ASPEN TECHNOLOGY INC (AZPN)
US29109X1063 - Common Stock
AZPN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 284 industry peers in the Software industry. The financial health of AZPN is average, but there are quite some concerns on its profitability. AZPN is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
AZPN had positive earnings in the past year.
AZPN had a positive operating cash flow in the past year.
In multiple years AZPN reported negative net income over the last 5 years.
Of the past 5 years AZPN 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -0.61%, AZPN perfoms like the industry average, outperforming 59.86% of the companies in the same industry.
With a decent Return On Equity value of -0.67%, AZPN is doing good in the industry, outperforming 62.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.61% | ||
| ROE | -0.67% | ||
| ROIC | N/A |
ROA(3y)7.2%
ROA(5y)14.14%
ROE(3y)13.17%
ROE(5y)32.2%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Gross Margin value of 63.83%, AZPN perfoms like the industry average, outperforming 43.73% of the companies in the same industry.
AZPN's Gross Margin has declined in the last couple of years.
AZPN does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 63.83% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-10.54%
GM growth 5Y-6.53%
2. Health
2.1 Basic Checks
AZPN does not have a ROIC to compare to the WACC, probably because it is not profitable.
There is no outstanding debt for AZPN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 6.91 indicates that AZPN is not in any danger for bankruptcy at the moment.
AZPN has a better Altman-Z score (6.91) than 73.12% of its industry peers.
AZPN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.91 |
ROIC/WACCN/A
WACC11.44%
2.3 Liquidity
A Current Ratio of 1.91 indicates that AZPN should not have too much problems paying its short term obligations.
AZPN has a Current ratio of 1.91. This is comparable to the rest of the industry: AZPN outperforms 56.99% of its industry peers.
A Quick Ratio of 1.91 indicates that AZPN should not have too much problems paying its short term obligations.
The Quick ratio of AZPN (1.91) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.91 |
3. Growth
3.1 Past
AZPN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.83%, which is quite impressive.
AZPN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.94% yearly.
EPS 1Y (TTM)33.83%
EPS 3Y8.27%
EPS 5Y9.94%
EPS Q2Q%-26.72%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-13.41%
3.2 Future
AZPN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.01% yearly.
AZPN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.55% yearly.
EPS Next Y16.1%
EPS Next 2Y12.61%
EPS Next 3Y10.88%
EPS Next 5Y7.01%
Revenue Next Year7.61%
Revenue Next 2Y7.59%
Revenue Next 3Y7.94%
Revenue Next 5Y8.55%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 39.73, the valuation of AZPN can be described as expensive.
Based on the Price/Earnings ratio, AZPN is valued a bit cheaper than 64.87% of the companies in the same industry.
AZPN's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.28.
A Price/Forward Earnings ratio of 29.86 indicates a quite expensive valuation of AZPN.
67.38% of the companies in the same industry are more expensive than AZPN, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of AZPN to the average of the S&P500 Index (23.53), we can say AZPN is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.73 | ||
| Fwd PE | 29.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AZPN is valued a bit cheaper than the industry average as 68.10% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AZPN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.24 | ||
| EV/EBITDA | 50.27 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AZPN does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.47
PEG (5Y)4
EPS Next 2Y12.61%
EPS Next 3Y10.88%
5. Dividend
5.1 Amount
No dividends for AZPN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ASPEN TECHNOLOGY INC
NASDAQ:AZPN (1/14/2025, 8:25:01 PM)
After market: 249.91 0 (0%)249.91
+0.85 (+0.34%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners48.35%
Inst Owner Change-0.53%
Ins Owners0.05%
Ins Owner Change3.45%
Market Cap15.81B
Analysts76.25
Price Target252.12 (0.88%)
Short Float %4.7%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-15.87%
Min EPS beat(2)-21.21%
Max EPS beat(2)-10.54%
EPS beat(4)0
Avg EPS beat(4)-18.94%
Min EPS beat(4)-40.29%
Max EPS beat(4)-3.7%
EPS beat(8)2
Avg EPS beat(8)-8.44%
EPS beat(12)4
Avg EPS beat(12)-5.5%
EPS beat(16)6
Avg EPS beat(16)-1.3%
Revenue beat(2)0
Avg Revenue beat(2)-6.35%
Min Revenue beat(2)-7.68%
Max Revenue beat(2)-5.02%
Revenue beat(4)0
Avg Revenue beat(4)-9.38%
Min Revenue beat(4)-21.1%
Max Revenue beat(4)-3.72%
Revenue beat(8)1
Avg Revenue beat(8)-19.92%
Revenue beat(12)1
Avg Revenue beat(12)-22.28%
Revenue beat(16)3
Avg Revenue beat(16)-15.99%
PT rev (1m)1.47%
PT rev (3m)1.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.73 | ||
| Fwd PE | 29.86 | ||
| P/S | 14.95 | ||
| P/FCF | 55.24 | ||
| P/OCF | 54.24 | ||
| P/B | 1.23 | ||
| P/tB | 174.78 | ||
| EV/EBITDA | 50.27 |
EPS(TTM)6.29
EY2.52%
EPS(NY)8.37
Fwd EY3.35%
FCF(TTM)4.52
FCFY1.81%
OCF(TTM)4.61
OCFY1.84%
SpS16.71
BVpS203.15
TBVpS1.43
PEG (NY)2.47
PEG (5Y)4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.61% | ||
| ROE | -0.67% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 63.83% | ||
| FCFM | 27.07% |
ROA(3y)7.2%
ROA(5y)14.14%
ROE(3y)13.17%
ROE(5y)32.2%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-10.54%
GM growth 5Y-6.53%
F-Score6
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 1.07% | ||
| Cap/Sales | 0.5% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 93.78% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.91 | ||
| Altman-Z | 6.91 |
F-Score6
WACC11.44%
ROIC/WACCN/A
Cap/Depr(3y)9.15%
Cap/Depr(5y)12.36%
Cap/Sales(3y)0.6%
Cap/Sales(5y)0.46%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)33.83%
EPS 3Y8.27%
EPS 5Y9.94%
EPS Q2Q%-26.72%
EPS Next Y16.1%
EPS Next 2Y12.61%
EPS Next 3Y10.88%
EPS Next 5Y7.01%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-13.41%
Revenue Next Year7.61%
Revenue Next 2Y7.59%
Revenue Next 3Y7.94%
Revenue Next 5Y8.55%
EBIT growth 1Y-200.73%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year7.58%
EBIT Next 3Y13.34%
EBIT Next 5Y5.91%
FCF growth 1Y65.02%
FCF growth 3Y6.51%
FCF growth 5Y7.23%
OCF growth 1Y63.9%
OCF growth 3Y7.14%
OCF growth 5Y7.66%