Aspen Technology Stock Return On Equity
| AZPN Stock | USD 198.50 3.32 1.70% |
Aspen Technology fundamentals help investors to digest information that contributes to Aspen Technology's financial success or failures. It also enables traders to predict the movement of Aspen Stock. The fundamental analysis module provides a way to measure Aspen Technology's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Aspen Technology stock.
| Last Reported | Projected for Next Year | ||
| Return On Equity | (0.01) | (0.01) |
Aspen | Return On Equity |
Aspen Technology Company Return On Equity Analysis
Aspen Technology's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Current Aspen Technology Return On Equity | -0.0066 |
Most of Aspen Technology's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Aspen Technology is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Aspen Return On Equity Driver Correlations
Understanding the fundamental principles of building solid financial models for Aspen Technology is extremely important. It helps to project a fair market value of Aspen Stock properly, considering its historical fundamentals such as Return On Equity. Since Aspen Technology's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Aspen Technology's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Aspen Technology's interrelated accounts and indicators.
Click cells to compare fundamentals
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
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Aspen Total Stockholder Equity
Total Stockholder Equity |
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Based on the latest financial disclosure, Aspen Technology has a Return On Equity of -0.0066. This is 99.95% lower than that of the Software sector and significantly lower than that of the Information Technology industry. The return on equity for all United States stocks is 97.87% lower than that of the firm.
Aspen Return On Equity Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Aspen Technology's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Aspen Technology could also be used in its relative valuation, which is a method of valuing Aspen Technology by comparing valuation metrics of similar companies.Aspen Technology is currently under evaluation in return on equity category among related companies.
Aspen Fundamentals
| Return On Equity | -0.0066 | ||||
| Return On Asset | -0.0078 | ||||
| Profit Margin | (0.08) % | ||||
| Operating Margin | (0.19) % | ||||
| Current Valuation | 12.57 B | ||||
| Shares Outstanding | 63.55 M | ||||
| Shares Owned By Insiders | 57.72 % | ||||
| Shares Owned By Institutions | 47.55 % | ||||
| Number Of Shares Shorted | 1.48 M | ||||
| Price To Earning | 62.82 X | ||||
| Price To Book | 1.05 X | ||||
| Price To Sales | 12.72 X | ||||
| Revenue | 1.04 B | ||||
| Gross Profit | 331.87 M | ||||
| EBITDA | 308.35 M | ||||
| Net Income | (107.76 M) | ||||
| Cash And Equivalents | 382.46 M | ||||
| Cash Per Share | 5.93 X | ||||
| Total Debt | 68.37 M | ||||
| Debt To Equity | 0.03 % | ||||
| Current Ratio | 3.48 X | ||||
| Book Value Per Share | 201.96 X | ||||
| Cash Flow From Operations | 299.21 M | ||||
| Short Ratio | 7.68 X | ||||
| Earnings Per Share | (1.34) X | ||||
| Price To Earnings To Growth | 4.81 X | ||||
| Target Price | 217.86 | ||||
| Number Of Employees | 3.9 K | ||||
| Beta | 0.75 | ||||
| Market Capitalization | 12.51 B | ||||
| Total Asset | 14.49 B | ||||
| Retained Earnings | (41.39 M) | ||||
| Working Capital | 480.64 M | ||||
| Current Asset | 240.14 M | ||||
| Current Liabilities | 164.02 M | ||||
| Annual Yield | 0.01 % | ||||
| Net Asset | 14.49 B |
About Aspen Technology Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Aspen Technology's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Aspen Technology using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Aspen Technology based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Aspen Technology
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Aspen Technology position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Aspen Technology will appreciate offsetting losses from the drop in the long position's value.Moving together with Aspen Stock
| 0.64 | BL | Blackline Earnings Call This Week | PairCorr |
Moving against Aspen Stock
| 0.65 | EB | Eventbrite Class A Financial Report 14th of May 2024 | PairCorr |
| 0.61 | QH | QuhuoLtd | PairCorr |
| 0.58 | U | Unity Software Aggressive Push | PairCorr |
| 0.58 | DV | DoubleVerify Holdings Financial Report 8th of May 2024 | PairCorr |
| 0.49 | ZI | ZoomInfo Technologies Financial Report 6th of May 2024 | PairCorr |
The ability to find closely correlated positions to Aspen Technology could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Aspen Technology when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Aspen Technology - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Aspen Technology to buy it.
The correlation of Aspen Technology is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Aspen Technology moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Aspen Technology moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Aspen Technology can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Aspen Technology Piotroski F Score and Aspen Technology Altman Z Score analysis. To learn how to invest in Aspen Stock, please use our How to Invest in Aspen Technology guide.You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Complementary Tools for Aspen Stock analysis
When running Aspen Technology's price analysis, check to measure Aspen Technology's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Aspen Technology is operating at the current time. Most of Aspen Technology's value examination focuses on studying past and present price action to predict the probability of Aspen Technology's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Aspen Technology's price. Additionally, you may evaluate how the addition of Aspen Technology to your portfolios can decrease your overall portfolio volatility.
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Is Aspen Technology's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Aspen Technology. If investors know Aspen will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Aspen Technology listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.63) | Earnings Share (1.34) | Revenue Per Share 16.424 | Quarterly Revenue Growth 0.059 | Return On Assets (0.01) |
The market value of Aspen Technology is measured differently than its book value, which is the value of Aspen that is recorded on the company's balance sheet. Investors also form their own opinion of Aspen Technology's value that differs from its market value or its book value, called intrinsic value, which is Aspen Technology's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Aspen Technology's market value can be influenced by many factors that don't directly affect Aspen Technology's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Aspen Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine if Aspen Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Aspen Technology's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.