20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine." A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
In the ever-evolving and intensely competitive business landscape, conducting a thorough company analysis is of utmost importance for investors and industry followers. In this article, we will carry out an in-depth industry comparison, assessing Ansys (NASDAQ:ANSS) alongside its primary competitors in the Software industry. By meticulously examining key financial metrics, market positioning, and growth prospects, we aim to offer valuable insights to investors and shed light on company's performance within the industry.
Ansys Background
Ansys is an engineering software company that provides simulation capabilities for structural, fluids, semiconductor power, embedded software, optical, and electromagnetic properties. Ansys employs over 4,000 people and serves over 50,000 customers globally, including those in aerospace defense and automotive.
| Company | P/E | P/B | P/S | ROE | EBITDA (in billions) | Gross Profit (in billions) | Revenue Growth |
|---|---|---|---|---|---|---|---|
| Ansys Inc | 50.11 | 5.31 | 12.09 | 1.43% | $0.13 | $0.43 | 4.8% |
| Adobe Inc | 50.33 | 16.15 | 13.65 | 9.17% | $1.99 | $4.31 | 10.31% |
| Salesforce Inc | 128.55 | 3.45 | 6.16 | 2.19% | $2.42 | $6.49 | 11.44% |
| SAP SE | 82.77 | 3.46 | 4.58 | 8.41% | $1.8 | $5.41 | 4.84% |
| Intuit Inc | 64.54 | 8.82 | 10.70 | 0.51% | $0.26 | $2.0 | 12.34% |
| Synopsys Inc | 74.51 | 12.67 | 13.95 | 5.7% | $0.38 | $1.18 | 19.2% |
| Cadence Design Systems Inc | 77.36 | 23.57 | 18.15 | 7.56% | $0.34 | $0.88 | 13.88% |
| Roper Technologies Inc | 45.96 | 3.20 | 9.30 | 2.21% | $0.68 | $1.07 | 16.81% |
| Autodesk Inc | 52.80 | 37.71 | 8.86 | 21.11% | $0.29 | $1.22 | 8.73% |
| Zoom Video Communications Inc | 135.04 | 2.73 | 4.31 | 2.69% | $0.2 | $0.87 | 3.57% |
| PTC Inc | 55.87 | 6.59 | 8.33 | 2.4% | $0.15 | $0.43 | 17.27% |
| Tyler Technologies Inc | 100.27 | 5.88 | 8.66 | 1.8% | $0.1 | $0.22 | 7.59% |
| Bentley Systems Inc | 108.31 | 24.34 | 15.09 | 7.75% | $0.07 | $0.23 | 10.61% |
| Dynatrace Inc | 97.45 | 8.21 | 11.44 | 2.31% | $0.05 | $0.27 | 24.55% |
| AppLovin Corp | 793.80 | 9.10 | 5.12 | 4.69% | $0.27 | $0.49 | -3.36% |
| Manhattan Associates Inc | 88.62 | 74.02 | 15.18 | 22.54% | $0.05 | $0.12 | 20.37% |
| Average | 130.41 | 15.99 | 10.23 | 6.74% | $0.6 | $1.68 | 11.88% |
Upon analyzing Ansys, the following trends can be observed:
At 50.11, the stock's Price to Earnings ratio is 0.38x less than the industry average, suggesting favorable growth potential.
Considering a Price to Book ratio of 5.31, which is well below the industry average by 0.33x, the stock may be undervalued based on its book value compared to its peers.
With a relatively high Price to Sales ratio of 12.09, which is 1.18x the industry average, the stock might be considered overvalued based on sales performance.
The Return on Equity (ROE) of 1.43% is 5.31% below the industry average, suggesting potential inefficiency in utilizing equity to generate profits.
With lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $130 Million, which is 0.22x below the industry average, the company may face lower profitability or financial challenges.
Compared to its industry, the company has lower gross profit of $430 Million, which indicates 0.26x below the industry average, potentially indicating lower revenue after accounting for production costs.
The company's revenue growth of 4.8% is significantly lower compared to the industry average of 11.88%. This indicates a potential fall in the company's sales performance.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio measures the financial leverage of a company by evaluating its debt relative to its equity.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
In light of the Debt-to-Equity ratio, a comparison between Ansys and its top 4 peers reveals the following information:
Ansys is in a relatively stronger financial position compared to its top 4 peers, as evidenced by its lower debt-to-equity ratio of 0.17.
This implies that the company relies less on debt financing and has a more favorable balance between debt and equity.
Key Takeaways
For the PE, PB, and PS ratios, Ansys has a low valuation compared to its peers in the Software industry. This suggests that the company may be undervalued relative to its earnings, book value, and sales.
In terms of ROE, EBITDA, gross profit, and revenue growth, Ansys has low performance compared to its industry peers. This indicates that the company may have lower profitability, operational efficiency, and growth potential compared to its competitors in the Software industry.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine." A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
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