Switch to:
Aspen Technology Inc (NAS:AZPN)
Piotroski F-Score
8 (As of Today)

Good Sign:

Piotroski F-Score of 8 is 8, indicating very healthy situation.

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Aspen Technology Inc has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

AZPN' s 10-Year Piotroski F-Score Range
Min: 1   Max: 9
Current: 8

1
9

During the past 13 years, the highest Piotroski F-Score of Aspen Technology Inc was 9. The lowest was 1. And the median was 6.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Net Income was 26.678 + 20.843 + 23.263 + 14.999 = $85.8 Mil.
Cash Flow from Operations was 58.242 + 69.633 + 46.343 + 25.913 = $200.1 Mil.
Revenue was 101.532 + 103.587 + 98.769 + 87.565 = $391.5 Mil.
Gross Profit was 88.653 + 88.299 + 86.326 + 75.487 = $338.8 Mil.
Total Assets at the begining of this year (Jun13) was $382.7 Mil.
Total Assets was $408.0 Mil.
Long-Term Debt was $0.0 Mil.
Total Current Assets was $329.7 Mil.
Total Current Liabilities was $266.5 Mil.
Net Income was 20.399 + 10.513 + 9.937 + 4.413 = $45.3 Mil.

Revenue was 83.264 + 79.357 + 77.309 + 71.457 = $311.4 Mil.
Gross Profit was 70.276 + 66.708 + 64.936 + 59.119 = $261.0 Mil.
Total Assets at the begining of last year (Jun12) was $368.3 Mil.
Total Assets was $382.7 Mil.
Long-Term Debt was $0.0 Mil.
Total Current Assets was $285.4 Mil.
Total Current Liabilities was $215.5 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Aspen Technology Inc's current net income was 85.8. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Aspen Technology Inc's current cash flow from operations was 200.1. ==> Positive ==> Score 1.

Q3. Change in Return on Assets

Compare this year’s return on assets (1) to last year’s return on assets.

Score 1 if it’s higher, 0 if it’s lower.

ROA (This Year)=Net Income/Total Assets at the beginning of this year (Jun13)
=85.783/382.748
=0.22412397

ROA (Last Year)=Net Income/Total Assets at the beginning of last year (Jun12)
=45.262/368.335
=0.1228827

Aspen Technology Inc's return on assets of this year was 0.22412397. Aspen Technology Inc's return on assets of last year was 0.1228827. ==> This year is higher. ==> Score 1.

Q4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA =< ROA.

Aspen Technology Inc's current net income was 85.8. Aspen Technology Inc's current cash flow from operations was 200.1. ==> 200.1 > 85.8 ==> CFROA > ROA ==> Score 1.

Funding

Q5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by average total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year)=Long-Term Debt/Total Assets
=0/407.972
=0

Gearing (Last Year)=Long-Term Debt/Total Assets
=0/382.748
=0

Aspen Technology Inc's gearing of this year was 0. Aspen Technology Inc's gearing of last year was 0. ==> This year is lower or equal to last year. ==> Score 1.

Q6. Change in Working Capital (Liquidity)

Compare this year’s current ratio (current assets divided by current liabilities) to last year’s current ratio.

Score 1 if this year'’s current ratio is higher, 0 if it’s lower

Current Ratio (This Year)=Total Current Assets/Total Current Liabilities
=329.682/266.504
=1.23706211

Current Ratio (Last Year)=Total Current Assets/Total Current Liabilities
=285.351/215.461
=1.32437425

Aspen Technology Inc's current ratio of this year was 1.23706211. Aspen Technology Inc's current ratio of last year was 1.32437425. ==> Last year's current ratio is higher ==> Score 0.

Q7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Aspen Technology Inc's number of shares in issue this year was 92.8. Aspen Technology Inc's number of shares in issue last year was 95.2. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Q8. Change in Gross Margin

Compare this year’s gross margin (gross profit divided by sales) to last year’s.

Score 1 if this year’s gross margin is higher, 0 if it’s lower.

Gross Margin (This Year)=Gross Profit/Revenue
=338.765/391.453
=0.86540402

Gross Margin (Last Year)=Gross Profit/Revenue
=261.039/311.387
=0.83831053

Aspen Technology Inc's gross margin of this year was 0.86540402. Aspen Technology Inc's gross margin of last year was 0.83831053. ==> This year's gross margin is higher. ==> Score 1.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales divided by total assets at the beginning of the year) to last year’s asset turnover ratio.

Score 1 if this year’s asset turnover ratio is higher, 0 if it’s lower

Asset Turnover (This Year)=Revenue/Total Assets at the beginning of this year (Jun13)
=391.453/382.748
=1.02274342

Asset Turnover (Last Year)=Revenue/Total Assets at the beginning of last year (Jun12)
=311.387/368.335
=0.84539074

Aspen Technology Inc's asset turnover of this year was 1.02274342. Aspen Technology Inc's asset turnover of last year was 0.84539074. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+1+0+1+1+1
=8

Good or high score = 8 or 9

Bad or low score = 0 or 1

Aspen Technology Inc has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.


Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Aspen Technology Inc Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
Q1 0011110101
Q2 1111111111
Q3 1011010101
Q4 1111101111
Q5 1110110111
Q6 0011101000
Q7 0000011010
Q8 1011110111
Q9 1011000111
F-score 6387664767

Aspen Technology Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 1011111111
Q2 1111111111
Q3 1000011111
Q4 1111111111
Q5 1111111111
Q6 0000001010
Q7 1101001111
Q8 1111111111
Q9 1111111111
F-score 8667679898
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK