Aspen Well Positioned for Oil and Gas Rebound
The wide-moat firm's technology applies to many fields, and opportunities continue to appear.
Dan Romanoff: We see wide-moat Aspen Technology as an interesting niche software company selling into the industrial process automation vertical market. Aspen’s software optimizes asset design, operations, and maintenance in complex industrial environments. The AspenOne software platform helps improve process-oriented plant efficiency, and thereby lowers capital intensity, increases working capital efficiency, and improves margins. This is high-end software that competes against offerings from industrial automation companies like Siemens, Emerson, and Schneider Electric.
Shares have gapped up in the months since our mid-December launch. Most of that has occurred since tensions increased with Iran. Given that Aspen software is used predominantly for the oil, gas, chemical, and energy industries, at times shares become decoupled from the underlying business fundamentals and trade based on the volatility of oil. We now see shares as overvalued.
Dan Romanoff does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.