Aspen Technology Inc
NASDAQ:AZPN

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Aspen Technology Inc
NASDAQ:AZPN
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Price: 248.49 USD 1.3% Market Closed
Market Cap: 15.7B USD
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Intrinsic Value

The intrinsic value of one AZPN stock under the Base Case scenario is 129.28 USD. Compared to the current market price of 248.49 USD, Aspen Technology Inc is Overvalued by 48%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

AZPN Intrinsic Value
129.28 USD
Overvaluation 48%
Intrinsic Value
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Aspen Technology Inc

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

Economic Moat
Aspen Technology Inc

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Business Breakdown

Aspen Technology Inc., commonly known as AspenTech, is a leading software company that specializes in optimizing asset performance in manufacturing and industrial sectors. Founded in 1981 and headquartered in Burlington, Massachusetts, AspenTech provides innovative solutions that enhance productivity and efficiency in complex processes, such as those found in oil and gas, chemicals, and power generation. The company’s flagship product, Aspen Plus, along with a suite of advanced analytics and machine learning tools, empowers companies to streamline operations, reduce costs, and minimize environmental impact. With a focus on sustainability and digital transformation, AspenTech is compellingly...

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Aspen Technology Inc

Current Assets 709.3m
Cash & Short-Term Investments 130.8m
Receivables 549.2m
Other Current Assets 29.3m
Non-Current Assets 13.5B
PP&E 113.8m
Intangibles 12.8B
Other Non-Current Assets 646.2m
Current Liabilities 372m
Accounts Payable 16.5m
Accrued Liabilities 73m
Other Current Liabilities 282.5m
Non-Current Liabilities 1B
Other Non-Current Liabilities 1B
Efficiency

Earnings Waterfall
Aspen Technology Inc

Revenue
1.1B USD
Cost of Revenue
-382.3m USD
Gross Profit
674.6m USD
Operating Expenses
-856.6m USD
Operating Income
-181.9m USD
Other Expenses
95.6m USD
Net Income
-86.3m USD

Free Cash Flow Analysis
Aspen Technology Inc

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

In Q1 FY2025, AspenTech reported a 9.4% year-over-year growth in annual contract value (ACV) to $941 million, driven by strategic execution and favorable demand. Total revenue was $216 million, slightly lower than previous year due to timing of contract renewals. Operating income stood at $49 million with a 22.5% margin. Looking ahead, the company expects 9% ACV growth and approximately $340 million in free cash flow for FY2025. A significant focus is on integrating the recently acquired Open Grid Systems, enhancing their digital grid management offerings. The guidance reflects confidence in overall business performance amid macroeconomic uncertainties.

What is Earnings Call?
Fundamental Scores

AZPN Profitability Score
Profitability Due Diligence

Aspen Technology Inc's profitability score is 58/100. The higher the profitability score, the more profitable the company is.

Positive Free Cash Flow
Positive Gross Profit
Positive 3-Year Average ROE
Positive 3-Years Revenue Growth
58/100
Profitability
Score

Aspen Technology Inc's profitability score is 58/100. The higher the profitability score, the more profitable the company is.

AZPN Solvency Score
Solvency Due Diligence

Aspen Technology Inc's solvency score is 64/100. The higher the solvency score, the more solvent the company is.

High Altman Z-Score
Long-Term Solvency
Low D/E
Short-Term Solvency
64/100
Solvency
Score

Aspen Technology Inc's solvency score is 64/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

AZPN Price Targets Summary
Aspen Technology Inc

Wall Street analysts forecast AZPN stock price to drop over the next 12 months.

According to Wall Street analysts, the average 1-year price target for AZPN is 248.47 USD with a low forecast of 219.38 USD and a high forecast of 273 USD.

Lowest
Price Target
219.38 USD
12% Downside
Average
Price Target
248.47 USD
0% Downside
Highest
Price Target
273 USD
10% Upside
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Dividends

Dividend Yield
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Dividend Per Share
N/A
Growth 3Y
Growth 5Y
Growth 10Y
Dividend Safety Score
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0
25
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100
Shareholder Yield

Current shareholder yield for AZPN is .

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Shareholder Yield
Dividend Yield
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Ownership

AZPN Insider Trading
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Profile

Aspen Technology Inc Logo
Aspen Technology Inc

Country

United States of America

Industry

Technology

Market Cap

15.8B USD

Dividend Yield

0.21%

Description

Aspen Technology, Inc. engages in the provision of asset optimization solutions. The company is headquartered in Bedford, Massachusetts and currently employs 1,897 full-time employees. The firm offers asset optimization software that optimizes asset design, operations, and maintenance in complex industrial environments. The Company’s segments include Subscription and Software, and Services and other. The subscription and software segment is engaged in the licensing of process optimization and asset performance management software solutions and associated support services. The services and other segment includes professional services and training. The firm's aspenONE solutions are organized into three suites: engineering; manufacturing and supply chain; and asset performance management (APM). Each product suite powers its artificial intelligence of things (AIoT) products as the foundation of industrial data. Its software applications are offered in three suites: aspenONE Engineering, aspenONE Manufacturing and Supply Chain, and aspenONE Asset Performance Management.

Contact

MASSACHUSETTS
Bedford
20 Crosby Dr
+17812214302.0
www.aspentech.com

IPO

1994-10-27

Employees

1 897

Officers

President, CEO & Director
Mr. Antonio J. Pietri
Senior VP, Treasurer & CFO
Mr. David Baker
Senior VP, Chief Legal Officer & Corporate Secretary
Mr. Christopher Cooper
Senior VP and Chief Marketing & Strategy Officer
Mr. Stuart Harris
Senior Vice President of Global Sales
Mr. Filipe Soares-Pinto
Chief Human Resource Officer
Ms. Sharon Vinci
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Senior VP & Chief Customer Officer
Mr. Manish Chawla
Chief Integration Officer
Mr. Steve Santy M.Sc.
Senior VP and Chief Research & Software Development Officer
Mr. Tony Antoun
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See Also

Discover More
What is the Intrinsic Value of one AZPN stock?

The intrinsic value of one AZPN stock under the Base Case scenario is 129.28 USD.

Is AZPN stock undervalued or overvalued?

Compared to the current market price of 248.49 USD, Aspen Technology Inc is Overvalued by 48%.

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