Aspen Technology
Aspen Technology, Inc., together with its subsidiaries, operates as an asset optimization software company in the United States, Europe, and internationally. The last earnings update was 55 days ago. More info.
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- Aspen Technology has significant price volatility in the past 3 months.
AZPN Share Price and Events
7 Day Returns
1 Year Returns
AZPN Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Aspen Technology (AZPN) | 2.1% | 2.6% | 26.8% | 26.8% | 189.9% | 134% |
| US Software | 2.5% | 5.1% | 18.3% | 24.3% | 108.3% | 136.1% |
| US Market | 1.6% | 2.1% | 12.8% | 3.2% | 38.6% | 43.6% |
1 Year Return vs Industry and Market
- AZPN outperformed the Software industry which returned 24.3% over the past year.
- AZPN outperformed the Market in United States of America which returned 3.2% over the past year.
Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Aspen Technology
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Aspen Technology.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 8 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 9.4% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Software Unlevered Beta | Simply Wall St/ S&P Global | 1.14 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.139 (1 + (1- 21%) (3.08%)) |
1.112 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.11 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.112 * 5.96%) |
9.36% |
Discounted Cash Flow Calculation for NasdaqGS:AZPN using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Aspen Technology is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 9.36%) |
|
|---|---|---|---|
| 2019 | 224.09 | Analyst x6 | 204.92 |
| 2020 | 245.60 | Analyst x6 | 205.37 |
| 2021 | 268.15 | Analyst x2 | 205.04 |
| 2022 | 286.84 | Est @ 6.97% | 200.56 |
| 2023 | 303.18 | Est @ 5.7% | 193.85 |
| 2024 | 317.75 | Est @ 4.81% | 185.79 |
| 2025 | 331.05 | Est @ 4.18% | 177.00 |
| 2026 | 343.45 | Est @ 3.75% | 167.92 |
| 2027 | 355.28 | Est @ 3.44% | 158.84 |
| 2028 | 366.75 | Est @ 3.23% | 149.94 |
| Present value of next 10 years cash flows | $1,849.23 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $366.75 × (1 + 2.73%) ÷ (9.36% – 2.73%) |
$5,685.52 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $5,685.52 ÷ (1 + 9.36%)10 |
$2,324.43 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $1,849.23 + $2,324.43 |
$4,173.67 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $4,173.67 / 69.65 |
$59.93 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $59.93 |
| Current discount | Discount to share price of
$102.61
= -1 x ($102.61 - $59.93) / $59.93 |
-71.2% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Aspen Technology is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Aspen Technology's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Aspen Technology's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $1.03 |
| NasdaqGS:AZPN Share Price ** | NasdaqGS (2019-03-19) in USD | $102.61 |
| United States of America Software Industry PE Ratio | Median Figure of 84 Publicly-Listed Software Companies | 52.56x |
| United States of America Market PE Ratio | Median Figure of 3,056 Publicly-Listed Companies | 17.77x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Aspen Technology.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NasdaqGS:AZPN Share Price ÷ EPS (both in USD) = 102.61 ÷ 1.03 |
99.44x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Aspen Technology is overvalued based on earnings compared to the US Software industry average.
- Aspen Technology is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Aspen Technology's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 99.44x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts |
13.7%per year |
| United States of America Software Industry PEG Ratio | Median Figure of 66 Publicly-Listed Software Companies | 3.58x |
| United States of America Market PEG Ratio | Median Figure of 2,107 Publicly-Listed Companies | 1.49x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 99.44x ÷ 13.7% |
7.27x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Aspen Technology is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Aspen Technology's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $6.19 |
| NasdaqGS:AZPN Share Price * | NasdaqGS (2019-03-19) in USD | $102.61 |
| United States of America Software Industry PB Ratio | Median Figure of 220 Publicly-Listed Software Companies | 5.72x |
| United States of America Market PB Ratio | Median Figure of 5,154 Publicly-Listed Companies | 1.89x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NasdaqGS:AZPN Share Price ÷ Book Value per Share (both in USD) = 102.61 ÷ 6.19 |
16.57x |
* Primary Listing of Aspen Technology.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Aspen Technology is overvalued based on assets compared to the US Software industry average.
Value checks
We assess Aspen Technology's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Software industry average (and greater than 0)? (1 check) Aspen Technology has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Aspen Technology's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Aspen Technology's earnings growth is positive but not above the United States of America market average.
- Aspen Technology's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NasdaqGS:AZPN Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts | 13.7% |
| NasdaqGS:AZPN Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts | 5.8% |
| United States of America Software Industry Earnings Growth Rate | Market Cap Weighted Average | 16.1% |
| United States of America Software Industry Revenue Growth Rate | Market Cap Weighted Average | 10.8% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14.3% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 8 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-06-30 | 634 | 272 | 255 | 4 |
| 2020-06-30 | 563 | 252 | 213 | 8 |
| 2019-06-30 | 560 | 229 | 224 | 8 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 522 | 215 | 73 |
| 2018-09-30 | 487 | 200 | 146 |
| 2018-06-30 | 500 | 207 | 149 |
| 2018-03-31 | 482 | 201 | 265 |
| 2017-12-31 | 475 | 184 | 263 |
| 2017-09-30 | 489 | 168 | 168 |
| 2017-06-30 | 483 | 182 | 162 |
| 2017-03-31 | 473 | 154 | 141 |
| 2016-12-31 | 473 | 168 | 139 |
| 2016-09-30 | 472 | 162 | 138 |
| 2016-06-30 | 472 | 154 | 140 |
| 2016-03-31 | 473 | 162 | 137 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 8 Analyst Estimates (S&P Global) | See Below |
All data from Aspen Technology Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-06-30 | 3.66 | 3.89 | 3.51 | 3.00 |
| 2020-06-30 | 3.00 | 3.29 | 2.81 | 6.00 |
| 2019-06-30 | 3.14 | 3.28 | 2.99 | 6.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | 1.03 |
| 2018-09-30 | 2.04 |
| 2018-06-30 | 2.06 |
| 2018-03-31 | 3.63 |
| 2017-12-31 | 3.56 |
| 2017-09-30 | 2.24 |
| 2017-06-30 | 2.12 |
| 2017-03-31 | 1.80 |
| 2016-12-31 | 1.73 |
| 2016-09-30 | 1.69 |
| 2016-06-30 | 1.69 |
| 2016-03-31 | 1.64 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Unable to establish if Aspen Technology will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
Future performance checks
We assess Aspen Technology's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Aspen Technology has a total score of 1/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Aspen Technology performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Aspen Technology's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
- Aspen Technology's 1-year earnings growth is negative, it can't be compared to the 5-year average.
- Aspen Technology's 1-year earnings growth is negative, it can't be compared to the US Software industry average.
Earnings and Revenue History
All data from Aspen Technology Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 522.09 | 73.42 | 159.42 | 84.17 |
| 2018-09-30 | 487.20 | 146.23 | 159.81 | 83.64 |
| 2018-06-30 | 499.51 | 148.69 | 155.46 | 82.08 |
| 2018-03-31 | 481.57 | 264.74 | 159.82 | 82.82 |
| 2017-12-31 | 474.98 | 262.74 | 153.85 | 81.58 |
| 2017-09-30 | 489.38 | 167.72 | 145.55 | 80.39 |
| 2017-06-30 | 482.94 | 162.20 | 142.18 | 79.53 |
| 2017-03-31 | 472.94 | 141.17 | 139.49 | 74.33 |
| 2016-12-31 | 472.88 | 138.51 | 139.61 | 71.80 |
| 2016-09-30 | 472.10 | 138.18 | 139.87 | 69.19 |
| 2016-06-30 | 472.34 | 139.95 | 139.99 | 67.15 |
| 2016-03-31 | 472.85 | 137.43 | 141.39 | 67.43 |
| 2015-12-31 | 464.93 | 132.43 | 143.81 | 69.94 |
| 2015-09-30 | 453.57 | 126.21 | 143.80 | 69.91 |
| 2015-06-30 | 440.40 | 118.41 | 142.35 | 69.58 |
| 2015-03-31 | 427.75 | 114.28 | 140.28 | 68.32 |
| 2014-12-31 | 420.04 | 106.95 | 138.44 | 69.79 |
| 2014-09-30 | 411.01 | 99.75 | 139.68 | 68.84 |
| 2014-06-30 | 391.45 | 85.78 | 140.63 | 68.41 |
| 2014-03-31 | 373.19 | 79.50 | 144.05 | 68.58 |
| 2013-12-31 | 348.96 | 69.17 | 143.59 | 62.56 |
| 2013-09-30 | 327.50 | 55.85 | 143.38 | 62.58 |
| 2013-06-30 | 311.39 | 45.26 | 142.93 | 62.52 |
| 2013-03-31 | 292.14 | 19.48 | 145.10 | 61.84 |
| 2012-12-31 | 274.12 | 8.44 | 147.84 | 60.49 |
| 2012-09-30 | 263.37 | 2.34 | 146.67 | 58.22 |
| 2012-06-30 | 243.13 | -13.81 | 151.65 | 56.22 |
| 2012-03-31 | 231.76 | 33.26 | 152.61 | 54.78 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Aspen Technology has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Aspen Technology used its assets more efficiently than the US Software industry average last year based on Return on Assets.
- Aspen Technology's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Aspen Technology's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Aspen Technology has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Aspen Technology's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Aspen Technology's finances.
The net worth of a company is the difference between its assets and liabilities.
- Aspen Technology is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Aspen Technology's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 2.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Aspen Technology Company Filings, last reported 2 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 432.19 | 220.00 | 54.43 |
| 2018-09-30 | 473.12 | 170.00 | 52.05 |
| 2018-06-30 | -284.12 | 170.00 | 96.17 |
| 2018-03-31 | -278.61 | 170.00 | 71.08 |
| 2017-12-31 | -274.51 | 151.00 | 48.70 |
| 2017-09-30 | -267.46 | 140.00 | 58.98 |
| 2017-06-30 | -260.78 | 140.00 | 101.95 |
| 2017-03-31 | -249.50 | 140.00 | 101.69 |
| 2016-12-31 | -192.88 | 140.00 | 139.97 |
| 2016-09-30 | -183.59 | 140.00 | 191.55 |
| 2016-06-30 | -75.03 | 140.00 | 321.34 |
| 2016-03-31 | -35.46 | 140.00 | 105.94 |
| 2015-12-31 | -22.20 | 0.00 | 200.57 |
| 2015-09-30 | -63.02 | 0.00 | 181.50 |
| 2015-06-30 | -48.55 | 0.00 | 215.45 |
| 2015-03-31 | -26.79 | 0.00 | 215.81 |
| 2014-12-31 | 37.72 | 0.00 | 231.12 |
| 2014-09-30 | 69.99 | 0.00 | 265.49 |
| 2014-06-30 | 83.68 | 0.00 | 267.15 |
| 2014-03-31 | 86.20 | 0.00 | 256.84 |
| 2013-12-31 | 90.48 | 0.00 | 218.65 |
| 2013-09-30 | 94.30 | 0.00 | 195.40 |
| 2013-06-30 | 101.90 | 0.00 | 189.45 |
| 2013-03-31 | 99.83 | 0.00 | 169.58 |
| 2012-12-31 | 104.30 | 0.00 | 175.22 |
| 2012-09-30 | 108.20 | 5.62 | 163.36 |
| 2012-06-30 | 113.59 | 10.76 | 165.24 |
| 2012-03-31 | 129.89 | 33.63 | 182.56 |
- Aspen Technology's level of debt (50.9%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (0% vs 50.9% today).
- Debt is well covered by operating cash flow (97.9%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 45.3x coverage).
Financial health checks
We assess Aspen Technology's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Aspen Technology has a total score of 4/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Aspen Technology's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Aspen Technology
shares you are expected to receive
$0
in your first year as a dividend.
Dividend Amount
- Unable to evaluate Aspen Technology's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
- Unable to evaluate Aspen Technology's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 8 Analyst Estimates (S&P Global) | See Below |
| United States of America Software Industry Average Dividend Yield | Market Cap Weighted Average of 24 Stocks | 1.5% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2004 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-06-30 | ||
| 2020-06-30 | 0.00 | 1.00 |
| 2019-06-30 | 0.00 | 1.00 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to perform a dividend volatility check as Aspen Technology has not reported any payouts.
- Unable to verify if Aspen Technology's dividend has been increasing as the company has not reported any payouts.
Income/ dividend checks
We assess Aspen Technology's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Aspen Technology afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Aspen Technology has a total score of 0/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $6,325,453 |
| AGE | 52 |
| TENURE AS CEO | 5.4 years |
CEO Bio
Mr. Antonio J. Pietri has been the Chief Executive Officer and President at Aspen Technology, Inc. since October 1, 2013. Mr. Pietri served as Executive Vice President of Worldwide Field Operations of Aspen Technology, Inc., since July 2007 until October 2013. He served as Senior Vice President and Managing Director for the APAC Region of Aspen Technology Inc. from 2002 to June 2007. From 1996 to 2002, he held various positions in Aspen. From 1992 to 1996, he worked at Setpoint Systems,Inc., which it acquired and before that he worked at ABB Simcon and AECTRA Refining and Marketing, Inc. He has been a Director of Aspen Technology, Inc. since July 1, 2013. He holds an M.B.A. from the University of Houston and a B.S. degree in Chemical Engineering from the University of Tulsa.
CEO Compensation
- Antonio's compensation has been consistent with company performance over the past year.
- Antonio's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Aspen Technology management team in years:
- The average tenure for the Aspen Technology management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
Antonio Pietri
President
$6M
52
5.4 yrs
Karl Johnsen
Senior VP & CFO
$2M
50
3.4 yrs
Fritz Hammond
Senior VP
$1M
58
13.7 yrs
Gary Weiss
Chief Operating Officer
51
0.6 yrs
Willie Chan
Chief Technology Officer
3.6 yrs
Bill Scudder
Senior VP & Chief Information Officer
0.6 yrs
Glover Lawrence
Senior Vice President of Corporate Development
50
Michele Triponey
Executive VP of Field Operations & Chief Customer Success Officer
13.4 yrs
John Hague
Senior VP & GM of APM Business Unit
8.3 yrs
Henry Lau
MD of Regional Sales & Services - APAC & Senior VP
11.9 yrs
Board of Directors Tenure
Average tenure and age of the Aspen Technology board of directors in years:
- The tenure for the Aspen Technology board of directors is about average.
Board of Directors
Bob Whelan
Chairman
$371K
66
6.2 yrs
Antonio Pietri
President
$6M
52
5.7 yrs
Gary Haroian
Director
$309K
66
15.3 yrs
Don Casey
Director
$324K
71
14.9 yrs
Joan McArdle
Independent Director
$294K
67
25.2 yrs
Simon J. Gann
Director
$289K
67
8.1 yrs
R. Wise
Director
$294K
53
2.7 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 05. Feb 19 | Sell | Robert Whelan | Individual | 01. Feb 19 | 01. Feb 19 | -1,250 | $96.86 | $-121,075 | ||
| 04. Feb 19 | Sell | Karl Johnsen | Individual | 31. Jan 19 | 31. Jan 19 | -2,388 | $96.50 | $-230,430 | ||
| 01. Nov 18 | Sell | Karl Johnsen | Individual | 30. Oct 18 | 30. Oct 18 | -2,387 | $80.69 | $-192,595 | ||
| 22. Aug 18 | Sell | Robert Whelan | Individual | 20. Aug 18 | 20. Aug 18 | -1,250 | $107.76 | $-134,705 | ||
| 15. Aug 18 | Sell | Karl Johnsen | Individual | 13. Aug 18 | 13. Aug 18 | -2,132 | $108.07 | $-230,405 | ||
| 15. Aug 18 | Sell | Frederic Hammond | Individual | 13. Aug 18 | 13. Aug 18 | -1,578 | $107.51 | $-169,651 | ||
| 04. May 18 | Sell | Frederic Hammond | Individual | 02. May 18 | 02. May 18 | -1,585 | $88.00 | $-139,480 | ||
| 02. May 18 | Sell | Karl Johnsen | Individual | 30. Apr 18 | 30. Apr 18 | -2,659 | $89.17 | $-237,103 | ||
| 02. May 18 | Sell | Robert Whelan | Individual | 30. Apr 18 | 30. Apr 18 | -1,500 | $88.03 | $-132,045 | ||
Management checks
We assess Aspen Technology's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Aspen Technology has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Is Aspen Technology's Share Price Gain Of 193% Well Earned?
(NASDAQ:AZPN) share price is 193% higher than it was three years ago. … It's also good to see the share price up 17% over the last quarter. … During the three years of share price growth, Aspen Technology actually saw its earnings per share (EPS) drop 13% per year.
Simply Wall St - – Full articleDoes Aspen Technology, Inc.'s (NASDAQ:AZPN) CEO Pay Compare Well With Peers?
In 2013 Antonio Pietri was appointed CEO of Aspen Technology, Inc. … First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Antonio Pietri's Compensation Compare With Similar Sized Companies?
Simply Wall St - – Full articleAspen Technology, Inc. (NASDAQ:AZPN): Cash Is King
I’ve analysed below, the health and outlook of Aspen Technology’s cash flow, which will help you understand the stock from a cash standpoint. … Aspen Technology generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating. … I will be analysing Aspen Technology’s FCF by looking at its FCF yield and its operating cash flow growth.
Simply Wall St - – Full articleIs Aspen Technology, Inc.'s (NASDAQ:AZPN) Liquidity Good Enough?
Mid-caps stocks, like Aspen Technology, Inc. … This article will examine AZPN’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Don’t forget that this is a general and concentrated examination of Aspen Technology's financial health, so you should conduct further analysis.
Simply Wall St - – Full articleShould You Be Impressed By Aspen Technology Inc's (NASDAQ:AZPN) ROE?
We'll use ROE to examine Aspen Technology Inc (NASDAQ:AZPN), by way of a worked example. … Over the last twelve months Aspen Technology has recorded a ROE of 31%. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleStocks Take A Hit: How Will Aspen Technology Inc (NASDAQ:AZPN) Fare?
High quality stocks such as Aspen Technology Inc has fared well over time in a fickle stock market, which is why I want to bring it into light amongst all the chaos. … Below I take a look at three key features of what makes a robust defensive stock investment: its size, financial health and track record. … Check out our latest analysis for Aspen Technology.
Simply Wall St - – Full articleIs Aspen Technology Inc's (NASDAQ:AZPN) Future Growth Already Accounted For In Today's Price?
Looking at Aspen Technology Inc’s (NASDAQ:AZPN) fundamentals some investors are wondering if its last closing price of $86.33 represents a good value for money for this high growth stock. … See our latest analysis for Aspen Technology? … Analysts are predicting good growth prospects for Aspen Technology over the next couple of years
Simply Wall St - – Full articleWhat Does Aspen Technology Inc's (NASDAQ:AZPN) PE Ratio Tell You?
This analysis is intended to introduce important early concepts to people who are starting to invest. … and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … Check out our latest analysis for Aspen Technology
Simply Wall St - – Full articleHow Much Did Aspen Technology Inc's (NASDAQ:AZPN) CEO Pocket Last Year?
Understanding how CEOs are incentivised to run and grow their company is an important aspect of investing in a stock. … Incentives can be in the form of compensation, which should always be structured in a way that promotes value-creation to shareholders. … CEOs leading companies of similar size and profitability
Simply Wall St - – Full articleDoes Aspen Technology Inc's (NASDAQ:AZPN) PE Ratio Warrant A Sell?
and want to begin learning the link between Aspen Technology Inc (NASDAQ:AZPN)’s fundamentals and stock market performance. … Aspen Technology Inc (NASDAQ:AZPN) is currently trading at a trailing P/E of 40.7x, which is higher than the industry average of 38x. … Although some investors may jump to the conclusion that you should avoid the stock or sell if you own it, understanding the assumptions behind the P/E ratio might change your mind
Simply Wall St - – Full articleCompany Info
Description
Aspen Technology, Inc., together with its subsidiaries, operates as an asset optimization software company in the United States, Europe, and internationally. The company operates through two segments, Subscription and Software, and Services. It supplies asset optimization solutions that optimize asset design, operations, and maintenance lifecycle in various industrial environments. The company’s software suites include aspenONE Engineering, aspenONE Manufacturing and Supply Chain, and aspenONE Asset Performance that are integrated applications, which allow end users to design process manufacturing environments, monitor operational performances, respond and adapt to operational changes, predict asset reliability and equipment failure, and manage planning and scheduling activities, as well as collaborate across these functions and activities. It also provides software maintenance and support, professional, and training services. The company’s customers comprise companies that are engaged in the process and other capital-intensive industries, such as energy, chemicals, engineering, and construction, as well as pharmaceuticals, transportation, power, metals and mining, pulp and paper, and consumer packaged goods. Aspen Technology, Inc. was founded in 1981 and is headquartered in Bedford, Massachusetts.
Details
| Name: | Aspen Technology, Inc. |
| AZPN | |
| Exchange: | NasdaqGS |
| Founded: | 1981 |
| $7,146,359,745 | |
| 69,645,841 | |
| Website: | http://www.aspentech.com |
| Address: |
Aspen Technology, Inc. 20 Crosby Drive, Bedford, Massachusetts, 01730, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NasdaqGS | AZPN | Common Stock | Nasdaq Global Select | US | USD | 26. Oct 1994 | |
| DB | AST | Common Stock | Deutsche Boerse AG | DE | EUR | 26. Oct 1994 | |
| BMV | AZPN * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 26. Oct 1994 |
Number of employees
Current staff
Industry
| Application Software | |
| Software |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/03/19 23:33 |
| End of day share price update: | 2019/03/19 00:00 |
| Last estimates confirmation: | 2019/03/18 |
| Last earnings filing: | 2019/01/23 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/06/30 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.
