Aspen Technology Stock Intrinsic Value – ASPEN TECHNOLOGY Reports 34.2% Increase in Revenue for Fourth Quarter of Fiscal Year 2023
August 11, 2023
☀️Earnings Overview
At the conclusion of its fourth quarter of fiscal year 2023 on June 30th, ASPEN TECHNOLOGY ($NASDAQ:AZPN) reported total revenue of USD 320.6 million, a 34.2% increase from the same period in the previous year. Unfortunately, net income was down 52.2% year over year, at USD 27.3 million.
Analysis – Aspen Technology Stock Intrinsic Value
GoodWhale conducted an analysis of ASPEN TECHNOLOGY‘s financials and estimated a fair value of around $172.2 per share, calculated by their proprietary Valuation Line. This fair value is moderately surpassed by the current trading price of $180.7 per share, suggesting that the stock is currently overvalued by 4.9%. Although this is a slight difference, it may be a good idea for investors to consider this when deciding whether or not to make a purchase. It is important to note that market conditions may cause prices to fluctuate and that the current price may not be indicative of future performance. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Aspen Technology. More…
| Total Revenues | Net Income | Net Margin |
| 1.04k | -107.76 | -10.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Aspen Technology. More…
| Operations | Investing | Financing |
| 299.21 | -107.32 | -383.77 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Aspen Technology. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 14.49k | 1.42k | 201.5 |
Key Ratios Snapshot
Some of the financial key ratios for Aspen Technology are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 20.4% | 19.6% | -17.5% |
| FCF Margin | ROE | ROA |
| 28.0% | -0.9% | -0.8% |
Peers
The company focuses on asset optimization software solutions for the process industries. Aspen Tech is a global provider of software and services that enable companies to optimize their assets and operations. Aspen Tech has over 30 years of experience in the process industries and offers a suite of software products and services that helps companies design, operate, and optimize their plants and processes. Aspen Tech’s products are used by a variety of industries, including oil & gas, chemicals, pharmaceuticals, food & beverage, power, and pulp & paper. The company’s competitors include Ramco Systems Ltd, Q4 Inc, Procore Technologies Inc.
– Ramco Systems Ltd ($BSE:532370)
Ramco Systems Ltd is a global enterprise software company that provides enterprise resource planning (ERP), enterprise asset management (EAM), and human capital management (HCM) solutions. The company has a market cap of 7.82 billion as of 2022 and a return on equity of -11.06%. The company’s products are used by organizations in a variety of industries, including aerospace and defense, automotive, banking and financial services, construction and engineering, consumer goods and retail, shipbuilding and offshore, and more.
– Q4 Inc ($TSX:QFOR)
Q4 Inc is a publicly traded company that provides enterprise software solutions. The company has a market capitalization of $143.79 million and a return on equity of -26.45%. Q4’s products are used by organizations to manage their websites, intranets, and extranets. The company’s software solutions are designed to help organizations improve communication, collaboration, and knowledge sharing.
– Procore Technologies Inc ($NYSE:PCOR)
Procore Technologies is a construction management software company that provides a cloud-based platform to help construction companies manage their projects, documents, and workers. The company has a market cap of $7.31 billion as of 2022 and a return on equity of -14.52%.
Summary
ASPEN TECHNOLOGY‘s fourth quarter of fiscal year 2023 ended on June 30 2023 with a total revenue of USD 320.6 million, representing a 34.2% increase year-over-year. However, the company’s net income was significantly lower, decreasing by 52.2% to USD 27.3 million. Investors should take note of this disparity in revenue and income growth, as it may be an indication of potential financial challenges in the future. Further analysis is necessary to make a more informed investment decision.
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