111.85 USD
+0.16 (+0.14%)
At close: Mar 25, 2025
112.71 USD
+0.86 (+0.77%)
After Hours: 3/25/2025, 8:00:01 PM
Overall ALTR gets a fundamental rating of 5 out of 10. We evaluated ALTR against 278 industry peers in the Software industry. While ALTR has a great health rating, its profitability is only average at the moment. While showing a medium growth rate, ALTR is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year ALTR was profitable.
- ALTR had a positive operating cash flow in the past year.
- ALTR had negative earnings in 4 of the past 5 years.
- In the past 5 years ALTR always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 0.98%, ALTR is in the better half of the industry, outperforming 64.91% of the companies in the same industry.
- ALTR has a Return On Equity of 1.65%. This is in the better half of the industry: ALTR outperforms 64.91% of its industry peers.
- ALTR's Return On Invested Capital of 1.46% is fine compared to the rest of the industry. ALTR outperforms 68.42% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
- ALTR has a better Profit Margin (2.13%) than 64.91% of its industry peers.
- Looking at the Operating Margin, with a value of 2.66%, ALTR is in the better half of the industry, outperforming 67.72% of the companies in the same industry.
- In the last couple of years the Operating Margin of ALTR has grown nicely.
- The Gross Margin of ALTR (81.25%) is better than 85.26% of its industry peers.
- ALTR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALTR is destroying value.
- ALTR has more shares outstanding than it did 1 year ago.
- ALTR has more shares outstanding than it did 5 years ago.
- ALTR has a better debt/assets ratio than last year.
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.
- Looking at the Altman-Z score, with a value of 10.42, ALTR belongs to the top of the industry, outperforming 88.42% of the companies in the same industry.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.62 | ||
| Altman-Z | 10.42 |
ROIC/WACC0.14
WACC10.46%
2.3 Liquidity
- ALTR has a Current 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.
- 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.
- A Quick Ratio of 1.61 indicates that ALTR should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.61, ALTR is in line with its industry, outperforming 48.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 |
3. Growth
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.
- ALTR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.77% yearly.
- Looking at the last year, ALTR shows a quite strong growth in Revenue. The Revenue has grown by 8.66% in the last year.
- The Revenue has been growing slightly by 7.73% on average over the past years.
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
- Based on estimates for the next years, ALTR will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.79% on average per year.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- ALTR is valuated quite expensively with a Price/Earnings ratio of 84.73.
- ALTR's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of ALTR to the average of the S&P500 Index (28.30), we can say ALTR is valued expensively.
- The Price/Forward Earnings ratio is 81.56, which means the current valuation is very expensive for ALTR.
- ALTR's Price/Forward Earnings is on the same level as the industry average.
- ALTR is valuated expensively when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.73 | ||
| Fwd PE | 81.56 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as ALTR.
- ALTR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 68.54 | ||
| EV/EBITDA | 154.74 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ALTR does not grow enough to justify the current Price/Earnings ratio.
- ALTR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)21.76
PEG (5Y)2.59
EPS Next 2Y11.57%
EPS Next 3Y10.79%
5. Dividend
5.1 Amount
- No dividends for ALTR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ALTAIR ENGINEERING INC - A / ALTR FAQ
What is the ChartMill fundamental rating of ALTAIR ENGINEERING INC - A (ALTR) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ALTR.
What is the valuation status for ALTR stock?
ChartMill assigns a valuation rating of 2 / 10 to ALTAIR ENGINEERING INC - A (ALTR). This can be considered as Overvalued.
How profitable is ALTAIR ENGINEERING INC - A (ALTR) stock?
ALTAIR ENGINEERING INC - A (ALTR) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for ALTR stock?
The Price/Earnings (PE) ratio for ALTAIR ENGINEERING INC - A (ALTR) is 84.73 and the Price/Book (PB) ratio is 11.19.
What is the expected EPS growth for ALTAIR ENGINEERING INC - A (ALTR) stock?
The Earnings per Share (EPS) of ALTAIR ENGINEERING INC - A (ALTR) is expected to grow by 3.89% in the next year.