Fact based stock research
ANSYS (NasdaqGS:ANSS)

US03662Q1058

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

ANSYS stock research in summary

ansys.com

ANALYSIS: With an Obermatt Combined Rank of 50 (better than 50% compared with investment alternatives), ANSYS (Application Software, USA) shares have above-average financial characteristics compared with similar stocks. Shares of ANSYS are low in value (priced high) with a consolidated Value Rank of 26 (worse than 74% of alternatives) and show below-average growth (Growth Rank of 30) but are safely financed (Safety Rank of 89), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 50, is a buy recommendation based on ANSYS's financial characteristics. As the company ANSYS's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 26) and low growth (Obermatt Growth Rank of 30), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 89) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	26
Growth Rank	30
Safety Rank	89
Combined Rank	50

Country	USA
Industry	Application Software
Index	Employee Focus US, Diversity USA, NASDAQ 100, NASDAQ, S&P 500
Size class	Large

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: ANSYS

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	6	23	32	26
GROWTH
GROWTH	74	63	17	30
SAFETY
SAFETY	60	74	92	89
SENTIMENT
SENTIMENT	n/a	81	47	^new
360° VIEW
360° VIEW	n/a	80	51	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better ANSYS is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	6	23	32	26
GROWTH
GROWTH	74	63	17	30
SAFETY
SAFETY	60	74	92	89
COMBINED
COMBINED	37	58	40	50

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of ANSYS the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 26 (worse than 74% compared with alternatives), ANSYS shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for ANSYS. Only Price-to-Profit (also referred to as price-earnings, P/E) indicates good stock value with a rank of 55, which means that the stock price compared with what market professionals expect for future profits is lower than for 55% of comparable companies, indicating a good value concerning ANSYS's profit levels. But Price-to-Sales is 21 which means that the stock price compared with what market professionals expect for future profits is higher than for 79% of comparable companies, indicating a low value concerning ANSYS's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 35 and for dividend yield, which is lower than for 99% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 26, is a hold recommendation based on ANSYS's stock price compared with the company's operational size and dividend yields. Can we rely on only one good value indicator? Only if we know the company well. In this case, a high Price-to-Profit Rank, while Price-to-Sales and Price-to-Book are both below the market typical levels, means that the company can charge higher prices for its products and needs less capital to produce them. If this is sustainable, then ANSYS is a good investment because profits count most in enterprise valuations. The low dividend yield indicates that the company is confident it can do something with the generated cash that is more valuable than paying the profits out to the shareholders in the form of dividends. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	11	9	16	21
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	53	45	50	55
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	20	47	64	35
DIVIDEND YIELD
DIVIDEND YIELD	1	1	1	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	6	23	32	26

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of ANSYS; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 30 (better than 30% compared with alternatives), ANSYS shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for ANSYS. Profit Growth has a rank of 54, which means that currently professionals expect the company to grow its profits more than 54% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 54 (above 54% of alternative investments). But Sales Growth has a below the median rank of 41, which means that, currently, professionals expect the company to grow less than 59% of its competitors, and Capital Growth also has a lower rank of 9. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 30, is a hold recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for ANSYS. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	56	25	42	41
PROFIT GROWTH
PROFIT GROWTH	38	55	26	54
CAPITAL GROWTH
CAPITAL GROWTH	n/a	78	10	9
STOCK RETURNS
STOCK RETURNS	55	65	41	54
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	74	63	17	30

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of ANSYS.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 89 (better than 89% compared with alternatives) for 2024, the company ANSYS has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of ANSYS is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for ANSYS. Leverage is at 64, meaning the company has a below-average debt-to-equity ratio. It has less debt than 64% of its competitors. Refinancing is at a rank of 53, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 53% of its competitors. Finally, Liquidity is also good at a rank of 71, which means that the company generates more profit to service its debt than 71% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 89 (better than 89% compared with alternatives), ANSYS has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with ANSYS but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	24	45	64	64
REFINANCING
REFINANCING	59	35	43	53
LIQUIDITY
LIQUIDITY	91	78	89	71
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	60	74	92	89

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of ANSYS and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	16	34	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	57	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	87	68	^new
MARKET PULSE
MARKET PULSE	n/a	90	37	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	81	47	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for ANSYS.
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