ASPEN TECHNOLOGY INC (AZPN)
US29109X1063 - Common Stock
We assign a fundamental rating of 4 out of 10 to AZPN. AZPN was compared to 284 industry peers in the Software industry. The financial health of AZPN is average, but there are quite some concerns on its profitability. AZPN has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
AZPN had positive earnings in the past year.
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.
Of the past 5 years AZPN 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.61%, AZPN is in the better half of the industry, outperforming 62.54% of the companies in the same industry.
AZPN's Return On Equity of -0.67% is fine compared to the rest of the industry. AZPN outperforms 66.08% of its industry peers.
| 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
AZPN has a Gross Margin of 63.83%. This is comparable to the rest of the industry: AZPN outperforms 45.23% of its industry peers.
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.
AZPN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
AZPN has an Altman-Z score of 6.25. This indicates that AZPN is financially healthy and has little risk of bankruptcy at the moment.
AZPN has a Altman-Z score of 6.25. This is in the better half of the industry: AZPN outperforms 77.39% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.25 |
ROIC/WACCN/A
WACC9.5%
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 (1.91) which is in line with its industry peers.
A Quick Ratio of 1.91 indicates that AZPN should not have too much problems paying its short term obligations.
AZPN has a Quick ratio (1.91) which 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 14.98%, which is quite good.
The Earnings Per Share has been growing by 9.94% on average over the past years. This is quite good.
EPS 1Y (TTM)14.98%
EPS 3Y8.27%
EPS 5Y9.94%
EPS Q2Q%11.27%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%6.94%
3.2 Future
AZPN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.89% yearly.
AZPN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.63% yearly.
EPS Next Y15.36%
EPS Next 2Y9.36%
EPS Next 3Y8%
EPS Next 5Y7.89%
Revenue Next Year6.99%
Revenue Next 2Y7.51%
Revenue Next 3Y7.86%
Revenue Next 5Y10.63%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 34.11, AZPN can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of AZPN indicates a somewhat cheap valuation: AZPN is cheaper than 68.90% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AZPN to the average of the S&P500 Index (29.65), we can say AZPN is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 29.57, the valuation of AZPN can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AZPN indicates a somewhat cheap valuation: AZPN is cheaper than 63.96% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, AZPN is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.11 | ||
| Fwd PE | 29.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AZPN is valued a bit cheaper than the industry average as 65.72% of the companies are valued more expensively.
AZPN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.76 | ||
| EV/EBITDA | 45.4 |
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)2.22
PEG (5Y)3.43
EPS Next 2Y9.36%
EPS Next 3Y8%
5. Dividend
5.1 Amount
AZPN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ASPEN TECHNOLOGY INC
NASDAQ:AZPN (9/6/2024, 8:00:59 PM)
After market: 225.1 0 (0%)225.1
-3.4 (-1.49%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap14.24B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(16)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.11 | ||
| Fwd PE | 29.57 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.22
PEG (5Y)3.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.61% | ||
| ROE | -0.67% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 63.83% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.91 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)14.98%
EPS 3Y8.27%
EPS 5Y
EPS Q2Q%
EPS Next Y15.36%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y