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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 0.76
AZPN's Cash to Debt is ranked higher than
98% of the 1832 Companies
in the Global Software - Application industry.

( Industry Median: 13.14 vs. AZPN: 0.76 )
Ranked among companies with meaningful Cash to Debt only.
AZPN' s Cash to Debt Range Over the Past 10 Years
Min: 0.41  Med: 1.68 Max: No Debt
Current: 0.76
Equity to Asset -0.08
AZPN's Equity to Asset is ranked lower than
96% of the 1735 Companies
in the Global Software - Application industry.

( Industry Median: 0.61 vs. AZPN: -0.08 )
Ranked among companies with meaningful Equity to Asset only.
AZPN' s Equity to Asset Range Over the Past 10 Years
Min: -0.25  Med: 0.33 Max: 0.68
Current: -0.08
-0.25
0.68
Interest Coverage 571.90
AZPN's Interest Coverage is ranked higher than
73% of the 1205 Companies
in the Global Software - Application industry.

( Industry Median: 61.34 vs. AZPN: 571.90 )
Ranked among companies with meaningful Interest Coverage only.
AZPN' s Interest Coverage Range Over the Past 10 Years
Min: 1.05  Med: 22.26 Max: 5993.07
Current: 571.9
1.05
5993.07
F-Score: 9
Z-Score: 6.38
M-Score: -3.13
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 44.27
AZPN's Operating margin (%) is ranked higher than
98% of the 1784 Companies
in the Global Software - Application industry.

( Industry Median: 4.77 vs. AZPN: 44.27 )
Ranked among companies with meaningful Operating margin (%) only.
AZPN' s Operating margin (%) Range Over the Past 10 Years
Min: -65.75  Med: 10.79 Max: 40.82
Current: 44.27
-65.75
40.82
Net-margin (%) 29.06
AZPN's Net-margin (%) is ranked higher than
95% of the 1783 Companies
in the Global Software - Application industry.

( Industry Median: 3.28 vs. AZPN: 29.06 )
Ranked among companies with meaningful Net-margin (%) only.
AZPN' s Net-margin (%) Range Over the Past 10 Years
Min: -64.59  Med: 10.68 Max: 26.89
Current: 29.06
-64.59
26.89
ROA (%) 42.55
AZPN's ROA (%) is ranked higher than
99% of the 1830 Companies
in the Global Software - Application industry.

( Industry Median: 3.08 vs. AZPN: 42.55 )
Ranked among companies with meaningful ROA (%) only.
AZPN' s ROA (%) Range Over the Past 10 Years
Min: -23.6  Med: 8.50 Max: 32.74
Current: 42.55
-23.6
32.74
ROC (Joel Greenblatt) (%) 1037.12
AZPN's ROC (Joel Greenblatt) (%) is ranked higher than
98% of the 1802 Companies
in the Global Software - Application industry.

( Industry Median: 21.85 vs. AZPN: 1037.12 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
AZPN' s ROC (Joel Greenblatt) (%) Range Over the Past 10 Years
Min: -521.84  Med: 198.45 Max: 1667.9
Current: 1037.12
-521.84
1667.9
Revenue Growth (3Y)(%) 24.00
AZPN's Revenue Growth (3Y)(%) is ranked higher than
88% of the 1413 Companies
in the Global Software - Application industry.

( Industry Median: 4.90 vs. AZPN: 24.00 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
AZPN' s Revenue Growth (3Y)(%) Range Over the Past 10 Years
Min: -22.7  Med: -7.80 Max: 26.4
Current: 24
-22.7
26.4
» AZPN's 10-Y Financials

Financials (Next Earnings Date: Est. 2016-08-13)


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2015

AZPN Guru Trades in Q2 2015

Paul Tudor Jones Sold Out
Ken Fisher 2,340,690 sh (-0.54%)
Jim Simons 1,789,300 sh (-4.45%)
Manning & Napier Advisors, Inc 799,751 sh (-18.84%)
Joel Greenblatt 812,015 sh (-34.04%)
» More
Q3 2015

AZPN Guru Trades in Q3 2015

Paul Tudor Jones 8,600 sh (New)
Ron Baron 133,138 sh (New)
Manning & Napier Advisors, Inc 1,350,331 sh (+68.84%)
Jim Simons 2,193,709 sh (+22.60%)
Joel Greenblatt 810,372 sh (-0.20%)
Ken Fisher 2,303,625 sh (-1.58%)
» More
Q4 2015

AZPN Guru Trades in Q4 2015

Ron Baron 890,576 sh (+568.91%)
Paul Tudor Jones 17,909 sh (+108.24%)
Joel Greenblatt 858,273 sh (+5.91%)
Jim Simons 2,189,700 sh (-0.18%)
Ken Fisher 2,297,681 sh (-0.26%)
Manning & Napier Advisors, Inc 1,203,311 sh (-10.89%)
» More
Q1 2016

AZPN Guru Trades in Q1 2016

Manning & Napier Advisors, Inc 1,286,281 sh (+6.90%)
Ken Fisher 2,290,258 sh (-0.32%)
» More
» Details

Insider Trades

Latest Guru Trades with AZPN

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Guru Investment Theses on Aspen Technology Inc

Baron Small Cap Comments on Aspen Technology - Feb 08, 2016

Commentary on Aspen Technology (NASDAQ:AZPN):



During the past quarter, the Fund built out its position in new holding Aspen Technology and added to nine others. The Fund sold out of 13 stocks, as referenced before and trimmed many others.



Aspen Technology, Inc. is the leading provider of engineering, design, operations and supply chain management software to the energy and process industries. Aspen’s software helps customers increase productivity, reduce operating costs, enhance capital efficiency and decrease working capital requirements. We took advantage of the stock’s sell-off as energy prices have come in, and we are continuing to build out our position as oil continues to decline.



Aspen was founded 30 years ago in a lab at MIT, gained scale through a series of acquisitions in the early 2000s, and recently completed a complete re-architecting of its software and business model. Today, Aspen is a market leading vertical software business that offers customers a growing portfolio of 70 unique applications. Its customers include the world’s largest energy, chemical, and engineering and construction companies that depend on Aspen to run their businesses every day. As such, Aspen’s tools became deeply embedded in customer workflows, leading to near-perfect retention rates, five to six year contracts and annual price increases.



Aspen will generate just over $400 million of recurring revenue this year, which we think represents less than 20% penetration of its existing opportunity. We think that recurring revenue can compound at close to a double-digit rate organically, though this will likely tick down in the shortterm. Much of that growth comes from deeper engagement from existing customers. The company recently introduced the concept of “tokens” as a means to encourage wider adoption of its software. We think this was a savvy move. Aspen’s customers increase their token consumption when they use additional modules or allow more users to adopt the suite. Given the high ROI of the modules, the inevitable result is that customers need to keep coming back to Aspen to purchase more tokens as their use of Aspen technology expands. Growth should also be driven by an upgrade cycle to its newest platform, better integration of modules which should drive more token usage, and the consistent release of new modules. We think the company’s investments in analytics and asset maintenance will meaningfully expand Aspen’s opportunity over time



Like many vertical software companies, Aspen’s business is highly profitable and extremely cash generative. Margins are already in the mid-40% range, and we think those will work higher over time given the company’s high incremental margins and strong cost control. The company converts around 75% of its EBITDA to free cash flow, which it uses to repurchase stock and make acquisitions. The company just made an accretive acquisition of a publicly traded UK provider of strategic consulting and software that serves the same customer base. We believe the deal is accretive and strategic and on plan to enable deeper penetration of its clientele and to build out its capabilities.



We believe Aspen’s business is super high quality, its mission is critical to its customers and, for the most part, is mostly insensitive to energy prices. We are impressed with the company’s recent performance in this difficult macroeconomic environment, its revenues grew 10% organically and margins expanded so earnings and free cash flow grew faster. The stock now trades at 12 times our estimate for 2016 EBITDA and 15 times 2016 earnings, multiples that we expect will deservedly expand over time. We foresee a long runway of strong organic revenue growth, margin expansion to over 50%, free cash flow to be used for share re-purchases and/or acquisitions, which has the potential to lead to a triple in the stock over the next five years.



Check out Ron Baron latest stock trades

Baron Funds Comments on Aspen Technology - Nov 10, 2015

Aspen Technology, Inc. (NASDAQ:AZPN) is the leading process tools provider for the engineering and construction, chemicals and energy markets. Its software improves competitiveness and profitability by increasing throughput and productivity, reducing operating costs and enhancing capital efficiency. We believe the company has substantial room to grow through new products, further customer penetration, a new product upgrade cycle and continued market share gains. The return on investment that the company’s customers realize from efficiency gains provides us with further confidence to invest with Aspen. We initiated a position in Aspen Technology in the quarter.



From the Baron Opportunity Fund third quarter 2015 letter.



Check out Ron Baron latest stock trades

Top Ranked Articles about Aspen Technology Inc

Baron Small Cap Comments on Aspen Technology Fund initiates new holding in 4th quarter
Commentary on Aspen Technology (NASDAQ:AZPN): Read more...
Baron Funds Comments on Aspen Technology Guru stock highlight
Aspen Technology, Inc. (NASDAQ:AZPN) is the leading process tools provider for the engineering and construction, chemicals and energy markets. Its software improves competitiveness and profitability by increasing throughput and productivity, reducing operating costs and enhancing capital efficiency. We believe the company has substantial room to grow through new products, further customer penetration, a new product upgrade cycle and continued market share gains. The return on investment that the company’s customers realize from efficiency gains provides us with further confidence to invest with Aspen. We initiated a position in Aspen Technology in the quarter. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 22.99
AZPN's P/E(ttm) is ranked lower than
52% of the 1202 Companies
in the Global Software - Application industry.

( Industry Median: 23.82 vs. AZPN: 22.99 )
Ranked among companies with meaningful P/E(ttm) only.
AZPN' s P/E(ttm) Range Over the Past 10 Years
Min: 8.78  Med: 47.87 Max: 1226.82
Current: 22.99
8.78
1226.82
Forward P/E 2.11
AZPN's Forward P/E is ranked lower than
60% of the 309 Companies
in the Global Software - Application industry.

( Industry Median: 18.18 vs. AZPN: 2.11 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 22.99
AZPN's PE(NRI) is ranked lower than
52% of the 1205 Companies
in the Global Software - Application industry.

( Industry Median: 23.86 vs. AZPN: 22.99 )
Ranked among companies with meaningful PE(NRI) only.
AZPN' s PE(NRI) Range Over the Past 10 Years
Min: 8.75  Med: 48.02 Max: 1349.5
Current: 22.99
8.75
1349.5
Price/Owner Earnings (ttm) 20.50
AZPN's Price/Owner Earnings (ttm) is ranked higher than
52% of the 715 Companies
in the Global Software - Application industry.

( Industry Median: 21.79 vs. AZPN: 20.50 )
Ranked among companies with meaningful Price/Owner Earnings (ttm) only.
AZPN' s Price/Owner Earnings (ttm) Range Over the Past 10 Years
Min: 9.85  Med: 22.53 Max: 168.29
Current: 20.5
9.85
168.29
P/S 6.79
AZPN's P/S is ranked lower than
82% of the 1748 Companies
in the Global Software - Application industry.

( Industry Median: 2.03 vs. AZPN: 6.79 )
Ranked among companies with meaningful P/S only.
AZPN' s P/S Range Over the Past 10 Years
Min: 0.78  Med: 6.25 Max: 12.87
Current: 6.79
0.78
12.87
PFCF 20.34
AZPN's PFCF is ranked higher than
52% of the 642 Companies
in the Global Software - Application industry.

( Industry Median: 22.35 vs. AZPN: 20.34 )
Ranked among companies with meaningful PFCF only.
AZPN' s PFCF Range Over the Past 10 Years
Min: 9.74  Med: 22.15 Max: 93.71
Current: 20.34
9.74
93.71
POCF 19.78
AZPN's POCF is ranked lower than
63% of the 830 Companies
in the Global Software - Application industry.

( Industry Median: 16.06 vs. AZPN: 19.78 )
Ranked among companies with meaningful POCF only.
AZPN' s POCF Range Over the Past 10 Years
Min: 8.2  Med: 20.78 Max: 56.63
Current: 19.78
8.2
56.63
EV-to-EBIT 14.82
AZPN's EV-to-EBIT is ranked higher than
55% of the 1169 Companies
in the Global Software - Application industry.

( Industry Median: 16.29 vs. AZPN: 14.82 )
Ranked among companies with meaningful EV-to-EBIT only.
AZPN' s EV-to-EBIT Range Over the Past 10 Years
Min: -225.8  Med: 15.40 Max: 170.1
Current: 14.82
-225.8
170.1
EV-to-EBITDA 14.40
AZPN's EV-to-EBITDA is ranked lower than
55% of the 1263 Companies
in the Global Software - Application industry.

( Industry Median: 12.58 vs. AZPN: 14.40 )
Ranked among companies with meaningful EV-to-EBITDA only.
AZPN' s EV-to-EBITDA Range Over the Past 10 Years
Min: -376  Med: 14.30 Max: 324.4
Current: 14.4
-376
324.4
Shiller P/E 89.78
AZPN's Shiller P/E is ranked lower than
88% of the 279 Companies
in the Global Software - Application industry.

( Industry Median: 33.81 vs. AZPN: 89.78 )
Ranked among companies with meaningful Shiller P/E only.
AZPN' s Shiller P/E Range Over the Past 10 Years
Min: 81.08  Med: 160.36 Max: 1389.67
Current: 89.78
81.08
1389.67
Current Ratio 0.95
AZPN's Current Ratio is ranked lower than
85% of the 1671 Companies
in the Global Software - Application industry.

( Industry Median: 1.95 vs. AZPN: 0.95 )
Ranked among companies with meaningful Current Ratio only.
AZPN' s Current Ratio Range Over the Past 10 Years
Min: 0.83  Med: 1.44 Max: 4.04
Current: 0.95
0.83
4.04
Quick Ratio 0.95
AZPN's Quick Ratio is ranked lower than
81% of the 1671 Companies
in the Global Software - Application industry.

( Industry Median: 1.84 vs. AZPN: 0.95 )
Ranked among companies with meaningful Quick Ratio only.
AZPN' s Quick Ratio Range Over the Past 10 Years
Min: 0.83  Med: 1.44 Max: 4.04
Current: 0.95
0.83
4.04
Days Sales Outstanding 16.79
AZPN's Days Sales Outstanding is ranked higher than
95% of the 1461 Companies
in the Global Software - Application industry.

( Industry Median: 70.19 vs. AZPN: 16.79 )
Ranked among companies with meaningful Days Sales Outstanding only.
AZPN' s Days Sales Outstanding Range Over the Past 10 Years
Min: 25.46  Med: 50.93 Max: 183.15
Current: 16.79
25.46
183.15
Days Payable 28.59
AZPN's Days Payable is ranked lower than
67% of the 1330 Companies
in the Global Software - Application industry.

( Industry Median: 44.91 vs. AZPN: 28.59 )
Ranked among companies with meaningful Days Payable only.
AZPN' s Days Payable Range Over the Past 10 Years
Min: 2.85  Med: 20.34 Max: 38.58
Current: 28.59
2.85
38.58

Valuation & Return

vs
industry
vs
history
Price/Projected FCF 1.63
AZPN's Price/Projected FCF is ranked higher than
50% of the 776 Companies
in the Global Software - Application industry.

( Industry Median: 1.73 vs. AZPN: 1.63 )
Ranked among companies with meaningful Price/Projected FCF only.
AZPN' s Price/Projected FCF Range Over the Past 10 Years
Min: 1.32  Med: 3.28 Max: 188.04
Current: 1.63
1.32
188.04
Price/Median PS Value 1.08
AZPN's Price/Median PS Value is ranked lower than
52% of the 1500 Companies
in the Global Software - Application industry.

( Industry Median: 1.10 vs. AZPN: 1.08 )
Ranked among companies with meaningful Price/Median PS Value only.
AZPN' s Price/Median PS Value Range Over the Past 10 Years
Min: 0.04  Med: 0.59 Max: 1.82
Current: 1.08
0.04
1.82
Earnings Yield (Greenblatt) (%) 6.75
AZPN's Earnings Yield (Greenblatt) (%) is ranked higher than
71% of the 1769 Companies
in the Global Software - Application industry.

( Industry Median: 2.60 vs. AZPN: 6.75 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
AZPN' s Earnings Yield (Greenblatt) (%) Range Over the Past 10 Years
Min: 0.6  Med: 4.90 Max: 14.8
Current: 6.75
0.6
14.8

More Statistics

Revenue(Mil) $465
EPS $ 1.56
Beta1.26
Short Percentage of Float10.10%
52-Week Range $29.25 - 46.76
Shares Outstanding(Mil)81.87

Analyst Estimate

Jun16 Jun17 Jun18
Revenue(Mil) 473 494 524
EPS($) 1.66 18.03 1.97
EPS without NRI($) 1.66 18.03 1.97

Business Description

Industry: Application Software » Software - Application
Compare:XTER:SAPA, NYSE:CRM, NAS:ADBE, NAS:INTU, XPAR:DSY, NYSE:WDAY » details
Traded in other countries:AST.Germany,
Aspen Technology Inc was formed in Massachusetts in 1981 and reincorporated in Delaware in 1998. The Company is a provider of mission-critical process optimization software solutions, which are designed to manage and optimize plant and process design, operational performance, and supply chain planning. The aspenONE software and related services have been developed specifically for companies in the process industries, including the energy, chemicals, and engineering and construction industries. The Company has developed its applications to design and optimize processes across three principal business areas: engineering, manufacturing and supply chain. Its engineering software applications are used during both the design and the ongoing operation of plant facilities to model and improve the way engineers develop and deploy manufacturing assets. Its manufacturing software products which are optimizing day-to-day processing activities, enabling customers to make faster decisions that improves plant performance and operating results. These solutions include desktop and server applications that help customers make real-time decisions, which can reduce fixed and variable costs and improve product yields. Its supply chain management solutions include desktop and server applications that help customers optimize critical supply chain decisions in order to reduce inventory, increase asset efficiency, and respond more quickly to changing market conditions. Its software applications are organized into two suites: aspenONE Engineering and aspenONE Manufacturing and Supply Chain. These suites are integrated applications that allow end users to utilize common data models to design process manufacturing environments, forecast and simulate potential actions, monitor operational performance, and manage planning and scheduling activities. It has three operating segments: license; SMS, training, and other; and professional services. It offers a variety of training solutions from standardized training, which can be delivered in a public forum, on-site at a customer's location or over the Internet, to customized training sessions, which can be tailored to fit customer needs. It offers professional services focused on implementation of its solution. It competes with principal product areas: engineering, manufacturing, and supply chain management.
» More Articles for AZPN

Headlines

Articles On GuruFocus.com
Baron Small Cap Comments on Aspen Technology Feb 08 2016 
Baron Funds Comments on Aspen Technology Nov 10 2015 
Aspen Technology (AZPN) Boosts Profits, Boeing (BA) Strong Results, 747-8 Next Presidential Aircraft Jan 29 2015 
Indian IT Companies On The Global Tech Field Jan 12 2015 
Fisher Investments' Top New Stocks of the First Quarter Apr 23 2014 
Weekly CEO Sells Highlight: Aspen Technology, Inc, Rent-A-Center Inc, Illinois Tool Works Inc, and H Sep 04 2012 
5 Well-Performing IPOs to Consider Now Apr 09 2012 
Daniel Loeb Publishes 1Q10 Letter and Comments on Aspen Technology Jun 16 2010 

More From Other Websites
Aspen Technology, Inc. :AZPN-US: Earnings Analysis: Q3, 2016 By the Numbers May 04 2016
Edited Transcript of AZPN earnings conference call or presentation 28-Apr-16 8:30pm GMT Apr 29 2016
ASPEN TECHNOLOGY INC /DE/ Files SEC form 8-K, Results of Operations and Financial Condition,... Apr 28 2016
Aspen Technology posts 3Q profit Apr 28 2016
Aspen Technology posts 3Q profit Apr 28 2016
Aspen Technology Announces Financial Results for the Third Quarter of Fiscal 2016 Apr 28 2016
Aspen Technology Inc Earnings Call scheduled for 4:30 pm ET today Apr 28 2016
ASPEN TECHNOLOGY INC /DE/ Files SEC form 10-Q, Quarterly Report Apr 28 2016
Aspen Technology Announces Financial Results for the Third Quarter of Fiscal 2016 Apr 28 2016
Q3 2016 Aspen Technology Inc Earnings Release - After Market Close Apr 28 2016
Aspen Technology Announces Date of Third-Quarter Fiscal 2016 Financial Results Release, Conference... Apr 14 2016
Aspen Technology Announces Date of Third-Quarter Fiscal 2016 Financial Results Release, Conference... Apr 14 2016
New Strong Buy Stocks for March 9th Mar 09 2016
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Aspen Technology, Inc. breached its 50 day moving average in a Bearish Manner : AZPN-US : March 3,... Mar 03 2016
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ASPEN TECHNOLOGY INC /DE/ Files SEC form 8-K, Entry into a Material Definitive Agreement, Creation... Feb 29 2016
Aspen Technology to Present at the Pacific Crest Emerging Technology Summit Feb 23 2016
ASPEN TECHNOLOGY INC /DE/ Files SEC form 8-K, Other Events, Financial Statements and Exhibits Feb 18 2016
AspenTech Will Not Revise Offer for KBC Feb 17 2016

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