Aspen Technology
Market Cap
US$9.7b
Last Updated
2021/01/25 23:02 UTC
Data Sources
Company Financials +
Executive Summary
Aspen Technology, Inc., together with its subsidiaries, provides asset optimization solutions in North America, Europe, the Asia Pacific, Latin America, and the Middle East. More Details
Snowflake Analysis
Adequate balance sheet with acceptable track record.
Similar Companies
Share Price & News
How has Aspen Technology's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: AZPN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: AZPN's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
0.3%
AZPN
5.2%
US Software
2.6%
US Market
1 Year Return
4.4%
AZPN
48.2%
US Software
26.0%
US Market
Return vs Industry: AZPN underperformed the US Software industry which returned 48.2% over the past year.
Return vs Market: AZPN underperformed the US Market which returned 26% over the past year.
Shareholder returns
| AZPN | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.3% | 5.2% | 2.6% |
| 30 Day | 8.9% | 0.6% | 5.1% |
| 90 Day | 18.2% | 10.2% | 17.1% |
| 1 Year | 4.4%4.4% | 49.2%48.2% | 28.9%26.0% |
| 3 Year | 78.4%78.4% | 131.0%123.7% | 46.3%36.6% |
| 5 Year | 341.9%341.9% | 281.1%260.0% | 126.9%101.6% |
Long-Term Price Volatility Vs. Market
How volatile is Aspen Technology's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 months ago | Simply Wall St
Investors Still Waiting For A Pull Back In Aspen Technology, Inc. (NASDAQ:AZPN)5 months ago | Simply Wall St
Is Aspen Technology, Inc. (NASDAQ:AZPN) Potentially Undervalued?5 months ago | Simply Wall St
We Think Aspen Technology (NASDAQ:AZPN) Can Stay On Top Of Its DebtValuation
Is Aspen Technology undervalued compared to its fair value and its price relative to the market?
46.16x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: AZPN ($142.17) is trading above our estimate of fair value ($111.14)
Significantly Below Fair Value: AZPN is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: AZPN is good value based on its PE Ratio (46.2x) compared to the US Software industry average (59.7x).
PE vs Market: AZPN is poor value based on its PE Ratio (46.2x) compared to the US market (21.3x).
Price to Earnings Growth Ratio
PEG Ratio: AZPN is poor value based on its PEG Ratio (11.7x)
Price to Book Ratio
PB vs Industry: AZPN is overvalued based on its PB Ratio (19x) compared to the US Software industry average (9.7x).
Next Steps
Future Growth
How is Aspen Technology forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
3.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AZPN's forecast earnings growth (3.9% per year) is above the savings rate (2%).
Earnings vs Market: AZPN's earnings (3.9% per year) are forecast to grow slower than the US market (21.5% per year).
High Growth Earnings: AZPN's earnings are forecast to grow, but not significantly.
Revenue vs Market: AZPN's revenue (5.8% per year) is forecast to grow slower than the US market (10.6% per year).
High Growth Revenue: AZPN's revenue (5.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if AZPN's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Aspen Technology performed over the past 5 years?
13.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AZPN has high quality earnings.
Growing Profit Margin: AZPN's current net profit margins (36.4%) are lower than last year (44.4%).
Past Earnings Growth Analysis
Earnings Trend: AZPN's earnings have grown by 13.9% per year over the past 5 years.
Accelerating Growth: AZPN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: AZPN had negative earnings growth (-24.5%) over the past year, making it difficult to compare to the Software industry average (13.6%).
Return on Equity
High ROE: AZPN's Return on Equity (41.1%) is considered outstanding.
Next Steps
Financial Health
How is Aspen Technology's financial position?
Financial Position Analysis
Short Term Liabilities: AZPN's short term assets ($670.4M) exceed its short term liabilities ($232.1M).
Long Term Liabilities: AZPN's short term assets ($670.4M) exceed its long term liabilities ($515.8M).
Debt to Equity History and Analysis
Debt Level: AZPN's debt to equity ratio (83.4%) is considered high.
Reducing Debt: Insufficient data to determine if AZPN's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: AZPN's debt is well covered by operating cash flow (62.4%).
Interest Coverage: AZPN earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
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Dividend
What is Aspen Technology current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate AZPN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate AZPN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if AZPN's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if AZPN's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of AZPN's dividend in 3 years as they are not forecast to pay a notable one for the US market.
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Management
How experienced are the management team and are they aligned to shareholders interests?
6.0yrs
Average management tenure
CEO
Antonio Pietri (54 yo)
7.25yrs
Tenure
US$7,626,325
Compensation
Mr. Antonio J. Pietri has been the Chief Executive Officer and President at Aspen Technology, Inc. since October 1, 2013. Mr. Pietri served as Executive Vice President of Worldwide Field Operations of Aspe...
CEO Compensation Analysis
Compensation vs Market: Antonio's total compensation ($USD7.63M) is about average for companies of similar size in the US market ($USD10.56M).
Compensation vs Earnings: Antonio's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 7.25yrs | US$7.63m | 0.24% $ 23.3m | |
| Senior VP & CFO | 5.25yrs | US$2.68m | 0.0025% $ 240.3k | |
| Executive Vice President of Operations | 1yr | US$1.57m | 0.020% $ 1.9m | |
| Senior VP | 15.5yrs | US$1.64m | 0.020% $ 1.9m | |
| Senior VP & Chief Accounting Officer | 0.33yr | no data | 0.000090% $ 8.7k | |
| Chief Technology Officer | 5.42yrs | no data | no data | |
| Senior VP & Chief Information Officer | 2.42yrs | no data | no data | |
| Senior Vice President of Corporate Development | no data | no data | no data | |
| Executive VP of Field Operations & Chief Customer Success Officer | 15.25yrs | no data | no data | |
| MD of Regional Sales & Services - APAC & Senior VP | 13.75yrs | no data | no data | |
| Senior Vice President of Asia Pacific | 6.5yrs | no data | no data | |
| Senior Vice President of Product Management | no data | no data | no data |
6.0yrs
Average Tenure
54yo
Average Age
Experienced Management: AZPN's management team is seasoned and experienced (6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 7.25yrs | US$7.63m | 0.24% $ 23.3m | |
| Independent Chairman | 8yrs | US$367.78k | 0.016% $ 1.6m | |
| Independent Director | 16.75yrs | US$320.28k | 0.011% $ 1.1m | |
| Independent Director | 17.08yrs | US$305.28k | 0.023% $ 2.3m | |
| Independent Director | 27yrs | US$290.28k | 0.046% $ 4.5m | |
| Independent Director | 4.5yrs | US$290.28k | 0.0080% $ 772.1k | |
| Independent Director | 9.92yrs | US$285.28k | 0.029% $ 2.8m | |
| Independent Director | 0.50yr | no data | no data | |
| Independent Director | 0.50yr | no data | no data | |
| Independent Director | 1.75yrs | US$305.28k | 0.0026% $ 252.8k | |
| Independent Director | 1yr | US$194.32k | 0.0015% $ 149.6k |
7.5yrs
Average Tenure
62yo
Average Age
Experienced Board: AZPN's board of directors are considered experienced (7.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Aspen Technology, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Aspen Technology, Inc.
- Ticker: AZPN
- Exchange: NasdaqGS
- Founded: 1981
- Industry: Application Software
- Sector: Software
- Market Cap: US$9.651b
- Shares outstanding: 67.78m
- Website: https://www.aspentech.com
Number of Employees
Location
- Aspen Technology, Inc.
- 20 Crosby Drive
- Bedford
- Massachusetts
- 1730
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AZPN | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Oct 1994 |
| AST | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Oct 1994 |
| AZPN * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Oct 1994 |
Biography
Aspen Technology, Inc., together with its subsidiaries, provides asset optimization solutions in North America, Europe, the Asia Pacific, Latin America, and the Middle East. The company operates in two seg...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/25 23:02 |
| End of Day Share Price | 2021/01/25 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2020/06/30 |
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.