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Fundamental analysis: Aspen Technology, Inc. (AZPN)

Awarener score: 6.1

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Good) and growth (Average), and the company's inclination to return cash to the stockholders (Good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.5

  • Business has been growing at a low pace. It's been below average when measured against peer companies.
  • Aspen Technology, Inc. business trend stability is good. The higher the stability, the lower the risk. It looks slightly worse than rivals.

Margins score: 9.8

  • AZPN profit margins -on goods and services sold- are usually huge. They stand top-notch against rival companies.
  • Business profit on sales tends to be huge. It's top tier when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually excellent. They remain impressive in relation to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be huge in relation to total revenues. They're still top-notch against similar companies.
  • Profits -before income taxes- are usually huge considering total sales, and remain top tier when measured against rivals.
  • Total net profit tends to be huge when confronted to sales. Company stands top tier when measured against comparable firms.

Growth score: 5.0

  • Aspen Technology, Inc. profit -on goods and services sold- has been growing at a low pace. It's been lacking compared to competitors.
  • In recent years, earnings -on operations- have been growing at a low step, which has been slightly worse than comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at a low pace, which compares below average when measured against peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at a slow tempo. It turns to be lacking compared to similar stocks.
  • In past years, profits -before income taxes- grew at a low speed. It was somewhat worse than rivals.
  • In the previous years, growth on total net profit has been low, and below average when measured against peer companies.
  • Earnings per share have grown at a low rhythm in past years. It's been lacking compared to industry peers.

Miscellaneous score: 6.0

  • AZPN had hardly to pay income taxes in relation to profits made in the past years. It's been slightly worse than peers.
  • Research and development expenses consume a moderate portion of revenues. It's encouraging in relation to competitors.
  • The company grows sparsely in relation to research and development efforts. It stands lacking compared to rival companies.

Profitability score: 10.0

  • Aspen Technology, Inc. usually gets huge returns on the resources it controls. It proves top tier when measured against peer firms.
  • Due to insufficient track history, we were unable to estimate typical returns on invested capital (ROIC). They remain undisclosed in relation to similar companies.
  • Normal return on equity (ROE) is unavailable at this time, because of not enough yearly inputs to calculate. It ranks unknown against competitors.
  • In the past, got huge returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's top tier when measured against comparable enterprises.

Usage of Funds score: 5.7

  • AZPN usually uses a sparse portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is modest. It stands top tier when measured against rival firms.
  • The company is usually sparsely replacing property, plant, and equipment that gets old, instead using funds in something else. It can't keep forever, which is substantially worse when measured against industry peers.
  • In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
  • The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
  • As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
  • The company usually reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains impressive in relation to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands excellent in relation to rivals.
  • The company uses a moderate portion of genuine fund generation to reward investors, which can probably be sustained for as long as business doesn't turn very sour. It still looks almost average when measured against competitors.

Balance Sheet score: 5.8

  • Aspen Technology, Inc. intangible assets (like brands and goodwill) represent a modest portion of resources controlled, according to accounting books. There could be some difficulties in liquidating them if the company ever gets in financial distress. It happens to be similar to peer companies.
  • The company has more than enough short-term resources to face short-term obligations. Liquidity concerns are non-significant. It turns to be in good shape compared to similar firms.
  • Roughly a quarter of resources controlled were provided for with financial debt. Creditors have some claims on the company. It remains somewhat worse than rival firms.
  • Controlled resources can be made into cash within reason, which is quite good for liquidity. It looks similar to rivals.
  • For every dollar of short-term obligations, the company has abundant dollars in cash and short-term receivables. It's in good shape compared to peer firms.
  • For every dollar of short-term obligations, the company has enough dollars in cash and equivalents, which is slightly better than similar enterprises.
  • Usually, sales are on many months credit. It still ranks last-in-rank when measured against peers.
  • Normally has no inventories. It comes up as impressive in relation to competitors.
  • On average, it takes higher than six months from the purchase to charging customers. It happens to be bottom tier against peers.
  • On average pays suppliers after a month and a half from the purchase. It ranks encouraging in relation to industry peers.
  • The company pays its suppliers six months or more before charging its customers, so there's abundant money invested in working capital. It's a disappointment compared to similar companies.
  • Company earns net interest income on its investments and therefore is in a quite comfortable financial position. It stands top-notch against rival firms.
  • Business earnings have usually been very good when measured against loans taken. Cutting back reinvesting in the business, it could take less than two years to repay the obligations with current profitability. It ranks more than average in relation to comparable enterprises.
  • Revenues are excellent in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements, allows the company to keep more money to reward stockholders in the long run. It looks in good shape compared to similar firms.
  • Resource exploitation is reasonable when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still slightly better than peer companies.

Valuation score: 4.1

  • Aspen Technology, Inc. looks heavily expensive in relation to profits and financial position. It happens to be almost average when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a weak position compared to peers.
  • In the past twelve months, the company generated some free funds in relation to the stock price, which stands somewhat better than similar companies.
  • The company usually generates somewhat more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be reasonable. It's still more than average in relation to industry firms.
  • In the past twelve months, the company has barely rewarded investors, considering both dividends and share on the pie of earnings. It came up impressive in relation to peer ventures.
  • The company has neither net debt nor net cash. It may borrow extra money if it wishes so, or start cumulating cash for future uses. It looks somewhat worse than similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is huge, as profits were extremely low in relative terms. It ranks almost average when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a huge relationship. The stock price might rely more on expectations and resources controlled than on anything else. It looks a disappointment compared to rival firms.
  • The relation between the stock price and accounting book value is extremely high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains worse than most peer firms.
  • In the past twelve months, the operating business lost a little money. It happens to be more than average in relation to industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a mediocre earnings power ability when measured against the current stock price and financial position. It's still excellent in relation to peer companies.

Total score: 6.6


AZPN logos

Company at a glance: Aspen Technology, Inc. (AZPN)

Sector, industry: Technology, Software—Application

Market Cap: 13.81 billions

Revenues TTM: 0.69 billions

Aspen Technology, Inc. provides enterprise asset performance management, asset performance monitoring, and asset optimization solutions worldwide. The company's solutions address complex environments where it is critical to optimize the asset design, operation, and maintenance lifecycle. It offers artificial intelligence of things, aspen hybrid models, asset performance management, OSI digital grid management, and performance engineering; production optimization for commodity polymers, olefins, refining, and specialty chemicals; subsurface science and engineering; and value chain optimization for energy and polymers and specialty chemicals solutions. The company serves bulk chemicals, consumer packaged goods, downstream, food and beverage, metals and mining, midstream and LNG, pharmaceuticals, polymers, pulp and paper, specialty chemicals, transportation, upstream, and water and wastewater industries; power generation, transmission, and distribution industries; and engineering, procurement, and construction industries. Aspen Technology, Inc. was incorporated in 2021 and is headquartered in Bedford, Massachusetts.

Awarener score: 6.1

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Good) and growth (Average), and the company's inclination to return cash to the stockholders (Good).