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ASPEN TECHNOLOGY INC (AZPN) Stock Fundamental Analysis

USA - NASDAQ:AZPN - US29109X1063 - Common Stock

264.33 USD
+0.03 (+0.01%)
Last: 3/11/2025, 8:00:02 PM
264.6 USD
+0.27 (+0.1%)
After Hours: 3/11/2025, 8:00:02 PM
Fundamental Rating

5

AZPN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 284 industry peers in the Software industry. While AZPN has a great health rating, there are worries on its profitability. AZPN is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

In the past year AZPN was profitable.
In the past year AZPN had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: AZPN reported negative net income in multiple years.
Each year in the past 5 years AZPN had a positive operating cash flow.
AZPN Yearly Net Income VS EBIT VS OCF VS FCFAZPN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M 300M

1.2 Ratios

Looking at the Return On Assets, with a value of -0.07%, AZPN is in the better half of the industry, outperforming 60.85% of the companies in the same industry.
With a decent Return On Equity value of -0.08%, AZPN is doing good in the industry, outperforming 62.28% of the companies in the same industry.
Industry RankSector Rank
ROA -0.07%
ROE -0.08%
ROIC N/A
ROA(3y)-0.15%
ROA(5y)8.06%
ROE(3y)-0.17%
ROE(5y)17.74%
ROIC(3y)N/A
ROIC(5y)N/A
AZPN Yearly ROA, ROE, ROICAZPN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200 -200 400 600

1.3 Margins

AZPN has a Gross Margin (66.07%) which is comparable to the rest of the 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 RankSector Rank
OM N/A
PM (TTM) N/A
GM 66.07%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-10.29%
GM growth 5Y-6.06%
AZPN Yearly Profit, Operating, Gross MarginsAZPN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

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9

2. Health

2.1 Basic Checks

AZPN does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, AZPN has less shares outstanding
The number of shares outstanding for AZPN has been reduced compared to 5 years ago.
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.
AZPN Yearly Shares OutstandingAZPN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
AZPN Yearly Total Debt VS Total AssetsAZPN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B

2.2 Solvency

An Altman-Z score of 8.76 indicates that AZPN is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 8.76, AZPN belongs to the best of the industry, outperforming 82.21% of the companies in the same industry.
AZPN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 8.76
ROIC/WACCN/A
WACC10.78%
AZPN Yearly LT Debt VS Equity VS FCFAZPN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B 8B 10B

2.3 Liquidity

AZPN has a Current Ratio of 3.33. This indicates that AZPN is financially healthy and has no problem in meeting its short term obligations.
AZPN has a Current ratio of 3.33. This is in the better half of the industry: AZPN outperforms 76.87% of its industry peers.
AZPN has a Quick Ratio of 3.33. This indicates that AZPN is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 3.33, AZPN is doing good in the industry, outperforming 76.87% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 3.33
Quick Ratio 3.33
AZPN Yearly Current Assets VS Current LiabilitesAZPN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 22.03% over the past year.
Measured over the past years, AZPN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.94% on average per year.
Looking at the last year, AZPN shows a small growth in Revenue. The Revenue has grown by 7.98% in the last year.
The Revenue has been growing by 13.57% on average over the past years. This is quite good.
EPS 1Y (TTM)22.03%
EPS 3Y8.27%
EPS 5Y9.94%
EPS Q2Q%50.36%
Revenue 1Y (TTM)7.98%
Revenue growth 3Y16.7%
Revenue growth 5Y13.57%
Sales Q2Q%18.04%

3.2 Future

The Earnings Per Share is expected to grow by 7.03% on average over the next years.
Based on estimates for the next years, AZPN will show a quite strong growth in Revenue. The Revenue will grow by 8.75% on average per year.
EPS Next Y17.25%
EPS Next 2Y11.33%
EPS Next 3Y10.88%
EPS Next 5Y7.03%
Revenue Next Year7.88%
Revenue Next 2Y7.71%
Revenue Next 3Y7.91%
Revenue Next 5Y8.75%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
AZPN Yearly Revenue VS EstimatesAZPN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 500M 1B 1.5B 2B
AZPN Yearly EPS VS EstimatesAZPN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2 4 6 8 10

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2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 37.87, which means the current valuation is very expensive for AZPN.
Compared to the rest of the industry, the Price/Earnings ratio of AZPN indicates a somewhat cheap valuation: AZPN is cheaper than 61.57% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AZPN to the average of the S&P500 Index (26.03), we can say AZPN is valued slightly more expensively.
A Price/Forward Earnings ratio of 32.31 indicates a quite expensive valuation of AZPN.
Based on the Price/Forward Earnings ratio, AZPN is valued a bit cheaper than 64.77% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AZPN to the average of the S&P500 Index (22.27), we can say AZPN is valued slightly more expensively.
Industry RankSector Rank
PE 37.87
Fwd PE 32.31
AZPN Price Earnings VS Forward Price EarningsAZPN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AZPN indicates a somewhat cheap valuation: AZPN is cheaper than 68.68% of the companies listed in the same industry.
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 RankSector Rank
P/FCF 54.42
EV/EBITDA 40.9
AZPN Per share dataAZPN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150 200

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)2.2
PEG (5Y)3.81
EPS Next 2Y11.33%
EPS Next 3Y10.88%

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0

5. Dividend

5.1 Amount

AZPN does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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ASPEN TECHNOLOGY INC

NASDAQ:AZPN (3/11/2025, 8:00:02 PM)

After market: 264.6 +0.27 (+0.1%)

264.33

+0.03 (+0.01%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-04 2025-02-04/amc
Earnings (Next)N/A N/A
Inst Owners46.66%
Inst Owner Change-38.69%
Ins Owners0.05%
Ins Owner Change0%
Market Cap16.73B
Revenue(TTM)1.13B
Net Income(TTM)-9771000
Analysts73.75
Price Target272.83 (3.22%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0.49
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-19.3%
Min EPS beat(2)-46.89%
Max EPS beat(2)8.29%
EPS beat(4)3
Avg EPS beat(4)-3.07%
Min EPS beat(4)-46.89%
Max EPS beat(4)14.53%
EPS beat(8)3
Avg EPS beat(8)-11%
EPS beat(12)5
Avg EPS beat(12)-6.65%
EPS beat(16)7
Avg EPS beat(16)-4.89%
Revenue beat(2)1
Avg Revenue beat(2)-9.99%
Min Revenue beat(2)-20.92%
Max Revenue beat(2)0.94%
Revenue beat(4)3
Avg Revenue beat(4)-2.09%
Min Revenue beat(4)-20.92%
Max Revenue beat(4)6.27%
Revenue beat(8)3
Avg Revenue beat(8)-5.74%
Revenue beat(12)4
Avg Revenue beat(12)-13.98%
Revenue beat(16)4
Avg Revenue beat(16)-17.24%
PT rev (1m)3.03%
PT rev (3m)9.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.73%
EPS NY rev (1m)0%
EPS NY rev (3m)1.49%
Revenue NQ rev (1m)1.62%
Revenue NQ rev (3m)4.06%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)0.25%
Valuation
Industry RankSector Rank
PE 37.87
Fwd PE 32.31
P/S 14.84
P/FCF 54.42
P/OCF 51.21
P/B 1.31
P/tB 36.33
EV/EBITDA 40.9
EPS(TTM)6.98
EY2.64%
EPS(NY)8.18
Fwd EY3.09%
FCF(TTM)4.86
FCFY1.84%
OCF(TTM)5.16
OCFY1.95%
SpS17.81
BVpS201.82
TBVpS7.28
PEG (NY)2.2
PEG (5Y)3.81
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA -0.07%
ROE -0.08%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 66.07%
FCFM 27.27%
ROA(3y)-0.15%
ROA(5y)8.06%
ROE(3y)-0.17%
ROE(5y)17.74%
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
ROICexgc growth 3YN/A
ROICexgc 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-10.29%
GM growth 5Y-6.06%
F-Score8
Asset Turnover0.08
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 3.91%
Cap/Sales 1.71%
Interest Coverage N/A
Cash Conversion 80.75%
Profit Quality N/A
Current Ratio 3.33
Quick Ratio 3.33
Altman-Z 8.76
F-Score8
WACC10.78%
ROIC/WACCN/A
Cap/Depr(3y)2.54%
Cap/Depr(5y)9.1%
Cap/Sales(3y)1%
Cap/Sales(5y)0.71%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)22.03%
EPS 3Y8.27%
EPS 5Y9.94%
EPS Q2Q%50.36%
EPS Next Y17.25%
EPS Next 2Y11.33%
EPS Next 3Y10.88%
EPS Next 5Y7.03%
Revenue 1Y (TTM)7.98%
Revenue growth 3Y16.7%
Revenue growth 5Y13.57%
Sales Q2Q%18.04%
Revenue Next Year7.88%
Revenue Next 2Y7.71%
Revenue Next 3Y7.91%
Revenue Next 5Y8.75%
EBIT growth 1Y51.1%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year21.32%
EBIT Next 3Y18.97%
EBIT Next 5Y7.32%
FCF growth 1Y194.26%
FCF growth 3Y5.65%
FCF growth 5Y6.4%
OCF growth 1Y203.73%
OCF growth 3Y7.17%
OCF growth 5Y7.36%

ASPEN TECHNOLOGY INC / AZPN FAQ

What is the fundamental rating for AZPN stock?

ChartMill assigns a fundamental rating of 5 / 10 to AZPN.


Can you provide the valuation status for ASPEN TECHNOLOGY INC?

ChartMill assigns a valuation rating of 2 / 10 to ASPEN TECHNOLOGY INC (AZPN). This can be considered as Overvalued.


What is the profitability of AZPN stock?

ASPEN TECHNOLOGY INC (AZPN) has a profitability rating of 3 / 10.


What are the PE and PB ratios of ASPEN TECHNOLOGY INC (AZPN) stock?

The Price/Earnings (PE) ratio for ASPEN TECHNOLOGY INC (AZPN) is 37.87 and the Price/Book (PB) ratio is 1.31.


What is the expected EPS growth for ASPEN TECHNOLOGY INC (AZPN) stock?

The Earnings per Share (EPS) of ASPEN TECHNOLOGY INC (AZPN) is expected to grow by 17.25% in the next year.