Ansys Inc (ANSS, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $357.98, Ansys Inc has witnessed a daily gain of 18.08%, marked against a three-month change of 18.18%. A thorough analysis, underlined by the GF Score, suggests that Ansys Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 8/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 10/10
Considering these components, GuruFocus assigned Ansys Inc a GF Score of 97 out of 100, which signals the highest outperformance potential.
Understanding Ansys Inc Business
Ansys Inc is an engineering software company that provides simulation capabilities for structural, fluids, semiconductor power, embedded software, optical, and electromagnetic properties. With a market cap of $31.1 billion and sales of $2.16 billion, Ansys Inc operates with a healthy operating margin of 25.63%. The company employs over 4,000 people and serves over 50,000 customers globally, including those in aerospace, defense, and automotive sectors. Ansys Inc's history of innovation and service has positioned it as a leader in the engineering simulation software industry.
Financial Strength Breakdown
Ansys Inc's robust balance sheet exhibits resilience against financial volatility, reflecting prudent management of capital structure. The company's Interest Coverage ratio stands impressively at 12.67, underscoring its strong capability to cover its interest obligations. With an Altman Z-Score of 13.01, Ansys Inc exhibits a strong defense against financial distress, highlighting its robust financial stability. The favorable Debt-to-Revenue ratio of 0.4 further solidifies its financial health.
Profitability Rank Breakdown
The Profitability Rank reflects Ansys Inc's impressive standing among its peers in generating profit. The company's solid financial situation is further confirmed by the Piotroski F-Score, which measures a company's profitability, funding, and operating efficiency. Ansys Inc's strong Predictability Rank of 4.5 stars out of five underscores its consistent operational performance, providing investors with increased confidence.
Growth Rank Breakdown
Ansys Inc is ranked highly in Growth, demonstrating a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate is 10.2%, outperforming 54.9% of companies in the Software industry. Ansys Inc has also seen a robust increase in its EBITDA over the past few years, with a three-year growth rate of 6.1 and a five-year rate of 7.3, highlighting the company's continued capability to drive growth.
Conclusion: Ansys Inc's Position for Outperformance
Considering Ansys Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. The company's robust financials, consistent profitability, and strategic growth initiatives make it a compelling choice for value investors. With a GF Score near the pinnacle at 97, Ansys Inc is poised to continue its trajectory of market leadership and innovation.
GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
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.
