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Aspen Technology Inc
AZPN : NASDAQ : Technology
$35.61 | %
Today's Range: 35.31 - 36.16
Avg. Daily Volume: 809,400
12/19/14 - 4:00 PM ET

Financial Analysis


ASPEN TECHNOLOGY INC's gross profit margin for the first quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. ASPEN TECHNOLOGY INC has average liquidity. Currently, the Quick Ratio is 1.20 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 25.78% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q1 FY15 Q1 FY14
Net Sales ($mil)107.1387.57
EBITDA ($mil)45.9926.05
EBIT ($mil)44.6324.85
Net Income ($mil)28.9715.0


Balance Sheet Q1 FY15 Q1 FY14
Cash & Equiv. ($mil)265.49195.4
Total Assets ($mil)378.24367.06
Total Debt ($mil)0.00.0
Equity ($mil)69.9994.3


Profitability Q1 FY15 Q1 FY14
Gross Profit Margin89.787.58
EBITDA Margin42.9229.74
Operating Margin41.6628.37
Sales Turnover1.090.89
Return on Assets26.3715.21
Return on Equity142.5259.22
Debt Q1 FY15 Q1 FY14
Current Ratio1.271.39
Debt/Capital0.00.0
Interest Expense0.00.02
Interest Coverage14878.01380.33


Share Data Q1 FY15 Q1 FY14
Shares outstanding (mil)90.7793.23
Div / share0.00.0
EPS0.320.16
Book value / share0.771.01
Institutional Own % n/a n/a
Avg Daily Volume815579.0564056.0

Valuation


BUY. ASPEN TECHNOLOGY INC's P/E ratio indicates a discount compared to an average of 37.07 for the Software industry and a significant premium compared to the S&P 500 average of 19.99. For additional comparison, its price-to-book ratio of 46.56 indicates a significant premium versus the S&P 500 average of 2.76 and a significant premium versus the industry average of 6.06. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AZPN 33.24 Peers 37.07   AZPN 15.31 Peers 24.64

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

AZPN is trading at a discount to its peers.

 

Discount. 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 discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AZPN 25.02 Peers 41.80   AZPN 0.90 Peers 9.39

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

AZPN is trading at a significant discount to its peers.

 

Discount. 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.

AZPN trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AZPN 46.56 Peers 6.06   AZPN 86.20 Peers -16.90

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

AZPN is trading at a significant premium to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

AZPN is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AZPN 7.93 Peers 6.57   AZPN 25.50 Peers 15.51

Premium. 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 premium to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

AZPN has a sales growth rate that significantly exceeds its peers.

 

 

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