Ansys Inc

ANSS

Services-Prepackaged Software

Mkt Cap

$28.56B

PE

65.73

Debt

$755M

Cash

$1.051B

EV

$28.27B

FCF

$710.2M

Market Cap

$28.56B

P/E Ratio

65.73

Debt

$755M

Cash

$1.051B

EV

$28.27B

FCF

$710.2M

Charts data: {"Earnings":[{"time":"2014-12-30","value":254690000},{"time":"2015-12-30","value":252521000},{"time":"2016-12-30","value":265636000},{"time":"2017-12-30","value":259251000},{"time":"2018-12-30","value":419375000},{"time":"2019-12-30","value":451295000},{"time":"2020-12-30","value":433887000},{"time":"2021-12-30","value":454627000},{"time":"2022-12-30","value":523710000},{"time":"2023-12-30","value":500412000}],"Sales":[{"time":"2014-12-30","value":936021000},{"time":"2015-12-30","value":942753000},{"time":"2016-12-30","value":988465000},{"time":"2017-12-30","value":1095250000},{"time":"2018-12-30","value":1293636000},{"time":"2019-12-30","value":1515892000},{"time":"2020-12-30","value":1681297000},{"time":"2021-12-30","value":1906715000},{"time":"2022-12-30","value":2065553000},{"time":"2023-12-30","value":2269949000}],"Net Margins":[{"time":"2014-12-30","value":0.2720985960785068},{"time":"2015-12-30","value":0.26785488882029546},{"time":"2016-12-30","value":0.2687358682401501},{"time":"2017-12-30","value":0.23670486190367496},{"time":"2018-12-30","value":0.32418315507608014},{"time":"2019-12-30","value":0.2977092035580371},{"time":"2020-12-30","value":0.25806683768542976},{"time":"2021-12-30","value":0.2384346900297108},{"time":"2022-12-30","value":0.253544692389883},{"time":"2023-12-30","value":0.22045076783663423}],"Assets":[{"time":"2014-12-30","value":2774103000},{"time":"2015-12-30","value":2729904000},{"time":"2016-12-30","value":2800526000},{"time":"2017-12-30","value":2941623000},{"time":"2018-12-30","value":3265964000},{"time":"2019-12-30","value":4838887000},{"time":"2020-12-30","value":5940590000},{"time":"2021-12-30","value":6324314000},{"time":"2022-12-30","value":6687945000},{"time":"2023-12-30","value":7322875000}],"Stockholders Equity":[{"time":"2014-12-30","value":2217501000},{"time":"2015-12-30","value":2194427000},{"time":"2016-12-30","value":2208405000},{"time":"2017-12-30","value":2245831000},{"time":"2018-12-30","value":2649547000},{"time":"2019-12-30","value":3453379000},{"time":"2020-12-30","value":4097872000},{"time":"2021-12-30","value":4484048000},{"time":"2022-12-30","value":4865851000},{"time":"2023-12-30","value":5390364000}],"ROE":[{"time":"2014-12-30","value":0.11485451415805449},{"time":"2015-12-30","value":0.11507377552317757},{"time":"2016-12-30","value":0.1202840964406438},{"time":"2017-12-30","value":0.11543655778195243},{"time":"2018-12-30","value":0.15828177420517545},{"time":"2019-12-30","value":0.13068215217617296},{"time":"2020-12-30","value":0.10588105240964091},{"time":"2021-12-30","value":0.10138763010565453},{"time":"2022-12-30","value":0.10762968286534051},{"time":"2023-12-30","value":0.09283454698050075}],"ROA":[{"time":"2014-12-30","value":0.12577687274048585},{"time":"2015-12-30","value":0.1308067976016739},{"time":"2016-12-30","value":0.13588018822178405},{"time":"2017-12-30","value":0.1345447734125005},{"time":"2018-12-30","value":0.1491577984325608},{"time":"2019-12-30","value":0.1087117760757794},{"time":"2020-12-30","value":0.08499374641239338},{"time":"2021-12-30","value":0.08148773131757847},{"time":"2022-12-30","value":0.08861586032779875},{"time":"2023-12-30","value":0.08550398579792773}]}

ANSYS, Inc. develops and markets engineering simulation software and services worldwide. It offers ANSYS Workbench, a framework upon which its multiphysics engineering simulation technologies are built and enables engineers to simulate the interactions between structures, heat transfer, fluids, electronics, and optical elements in a unified engineering simulation environment; high-performance computing product suite and the cloud; power analysis and optimization software suite that manages the power budget, power delivery integrity, and power-induced noise in an electronic design; and structural analysis product suite that provides simulation tools for product design and optimization. The company also provides electronics product suite that offers electromagnetic field simulation software for designing electronic and electromechanical products; SCADE product suite, a solution for embedded software simulation, code production, and automated certification; fluids product suite that enables modeling of fluid flow and other related physical phenomena; Ansys Granta products to give access to material intelligence; photonic design and simulation tools; and optical sensor and closed-loop, and real-time simulation, as well as safety-certified embedded software solutions. In addition, the company provides Discovery product family for use in the simulation of product design; and academic product suite used in research and teaching settings, which allows students to become familiar with its simulation software. It serves engineers, designers, researchers, and students in the aerospace and defense, automotive, construction, consumer products, energy, healthcare, high-tech, industrial equipment, and materials and chemical processing industries. ANSYS, Inc. was founded in 1970 and is headquartered in Canonsburg, Pennsylvania.

Sector

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10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Ansys Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$710.2M	$770.5M	$833M	$897.3M	$963.1M	$1.03B	$1.097B	$1.165B	$1.232B	$1.299B	$1.364B	$13.64B
DCF		$670M	$629.9M	$590M	$550.6M	$512.1M	$474.4M	$438M	$402.9M	$369.2M	$337.1M	$3.371B
Value	$8.345B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 9.9%

Earnings Stability 85%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	27%	27%	24%	32%	30%	26%	24%	25%	22%	20%
ROA	13%	14%	13%	15%	11%	8.5%	8.1%	8.9%	8.6%	7.6%
ROE	12%	12%	12%	16%	13%	11%	10%	11%	9.3%	8%

What is the average Net Margin?

The average Net Margin over the past 5 years is +26.54%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -1.92%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +9.97%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -1.09%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +11.61%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -1.15%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	-	-	-	0.00	1.10	1.56	1.43	1.24	1.09	1.06
Debt Equity	-	-	-	0.00	0.14	0.19	0.17	0.16	0.14	0.14
MIN
Graham Stability	-	-	100%	100%	100%	100%	100%	100%	100%	100%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 1.06.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 0.17.

What is the Graham’s Stability?

Graham’s Stability measure stands at 1.00.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	13%	12%	11%	9.9%	0.75%
Net Income	9.5%	3.6%	4.9%	-4.4%	-0.59%
Stockholders Equity	14%	15%	9.6%	11%	1.5%
FCF	10%	8.3%	11%	14%	1.4%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +11.9%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.75%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +3.6%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -0.59%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +15.26%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +1.45%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +8.28%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +1.38%.