Double-Digit Organic Growth Potential through Expanding Simulation Use
- ANSYS is the only company able to offer complete (virtual prototype) simulation, which holds significant potential with its core engineering base (still less than 10% penetrated) as well as emerging areas including the Internet of Things and additive manufacturing.
- The successful niche and "wide moat" are reflected in ANSYS’ best-in-class margins, 90% gross/46% operating, and free cash flow of $379 million estimated for 2018 ($4.22 per share).
- Repeatable business, at 76% of the total, and $669 million deferred revenue/backlog (up 38% YoY in 3Q17), help overall earnings visibility.
- Cash amounted to $10.70 per share (7% of the share price) on September 30, 2017 – which allows for continued M&A and share repurchases.
ANSYS develops and markets engineering simulation software and services used by engineers, designers, researchers and students across a spectrum of industries and academia, including aerospace and defense, automotive, electronics, semiconductors, energy, materials and chemical processing, turbomachinery, consumer products, healthcare, and sports. The company focuses on the development of solutions that enable users to analyze designs directly on the desktop, providing a platform for product development, from design concept to final-stage testing and validation. The company's product portfolio include ANSYS Workbench?, a framework upon which the company's suite of engineering simulation technologies is built.
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