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.
Discounted Cash Flow Valuation of Ansys Inc
In the chart Earnings are multiplied by this value.
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 average Net Margin over the past 5 years is +26.81%.
The trend of Net Margin over the past 5 years is -0.61%.
The average ROA over the past 5 years is +10.79%.
The trend of ROA over the past 5 years is -1.3%.
The average ROE over the past 5 years is +11.99%.
The trend of ROE over the past 5 years is -0.67%.
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.
The Debt/FCF trailing twelve month is 1.19.
The trend of Debt/FCF over the past 5 years is 0.28.
Graham’s Stability measure stands at 1.00.
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.
The Revenue CAGR over the past 5 years is +13.53%.
The trend of Revenue growth rate over the past 5 years is +0.92%.
The Earnings CAGR over the past 5 years is +15.1%.
The trend of Earnings growth rate over the past 5 years is +0.91%.
The Equity CAGR over the past 5 years is +16.72%.
The trend of Equity growth rate over the past 5 years is +1.92%.
The FCF CAGR over the past 5 years is +8.08%.
The trend of FCF growth rate over the past 5 years is +0.18%.