Aspen Technology Inc

Find Ratings Reports
AZPN : NASDAQ : Technology
$58.38 | %
Today's Range: 58.02 - 58.74
Avg. Daily Volume: 571500.0
08/18/17 - 4:00 PM ET

Financial Analysis


ASPEN TECHNOLOGY INC's gross profit margin for the third quarter of its fiscal year 2017 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 industry. ASPEN TECHNOLOGY INC has very weak liquidity. Currently, the Quick Ratio is 0.32 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 603.69% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q3 FY17 Q3 FY16
Net Sales ($mil)119.28119.22
EBITDA ($mil)54.056.37
EBIT ($mil)52.3154.87
Net Income ($mil)35.8333.17


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)101.69357.61
Total Assets ($mil)243.95439.43
Total Debt ($mil)140.0140.0
Equity ($mil)-249.5-35.46


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin90.7991.17
EBITDA Margin45.2747.27
Operating Margin43.8546.02
Sales Turnover1.941.08
Return on Assets57.8631.27
Return on Equity0.00.0
Debt Q3 FY17 Q3 FY16
Current Ratio0.340.95
Debt/Capital-1.281.34
Interest Expense0.960.33
Interest Coverage54.54166.26


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)74.6682.03
Div / share0.00.0
EPS0.470.4
Book value / share-3.34-0.43
Institutional Own % n/a n/a
Avg Daily Volume545393.0509011.0

Valuation


SELL. This stock's P/E ratio indicates a significant discount compared to an average of 57.91 for the Software industry and a premium compared to the S&P 500 average of 24.31. 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 31.47 Peers 57.91   AZPN 27.63 Peers 36.42

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.

 

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 26.35 Peers 38.13   AZPN 1.96 Peers 1.10

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.

 

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 8.42   AZPN 9.75 Peers 87.98

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 8.94 Peers 6.83   AZPN 0.01 Peers 11.94

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 significantly trails its peers on the basis of sales growth

 

 

Latest Stock Upgrades/Downgrades