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

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 Forecast Earnings Financials Ownership News

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

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to ALTR. ALTR was compared to 276 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.


Dividend Valuation Growth Profitability Health

6

1. ALTR Profitability Analysis

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.
  • ALTR had a positive operating cash flow in each of the past 5 years.
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.
  • The Return On Equity of ALTR (1.65%) is better than 64.91% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 1.46%, ALTR is in the better half of 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.
  • The Operating Margin of ALTR (2.66%) is better than 67.72% of its industry peers.
  • ALTR's Operating Margin has improved in the last couple of years.
  • 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 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. ALTR Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALTR is destroying value.
  • The number of shares outstanding for ALTR has been increased compared to 1 year ago.
  • ALTR has more shares outstanding than it did 5 years ago.
  • 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

  • An Altman-Z score of 10.42 indicates that ALTR is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 10.42, ALTR belongs to the best of the industry, outperforming 88.42% of the companies in the same industry.
  • ALTR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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.
  • 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.
  • 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 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.
  • The Earnings Per Share has been growing by 32.77% on average over the past years. This is a very strong growth
  • 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

  • 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

  • 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

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2

4. ALTR Valuation Analysis

4.1 Price/Earnings Ratio

  • ALTR is valuated quite expensively with a Price/Earnings ratio of 84.73.
  • The rest of the industry has a similar Price/Earnings ratio as ALTR.
  • Compared to an average S&P500 Price/Earnings ratio of 26.29, ALTR is valued quite expensively.
  • With a Price/Forward Earnings ratio of 81.56, ALTR can be considered very expensive at the moment.
  • ALTR's Price/Forward Earnings ratio is in line with the industry average.
  • ALTR's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.57.
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALTR is on the same level as its industry peers.
  • ALTR's Price/Free Cash Flow ratio is in line with 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.
  • 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. ALTR Dividend Analysis

5.1 Amount

  • No dividends for ALTR!.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

Find the best dividend stocksShow peers with best dividend

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 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.