Aspen Technology Inc

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AZPN : NASDAQ : Technology
$52.81 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 573300.0
12/07/16 - 4:00 PM ET

Financial Analysis


ASPEN TECHNOLOGY INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. ASPEN TECHNOLOGY INC has weak liquidity. Currently, the Quick Ratio is 0.52 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 191.30% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)120.05120.3
EBITDA ($mil)56.8757.23
EBIT ($mil)55.0855.68
Net Income ($mil)35.036.77


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)191.55181.5
Total Assets ($mil)289.94266.78
Total Debt ($mil)140.00.0
Equity ($mil)-183.59-63.02


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin91.9190.5
EBITDA Margin47.3747.57
Operating Margin45.8846.28
Sales Turnover1.631.7
Return on Assets47.6547.3
Return on Equity0.00.0
Debt Q1 FY17 Q1 FY16
Current Ratio0.550.83
Debt/Capital-3.210.0
Interest Expense0.870.0
Interest Coverage63.3855679.0


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)77.4783.27
Div / share0.00.0
EPS0.440.44
Book value / share-2.37-0.76
Institutional Own % n/a n/a
Avg Daily Volume583835.0654558.0

Valuation


SELL. This stock's P/E ratio indicates a significant discount compared to an average of 47.56 for the Software industry and a premium compared to the S&P 500 average of 25.22. Normally, for additional comaprison, we would look at the price-to-book ratio; however, this company's price-to-book ratio is negative making the value useless for comparisons. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, ASPEN TECHNOLOGY INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AZPN 30.85 Peers 47.56   AZPN 25.62 Peers 21.81

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

AZPN is trading at a significant discount to its peers.

 

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 premium 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 27.30 Peers 27.06   AZPN 3.99 Peers 0.77

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

AZPN is trading at a valuation on par with its peers.

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AZPN NM Peers 7.51   AZPN 15.75 Peers 25.41

Neutral. 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's P/B is negative making this valuation measure meaningless.

 

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AZPN 8.56 Peers 5.48   AZPN 4.08 Peers 4.74

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

AZPN trails its peers on the basis of sales growth

 

 

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