Aspen Technology Stock Analysis, Valuation (NASDAQ:AZPN)

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$92.26 $2.52 (2.66%) AZPN stock closing price Jun 22, 2018 (Closing)

Investors can watch the Amigobulls Aspen Technology stock analysis video here. This is our analyst opinion covering the buy and sell arguments for AZPN stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Aspen Technology, Inc. Stock Rating 2.9/5

Amigobulls AZPN stock analysis relies on business fundamentals such as Aspen Technology revenue growth, profits and return on equity measures from the latest quarter 2018 Q3 earnings. Aspen Technology valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Our Aspen Technology stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy AZPN stock?

  • The TTM operating margin was good at 41.81 for Aspen Technology.
  • Net margins stood at a healthy 33.2% (average) for Aspen Technology in the Trailing Twelve Months.
  • The company has an operating cash flow which is 1.9318 times the net income.
  • The company has a healthy free cash flow margin of 58.

Should you sell AZPN stock?

  • Aspen Technology salesgrew by a marginal 5.5% year over year in 2018-03.
  • The AZPN stock currently trades at a PE of 41.2, which is expensive, compared to the sector average of 26.1.
  • The company is trading at a price to sales multiple of 13.3, which is higher in comparison to the Computer and Technology sector average of 2.9, making AZPN stock expensive.

Comments on this video and Aspen Technology stock

Investors can make use of the Amigobulls Aspen Technology stock analysis to ascertain how AZPN stock fares in fundamental analysis investment criteria. Company's fundamentals remain one of the key driver of AZPN stock and helps investors in making good buy and sell decision.

While doing a study of the company financials, Aspen Technology revenue growth and profit or net income are two main metrics which help in identifying whether AZPN stock is overvalued or undervalued. One can also combine technical analysis and fundamental analysis to get a holistic picture about AZPN stock.