In the world of technology stocks, the race is always on to find the next big thing. Today, we turn our focus to Aspen Technology (NASDAQ: AZPN), a player in the Software - Application industry. With a market capitalization of $12.6B and an ambitious target price of $217.86, Aspen Technology appears to be a compelling investment option. However, the company's operating income registers a loss of $183.1M, which might raise eyebrows among potential investors. Additionally, Aspen's high Price to Earning ratio of 62.82X signals a relatively expensive valuation. Nonetheless, with a robust net asset worth of $14.49B and cash flow from operations of $299.21M, the company shows promise. As retail investors weigh their options, it becomes crucial to delve deeper into the numbers to make an informed decision. Many traders often overanalyze competition within the software sector. However, it's worth considering both Aspen Technology and Bentley Systems Inc. as potential short-term investments. We will concentrate on some competitive aspects of both companies.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Aspen Technology. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on Aspen Technology, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
How important is Aspen Technology's Liquidity
Aspen Technology
financial leverage refers to using borrowed capital as a funding source to finance Aspen Technology ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Aspen Technology financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Aspen Technology's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Aspen Technology's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Aspen Technology's total debt and its cash.
Aspen Technology Gross Profit
Aspen Technology Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Aspen Technology previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Aspen Technology Gross Profit growth over the last 10 years. Please check Aspen Technology's
gross profit and other
fundamental indicators for more details.
Going after Aspen Financials
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me now analyze Aspen Technology revenue. Based on the latest financial disclosure, Aspen Technology reported 1.04
B of revenue. This is 74.38% lower than that of the Software sector and significantly higher than that of the
Information Technology industry.
The revenue for all United States stocks is 88.93% higher than that of Aspen Technology. As for Bentley SystemsInc we see revenue of 1.23
B, which is much higher than that of the Information Technology
| Aspen | 1.04 Billion |
| Sector | 0.0 |
| Bentley | 1.23 Billion |
"Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas." This quote by Paul Samuelson is relevant when considering Aspen Technology (NASDAQ: AZPN), which has shown a steady growth with a day typical price of $198.78, not too far off its 52-week high of $224.77. Despite recording a net income loss of $107.8M, the company has a healthy current ratio of 3.48X and a manageable total debt of $68.37M against a total asset of $14.49B. The company's revenue stands at $1.04B, with a cash flow from operations at $299.21M, showing potential for future profitability. Aspen's shares are also largely owned by institutions, with 47.51% of shares in their hands, suggesting confidence in the company's long-term prospects. However, the potential upside of 3.01 and a target price of $217.86 suggests careful consideration and research are necessary before investment..
Aspen showing symptom of lower volatility
Aspen Technology's recent maximum drawdown of over 12.53 indicates a significant shift in the stock's volatility, potentially reducing risk. This could attract conservative investors looking for less volatile investments. Despite the drawdown, Aspen Technology's ability to maintain lower volatility suggests a more stable trading pattern, potentially offering a safer investment opportunity in a volatile market. The stock's low volatility, with a skewness of 0.37 and kurtosis of 2.87, could be a positive sign for its future performance. Understanding market volatility trends can help investors time the market. Using volatility indicators effectively allows traders to gauge Aspen Technology's stock risk against market volatility during both bullish and bearish trends. High volatility in bear markets can impact Aspen Technology's stock price and stress investors, often prompting portfolio rebalancing.
Our Final Perspective on Aspen Technology
When is the right time to buy or sell Aspen Technology? Buying stocks such as Aspen Technology isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
With a relatively neutral outlook on the recent economy, it is better to hold off any trading of Aspen as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Aspen Technology.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Aspen Technology. Please refer to our
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