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Aspen Technology Inc AZPN

Rating as of

Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Investor Day Reinforces Aspen’s Wide Moat As AI Capabilities Gain Traction; FVE Unchanged

Dan Romanoff, CPA Equity Analyst

Analyst Note

| Dan Romanoff, CPA |

Wide-moat Aspen hosted a virtual investor day on Feb. 12 and gave a broad-based business overview, touching on virtually all aspects of its operations. In line with our positive view on growth opportunities as capital-intensive industries advance their digital transformation strategies, management equally placed focus on the secular trends driving Aspen’s growth. While Aspen is increasingly positioned at the forefront of innovation across all of its respective end markets, we view the biggest long-term opportunities to be the increasing utilization of the Asset Performance Management suite and evolving AI capabilities in order to address trends towards sustainability and digitalization. Further, given the evolution of the capital-intensive markets served towards sustainability targets such as net-zero carbon footprints, we anticipate Aspen to increasingly be seen as an enabler of a cleaner and more energy efficient future. As Aspen continues to expand its competitive advantage through industry-first AI-integrated hybrid models that address evolving customer needs more effectively than alternatives, we maintain our $148 fair value estimate and view shares as fully valued.

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Company Profile

Business Description

Aspen Technology is a leading global supplier of software solutions that optimize asset design, operations, and maintenance in complex industrial environments. The company’s AspenOne software platform helps improve process-oriented plant efficiency, and thereby lower capital intensity, increase working capital efficiency, and improve margins. Aspen was founded in 1981 and serves more than 2,300 customers in 32 countries.

Contact
20 Crosby Drive
Bedford, MA, 01730
T +1 781 221-6400
Sector Technology
Industry Software - Application
Most Recent Earnings Dec 31, 2020
Fiscal Year End Jun 30, 2021
Stock Type Classic Growth
Employees 1,710