ANSYS, Inc. revenue jumped on 10.9% while EBITDA Margin decreased on 3.4 pp from 39.5% to 36.1%
02/24/2021 • About ANSYS, Inc. (
$ANSS) • By InTwits
ANSYS, Inc. reported 2020 financial results today. Here are the key drivers of the company's long term financial model:
- ANSYS, Inc. is a growth stock: 2020 revenue growth was 10.9%, 5 year revenue CAGR was 12.3% at 2020 ROIC 10.8%
- EBITDA Margin is declining: 36.1% in 2020 vs. 39.5% in 2019 vs. 45.1% in 2016
- ANSYS, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.0%. At the same time it's a lot of higher than industry average of 3.0%.
- CAPEX is quite volatile: $35m in 2020, $45m in 2019, $22m in 2018, $19m in 2017, $12m in 2016
- In the last 5 years the company invested considerably less than D&A: $134m vs. $197m
- The company has business model with average profitability: ROIC is 10.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 10.9%. Revenue growth showed acceleration in 20Q4 - it increased 28.3% YoY. During the last 5 years Revenue growth topped in 2018 at 18.1% and was decelerating since that time. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.0 pp from 11.0% to 15.0% in 2020. EBITDA Margin stuck to a declining trend at -2.0 pp per annum in the last 5 years.
Gross Margin decreased on 2.4 pp from 89.0% to 86.6% in 2020. During 2016-2020 Gross Margin topped in 2019 at 89.0%. SG&A as a % of Revenue increased slightly on 0.57 pp from 34.4% to 35.0% in 2020. SG&A as a % of Revenue stuck to a growing trend at 1.9 pp per annum in 2016-2020.
Net Income margin decreased on 4.0 pp from 29.8% to 25.8% in 2020.
Investments (CAPEX, working capital and M&A)
ANSYS, Inc.'s CAPEX/Revenue was 2.1% in 2020. The company showed almost no change in CAPEX/Revenue from 2017 to 2020. For the last three years the average CAPEX/Revenue was 2.3%.
Return on investment
The company operates at low ROIC (10.8%) and ROE (11.5%). ROIC decreased on 4.5 pp from 15.3% to 10.8% in 2020. ROE decreased on 3.3 pp from 14.8% to 11.5% in 2020. During 2016-2020 ROIC topped in 2018 at 19.5% and was declining since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.0x and Debt / EBITDA is 1.6x. Net Debt / EBITDA surged on 0.5x from -0.4x to 0.049x in 2020. Debt surged on 54.9% while cash increased on 4.7%. Net Debt/EBITDA followed a growing trend at 0.5x per annum in the last 5 years.
ANSYS, Inc. has no short term refinancing risk: cash is higher than short term debt (3,867.3%).
Valuation and dividends
ANSYS, Inc.'s trades at EV/EBITDA 45.4x and P/E 63.4x.
Management team
ANSYS, Inc.'s CEO is Ajei S Gopal. Ajei S Gopal has 4 years tenure with the company.
Financial and operational results
FY ended 12/31/2020
ANSYS, Inc. ($ANSS) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 988 | 1,095 | 1,294 | 1,516 | 1,681 | 10.9% |
| Gross Profit | 842 | 945 | 1,138 | 1,350 | 1,456 | 7.9% |
| SG&A | 270 | 339 | 414 | 521 | 588 | 12.8% |
| EBITDA | 446 | 458 | 536 | 598 | 606 | 1.4% |
| EBIT | 376 | 391 | 477 | | | |
| Tax | 115 | 136 | 68 | | | |
| Net Income | 266 | 259 | 419 | 451 | 434 | -3.9% |
| Stock Based Compensation | 33 | 53 | 83 | | | |
Balance Sheet
|
|---|
| Cash | 822 | 882 | 777 | 872 | 913 | 4.7% |
| Accounts Receivable | 107 | 125 | 318 | | | |
| Accounts Payable | 7 | 6 | 8 | | | |
| Short Term Debt | 0 | 0 | 0 | 93 | 24 | -74.7% |
| Long Term Debt | 0 | 0 | 0 | 515 | 919 | 78.4% |
Cash flow
|
|---|
| Capex | 12 | 19 | 22 | 45 | 35 | -21.3% |
| Acquisitions | 8 | 64 | 283 | | | |
Ratios
|
|---|
| Revenue growth | 4.8% | 10.8% | 18.1% | 17.2% | 10.9% | |
| EBITDA growth | 3.4% | 2.8% | 16.9% | 11.6% | 1.4% | |
|
|---|
| Gross Margin | 85.1% | 86.3% | 87.9% | 89.0% | 86.6% | -2.4% |
| EBITDA Margin | 45.1% | 41.9% | 41.4% | 39.5% | 36.1% | -3.4% |
| EBIT Margin | 38.1% | 35.7% | 36.8% | | |
| SG&A, % of revenue | 27.3% | 30.9% | 32.0% | 34.4% | 35.0% | 0.6% |
| SBC, % of revenue | 3.4% | 4.9% | 6.4% | | |
| Net Income Margin | 26.9% | 23.7% | 32.4% | 29.8% | 25.8% | -4.0% |
| CAPEX, % of revenue | 1.3% | 1.7% | 1.7% | 3.0% | 2.1% | -0.9% |
|
|---|
| ROIC | 17.3% | 17.8% | 19.5% | 15.3% | 10.8% | -4.5% |
| ROE | 12.1% | 11.6% | 17.1% | 14.8% | 11.5% | -3.3% |
| Net Debt/EBITDA | -1.8x | -1.9x | -1.5x | -0.4x | 0.0x | 0.5x |
People
|
|---|
| Insider ownership | 1.1% | 1.1% | 1.1% | | | |
| Employees | 2,800 | | 1,700 | | | |
| Revenue/Employee, th. $ | 353 | | 761 | | | |
ANSYS, Inc. ($ANSS) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 305 | 386 | 367 | 624 | | -3.8% | 4.6% | 6.7% | 28.3% |
| EBITDA | 61 | 140 | 117 | 289 | | -46.7% | -5.8% | -6.6% | 37.5% |
| Net Income | 46 | 97 | 76 | 216 | | -46.6% | -12.0% | -15.5% | 30.0% |
Balance Sheet
|
|---|
| Cash | 718 | 745 | 845 | 913 | | 18.2% | 17.9% | 15.3% | 4.7% |
| Short Term Debt | 19 | 19 | 20 | 24 | | 22.5% | 11.5% | 21.3% | -74.7% |
| Long Term Debt | 531 | 527 | 526 | 919 | | 508.1% | 483.1% | 476.6% | 78.4% |
Ratios
|
|---|
| Gross Margin | 83.6% | 86.0% | 85.5% | 89.1% | | -5.5% | -3.0% | -2.5% | -0.7% |
| EBITDA Margin | 20.0% | 36.2% | 31.9% | 46.3% | | -16.1% | -4.0% | -4.6% | 3.1% |
| Net Income Margin | 15.1% | 25.0% | 20.6% | 34.6% | | -12.1% | -4.7% | -5.4% | 0.5% |
Peers in Application Software
Below we provide ANSYS, Inc. benchmarking against other companies in Application Software industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| VirnetX Holding Corp ($VHC) | - | -0.2% | -95.9% | 34.9% | 355,942.4% |
| AudioEye, Inc. ($AEYE) | - | 175.5% | 106.6% | 90.2% | 90.2% |
| Cloudera, Inc. ($CLDR) | - | 57.2% | 42.6% | 28.9% | 65.5% |
| Integrated Ventures Inc ($INTV) | - | - | - | -8.9% | 62.7% |
| Smartsheet Inc. ($SMAR) | - | 64.3% | 66.1% | 59.7% | 52.4% |
| |
|---|
| Median (92 companies) | 12.0% | 15.7% | 15.1% | 19.5% | 14.7% |
|---|
| ANSYS, Inc. ($ANSS) | - | 10.8% | 18.1% | 17.2% | 10.9% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Aware, Inc. ($AWRE) | 90.3% | 94.6% | 92.3% | 89.7% | 92.8% |
| Alteryx, Inc. ($AYX) | 81.3% | 83.4% | 91.0% | 90.6% | 91.1% |
| Autodesk, Inc. ($ADSK) | 85.2% | 83.2% | 85.2% | 88.9% | 90.1% |
| Smith Micro Software, Inc. ($SMSI) | 73.2% | 77.9% | 83.5% | 90.9% | 89.9% |
| Cadence Design Systems, Inc. ($CDNS) | 85.9% | 87.8% | 87.9% | 88.6% | 88.6% |
| |
|---|
| Median (89 companies) | 63.8% | 64.4% | 65.3% | 67.9% | 69.4% |
|---|
| ANSYS, Inc. ($ANSS) | 85.1% | 86.3% | 87.9% | 89.0% | 86.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| VirnetX Holding Corp ($VHC) | -1,837.2% | -1,118.0% | -40,379.4% | -23,127.1% | 52.2% |
| j2 Global, Inc. ($JCOM) | 41.7% | 36.5% | 35.7% | 38.6% | 40.5% |
| Intelligent Systems Corporation ($INS) | -5.4% | -12.8% | 33.6% | 43.6% | 40.4% |
| Adobe Inc. ($ADBE) | 31.2% | 34.2% | 35.3% | 35.8% | 39.7% |
| SS&C Technologies Holdings, Inc. ($SSNC) | 34.9% | 37.9% | 27.7% | 38.2% | 38.3% |
| |
|---|
| Median (89 companies) | -5.3% | -4.2% | -3.3% | 2.7% | 6.8% |
|---|
| ANSYS, Inc. ($ANSS) | 45.1% | 41.9% | 41.4% | 39.5% | 36.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| MicroStrategy Incorporated ($MSTR) | 0.5% | 0.8% | 1.4% | 2.1% | 234.8% |
| Integrated Ventures Inc ($INTV) | - | - | 199.9% | 15.2% | 27.2% |
| Intelligent Systems Corporation ($INS) | 3.8% | 9.7% | 4.3% | 4.9% | 19.2% |
| LivePerson, Inc. ($LPSN) | 5.5% | 7.9% | 8.8% | 16.3% | 11.4% |
| PROS Holdings, Inc. ($PRO) | 4.7% | 0.8% | 0.7% | 2.1% | 11.3% |
| |
|---|
| Median (87 companies) | 3.0% | 2.3% | 2.4% | 2.9% | 2.6% |
|---|
| ANSYS, Inc. ($ANSS) | 1.3% | 1.7% | 1.7% | 3.0% | 2.1% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| VirnetX Holding Corp ($VHC) | -210.9% | -256.8% | -416.3% | -247.2% | 137.3% |
| Manhattan Associates, Inc. ($MANH) | 99.3% | 102.5% | 80.9% | 71.7% | 53.4% |
| Citrix Systems, Inc. ($CTXS) | 16.1% | 16.7% | 25.2% | 29.8% | 33.5% |
| Sonic Foundry, Inc. ($SOFO) | -18.1% | -50.6% | -786.4% | - | 31.3% |
| Paycom Software, Inc. ($PAYC) | 75.4% | 51.1% | 47.5% | 47.5% | 28.7% |
| |
|---|
| Median (92 companies) | -9.8% | -11.8% | -10.6% | -4.5% | -2.2% |
|---|
| ANSYS, Inc. ($ANSS) | 17.3% | 17.8% | 19.5% | 15.3% | 10.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Dropbox, Inc. ($DBX) | - | -3.8x | - | 2.4x | 1,341.0x |
| Avaya Holdings Corp. ($AVYA) | - | - | 7.4x | - | 77.9x |
| Alteryx, Inc. ($AYX) | - | - | 2.5x | 6.1x | 32.2x |
| Five9, Inc. ($FIVN) | -6.7x | -8.6x | 7.3x | 5.3x | 17.6x |
| Synchronoss Technologies, Inc. ($SNCR) | - | - | - | - | 11.6x |
| |
|---|
| Median (53 companies) | -0.9x | -0.8x | -0.6x | 0.4x | 0.3x |
|---|
| ANSYS, Inc. ($ANSS) | -1.8x | -1.9x | -1.5x | -0.4x | 0.0x |
