ALTAIR ENGINEERING INC - A (ALTR) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:ALTR • US0213691035

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
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Taking everything into account, ALTR scores 5 out of 10 in our fundamental rating. ALTR was compared to 277 industry peers in the Software industry. ALTR has an excellent financial health rating, but there are some minor concerns on its profitability. ALTR is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • ALTR had positive earnings in the past year.
  • 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.
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's Return On Assets of 0.98% is fine compared to the rest of the industry. ALTR outperforms 64.91% of its industry peers.
  • Looking at the Return On Equity, with a value of 1.65%, ALTR is in the better half of the industry, outperforming 64.91% of the companies in the same industry.
  • 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 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.
  • 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.
  • 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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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALTR is destroying value.
  • Compared to 1 year ago, ALTR has more shares outstanding
  • Compared to 5 years ago, ALTR has more shares outstanding
  • The debt/assets ratio for ALTR has been reduced compared to a year ago.
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

  • An Altman-Z score of 10.42 indicates that ALTR is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of ALTR (10.42) is better than 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

  • 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.
  • ALTR has a Current ratio of 1.61. This is comparable to the rest of the industry: ALTR outperforms 48.42% of its industry peers.
  • 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 of 1.61. This is comparable to the rest of the industry: ALTR outperforms 48.77% of 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. 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.
  • 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%.
  • ALTR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.73% yearly.
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

  • ALTR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.79% yearly.
  • The Revenue is expected to grow by 9.00% on average over the next years. This is quite good.
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

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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

More info and screens

Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 84.73 indicates a quite expensive valuation of ALTR.
  • ALTR's Price/Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Earnings ratio is at 28.03. ALTR is valued rather expensively when compared to this.
  • ALTR is valuated quite expensively with a Price/Forward Earnings ratio of 81.56.
  • ALTR's Price/Forward Earnings ratio is in line with the industry average.
  • When comparing the Price/Forward Earnings ratio of ALTR to the average of the S&P500 Index (27.97), we can say ALTR is valued expensively.
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 ratio is in line with 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 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%

More info and screens

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

0

5. Dividend

5.1 Amount

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

More info and screens

Find the best dividend stocksShow peers with best dividend

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 Change-100%
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 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.