B 2.13B 2.45B 2.61B 2.72B 2.77B 2.73B 2.80B 2.94B
Current Liabilities 267.66M 266.77M 311.37M 438.75M 477.39M 440.43M 465.10M 484.15M 539.10M 608.55M
Total Liabilities 681.62M 607.55M 596.95M 694.00M 667.13M 586.14M 556.60M 535.48M 592.12M 695.79M
Stockholder' Equity 1.18B 1.31B 1.53B 1.75B 1.94B 2.14B 2.22B 2.19B 2.21B 2.25B
Current Ratio 1.48 1.93 2.30 1.69 1.91 2.42 2.39 2.22 2.17 2.09
TL-to-TA 0.37 0.32 0.28 0.28 0.26 0.22 0.20 0.20 0.21 0.24

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
2008200920102011201220132014201520162017
Retained Earnings 385.81M 502.20M 655.33M 836.01M 1.04B 1.28B 1.54B 1.79B 2.06B 2.32B
Retained Earnings Growth - 30.17% 30.49% 27.57% 24.34% 23.60% 19.82% 16.40% 14.82% 12.60%

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.

$25.69 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2008200920102011201220132014201520162017
Net Income 111.67M 116.39M 153.13M 180.68M 203.48M 245.33M 254.69M 252.52M 265.64M 259.25M
divided by
Revenue 478.34M 516.89M 580.24M 691.45M 798.02M 861.26M 936.02M 942.75M 988.47M 1.10B
Net Profit Margin 23.35% 22.52% 26.39% 26.13% 25.50% 28.48% 27.21% 26.79% 26.87% 23.67%

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.

$83.39 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
2008200920102011201220132014201520162017
Gross Profit 386.93M 419.65M 479.36M 582.92M 658.50M 714.57M 782.64M 795.51M 841.61M 945.09M
divided by
Revenue 478.34M 516.89M 580.24M 691.45M 798.02M 861.26M 936.02M 942.75M 988.47M 1.10B
Gross Margin 80.89% 81.19% 82.61% 84.30% 82.52% 82.97% 83.61% 84.38% 85.14% 86.29%

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.

9.58% 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
2008200920102011201220132014201520162017
Capital Expenditure 16.64M 8.31M 14.26M 22.06M 23.98M 28.85M 26.02M 16.15M 12.44M 19.15M
divided by
Net Income 111.67M 116.39M 153.13M 180.68M 203.48M 245.33M 254.69M 252.52M 265.64M 259.25M
Capital Expenditure Ratio 14.90% 7.14% 9.31% 12.21% 11.78% 11.76% 10.22% 6.39% 4.68% 7.39%

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
2008200920102011201220132014201520162017
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 86.77M 91.79M 93.21M 94.38M 94.95M 95.14M 94.19M 91.50M 88.97M 86.85M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 28.38 43.78 52.54 57.28 67.00 86.62 82.76 93.72 92.49 119.90
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
2008200920102011201220132014201520162017
Shares Outstanding 86.77M 91.79M 93.21M 94.38M 94.95M 95.14M 94.19M 91.50M 88.97M 86.85M
Stock Bought Back - -5.47% -1.53% -1.24% -0.60% -0.19% 1.00% 2.94% 2.85% 2.44%
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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.