Aspen Technology Inc.
Find Ratings ReportsASPEN TECHNOLOGY INC's gross profit margin for the second quarter of its fiscal year 2024 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its subsector. ASPEN TECHNOLOGY INC has strong liquidity. Currently, the Quick Ratio is 1.83 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.26% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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Income Statement | Q2 FY24 | Q2 FY23 |
---|---|---|
Net Sales ($mil) | 257.16 | 242.84 |
EBITDA ($mil) | 74.05 | 64.57 |
EBIT ($mil) | -49.12 | -57.98 |
Net Income ($mil) | -21.5 | -66.2 |
Balance Sheet | Q2 FY24 | Q2 FY23 |
---|---|---|
Cash & Equiv. ($mil) | 130.75 | 446.09 |
Total Assets ($mil) | 14227.84 | 14900.65 |
Total Debt ($mil) | 193.48 | 367.52 |
Equity ($mil) | 12849.07 | 13147.07 |
Profitability | Q2 FY24 | Q2 FY23 |
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Gross Profit Margin | 82.39 | 81.87 |
EBITDA Margin | 28.79 | 26.59 |
Operating Margin | -19.1 | -23.88 |
Sales Turnover | 0.07 | 0.05 |
Return on Assets | -0.6 | -0.15 |
Return on Equity | -0.67 | -0.18 |
Debt | Q2 FY24 | Q2 FY23 |
---|---|---|
Current Ratio | 1.91 | 1.73 |
Debt/Capital | 0.01 | 0.03 |
Interest Expense | 0.0 | 0.0 |
Interest Coverage | 0.0 | 0.0 |
Share Data | Q2 FY24 | Q2 FY23 |
---|---|---|
Shares outstanding (mil) | 63.62 | 64.77 |
Div / share | 0.0 | 0.0 |
EPS | -0.34 | -1.02 |
Book value / share | 201.96 | 202.99 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 195827.0 | 183850.0 |
HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 0.99 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 11.80. The current price-to-sales ratio is well above the S&P 500 average, but below the subsector average. After reviewing these and other key valuation criteria, ASPEN TECHNOLOGY INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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AZPN NM | Peers 47.17 | AZPN 44.31 | Peers 33.15 | |||||||||||||||||||||
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. AZPN's P/E is negative making this valuation measure meaningless. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. AZPN is trading at a significant premium to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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AZPN 27.67 | Peers 32.16 | AZPN NA | Peers 1.66 | |||||||||||||||||||||
Average. An average price-to-projected earnings ratio can signify an subsector neutral stock price and average future growth expectations. AZPN is trading at a valuation on par with its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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Price/Book |
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Earnings Growth |
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AZPN 0.99 | Peers 11.80 | AZPN -392.16 | Peers 148.13 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. AZPN is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, AZPN is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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AZPN 12.09 | Peers 12.32 | AZPN 29.34 | Peers 12.66 | |||||||||||||||||||||
Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. AZPN is trading at a valuation on par with its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. AZPN has a sales growth rate that significantly exceeds its peers. |
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