ASPEN TECHNOLOGY INC (AZPN)

US29109X1063 - Common Stock

213.28  +5.37 (+2.58%)

After market: 213.28 0 (0%)

Fundamental Rating

5

Taking everything into account, AZPN scores 5 out of 10 in our fundamental rating. AZPN was compared to 279 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 not valued too expensively and it also shows a decent growth rate.



3

1. Profitability

1.1 Basic Checks

AZPN had positive earnings in the past year.
AZPN had a positive operating cash flow in the past year.
AZPN had positive earnings in 4 of the past 5 years.
Each year in the past 5 years AZPN had a positive operating cash flow.

1.2 Ratios

With a decent Return On Assets value of -0.61%, AZPN is doing good in the industry, outperforming 68.70% of the companies in the same industry.
With a decent Return On Equity value of -0.67%, AZPN is doing good in the industry, outperforming 70.86% of the companies in the same industry.
Industry RankSector 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 (63.83%) which is in line with its industry peers.
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 RankSector 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%

7

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 about the same amout of shares outstanding than it did 1 year ago.
AZPN has less shares outstanding than it did 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.

2.2 Solvency

AZPN has an Altman-Z score of 5.95. This indicates that AZPN is financially healthy and has little risk of bankruptcy at the moment.
AZPN has a better Altman-Z score (5.95) than 72.30% 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 5.95
ROIC/WACCN/A
WACC9.37%

2.3 Liquidity

A Current Ratio of 1.91 indicates that AZPN should not have too much problems paying its short term obligations.
AZPN's Current ratio of 1.91 is in line compared to the rest of the industry. AZPN outperforms 56.12% of its industry peers.
AZPN has a Quick Ratio of 1.91. This is a normal value and indicates that AZPN is financially healthy and should not expect problems in meeting its short term obligations.
AZPN has a Quick ratio of 1.91. This is comparable to the rest of the industry: AZPN outperforms 56.83% of its industry peers.
Industry RankSector Rank
Current Ratio 1.91
Quick Ratio 1.91

5

3. Growth

3.1 Past

The earnings per share for AZPN have decreased strongly by -10.06% in the last year.
AZPN shows a strong growth in Revenue. In the last year, the Revenue has grown by 42.81%.
The Revenue has been growing by 15.52% on average over the past years. This is quite good.
EPS 1Y (TTM)-10.06%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q291.43%
Revenue 1Y (TTM)42.81%
Revenue growth 3Y20.37%
Revenue growth 5Y15.52%
Revenue growth Q2Q5.92%

3.2 Future

Based on estimates for the next years, AZPN will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.95% on average per year.
The Revenue is expected to grow by 9.66% on average over the next years. This is quite good.
EPS Next Y33.18%
EPS Next 2Y28.49%
EPS Next 3Y11.66%
EPS Next 5Y12.95%
Revenue Next Year24.11%
Revenue Next 2Y19.77%
Revenue Next 3Y9.14%
Revenue Next 5Y9.66%

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 decreasing.

4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 37.29, 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 73.38% of the companies are valued more expensively.
AZPN is valuated rather expensively when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 22.05, the valuation of AZPN can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AZPN indicates a rather cheap valuation: AZPN is cheaper than 81.65% of the companies listed in the same industry.
AZPN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.79.
Industry RankSector Rank
PE 37.29
Fwd PE 22.05

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, AZPN is valued a bit cheaper than 73.38% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AZPN indicates a somewhat cheap valuation: AZPN is cheaper than 65.83% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 47.37
EV/EBITDA 43.2

4.3 Compensation for Growth

AZPN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.12
PEG (5Y)N/A
EPS Next 2Y28.49%
EPS Next 3Y11.66%

0

5. Dividend

5.1 Amount

No dividends for AZPN!.
Industry RankSector Rank
Dividend Yield N/A

ASPEN TECHNOLOGY INC

NASDAQ:AZPN (3/28/2024, 8:00:01 PM)

After market: 213.28 0 (0%)

213.28

+5.37 (+2.58%)

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 Cap13.55B
Analysts
Price Target
Dividend
Industry RankSector 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)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 37.29
Fwd PE 22.05
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)1.12
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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)
Growth
EPS 1Y (TTM)-10.06%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y33.18%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)42.81%
Revenue growth 3Y20.37%
Revenue growth 5Y
Revenue growth 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