ASPEN TECHNOLOGY INC (AZPN)
US29109X1063 - Common Stock
AZPN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 280 industry peers in the Software industry. No worries on liquidiy or solvency for AZPN as it has an excellent financial health rating, but there are worries on the profitability. AZPN is quite expensive at the moment. It does show a decent growth rate.
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.
AZPN had positive earnings in 4 of the past 5 years.
In the past 5 years AZPN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of AZPN (-0.92%) is better than 69.64% of its industry peers.
Looking at the Return On Equity, with a value of -1.01%, AZPN is in the better half of the industry, outperforming 73.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.92% | ||
| ROE | -1.01% | ||
| 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 63.50%, AZPN perfoms like the industry average, outperforming 46.79% 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 | 63.5% |
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.
The number of shares outstanding for AZPN remains at a similar level compared to 1 year ago.
Compared to 5 years ago, AZPN has less shares outstanding
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 5.39. This indicates that AZPN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of AZPN (5.39) is better than 73.93% 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 | 5.39 |
ROIC/WACCN/A
WACC10.79%
2.3 Liquidity
AZPN has a Current Ratio of 2.26. This indicates that AZPN is financially healthy and has no problem in meeting its short term obligations.
AZPN has a Current ratio of 2.26. This is in the better half of the industry: AZPN outperforms 62.86% of its industry peers.
A Quick Ratio of 2.26 indicates that AZPN has no problem at all paying its short term obligations.
AZPN has a better Quick ratio (2.26) than 63.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 2.26 |
3. Growth
3.1 Past
The earnings per share for AZPN have decreased strongly by -34.81% in the last year.
The Revenue has grown by 80.04% in the past year. This is a very strong growth!
Measured over the past years, AZPN shows a quite strong growth in Revenue. The Revenue has been growing by 15.52% on average per year.
EPS 1Y (TTM)-34.81%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-47.27%
Revenue 1Y (TTM)80.04%
Revenue growth 3Y20.37%
Revenue growth 5Y15.52%
Revenue growth Q2Q-0.6%
3.2 Future
AZPN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.91% yearly.
AZPN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.37% yearly.
EPS Next Y11.55%
EPS Next 2Y17.6%
EPS Next 3Y10.89%
EPS Next 5Y15.91%
Revenue Next Year11.13%
Revenue Next 2Y13.34%
Revenue Next 3Y5.29%
Revenue Next 5Y14.37%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 39.01, AZPN can be considered very expensive at the moment.
71.07% of the companies in the same industry are more expensive than AZPN, based on the Price/Earnings ratio.
AZPN is valuated expensively when we compare the Price/Earnings ratio to 24.46, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.95, which indicates a rather expensive current valuation of AZPN.
Based on the Price/Forward Earnings ratio, AZPN is valued cheaply inside the industry as 82.50% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 19.59, AZPN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.01 | ||
| Fwd PE | 18.95 |
4.2 Price Multiples
75.71% of the companies in the same industry are more expensive than AZPN, based on the Enterprise Value to EBITDA ratio.
AZPN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AZPN is cheaper than 71.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.36 | ||
| EV/EBITDA | 38.56 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.38
PEG (5Y)N/A
EPS Next 2Y17.6%
EPS Next 3Y10.89%
5. Dividend
5.1 Amount
AZPN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ASPEN TECHNOLOGY INC
NASDAQ:AZPN (11/28/2023, 7:00:00 PM)
After market: 183.36 0 (0%)183.36
-0.59 (-0.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-06 2023-11-06/amc
Earnings (Next)N/A N/A
Inst Owners45.1%
Inst Owner Change-1.03%
Ins Owners0.83%
Ins Owner Change10.08%
Market Cap11.69B
Analysts72
Price Target205.87 (12.28%)
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)-12.46%
Min EPS beat(2)-21.21%
Max EPS beat(2)-3.7%
EPS beat(4)0
Avg EPS beat(4)-34.82%
Min EPS beat(4)-74.06%
Max EPS beat(4)-3.7%
Revenue beat(2)0
Avg Revenue beat(2)-5.71%
Min Revenue beat(2)-7.68%
Max Revenue beat(2)-3.73%
Revenue beat(4)0
Avg Revenue beat(4)-11.37%
Min Revenue beat(4)-21.09%
Max Revenue beat(4)-3.73%
PT rev (1m)3.59%
PT rev (3m)5.86%
EPS NQ rev (1m)0.77%
EPS NQ rev (3m)8.06%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-3.71%
Revenue NQ rev (3m)-3.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.01 | ||
| Fwd PE | 18.95 | ||
| P/S | 11.21 | ||
| P/FCF | 38.36 | ||
| P/OCF | 37.57 | ||
| P/B | 0.9 | ||
| P/tB | 238.56 | ||
| EV/EBITDA | 38.56 |
EPS(TTM)4.7
EY2.56%
EPS(NY)9.67
Fwd EY5.28%
FCF(TTM)4.78
FCFY2.61%
OCF(TTM)4.88
OCFY2.66%
SpS16.35
BVpS202.78
TBVpS0.77
PEG (NY)3.38
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.92% | ||
| ROE | -1.01% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 63.5% | ||
| FCFM | 29.23% |
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-Score5
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 1.3% | ||
| Cap/Sales | 0.61% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 103.7% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.26 | ||
| Quick Ratio | 2.26 | ||
| Altman-Z | 5.39 |
F-Score5
WACC10.79%
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
Growth
EPS 1Y (TTM)-34.81%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-47.27%
EPS Next Y11.55%
EPS Next 2Y17.6%
EPS Next 3Y10.89%
EPS Next 5Y15.91%
Revenue 1Y (TTM)80.04%
Revenue growth 3Y20.37%
Revenue growth 5Y15.52%
Revenue growth Q2Q-0.6%
Revenue Next Year11.13%
Revenue Next 2Y13.34%
Revenue Next 3Y5.29%
Revenue Next 5Y14.37%
EBIT growth 1Y-13621.4%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year20.3%
EBIT Next 3Y8.87%
EBIT Next 5Y9.77%
FCF growth 1Y34.58%
FCF growth 3Y6.51%
FCF growth 5Y7.23%
OCF growth 1Y35.03%
OCF growth 3Y7.14%
OCF growth 5Y7.66%