27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
Amidst the fast-paced and highly competitive business environment of today, conducting comprehensive company analysis is essential for investors and industry enthusiasts. In this article, we will delve into an extensive industry comparison, evaluating Ansys (NASDAQ:ANSS) in comparison to its major competitors within the Software industry. By analyzing critical financial metrics, market position, and growth potential, our objective is to provide valuable insights for investors and offer a deeper understanding of company's performance in 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 | 64.73 | 6.21 | 14.49 | 1.12% | $0.11 | $0.39 | -2.9% |
| Adobe Inc | 50.66 | 16.50 | 14.16 | 9.18% | $2.06 | $4.41 | 3.23% |
| Salesforce Inc | 101.27 | 4.44 | 7.73 | 2.11% | $2.42 | $6.57 | 11.27% |
| SAP SE | 75.82 | 3.78 | 5.08 | 3.01% | $2.37 | $5.64 | 3.57% |
| Intuit Inc | 68.35 | 10.28 | 11.96 | 1.41% | $0.53 | $2.22 | 14.67% |
| Synopsys Inc | 66.22 | 12.97 | 13.93 | 5.77% | $0.48 | $1.27 | 24.51% |
| Cadence Design Systems Inc | 78.58 | 24.10 | 19.20 | 8.45% | $0.35 | $0.91 | 13.36% |
| Workday Inc | 1135.71 | 10.82 | 10.24 | 1.76% | $0.23 | $1.42 | 16.67% |
| Roper Technologies Inc | 47 | 3.40 | 9.70 | 2.06% | $0.68 | $1.1 | 15.78% |
| Autodesk Inc | 57.25 | 35.04 | 9.83 | 17.93% | $0.37 | $1.29 | 10.47% |
| Palantir Technologies Inc | 248.71 | 11.88 | 18.30 | 2.33% | $0.09 | $0.45 | 16.8% |
| Splunk Inc | 220.43 | 128.89 | 6.34 | 121.15% | $0.14 | $0.86 | 14.8% |
| Zoom Video Communications Inc | 95.39 | 2.98 | 4.92 | 1.96% | $0.2 | $0.87 | 3.16% |
| PTC Inc | 84.45 | 7.75 | 9.90 | 1.73% | $0.16 | $0.43 | 7.62% |
| Tyler Technologies Inc | 112.16 | 6.13 | 9.20 | 1.67% | $0.11 | $0.23 | 4.54% |
| Dynatrace Inc | 95.47 | 9.05 | 12.60 | 2.04% | $0.05 | $0.29 | 25.91% |
| Bentley Systems Inc | 95.64 | 22.51 | 14.49 | 7.94% | $0.1 | $0.24 | 14.27% |
| AppLovin Corp | 147.18 | 12.63 | 5.01 | 8.25% | $0.31 | $0.6 | 21.2% |
| Manhattan Associates Inc | 83.09 | 64.52 | 15.53 | 25.97% | $0.05 | $0.13 | 20.36% |
| Average | 159.08 | 21.54 | 11.01 | 12.48% | $0.59 | $1.61 | 13.46% |
Through an analysis of Ansys, we can infer the following trends:
A Price to Earnings ratio of 64.73 significantly below the industry average by 0.41x suggests undervaluation. This can make the stock appealing for those seeking growth.
The current Price to Book ratio of 6.21, which is 0.29x the industry average, is substantially lower than the industry average, indicating potential undervaluation.
The stock's relatively high Price to Sales ratio of 14.49, surpassing the industry average by 1.32x, may indicate an aspect of overvaluation in terms of sales performance.
The company has a lower Return on Equity (ROE) of 1.12%, which is 11.36% below the industry average. This indicates potential inefficiency in utilizing equity to generate profits, which could be attributed to various factors.
With lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $110 Million, which is 0.19x below the industry average, the company may face lower profitability or financial challenges.
The company has lower gross profit of $390 Million, which indicates 0.24x below the industry average. This potentially indicates lower revenue after accounting for production costs.
With a revenue growth of -2.9%, which is much lower than the industry average of 13.46%, the company is experiencing a notable slowdown in sales expansion.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio is a key indicator of a company's financial health and its reliance on debt financing.
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.
When comparing Ansys with its top 4 peers based on the Debt-to-Equity ratio, the following insights can be observed:
Ansys demonstrates a stronger financial position compared to its top 4 peers in the sector.
With a lower debt-to-equity ratio of 0.17, the company relies less on debt financing and maintains a healthier balance between debt and equity, which can be viewed positively by investors.
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.
27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!