Aspen Technology, Inc.

Technology
EDP Services
www.aspentech.com

Earnings Score
Moat Score

Market Cap $16.69B
PE 2723
Debt -
Cash $199.47M
EV -
FCF $320.69M

Earnings

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Sales & Net Margins

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Earnings	$6.13M
EBIT	-$14.87M
ROE	0%
ROA	-0%
FCF	$320.69M
Equity	$12.78B
Growth Stability	1
PE	2.72K
PEG	-410.67
PB	1.31
P/FCF	52.05
P/S	14.64
Price/Cash	0.01
Net Margins	-8%
Gross Margins	67%
Op. Margins	-1%
Earnings CAGR	-7%
Sales Growth YoY	18%
Sales Growth QoQ	41%
Sales CAGR	6%
FCF CAGR	9%
Equity CAGR	107%
Earnings Stability	-0.79
Earnings Growth YoY	-195%

Earnings Growth QoQ	-134%
Earnings CAGR 5Y	-7%
Sales CAGR 5Y	6%
FCF CAGR 5Y	9%
Equity CAGR 5Y	107%
Earnings CAGR 3Y	28%
Sales CAGR 3Y	28%
FCF CAGR 3Y	23%
Equity CAGR 3Y	-2%
Market Cap	$16.69B
Revenue	$1.14B
Assets	$13.94B
Cash	$199.47M
Shares Outstanding	63.25M
Earnings Score	6%
Moat Score	12%
Working Capital	624.67M
Current Ratio	3.33
Gross Profit	$761.15M
Shares Growth 3y	0%
Equity Growth QoQ	0%
Equity Growth YoY	-1%

Assets & ROA

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Stockholders Equity & ROE

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Aspen Technology is a leading global supplier of software solutions that optimize asset design, operations, and maintenance in complex industrial environments. The company's AspenOne software platform helps improve process-oriented plant efficiency, and thereby lower capital intensity, increase working capital efficiency, and improve margins. Aspen was founded in 1981 and serves more than 2,300 customers in 32 countries.

SEC Filings

Direct access to Aspen Technology, Inc. (AZPN) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Dec 31
- 10-Q Sep 30
- 10-K Jun 30
- 10-Q Mar 31
2023
- 10-Q Dec 31
- 10-Q Sep 30
- 10-K Jun 30
- 10-Q Mar 31
2022
- 10-Q Dec 31
- 10-Q Sep 30
- 10-Q Mar 31

Sector Comparison

How does Aspen Technology, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Aspen Technology, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -7%

Stability -79%

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Aspen Technology, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Aspen Technology, Inc..

Years

Calculation mode

= $6.1B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$321M	$351M	$384M	$420M	$459M	$502M	$549M	$601M	$657M	$719M	$786M	$7.9B
DCF		$319M	$317M	$315M	$314M	$312M	$310M	$308M	$307M	$305M	$303M	$3B
Value	$6.1B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	09/2020	09/2021	06/2024	TTM
Net Margins	-16%	-7%	-1%	-8%
ROA	-	-	-	-0%
ROE	-	-	-0%	0%

Bad Net Margins (-7.72%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	09/2020	09/2021	06/2024	TTM
Debt over FCF	-	-	-	-
Debt over Equity	-	0	-	-
Growth Stability	-	-	-	1

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Good Graham’s Stability (1)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	09/2020	09/2021	06/2024	CAGR 5Y
Revenue YoY growth	-	130%	275%	6%
Earnings YoY growth	-	1%	-53%	-7%
Equity YoY growth	-	645%	623%	107%
FCF YoY growth	-	281%	590%	9%