Aspen Technology
Market Cap
US$10.3b
Last Updated
2021/04/15 23:01 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
Rewards
PE ratio (34.3x) is below the Software industry average (53.6x)
Risk Analysis
Earnings are forecast to decline by an average of 2.5% per year for the next 3 years
Snowflake Analysis
Solid track record with excellent balance sheet.
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 +/- 4% a week.
Volatility Over Time: AZPN's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-1.7%
AZPN
3.0%
US Software
1.1%
US Market
1 Year Return
55.5%
AZPN
59.2%
US Software
56.6%
US Market
Return vs Industry: AZPN underperformed the US Software industry which returned 59.4% over the past year.
Return vs Market: AZPN underperformed the US Market which returned 53.9% over the past year.
Shareholder returns
| AZPN | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.7% | 3.0% | 1.1% |
| 30 Day | 1.0% | 5.8% | 1.7% |
| 90 Day | 6.8% | 9.1% | 6.0% |
| 1 Year | 55.5%55.5% | 60.3%59.2% | 59.3%56.6% |
| 3 Year | 74.3%74.3% | 136.9%129.8% | 62.6%52.2% |
| 5 Year | 308.5%308.5% | 302.7%280.3% | 120.6%96.1% |
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
1 week ago | Simply Wall St
Announcing: Aspen Technology (NASDAQ:AZPN) Stock Soared An Exciting 339% In The Last Five Years1 month ago | Simply Wall St
Is Aspen Technology (NASDAQ:AZPN) A Risky Investment?1 month ago | Simply Wall St
Is Now An Opportune Moment To Examine Aspen Technology, Inc. (NASDAQ:AZPN)?Valuation
Is Aspen Technology undervalued compared to its fair value and its price relative to the market?
34.41x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: AZPN ($151.21) is trading above our estimate of fair value ($94.74)
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 (34.3x) compared to the US Software industry average (53.6x).
PE vs Market: AZPN is poor value based on its PE Ratio (34.3x) compared to the US market (22.3x).
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 (15.7x) compared to the US Software industry average (8.7x).
Future Growth
How is Aspen Technology forecast to perform in the next 1 to 3 years based on estimates from 9 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 (3.9% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: AZPN's revenue (3.9% 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 (29.3%)
Past Performance
How has Aspen Technology performed over the past 5 years?
13.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AZPN has high quality earnings.
Growing Profit Margin: AZPN's current net profit margins (43.8%) are higher than last year (42.3%).
Past Earnings Growth Analysis
Earnings Trend: AZPN's earnings have grown by 13.5% per year over the past 5 years.
Accelerating Growth: AZPN's earnings growth over the past year (16%) exceeds its 5-year average (13.5% per year).
Earnings vs Industry: AZPN earnings growth over the past year (16%) underperformed the Software industry 16.3%.
Return on Equity
High ROE: AZPN's Return on Equity (45.6%) is considered outstanding.
Financial Health
How is Aspen Technology's financial position?
Financial Position Analysis
Short Term Liabilities: AZPN's short term assets ($588.7M) exceed its short term liabilities ($119.1M).
Long Term Liabilities: AZPN's short term assets ($588.7M) exceed its long term liabilities ($514.6M).
Debt to Equity History and Analysis
Debt Level: AZPN's debt to equity ratio (46%) is considered high.
Reducing Debt: AZPN had negative shareholder equity 5 years ago, but is now positive and has therefore improved.
Debt Coverage: AZPN's debt is well covered by operating cash flow (84.9%).
Interest Coverage: AZPN earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
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.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.3yrs
Average management tenure
CEO
Antonio Pietri (54 yo)
7.5yrs
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 below average for companies of similar size in the US market ($USD10.98M).
Compensation vs Earnings: Antonio's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: AZPN's management team is considered experienced (3.3 years average tenure).
Board Members
Experienced Board: AZPN's board of directors are considered experienced (3.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AZPN insiders have only sold shares 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$10.262b
- Shares outstanding: 67.84m
- Website: https://www.aspentech.com
Number of Employees
Location
- Aspen Technology, Inc.
- 20 Crosby Drive
- Bedford
- Massachusetts
- 1730
- United States
Listings
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 | 2021/04/15 23:01 |
| End of Day Share Price | 2021/04/15 00:00 |
| Earnings | 2020/12/31 |
| 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.