AZPN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 278 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.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year AZPN was profitable.
AZPN had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: AZPN reported negative net income in multiple years.
In the past 5 years AZPN always reported a positive cash flow from operatings.

1.2 Ratios

AZPN's Return On Assets of -0.07% is fine compared to the rest of the industry. AZPN outperforms 60.85% of its industry peers.
AZPN has a Return On Equity of -0.08%. This is in the better half of the industry: AZPN outperforms 62.28% of its industry peers.

		Industry Rank	Sector 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

1.3 Margins

With a Gross Margin value of 66.07%, AZPN perfoms like the industry average, outperforming 48.40% of the companies in the same industry.
In the last couple of years the Gross Margin of AZPN has declined.
The Profit Margin and Operating Margin are not available for AZPN so they could not be analyzed.

		Industry Rank	Sector 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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
AZPN has less shares outstanding than it did 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.

2.2 Solvency

An Altman-Z score of 8.76 indicates that AZPN is not in any danger for bankruptcy at the moment.
AZPN has a Altman-Z score of 8.76. This is amongst the best in the industry. AZPN outperforms 82.21% 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	8.76

ROIC/WACCN/A

WACC10.78%

2.3 Liquidity

A Current Ratio of 3.33 indicates that AZPN has no problem at all paying its short term obligations.
AZPN's Current ratio of 3.33 is fine compared to the rest of the industry. AZPN outperforms 76.87% of its industry peers.
A Quick Ratio of 3.33 indicates that AZPN has no problem at all paying its short term obligations.
AZPN's Quick ratio of 3.33 is fine compared to the rest of the industry. AZPN outperforms 76.87% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	3.33
Quick Ratio	3.33

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WACC

Debt/Equity

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Altman-Z score

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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.
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.
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 7.03% on average over the next years.
AZPN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.75% yearly.

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

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 37.87, which means the current valuation is very expensive for AZPN.
Based on the Price/Earnings ratio, AZPN is valued a bit cheaper than the industry average as 61.57% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.30, AZPN is valued a bit more expensive.
With a Price/Forward Earnings ratio of 32.31, AZPN can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AZPN indicates a somewhat cheap valuation: AZPN is cheaper than 64.77% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, AZPN is valued a bit more expensive.

		Industry Rank	Sector Rank
PE	37.87
Fwd PE	32.31

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, AZPN is valued a bit cheaper than 68.68% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as AZPN.

		Industry Rank	Sector Rank
P/FCF	54.42
EV/EBITDA	40.9

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.