Ansys Inc (ANSS, Financial) has recently experienced a notable surge in its stock price, with a 21.16% gain over the past week and an 18.18% increase over the past three months. The company's market capitalization now stands at $31.1 billion, with the current stock price at $357.98. This performance has brought Ansys's valuation in line with the GF Value of $350.27, indicating that the stock is now fairly valued, compared to its previous status of being modestly undervalued when the GF Value was at $380.45.
Introduction to Ansys Inc
Ansys Inc, a leader in the software industry, specializes in engineering simulation software. The company's products are used globally across various sectors, including aerospace, defense, and automotive. With over 4,000 employees, Ansys serves a diverse customer base of more than 50,000, providing tools to simulate structural, fluid, semiconductor power, embedded software, optical, and electromagnetic properties. The recent stock performance reflects the market's confidence in Ansys's business model and future prospects.
Assessing Ansys's Profitability
Ansys boasts an impressive Profitability Rank of 10/10, underscoring its robust financial health. The company's operating margin stands at a strong 25.63%, outperforming 93.36% of 2,758 companies in the industry. Additionally, Ansys's return on equity (ROE) is 10.03%, higher than 67.53% of its peers, while its return on assets (ROA) at 7.42% and return on invested capital (ROIC) at 9.03% also surpass industry averages. These figures are a testament to Ansys's ability to generate profits and manage its resources effectively, maintaining profitability for the past ten years—a feat better than 99.96% of companies.
Growth Trajectory of Ansys
Ansys's Growth Rank is equally impressive at 10/10. The company has demonstrated consistent growth, with a 10.20% 3-year revenue growth rate per share and an even higher 5-year rate of 13.10%. These rates are better than more than half of the companies in the industry. Looking ahead, Ansys's total revenue growth rate is estimated at 9.46% for the next 3 to 5 years. Earnings per share (EPS) growth rates are also strong, with a 6.70% growth over the past three years and a 12.40% growth over the past five years. The future EPS growth rate is projected at 8.83%, indicating a positive outlook for the company's earnings potential.
Key Shareholders in Ansys
Notable investors have shown their confidence in Ansys, with Ron Baron (Trades, Portfolio) holding 2,002,717 shares, representing 2.31% of the company. Steven Cohen (Trades, Portfolio) and Catherine Wood (Trades, Portfolio) also have significant stakes, with 104,800 shares (0.12%) and 70,958 shares (0.08%), respectively. These investments by prominent figures in the financial world underscore the trust in Ansys's performance and strategic direction.
Competitive Landscape
When compared to its closest competitors, Ansys maintains a competitive edge with its market cap of $31.1 billion. Fair Isaac Corp (FICO, Financial) has a market cap of $28.89 billion, HubSpot Inc (HUBS, Financial) is valued at $29.19 billion, and Zoom Video Communications Inc (ZM, Financial) stands at $22.07 billion. Ansys's recent stock performance and solid financial metrics position it favorably within the competitive software industry landscape.
Conclusion
In summary, Ansys Inc's recent stock price rally can be attributed to its strong financial performance, as reflected in its high profitability and growth ranks. The company's fair valuation according to the GF Value, coupled with its consistent profitability and promising growth prospects, has likely contributed to the positive investor sentiment. The confidence shown by significant shareholders and Ansys's competitive position in the market further reinforce the company's robust standing. As Ansys continues to innovate and expand its offerings, investors may remain optimistic about its future trajectory.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
