ALTAIR ENGINEERING INC - A (ALTR) Fundamental Analysis & Valuation

NASDAQ:ALTR • US0213691035

Current stock price

111.85 USD
+0.16 (+0.14%)
At close:
112.71 USD
+0.86 (+0.77%)
After Hours:

This ALTR fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. ALTR Profitability Analysis

1.1 Basic Checks

  • ALTR had positive earnings in the past year.
  • ALTR had a positive operating cash flow in the past year.
  • In the past 5 years ALTR reported 4 times negative net income.
  • In the past 5 years ALTR always reported a positive cash flow from operatings.
ALTR Yearly Net Income VS EBIT VS OCF VS FCFALTR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M -50M 100M -100M 150M

1.2 Ratios

  • ALTR has a Return On Assets of 0.98%. This is in the better half of the industry: ALTR outperforms 64.91% of its industry peers.
  • ALTR's Return On Equity of 1.65% is fine compared to the rest of the industry. ALTR outperforms 64.91% of its industry peers.
  • With a decent Return On Invested Capital value of 1.46%, ALTR is doing good in the industry, outperforming 68.42% of the companies in the same industry.
Industry RankSector Rank
ROA 0.98%
ROE 1.65%
ROIC 1.46%
ROA(3y)-1.09%
ROA(5y)-1.06%
ROE(3y)-2.41%
ROE(5y)-2.28%
ROIC(3y)N/A
ROIC(5y)N/A
ALTR Yearly ROA, ROE, ROICALTR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -50 -100 -150

1.3 Margins

  • Looking at the Profit Margin, with a value of 2.13%, ALTR is in the better half of the industry, outperforming 64.91% of the companies in the same industry.
  • ALTR has a Operating Margin of 2.66%. This is in the better half of the industry: ALTR outperforms 67.72% of its industry peers.
  • ALTR's Operating Margin has improved in the last couple of years.
  • With an excellent Gross Margin value of 81.25%, ALTR belongs to the best of the industry, outperforming 85.26% of the companies in the same industry.
  • In the last couple of years the Gross Margin of ALTR has grown nicely.
Industry RankSector Rank
OM 2.66%
PM (TTM) 2.13%
GM 81.25%
OM growth 3Y-6.69%
OM growth 5Y8.25%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.34%
GM growth 5Y2.7%
ALTR Yearly Profit, Operating, Gross MarginsALTR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60 80

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7

2. ALTR Health Analysis

2.1 Basic Checks

  • ALTR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • Compared to 1 year ago, ALTR has more shares outstanding
  • Compared to 5 years ago, ALTR has more shares outstanding
  • ALTR has a better debt/assets ratio than last year.
ALTR Yearly Shares OutstandingALTR Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
ALTR Yearly Total Debt VS Total AssetsALTR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B

2.2 Solvency

  • ALTR has an Altman-Z score of 10.42. This indicates that ALTR is financially healthy and has little risk of bankruptcy at the moment.
  • ALTR's Altman-Z score of 10.42 is amongst the best of the industry. ALTR outperforms 88.42% of its industry peers.
  • There is no outstanding debt for ALTR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 1.62
Altman-Z 10.42
ROIC/WACC0.14
WACC10.46%
ALTR Yearly LT Debt VS Equity VS FCFALTR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M

2.3 Liquidity

  • A Current Ratio of 1.61 indicates that ALTR should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.61, ALTR is in line with its industry, outperforming 48.42% of the companies in the same industry.
  • ALTR has a Quick Ratio of 1.61. This is a normal value and indicates that ALTR is financially healthy and should not expect problems in meeting its short term obligations.
  • ALTR has a Quick ratio (1.61) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.61
Quick Ratio 1.61
ALTR Yearly Current Assets VS Current LiabilitesALTR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. ALTR Growth Analysis

3.1 Past

  • ALTR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.92%, which is quite good.
  • Measured over the past years, ALTR shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.77% on average per year.
  • ALTR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.66%.
  • Measured over the past years, ALTR shows a small growth in Revenue. The Revenue has been growing by 7.73% on average per year.
EPS 1Y (TTM)18.92%
EPS 3Y24.74%
EPS 5Y32.77%
EPS Q2Q%13.04%
Revenue 1Y (TTM)8.66%
Revenue growth 3Y7.75%
Revenue growth 5Y7.73%
Sales Q2Q%4.59%

3.2 Future

  • The Earnings Per Share is expected to grow by 10.79% on average over the next years. This is quite good.
  • ALTR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.00% yearly.
EPS Next Y3.89%
EPS Next 2Y11.57%
EPS Next 3Y10.79%
EPS Next 5YN/A
Revenue Next Year9.17%
Revenue Next 2Y8.23%
Revenue Next 3Y9%
Revenue Next 5YN/A

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
ALTR Yearly Revenue VS EstimatesALTR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M 800M
ALTR Yearly EPS VS EstimatesALTR Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5

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2

4. ALTR Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 84.73, ALTR can be considered very expensive at the moment.
  • ALTR's Price/Earnings is on the same level as the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 26.17, ALTR is valued quite expensively.
  • ALTR is valuated quite expensively with a Price/Forward Earnings ratio of 81.56.
  • ALTR's Price/Forward Earnings is on the same level as the industry average.
  • ALTR's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.05.
Industry RankSector Rank
PE 84.73
Fwd PE 81.56
ALTR Price Earnings VS Forward Price EarningsALTR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • ALTR's Enterprise Value to EBITDA is on the same level as the industry average.
  • ALTR's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 68.54
EV/EBITDA 154.74
ALTR Per share dataALTR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The decent profitability rating of ALTR may justify a higher PE ratio.
PEG (NY)21.76
PEG (5Y)2.59
EPS Next 2Y11.57%
EPS Next 3Y10.79%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ALTR Dividend Analysis

5.1 Amount

  • ALTR does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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ALTR Fundamentals: All Metrics, Ratios and Statistics

ALTAIR ENGINEERING INC - A

NASDAQ:ALTR (3/25/2025, 8:00:01 PM)

After market: 112.71 +0.86 (+0.77%)

111.85

+0.16 (+0.14%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-20
Earnings (Next)04-30
Inst Owners96.66%
Inst Owner Change0%
Ins Owners2.18%
Ins Owner Change0%
Market Cap9.60B
Revenue(TTM)665.79M
Net Income(TTM)14.18M
Analysts51.67
Price Target110.7 (-1.03%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)23.32%
Min EPS beat(2)0.29%
Max EPS beat(2)46.35%
EPS beat(4)4
Avg EPS beat(4)15.85%
Min EPS beat(4)0.29%
Max EPS beat(4)46.35%
EPS beat(8)8
Avg EPS beat(8)44.6%
EPS beat(12)12
Avg EPS beat(12)80.9%
EPS beat(16)16
Avg EPS beat(16)169.86%
Revenue beat(2)1
Avg Revenue beat(2)-1.38%
Min Revenue beat(2)-3.99%
Max Revenue beat(2)1.24%
Revenue beat(4)2
Avg Revenue beat(4)-0.8%
Min Revenue beat(4)-3.99%
Max Revenue beat(4)1.24%
Revenue beat(8)4
Avg Revenue beat(8)0.08%
Revenue beat(12)7
Avg Revenue beat(12)0.83%
Revenue beat(16)11
Avg Revenue beat(16)2.07%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-2.72%
EPS NY rev (1m)-6.27%
EPS NY rev (3m)-5.57%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-0.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.45%
Valuation
Industry RankSector Rank
PE 84.73
Fwd PE 81.56
P/S 14.41
P/FCF 68.54
P/OCF 62.28
P/B 11.19
P/tB 29.82
EV/EBITDA 154.74
EPS(TTM)1.32
EY1.18%
EPS(NY)1.37
Fwd EY1.23%
FCF(TTM)1.63
FCFY1.46%
OCF(TTM)1.8
OCFY1.61%
SpS7.76
BVpS9.99
TBVpS3.75
PEG (NY)21.76
PEG (5Y)2.59
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 0.98%
ROE 1.65%
ROCE 1.85%
ROIC 1.46%
ROICexc 3.53%
ROICexgc N/A
OM 2.66%
PM (TTM) 2.13%
GM 81.25%
FCFM 21.03%
ROA(3y)-1.09%
ROA(5y)-1.06%
ROE(3y)-2.41%
ROE(5y)-2.28%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y-10.9%
ROICexc growth 5Y14.86%
OM growth 3Y-6.69%
OM growth 5Y8.25%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.34%
GM growth 5Y2.7%
F-Score7
Asset Turnover0.46
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 1.62
Debt/EBITDA 0
Cap/Depr 33.41%
Cap/Sales 2.12%
Interest Coverage 4.08
Cash Conversion 257.46%
Profit Quality 987.64%
Current Ratio 1.61
Quick Ratio 1.61
Altman-Z 10.42
F-Score7
WACC10.46%
ROIC/WACC0.14
Cap/Depr(3y)28.88%
Cap/Depr(5y)30.63%
Cap/Sales(3y)1.82%
Cap/Sales(5y)1.75%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)18.92%
EPS 3Y24.74%
EPS 5Y32.77%
EPS Q2Q%13.04%
EPS Next Y3.89%
EPS Next 2Y11.57%
EPS Next 3Y10.79%
EPS Next 5YN/A
Revenue 1Y (TTM)8.66%
Revenue growth 3Y7.75%
Revenue growth 5Y7.73%
Sales Q2Q%4.59%
Revenue Next Year9.17%
Revenue Next 2Y8.23%
Revenue Next 3Y9%
Revenue Next 5YN/A
EBIT growth 1Y9207.89%
EBIT growth 3Y0.54%
EBIT growth 5Y16.62%
EBIT Next Year42.89%
EBIT Next 3Y16.18%
EBIT Next 5YN/A
FCF growth 1Y19.54%
FCF growth 3Y37.86%
FCF growth 5Y45.78%
OCF growth 1Y21.03%
OCF growth 3Y35.73%
OCF growth 5Y37.47%

ALTAIR ENGINEERING INC - A / ALTR Fundamental Analysis FAQ

What is the ChartMill fundamental rating of ALTAIR ENGINEERING INC - A (ALTR) stock?

ChartMill assigns a fundamental rating of 5 / 10 to ALTR.


Can you provide the valuation status for ALTAIR ENGINEERING INC - A?

ChartMill assigns a valuation rating of 2 / 10 to ALTAIR ENGINEERING INC - A (ALTR). This can be considered as Overvalued.


Can you provide the profitability details for ALTAIR ENGINEERING INC - A?

ALTAIR ENGINEERING INC - A (ALTR) has a profitability rating of 6 / 10.


What is the valuation of ALTAIR ENGINEERING INC - A based on its PE and PB ratios?

The Price/Earnings (PE) ratio for ALTAIR ENGINEERING INC - A (ALTR) is 84.73 and the Price/Book (PB) ratio is 11.19.