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ASPEN TECHNOLOGY INC (AZPN) Stock Fundamental Analysis

NASDAQ:AZPN - Nasdaq - US29109X1063 - Common Stock - Currency: USD

263.9  -0.1 (-0.04%)

After market: 263.9 0 (0%)

Fundamental Rating

5

Taking everything into account, AZPN scores 5 out of 10 in our fundamental rating. AZPN was compared to 284 industry peers in the Software industry. While AZPN has a great health rating, there are worries on its profitability. AZPN is quite expensive at the moment. 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.
AZPN had a positive operating cash flow in the past year.
In multiple years AZPN reported negative net income over the last 5 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

AZPN's Return On Assets of -0.07% is fine compared to the rest of the industry. AZPN outperforms 60.14% of its industry peers.
AZPN has a better Return On Equity (-0.08%) than 61.59% of its industry peers.
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

With a Gross Margin value of 66.07%, AZPN perfoms like the industry average, outperforming 47.46% of the companies in the same industry.
AZPN's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for AZPN so they could not be analyzed.
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.
AZPN has less shares outstanding than it did 1 year ago.
The number of shares outstanding for AZPN has been reduced compared to 5 years ago.
AZPN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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

AZPN has an Altman-Z score of 8.75. This indicates that AZPN is financially healthy and has little risk of bankruptcy at the moment.
AZPN has a Altman-Z score of 8.75. This is in the better half of the industry: AZPN outperforms 77.90% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 8.75
ROIC/WACCN/A
WACC13.99%
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.
Looking at the Current ratio, with a value of 3.33, AZPN is in the better half of the industry, outperforming 79.35% of the companies in the same industry.
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.
The Quick ratio of AZPN (3.33) is better than 79.35% of its industry peers.
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

AZPN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.03%, 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.
The Revenue has been growing slightly by 7.98% in the past year.
Measured over the past years, AZPN shows a quite strong growth in Revenue. The Revenue has been growing by 13.57% on average per year.
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 7.01% on average over the next years.
The Revenue is expected to grow by 8.55% on average over the next years. This is quite good.
EPS Next Y17.25%
EPS Next 2Y11.33%
EPS Next 3Y10.88%
EPS Next 5Y7.01%
Revenue Next Year7.52%
Revenue Next 2Y7.59%
Revenue Next 3Y7.91%
Revenue Next 5Y8.55%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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

With a Price/Earnings ratio of 37.81, AZPN can be considered very expensive at the moment.
Based on the Price/Earnings ratio, AZPN is valued a bit cheaper than 64.86% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, AZPN is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 32.26, the valuation of AZPN can be described as expensive.
Based on the Price/Forward Earnings ratio, AZPN is valued a bit cheaper than 67.03% of the companies in the same industry.
AZPN is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 37.81
Fwd PE 32.26
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 71.74% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as AZPN.
Industry RankSector Rank
P/FCF 54.33
EV/EBITDA 40.85
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)2.19
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 (2/21/2025, 8:02:33 PM)

After market: 263.9 0 (0%)

263.9

-0.1 (-0.04%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-04 2025-02-04/amc
Earnings (Next)N/A N/A
Inst Owners48.35%
Inst Owner Change-4.33%
Ins Owners0.05%
Ins Owner Change3.01%
Market Cap16.71B
Analysts73.75
Price Target264.81 (0.34%)
Short Float %4.49%
Short Ratio2.11
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)5.04%
PT rev (3m)7.08%
EPS NQ rev (1m)7.73%
EPS NQ rev (3m)38.45%
EPS NY rev (1m)0.99%
EPS NY rev (3m)1.49%
Revenue NQ rev (1m)2.4%
Revenue NQ rev (3m)4.85%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 37.81
Fwd PE 32.26
P/S 14.82
P/FCF 54.33
P/OCF 51.12
P/B 1.31
P/tB 36.27
EV/EBITDA 40.85
EPS(TTM)6.98
EY2.64%
EPS(NY)8.18
Fwd EY3.1%
FCF(TTM)4.86
FCFY1.84%
OCF(TTM)5.16
OCFY1.96%
SpS17.81
BVpS201.82
TBVpS7.28
PEG (NY)2.19
PEG (5Y)3.81
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
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-10.29%
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 8.75
F-Score8
WACC13.99%
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 5Y7.01%
Revenue 1Y (TTM)7.98%
Revenue growth 3Y16.7%
Revenue growth 5Y13.57%
Sales Q2Q%18.04%
Revenue Next Year7.52%
Revenue Next 2Y7.59%
Revenue Next 3Y7.91%
Revenue Next 5Y8.55%
EBIT growth 1Y51.1%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year21.32%
EBIT Next 3Y18.97%
EBIT Next 5Y7.18%
FCF growth 1Y194.26%
FCF growth 3Y5.65%
FCF growth 5Y6.4%
OCF growth 1Y203.73%
OCF growth 3Y7.17%
OCF growth 5Y7.36%