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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


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

AZPNIndustryMarket
7 Day-1.7%3.0%1.1%
30 Day1.0%5.8%1.7%
90 Day6.8%9.1%6.0%
1 Year55.5%55.5%60.3%59.2%59.3%56.6%
3 Year74.3%74.3%136.9%129.8%62.6%52.2%
5 Year308.5%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

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/15 23:01
End of Day Share Price2021/04/15 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.