ALTAIR ENGINEERING INC - A (ALTR) Stock Fundamental Analysis
NASDAQ:ALTR - Nasdaq - US0213691035 - Common Stock - Currency: USD
Overall ALTR gets a fundamental rating of 5 out of 10. We evaluated ALTR against 283 industry peers in the Software industry. While ALTR has a great health rating, its profitability is only average at the moment. ALTR shows excellent growth, but is valued quite expensive already. This makes ALTR very considerable for growth investing!
1. Profitability
1.1 Basic Checks
ALTR had positive earnings in the past year.
In the past year ALTR had a positive cash flow from operations.
ALTR had negative earnings in each of the past 5 years.
In the past 5 years ALTR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ALTR (2.38%) is better than 67.39% of its industry peers.
The Return On Equity of ALTR (3.93%) is better than 68.48% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.98%, ALTR is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.38% | ||
| ROE | 3.93% | ||
| ROIC | 1.98% |
ROA(3y)-1.67%
ROA(5y)-1.46%
ROE(3y)-3.44%
ROE(5y)-3.03%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
ALTR has a Profit Margin of 5.10%. This is in the better half of the industry: ALTR outperforms 69.57% of its industry peers.
ALTR has a better Operating Margin (4.55%) than 70.29% of its industry peers.
In the last couple of years the Operating Margin of ALTR has declined.
ALTR has a Gross Margin of 81.29%. This is amongst the best in the industry. ALTR outperforms 84.78% of its industry peers.
In the last couple of years the Gross Margin of ALTR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.55% | ||
| PM (TTM) | 5.1% | ||
| GM | 81.29% |
OM growth 3Y-74.84%
OM growth 5Y-63.6%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.6%
GM growth 5Y2.52%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALTR is destroying value.
ALTR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ALTR has more shares outstanding
The debt/assets ratio for ALTR has been reduced compared to a year ago.
2.2 Solvency
ALTR has an Altman-Z score of 11.25. This indicates that ALTR is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 11.25, ALTR belongs to the best of the industry, outperforming 83.70% of the companies in the same industry.
The Debt to FCF ratio of ALTR is 1.80, which is an excellent value as it means it would take ALTR, only 1.80 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.80, ALTR is doing good in the industry, outperforming 67.39% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that ALTR is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.27, ALTR perfoms like the industry average, outperforming 40.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.8 | ||
| Altman-Z | 11.25 |
ROIC/WACC0.14
WACC13.85%
2.3 Liquidity
A Current Ratio of 3.27 indicates that ALTR has no problem at all paying its short term obligations.
ALTR's Current ratio of 3.27 is fine compared to the rest of the industry. ALTR outperforms 78.62% of its industry peers.
ALTR has a Quick Ratio of 3.27. This indicates that ALTR is financially healthy and has no problem in meeting its short term obligations.
ALTR has a Quick ratio of 3.27. This is in the better half of the industry: ALTR outperforms 78.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.27 | ||
| Quick Ratio | 3.27 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 31.25% over the past year.
The Earnings Per Share has been growing by 33.68% on average over the past years. This is a very strong growth
ALTR shows a small growth in Revenue. In the last year, the Revenue has grown by 7.16%.
Measured over the past years, ALTR shows a quite strong growth in Revenue. The Revenue has been growing by 9.10% on average per year.
EPS 1Y (TTM)31.25%
EPS 3Y52.99%
EPS 5Y33.68%
EPS Q2Q%71.43%
Revenue 1Y (TTM)7.16%
Revenue growth 3Y9.25%
Revenue growth 5Y9.1%
Sales Q2Q%13.02%
3.2 Future
The Earnings Per Share is expected to grow by 12.77% 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 8.44% yearly.
EPS Next Y19.55%
EPS Next 2Y14.81%
EPS Next 3Y15.89%
EPS Next 5Y12.77%
Revenue Next Year6.79%
Revenue Next 2Y7.73%
Revenue Next 3Y8.03%
Revenue Next 5Y8.44%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 87.63 indicates a quite expensive valuation of ALTR.
Compared to the rest of the industry, the Price/Earnings ratio of ALTR is on the same level as its industry peers.
When comparing the Price/Earnings ratio of ALTR to the average of the S&P500 Index (29.39), we can say ALTR is valued expensively.
Based on the Price/Forward Earnings ratio of 75.47, the valuation of ALTR can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALTR is on the same level as its industry peers.
ALTR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 94.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87.63 | ||
| Fwd PE | 75.47 |
4.2 Price Multiples
ALTR's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as ALTR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 74.48 | ||
| EV/EBITDA | 129.58 |
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.
A more expensive valuation may be justified as ALTR's earnings are expected to grow with 15.89% in the coming years.
PEG (NY)4.48
PEG (5Y)2.6
EPS Next 2Y14.81%
EPS Next 3Y15.89%
5. Dividend
5.1 Amount
ALTR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ALTAIR ENGINEERING INC - A
NASDAQ:ALTR (2/12/2025, 10:53:43 AM)
110.42
+0.05 (+0.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners109.62%
Inst Owner Change-42.8%
Ins Owners2.64%
Ins Owner Change-5.7%
Market Cap9.39B
Analysts72.86
Price Target110.7 (0.25%)
Short Float %6.71%
Short Ratio4.84
Dividend
| Industry Rank | Sector 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)24.44%
Min EPS beat(2)2.52%
Max EPS beat(2)46.35%
EPS beat(4)4
Avg EPS beat(4)18.35%
Min EPS beat(4)2.52%
Max EPS beat(4)46.35%
EPS beat(8)8
Avg EPS beat(8)52.16%
EPS beat(12)12
Avg EPS beat(12)90.04%
EPS beat(16)16
Avg EPS beat(16)1009.43%
Revenue beat(2)1
Avg Revenue beat(2)0.32%
Min Revenue beat(2)-0.6%
Max Revenue beat(2)1.24%
Revenue beat(4)2
Avg Revenue beat(4)-0.47%
Min Revenue beat(4)-2.65%
Max Revenue beat(4)1.24%
Revenue beat(8)5
Avg Revenue beat(8)1.52%
Revenue beat(12)8
Avg Revenue beat(12)1.84%
Revenue beat(16)12
Avg Revenue beat(16)3.13%
PT rev (1m)0%
PT rev (3m)17.73%
EPS NQ rev (1m)-0.94%
EPS NQ rev (3m)2.49%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)5.52%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)-4.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87.63 | ||
| Fwd PE | 75.47 | ||
| P/S | 14.57 | ||
| P/FCF | 74.48 | ||
| P/OCF | 68 | ||
| P/B | 11.23 | ||
| P/tB | 34.06 | ||
| EV/EBITDA | 129.58 |
EPS(TTM)1.26
EY1.14%
EPS(NY)1.46
Fwd EY1.33%
FCF(TTM)1.48
FCFY1.34%
OCF(TTM)1.62
OCFY1.47%
SpS7.58
BVpS9.84
TBVpS3.24
PEG (NY)4.48
PEG (5Y)2.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.38% | ||
| ROE | 3.93% | ||
| ROCE | 2.51% | ||
| ROIC | 1.98% | ||
| ROICexc | 3.54% | ||
| ROICexgc | 24.82% | ||
| OM | 4.55% | ||
| PM (TTM) | 5.1% | ||
| GM | 81.29% | ||
| FCFM | 19.57% |
ROA(3y)-1.67%
ROA(5y)-1.46%
ROE(3y)-3.44%
ROE(5y)-3.03%
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
ROICexcg growth 3Y-68.1%
ROICexcg growth 5Y-57.12%
ROICexc growth 3Y-75.85%
ROICexc growth 5Y-64.54%
OM growth 3Y-74.84%
OM growth 5Y-63.6%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.6%
GM growth 5Y2.52%
F-Score7
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.8 | ||
| Debt/EBITDA | 3.23 | ||
| Cap/Depr | 29.39% | ||
| Cap/Sales | 1.87% | ||
| Interest Coverage | 6.59 | ||
| Cash Conversion | 196.66% | ||
| Profit Quality | 383.91% | ||
| Current Ratio | 3.27 | ||
| Quick Ratio | 3.27 | ||
| Altman-Z | 11.25 |
F-Score7
WACC13.85%
ROIC/WACC0.14
Cap/Depr(3y)28.39%
Cap/Depr(5y)33.36%
Cap/Sales(3y)1.63%
Cap/Sales(5y)1.77%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)31.25%
EPS 3Y52.99%
EPS 5Y33.68%
EPS Q2Q%71.43%
EPS Next Y19.55%
EPS Next 2Y14.81%
EPS Next 3Y15.89%
EPS Next 5Y12.77%
Revenue 1Y (TTM)7.16%
Revenue growth 3Y9.25%
Revenue growth 5Y9.1%
Sales Q2Q%13.02%
Revenue Next Year6.79%
Revenue Next 2Y7.73%
Revenue Next 3Y8.03%
Revenue Next 5Y8.44%
EBIT growth 1Y264.66%
EBIT growth 3Y-72.51%
EBIT growth 5Y-60.29%
EBIT Next Year24.91%
EBIT Next 3Y17.13%
EBIT Next 5Y16.7%
FCF growth 1Y408.59%
FCF growth 3Y68.11%
FCF growth 5Y34.27%
OCF growth 1Y325.11%
OCF growth 3Y57.03%
OCF growth 5Y28.58%