NasdaqGS:AZPN

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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. 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.1%

AZPN

3.7%

US Software

-0.8%

US Market


1 Year Return

5.6%

AZPN

52.2%

US Software

13.8%

US Market

Return vs Industry: AZPN underperformed the US Software industry which returned 52.2% over the past year.

Return vs Market: AZPN underperformed the US Market which returned 13.8% over the past year.


Shareholder returns

AZPNIndustryMarket
7 Day-1.1%3.7%-0.8%
30 Day-0.2%-5.5%-5.7%
90 Day23.5%10.0%8.6%
1 Year5.6%5.6%53.3%52.2%16.4%13.8%
3 Year103.4%103.4%148.7%140.5%36.9%27.8%
5 Year234.2%234.2%267.3%246.0%85.0%64.2%

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?

38.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AZPN ($127.75) is trading above our estimate of fair value ($95.67)

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 (38.5x) compared to the US Software industry average (56.2x).

PE vs Market: AZPN is poor value based on its PE Ratio (38.5x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: AZPN is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: AZPN is overvalued based on its PB Ratio (17.5x) compared to the US Software industry average (6.9x).


Next Steps

Future Growth

How is Aspen Technology forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

13.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AZPN's forecast earnings growth (13.6% per year) is above the savings rate (2.2%).

Earnings vs Market: AZPN's earnings (13.6% per year) are forecast to grow slower than the US market (22.9% per year).

High Growth Earnings: AZPN's earnings are forecast to grow, but not significantly.

Revenue vs Market: AZPN's revenue (10.4% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: AZPN's revenue (10.4% 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 (24.2%)


Next Steps

Past Performance

How has Aspen Technology performed over the past 5 years?

16.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AZPN has high quality earnings.

Growing Profit Margin: AZPN's current net profit margins (38.2%) are lower than last year (43.9%).


Past Earnings Growth Analysis

Earnings Trend: AZPN's earnings have grown by 16% 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 (-14.1%) over the past year, making it difficult to compare to the Software industry average (13.9%).


Return on Equity

High ROE: AZPN's Return on Equity (45.7%) 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 ($650.2M) exceed its short term liabilities ($219.8M).

Long Term Liabilities: AZPN's short term assets ($650.2M) exceed its long term liabilities ($519.0M).


Debt to Equity History and Analysis

Debt Level: AZPN's debt to equity ratio (86.6%) 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 (56.9%).

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


Balance Sheet


Next Steps

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?

6.9yrs

Average management tenure


CEO

Antonio Pietri (54 yo)

6.92yrs

Tenure

US$7,478,887

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 ($USD7.48M) is about average for companies of similar size in the US market ($USD7.43M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Antonio Pietri
President6.92yrsUS$7.48m0.23%
$ 19.6m
Karl Johnsen
Senior VP & CFO4.92yrsUS$2.40m0.0034%
$ 297.6k
Frederic Hammond
Senior VP15.17yrsUS$1.56m0.017%
$ 1.4m
Christopher Stagno
Senior VP & Chief Accounting Officerno datano datano data
Willie Chan
Chief Technology Officer5.08yrsno datano data
Bill Scudder
Senior VP & Chief Information Officer2.08yrsno datano data
Glover Lawrence
Senior Vice President of Corporate Developmentno datano datano data
Michele Triponey
Executive VP of Field Operations & Chief Customer Success Officer14.92yrsno datano data
John Hague
Senior VP & GM of APM Business Unit9.75yrsno data0.020%
$ 1.7m
Henry Lau
MD of Regional Sales & Services - APAC & Senior VP13.42yrsno datano data
Filipe Pinto
Senior Vice President of Asia Pacific6.17yrsno datano data
David Arbeitel
Senior Vice President of Product Managementno datano datano data

6.9yrs

Average Tenure

53yo

Average Age

Experienced Management: AZPN's management team is seasoned and experienced (6.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Antonio Pietri
President6.92yrsUS$7.48m0.23%
$ 19.6m
Robert Whelan
Independent Chairman7.67yrsUS$370.94k0.016%
$ 1.4m
Donald Casey
Independent Director16.42yrsUS$323.44k0.010%
$ 884.1k
Gary Haroian
Independent Director16.75yrsUS$308.44k0.022%
$ 1.9m
Joan McArdle
Independent Director26.67yrsUS$293.44k0.046%
$ 4.0m
R. Wise
Independent Director4.17yrsUS$310.94k0.0080%
$ 693.0k
Simon J. Gann
Independent Director9.58yrsUS$288.44k0.029%
$ 2.5m
Amar Hanspal
Independent Director0.17yrno datano data
Adriana Karaboutis
Independent Director0.17yrno datano data
Georgia Keresty
Independent Director1.42yrsUS$30.31k0.0011%
$ 93.4k
Thomas Bradicich
Independent Director0.67yrno datano data

7.2yrs

Average Tenure

63.5yo

Average Age

Experienced Board: AZPN's board of directors are considered experienced (7.2 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$8.651b
  • Shares outstanding: 67.72m
  • 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 Analysis2020/09/27 05:58
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
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.