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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of ANSYS, Inc. (NASDAQ:ANSS), it is a company with great financial health as well as a a strong history of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on ANSYS here.
Solid track record with excellent balance sheet
In the previous year, ANSS has ramped up its bottom line by 50%, with its latest earnings level surpassing its average level over the last five years. Not only did ANSS outperformed its past performance, its growth also exceeded the Software industry expansion, which generated a 40% earnings growth. This is an optimistic signal for the future. ANSS's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. ANSS's has produced operating cash levels of 4.93x total debt over the past year, which implies that ANSS's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For ANSYS, I've compiled three fundamental aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for ANSS’s future growth? Take a look at our free research report of analyst consensus for ANSS’s outlook.
- Valuation: What is ANSS worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ANSS is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ANSS? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.