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

4.3%

NasdaqGS:AZPN

-0.4%

US Software

0.8%

US Market


1 Year Return

11.5%

NasdaqGS:AZPN

13.7%

US Software

1.9%

US Market

AZPN underperformed the Software industry which returned 13% over the past year.

AZPN outperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

AZPNIndustryMarket
7 Day4.3%-0.4%0.8%
30 Day-6.6%-1.1%3.4%
90 Day2.9%-1.5%2.1%
1 Year11.5%11.5%15.3%13.7%4.2%1.9%
3 Year178.0%178.0%120.0%111.3%46.7%37.2%
5 Year237.5%237.5%165.8%146.3%62.3%44.5%

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 based on future cash flows and its price relative to the stock market?

33.8x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Aspen Technology's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Aspen Technology's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Aspen Technology is good value based on earnings compared to the US Software industry average.

Aspen Technology is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Aspen Technology earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Aspen Technology is overvalued based on assets compared to the US Software industry average.


Next Steps

Future Growth

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

-1.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Aspen Technology's revenue is expected to grow by 5.2% yearly, however this is not considered high growth (20% yearly).

Aspen Technology's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Aspen Technology's revenue growth is positive but not above the United States of America market average.

Aspen Technology's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Aspen Technology's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Aspen Technology is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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

Aspen Technology's year on year earnings growth rate has been positive over the past 5 years.

Aspen Technology's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Aspen Technology's 1-year earnings growth is negative, it can't be compared to the US Software industry average.


Return on Equity

Aspen Technology made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).


Return on Assets

Aspen Technology used its assets more efficiently than the US Software industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Aspen Technology improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Aspen Technology's financial position?


Financial Position Analysis

Aspen Technology is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Aspen Technology's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Aspen Technology's level of debt (55.9%) compared to net worth is high (greater than 40%).

Unable to establish if Aspen Technology's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (108.3%, greater than 20% of total debt).

Aspen Technology earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Aspen Technology's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Aspen Technology's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Aspen Technology has not reported any payouts.

Unable to verify if Aspen Technology's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Aspen Technology has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

5.9yrs

Average management tenure


CEO

Antonio Pietri (53yo)

5.9yrs

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

Antonio's remuneration is about average for companies of similar size in United States of America.

Antonio's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.9yrs

Average Tenure

52yo

Average Age

The average tenure for the Aspen Technology management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

7.6yrs

Average Tenure

67yo

Average Age

The tenure for the Aspen Technology board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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
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: 14.2yrs
    • Compensation: US$1.31m
  • Michele Triponey

    Executive VP of Field Operations & Chief Customer Success Officer

    • Tenure: 13.9yrs
  • Antonio Pietri (53yo)

    President

    • Tenure: 5.9yrs
    • 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: 12.4yrs
  • Willie Chan

    Chief Technology Officer

    • Tenure: 4.1yrs
  • Gary Weiss (52yo)

    Chief Operating Officer

    • Tenure: 1.1yrs
  • Karl Johnsen (51yo)

    Senior VP & CFO

    • Tenure: 3.9yrs
    • Compensation: US$2.00m
  • Bill Scudder

    Senior VP & Chief Information Officer

    • Tenure: 1.1yrs

Board Members

  • Bob Whelan (67yo)

    Chairman

    • Tenure: 6.7yrs
    • Compensation: US$371.47k
  • Don Casey (72yo)

    Director

    • Tenure: 15.4yrs
    • Compensation: US$323.97k
  • Gary Haroian (67yo)

    Director

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

    Independent Director

    • Tenure: 25.7yrs
    • Compensation: US$293.97k
  • R. Wise (54yo)

    Director

    • Tenure: 3.2yrs
    • Compensation: US$293.97k
  • Simon J. Gann (68yo)

    Director

    • Tenure: 8.6yrs
    • Compensation: US$288.97k
  • Antonio Pietri (53yo)

    President

    • Tenure: 5.9yrs
    • Compensation: US$6.33m
  • Georgia Keresty

    Director

    • Tenure: 0.4yrs

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$8.683b
  • 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 Analysis2019/09/17 23:31
End of Day Share Price2019/09/17 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.