ALTAIR ENGINEERING INC - A (ALTR) Stock Fundamental Analysis
NASDAQ:ALTR - Nasdaq - US0213691035 - Common Stock - Currency: USD
Taking everything into account, ALTR scores 5 out of 10 in our fundamental rating. ALTR was compared to 282 industry peers in the Software industry. ALTR has an excellent financial health rating, but there are some minor concerns on its profitability. 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.
In the past year ALTR had a positive cash flow from operations.
In the past 5 years ALTR reported 4 times negative net income.
Each year in the past 5 years ALTR had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 0.98%, ALTR is doing good in the industry, outperforming 64.91% of the companies in the same industry.
The Return On Equity of ALTR (1.65%) is better than 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
With a decent Profit Margin value of 2.13%, ALTR is doing good in the industry, outperforming 64.91% of the companies in the same industry.
ALTR's Operating Margin of 2.66% is fine compared to the rest 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.
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.
Compared to 5 years ago, ALTR has more shares outstanding
Compared to 1 year ago, ALTR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 10.42 indicates that ALTR is not in any danger for 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
A Current Ratio of 1.61 indicates that ALTR should not have too much problems paying its short term obligations.
ALTR has a Current ratio (1.61) which is in line with its industry peers.
A Quick Ratio of 1.61 indicates that ALTR should not have too much problems paying its short term obligations.
ALTR has a Quick ratio (1.61) which is comparable to the rest of the 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.
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.
The Revenue has grown by 8.66% in the past year. This is quite good.
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
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.
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.
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 84.73 indicates a quite expensive valuation of ALTR.
The rest of the industry has a similar Price/Earnings ratio as ALTR.
When comparing the Price/Earnings ratio of ALTR to the average of the S&P500 Index (27.30), 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 21.76, 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 is on the same level as 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 an expensive valuation of the company.
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
ALTR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
111.85
+0.16 (+0.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners96.66%
Inst Owner Change0%
Ins Owners2.18%
Ins Owner Change-18.63%
Market Cap9.60B
Analysts51.67
Price Target110.7 (-1.03%)
Short Float %N/A
Short RatioN/A
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)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 Rank | Sector 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
Profitability
| Industry Rank | Sector 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
ROICexcg growth 3YN/A
ROICexcg 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 Rank | Sector 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%