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Aspen Technology Inc
AZPN : NASDAQ : Technology
$42.52 -0.74 | -1.70%
Today's Range: 42.09 - 43.81
Avg. Daily Volume: 671,000
05/06/15 - 1:11 PM ET

Financial Analysis


ASPEN TECHNOLOGY INC's gross profit margin for the second quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. ASPEN TECHNOLOGY INC has average liquidity. Currently, the Quick Ratio is 1.07 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 58.30% 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 Q2 FY15 Q2 FY14
Net Sales ($mil)107.7998.77
EBITDA ($mil)47.3337.4
EBIT ($mil)45.8236.12
Net Income ($mil)30.4723.26


Balance Sheet Q2 FY15 Q2 FY14
Cash & Equiv. ($mil)231.12218.65
Total Assets ($mil)343.35358.91
Total Debt ($mil)0.00.0
Equity ($mil)37.7290.48


Profitability Q2 FY15 Q2 FY14
Gross Profit Margin90.0288.69
EBITDA Margin43.937.86
Operating Margin42.5136.57
Sales Turnover1.220.97
Return on Assets31.1419.27
Return on Equity283.5476.45
Debt Q2 FY15 Q2 FY14
Current Ratio1.141.37
Debt/Capital0.00.0
Interest Expense0.00.01
Interest Coverage11455.254514.88


Share Data Q2 FY15 Q2 FY14
Shares outstanding (mil)88.8792.62
Div / share0.00.0
EPS0.340.25
Book value / share0.420.98
Institutional Own % n/a n/a
Avg Daily Volume720289.0784048.0

Valuation


BUY. ASPEN TECHNOLOGY INC's P/E ratio indicates a discount compared to an average of 47.31 for the Software industry and a significant premium compared to the S&P 500 average of 20.38. For additional comparison, its price-to-book ratio of 104.59 indicates a significant premium versus the S&P 500 average of 2.81 and a significant premium versus the industry average of 6.31. 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 37.94 Peers 47.31   AZPN 19.88 Peers 24.41

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 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 28.46 Peers 38.79   AZPN 0.70 Peers 1.21

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 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 104.59 Peers 6.31   AZPN 60.27 Peers 16.11

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 9.39 Peers 6.28   AZPN 20.36 Peers 12.21

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 significant premium to its industry.

 

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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