Aspen Technology, Inc.
Aspen Technology, Inc. Fundamental Analysis
Aspen Technology, Inc. (AZPN) shows moderate financial fundamentals with a PE ratio of -416.75, profit margin of -7.72%, and ROE of -0.31%. The company generates $0.5B in annual revenue with moderate year-over-year growth of 7.98%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 32.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AZPN's fundamental strength across five key dimensions:
Efficiency Score
WeakAZPN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAZPN trades at attractive valuation levels.
Growth Score
ExcellentAZPN delivers strong and consistent growth momentum.
Financial Health Score
ExcellentAZPN maintains a strong and stable balance sheet.
Profitability Score
WeakAZPN struggles to sustain strong margins.
Key Financial Metrics
Is AZPN Expensive or Cheap?
P/E Ratio
AZPN trades at -416.75 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AZPN's PEG of -3.57 indicates potential undervaluation.
Price to Book
The market values Aspen Technology, Inc. at 1.31 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 385.77 times EBITDA. This signals the market has high growth expectations.
How Well Does AZPN Make Money?
Net Profit Margin
For every $100 in sales, Aspen Technology, Inc. keeps $-7.72 as profit after all expenses.
Operating Margin
Core operations generate -16.75 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-0.31 in profit for every $100 of shareholder equity.
ROA
Aspen Technology, Inc. generates $-0.29 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Aspen Technology, Inc. generates limited operating cash flow of $33.77M, signaling weaker underlying cash strength.
Free Cash Flow
Aspen Technology, Inc. produces free cash flow of $30.63M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.48 in free cash annually.
FCF Yield
AZPN converts 0.18% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-416.75
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.57
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
32.22
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.007
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.33
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.00
vs 25 benchmark
ROA
Return on assets percentage
-0.00
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How AZPN Stacks Against Its Sector Peers
| Metric | AZPN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -416.75 | 34.79 | Better (Cheaper) |
| ROE | -0.31% | 1185.00% | Weak |
| Net Margin | -7.72% | -131296.00% (disorted) | Weak |
| Debt/Equity | 0.01 | 0.43 | Strong (Low Leverage) |
| Current Ratio | 3.33 | 4.90 | Strong Liquidity |
| ROA | -0.29% | -325472.00% (disorted) | Weak |
AZPN outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Aspen Technology, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
106.81%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-104.10%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
56.53%
Industry Style: Growth, Innovation, High Beta
High Growth