Stock of the Day

October 15, 2020

ANSYS (ANSS)

$374.30
$0.00 (0.0%)
Market Cap: $32.91B

About ANSYS

ANSYS, Inc. develops and markets engineering simulation software and services for engineers, designers, researchers, and students in the United States, Japan, Germany, China, Hong Kong, South Korea, rest of Europe, the Middle East, Africa, and internationally. It offers structural analysis product suite that provides simulation tools for product design and optimization; the Ansys Mechanical product, an element analysis software; LS-DYNA solver for multiphysics simulation; and power analysis and optimization software suite. The company also offers electronics product suite that provides electromagnetic field simulation software for designing electronic and electromechanical products; Ansys High Frequency Structure Simulator product for radio frequency and microwave design; 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 Fluent computational fluid dynamics software package; Ansys RedHawk-SC for electronic design automation; Ansys Optics software; and mission-simulation, modeling, testing, and analysis software. In addition, it offers Ansys Granta MI system for materials information management; Ansys Granta Selector technology for materials selection and graphical analysis; CES EduPack product, a set of teaching resources; Granta Materials Data for Simulation; Ansys Lumerical product, a photonics simulation software solution; safety-certified embedded software solutions; Discovery product family for use in the simulation of product design; academic product suite for research and teaching settings. ANSYS, Inc. was founded in 1970 and is headquartered in Canonsburg, Pennsylvania.

ANSYS Bull Case

Here are some ways that investors could benefit from investing in ANSYS, Inc.:

  • The current stock price is around $374, reflecting a stable market position for ANSYS, Inc.
  • Recent quarterly earnings showed a revenue increase of 8.2% compared to the same quarter last year, indicating strong growth potential.
  • Institutional investors hold 92.39% of the stock, suggesting confidence in the company's long-term prospects.
  • ANSYS, Inc. has a low debt-to-equity ratio of 0.12, which indicates a strong financial position and lower financial risk.
  • The company has a market capitalization of approximately $32.91 billion, positioning it as a significant player in the engineering simulation software market.

ANSYS Bear Case

Investors should be bearish about investing in ANSYS, Inc. for these reasons:

  • The company reported earnings per share of $1.64, which missed the consensus estimate, indicating potential challenges in meeting market expectations.
  • Analysts have recently downgraded the stock from "strong-buy" to "hold," suggesting a more cautious outlook on its future performance.
  • With a price-to-earnings (PE) ratio of 55.53, the stock may be considered overvalued compared to industry peers, which could deter value-focused investors.
  • The beta of 1.19 indicates that the stock is more volatile than the market, which could pose risks for conservative investors.
  • Despite revenue growth, the company’s net margin of 22.95% may not be sufficient to sustain high growth rates in a competitive market.