1. Executive Summary
- Company: Ansys Inc.
- Ticker: ANSS
- Industry: Engineering Simulation Software
- Investment Rating: Hold (due to merger-related uncertainty)
- Current Stock Price: $347.87
- 12-Month Target Price: ~$346.80 (Range: $340.00 – $360.00)
2. Company Overview
- Business Model: Ansys develops and sells engineering simulation software used for product design, testing, and optimization across multiple industries including aerospace, automotive, electronics, and healthcare.
- Key Products: Ansys Mechanical, Fluent (CFD), HFSS (EM simulation), Granta, SCADE, etc.
- Founded: 1970
- Headquarters: Canonsburg, Pennsylvania, USA
- Employees: ~6,500 (2024)
- CEO: Ajei S. Gopal
3. Financial Analysis
- Full-Year 2024:
- Revenue: $2.54 billion
- Operating Income: $718 million
- Net Income: $576 million
- Total Assets: $7.98 billion
- Shareholders’ Equity: $6.18 billion
- Q4 2024 Highlights:
- Revenue: $882.2 million (+10% YoY)
- EPS: Not disclosed
- Debt Level: Not explicitly detailed
- Cash Flow: Not disclosed
4. Stock Performance
- 52-Week Range: $275.06 – $363.03
- Market Cap: ~$29.34 billion
- Recent Momentum: Up 3.50% on May 12, 2025, outperforming peers on strong trading volume
- Volatility: Data not specified
5. Valuation Analysis
- P/E Ratio: Not provided
- P/S Ratio: Not provided
- P/B Ratio: Not provided
- DCF Valuation: Not available
- Peer Comparison: Pending due to merger dynamics
6. Industry & Market Analysis
- Trends: Engineering simulation software is in increasing demand for digital twin technology, predictive design, and virtual testing.
- Market Position: Ansys is a global leader in simulation software with strong penetration in key industries.
- Macro Factors: Ongoing digital transformation across sectors supports long-term demand.
7. Risk Analysis
- Market Risk: Volatility from the pending merger with Synopsys and its regulatory review.
- Regulatory Risk: Delays in government approval for the merger could impact share price.
- Financial Risk: Undisclosed debt/cash flow details require further transparency.
8. Growth Catalysts
- Strategic Merger: In January 2024, Synopsys announced a $35B acquisition of Ansys, expected to close in mid-2025.
- Product Leadership: Continuous innovation in multiphysics and AI-driven simulations.
- Industry Demand: Growth in autonomous systems, EVs, aerospace, and semiconductors benefits Ansys’s product suite.
9. Analyst Sentiment
- Consensus: Among 12 analysts, the average rating is Hold.
- Price Targets:
- Average: $346.80
- High: $360.00
- Low: $340.00
- Recent News: May 12, 2025 – ANSS rose 3.50%, outperforming its industry sector. (MarketWatch)
10. Conclusion
Ansys Inc. remains a dominant player in the engineering simulation market, with strong financials and premium technology assets. The pending $35 billion acquisition by Synopsys adds both opportunity and short-term uncertainty to its valuation. For investors, the stock currently trades near analysts’ consensus target and may remain range-bound until the merger concludes.
📌 Verdict:
A suitable hold for existing shareholders and a watchlist candidate for new investors, pending regulatory clarity on the Synopsys deal.