Aspen Technology IncFind Ratings Reports
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 ($mil)||120.05||120.3|
|Net Income ($mil)||35.0||36.77|
|Balance Sheet||Q1 FY17||Q1 FY16|
|Cash & Equiv. ($mil)||191.55||181.5|
|Total Assets ($mil)||289.94||266.78|
|Total Debt ($mil)||140.0||0.0|
|Profitability||Q1 FY17||Q1 FY16|
|Gross Profit Margin||91.91||90.5|
|Return on Assets||47.65||47.3|
|Return on Equity||0.0||0.0|
|Debt||Q1 FY17||Q1 FY16|
|Share Data||Q1 FY17||Q1 FY16|
|Shares outstanding (mil)||77.47||83.27|
|Div / share||0.0||0.0|
|Book value / share||-2.37||-0.76|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||583835.0||654558.0|
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.
|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.
|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.
|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.
|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