In today's rapidly changing and fiercely competitive business landscape, it is vital for investors and industry enthusiasts to carefully evaluate companies. In this article, we will perform a comprehensive industry comparison, evaluating Ansys ANSS against its key competitors in the Software industry. By analyzing important financial metrics, market position, and growth prospects, we aim to provide valuable insights for 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 | 52.46 | 5.03 | 11.74 | 1.12% | $0.11 | $0.39 | -2.9% |
| Adobe Inc | 56.21 | 18.04 | 15.24 | 9.17% | $1.99 | $4.31 | 10.31% |
| Salesforce Inc | 95.86 | 4.20 | 7.31 | 2.11% | $2.42 | $6.57 | 11.27% |
| SAP SE | 80.78 | 4.03 | 5.42 | 3.01% | $2.37 | $5.64 | 3.57% |
| Intuit Inc | 64.26 | 9.66 | 11.25 | 1.41% | $0.53 | $2.22 | 14.67% |
| Synopsys Inc | 70.22 | 13.76 | 14.77 | 5.77% | $0.5 | $1.27 | 7.52% |
| Cadence Design Systems Inc | 76.57 | 23.48 | 18.70 | 8.45% | $0.35 | $0.91 | 13.36% |
| Workday Inc | 1150.46 | 10.96 | 10.38 | 1.76% | $0.23 | $1.42 | 16.67% |
| Roper Technologies Inc | 46.77 | 3.39 | 9.66 | 2.06% | $0.68 | $1.1 | 15.78% |
| Autodesk Inc | 53.33 | 32.64 | 9.16 | 17.93% | $0.37 | $1.29 | 10.47% |
| Palantir Technologies Inc | 253.86 | 12.12 | 18.68 | 2.33% | $0.09 | $0.45 | 16.8% |
| Splunk Inc | 219.54 | 128.37 | 6.31 | 121.15% | $0.14 | $0.86 | 14.8% |
| Zoom Video Communications Inc | 95.51 | 2.98 | 4.93 | 1.96% | $0.2 | $0.87 | 3.16% |
| PTC Inc | 81.83 | 7.51 | 9.59 | 1.73% | $0.16 | $0.43 | 7.62% |
| Tyler Technologies Inc | 109.16 | 5.96 | 8.95 | 1.67% | $0.11 | $0.23 | 4.54% |
| Dynatrace Inc | 94 | 8.91 | 12.41 | 2.04% | $0.05 | $0.29 | 25.91% |
| Bentley Systems Inc | 91.67 | 21.58 | 13.89 | 7.94% | $0.1 | $0.24 | 14.27% |
| Manhattan Associates Inc | 84 | 65.22 | 15.70 | 25.97% | $0.05 | $0.13 | 20.36% |
| NICE Ltd | 40.81 | 3.96 | 5.75 | 2.89% | $0.16 | $0.41 | 8.4% |
| AppLovin Corp | 131.21 | 11.26 | 4.47 | 8.25% | $0.31 | $0.6 | 21.2% |
| Average | 152.42 | 20.42 | 10.66 | 11.98% | $0.57 | $1.54 | 12.67% |
By closely examining Ansys, we can identify the following trends:
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The Price to Earnings ratio of 52.46 is 0.34x lower than the industry average, indicating potential undervaluation for the stock.
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With a Price to Book ratio of 5.03, significantly falling below the industry average by 0.25x, it suggests undervaluation and the possibility of untapped growth prospects.
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With a relatively high Price to Sales ratio of 11.74, which is 1.1x the industry average, the stock might be considered overvalued based on sales performance.
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The Return on Equity (ROE) of 1.12% is 10.86% below the industry average, suggesting potential inefficiency in utilizing equity to generate profits.
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Compared to its industry, the company has lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $110 Million, which is 0.19x below the industry average, potentially indicating lower profitability or financial challenges.
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The gross profit of $390 Million is 0.25x below that of its industry, suggesting potential lower revenue after accounting for production costs.
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The company's revenue growth of -2.9% is significantly below the industry average of 12.67%. This suggests a potential struggle in generating increased sales volume.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio assesses the extent to which a company relies on borrowed funds compared 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 terms of the Debt-to-Equity ratio, Ansys can be assessed by comparing it to its top 4 peers, resulting in the following observations:
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Compared to its top 4 peers, Ansys has a stronger financial position indicated by its lower debt-to-equity ratio of 0.17.
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This suggests that the company relies less on debt financing and has a more favorable balance between debt and equity, which can be seen as a positive attribute 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 performs below its industry peers. This indicates that the company's profitability, operational efficiency, and revenue generation are relatively weak compared to its competitors in the Software industry.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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