Data last refreshed 38 days ago — analysis may not reflect the latest market data

ANSSANSS

US

CAUTIOUS

$0.00

P/E

55.51

PEG

1.56

FCF Yield

Rev Growth YoY

+16.0% YoY

Gross Margin

89.0%

Health Score

8/10

D/E Ratio

0.12

Confidence

MEDIUM


Advertisement

Business Snapshot

ANSYS delivers engineering simulation software used by product designers and engineers across industries like aerospace, automotive, and electronics. The company's core revenue comes from its multiphysics simulation platform, which allows customers to model real-world physical behavior before building physical prototypes. ANSYS operates as a dominant leader in the computer-aided engineering (CAE) market, competing with a handful of well-capitalized peers in a space with high switching costs due to the deep integration of its tools into customers' R&D workflows. With a market cap of $32.91B, it qualifies as a large‑cap technology company with a notably high gross margin of 89.0%, underscoring its strong intellectual property moat.

Advertisement

Financial Health

Gross margin is exceptional at 89.0%, and the trailing twelve‑month net margin stands at 22.9%, reflecting significant operating leverage typical of a mature software business. The balance sheet is in fortress territory: the debt-to-equity ratio is just 0.12x, indicating minimal leverage, while the current ratio of 3.01x shows ample short-term liquidity...

Risk Assessment

  • VALUATION — P/E of 55.51x is 2.5x the sector average of 22x, leaving the stock highly sensitive to any earnings miss or growth deceleration.
  • EARNINGS QUALITY — Only 3 of the last 4 quarters beat estimates, which is solid but not exceptional; one miss shows guidance is not always conservative.
  • TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
  • DEBT / LIQUIDITY — While the D/E of 0.12x is low, the current ratio of 3.01x is high enough to imply cash is not aggressively deployed, which may be a suboptimal capital allocation in a low‑rate environment....

Gross margin is exceptional at 89.0%, and the trailing twelve‑month net margin stands at 22.9%, reflecting significant operating leverage typical of a mature software business. The balance sheet is in fortress territory: the debt-to-equity ratio is just 0.12x, indicating minimal leverage, while the current ratio of 3.01x shows ample short-term liquidity. Free cash flow data is not available in the payload, so cash generation cannot be directly assessed from the numbers provided. Return on equity is a solid 10.0%, supporting the company’s ability to reinvest in product development without relying on external financing. Overall, ANSYS’s financial health is robust, providing the flexibility to fund organic growth, pay dividends if desired, and weather economic downturns.

- VALUATION — P/E of 55.51x is 2.5x the sector average of 22x, leaving the stock highly sensitive to any earnings miss or growth deceleration. - EARNINGS QUALITY — Only 3 of the last 4 quarters beat estimates, which is solid but not exceptional; one miss shows guidance is not always conservative. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - DEBT / LIQUIDITY — While the D/E of 0.12x is low, the current ratio of 3.01x is high enough to imply cash is not aggressively deployed, which may be a suboptimal capital allocation in a low‑rate environment.

Unlock the full AI report

Full 8-section analysis includes:

Financial Health
Growth Momentum
Valuation Snapshot
Risk Flags
Sentiment & News
Technical Snapshot
Full Verdict with Confidence Rating
Last updated 934 hours ago · Data sourced from FMP & Finnhub · Not financial advice