NasdaqGS:AZPN

Stock Analysis Report

Executive Summary

Aspen Technology, Inc., together with its subsidiaries, provides asset optimization solutions in the United States, Europe, the Asia Pacific, Canada, Latin America, and the Middle East.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

-7.3%

AZPN

-4.4%

US Software

0.07%

US Market


1 Year Return

15.5%

AZPN

19.3%

US Software

8.9%

US Market

Return vs Industry: AZPN underperformed the US Software industry which returned 19.3% over the past year.

Return vs Market: AZPN exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

AZPNIndustryMarket
7 Day-7.3%-4.4%0.07%
30 Day-10.6%-4.4%-0.3%
90 Day-17.1%-9.3%-1.6%
1 Year15.5%15.5%21.1%19.3%11.3%8.9%
3 Year138.0%138.0%108.2%99.8%46.3%36.8%
5 Year181.1%181.1%157.9%139.3%62.1%44.3%

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

Valuation

Is Aspen Technology undervalued compared to its fair value and its price relative to the market?

30.17x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AZPN ($113.36) is trading above our estimate of fair value ($65.95)

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 (30.2x) compared to the Software industry average (45x).

PE vs Market: AZPN is poor value based on its PE Ratio (30.2x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: AZPN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: AZPN is overvalued based on its PB Ratio (19.8x) compared to the US Software industry average (5.3x).


Next Steps

Future Growth

How is Aspen Technology forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-2.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AZPN's earnings are forecast to decline over the next 3 years (-2.5% per year).

Earnings vs Market: AZPN's earnings are forecast to decline over the next 3 years (-2.5% per year).

High Growth Earnings: AZPN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: AZPN's revenue (5.1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: AZPN's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AZPN's Return on Equity is forecast to be high in 3 years time (28.6%)


Next Steps

Past Performance

How has Aspen Technology performed over the past 5 years?

13.9%

Historical annual earnings growth


Earnings and Revenue History


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 (-10.5%) over the past year, making it difficult to compare to the Software industry average (19.1%).


Return on Equity

High ROE: AZPN's Return on Equity (66.8%) is considered outstanding.


Return on Assets

ROA vs Industry: AZPN has a higher Return on Assets than the Software industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate AZPN's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Aspen Technology's financial position?


Financial Position Analysis

Short Term Liabilities: AZPN's short term assets ($429.0M) exceeds its short term liabilities ($320.8M)

Long Term Liabilities: AZPN's short term assets (429.0M) exceeds its long term liabilities (189.0M)


Debt to Equity History and Analysis

Debt Level: AZPN's debt to equity ratio (55.9%) 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 (108.3%).

Interest Coverage: AZPN earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: AZPN has a low level of unsold assets or inventory.

Debt Coverage by Assets: AZPN's debt is covered by short term assets (assets are 1.950180x debt).


Next Steps

Dividend

What is Aspen Technology's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate AZPN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AZPN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

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.


Next Steps

Management

What is the CEO of Aspen Technology's salary, the management and board of directors tenure and is there insider trading?

6.0yrs

Average management tenure


CEO

Antonio Pietri (53yo)

6yrs

Tenure

US$6,325,453

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 ($USD6.33M) is about average for companies of similar size in the US market ($USD6.88M).

Compensation vs Earnings: Antonio's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.0yrs

Average Tenure

52yo

Average Age

Experienced Management: AZPN's management team is seasoned and experienced (6 years average tenure).


Board Age and Tenure

7.7yrs

Average Tenure

67yo

Average Age

Experienced Board: AZPN's board of directors are considered experienced (7.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$700,97908 May 19
Antonio Pietri
EntityIndividual
Role
Chief Executive Officer
President
Shares5,900
Max PriceUS$118.81
SellUS$1,433,50606 May 19
Antonio Pietri
EntityIndividual
Role
Chief Executive Officer
President
Shares11,927
Max PriceUS$120.19
SellUS$552,34001 May 19
Frederic Hammond
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares4,552
Max PriceUS$121.34
SellUS$368,63101 May 19
Karl Johnsen
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares3,037
Max PriceUS$121.38
SellUS$121,07505 Feb 19
Robert Whelan
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares1,250
Max PriceUS$96.86
SellUS$230,43004 Feb 19
Karl Johnsen
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares2,388
Max PriceUS$96.50
SellUS$192,59501 Nov 18
Karl Johnsen
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares2,387
Max PriceUS$80.69

Ownership Breakdown


Management Team

  • Glover Lawrence (51yo)

    Senior Vice President of Corporate Development

    • Tenure: 0yrs
  • Fritz Hammond (59yo)

    Senior VP

    • Tenure: 14.3yrs
    • Compensation: US$1.31m
  • Michele Triponey

    Executive VP of Field Operations & Chief Customer Success Officer

    • Tenure: 14yrs
  • Antonio Pietri (53yo)

    President

    • Tenure: 6yrs
    • Compensation: US$6.33m
  • John Hague

    Senior VP & GM of APM Business Unit

    • Tenure: 8.8yrs
  • Henry Lau

    MD of Regional Sales & Services - APAC & Senior VP

    • Tenure: 12.5yrs
  • Willie Chan

    Chief Technology Officer

    • Tenure: 4.2yrs
  • Gary Weiss (52yo)

    Chief Operating Officer

    • Tenure: 1.2yrs
  • Karl Johnsen (51yo)

    Senior VP & CFO

    • Tenure: 4yrs
    • Compensation: US$2.00m
  • Bill Scudder

    Senior VP & Chief Information Officer

    • Tenure: 1.2yrs

Board Members

  • Bob Whelan (67yo)

    Independent Chairman

    • Tenure: 6.8yrs
    • Compensation: US$371.47k
  • Don Casey (72yo)

    Independent Director

    • Tenure: 15.5yrs
    • Compensation: US$323.97k
  • Gary Haroian (67yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$308.97k
  • Joan McArdle (68yo)

    Independent Director

    • Tenure: 25.8yrs
    • Compensation: US$293.97k
  • R. Wise (54yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$293.97k
  • Simon J. Gann (68yo)

    Independent Director

    • Tenure: 8.7yrs
    • Compensation: US$288.97k
  • Antonio Pietri (53yo)

    President

    • Tenure: 6yrs
    • Compensation: US$6.33m
  • Georgia Keresty

    Director

    • Tenure: 0.5yrs

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$7.750b
  • Shares outstanding: 68.37m
  • Website: https://www.aspentech.com

Number of Employees


Location

  • Aspen Technology, Inc.
  • 20 Crosby Drive
  • Bedford
  • Massachusetts
  • 1730
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AZPNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 1994
ASTDB (Deutsche Boerse AG)YesCommon StockDEEUROct 1994
AZPN *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 1994

Biography

Aspen Technology, Inc., together with its subsidiaries, provides asset optimization solutions in the United States, Europe, the Asia Pacific, Canada, Latin America, and the Middle East. The company operate ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:31
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.