111.85 USD
+0.16 (+0.14%)
112.71 USD
+0.86 (+0.77%)
Taking everything into account, ALTR scores 5 out of 10 in our fundamental rating. ALTR was compared to 278 industry peers in the Software industry. ALTR has an excellent financial health rating, but there are some minor concerns on its profitability. ALTR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year ALTR was profitable.
- ALTR had a positive operating cash flow in the past year.
- In the past 5 years ALTR reported 4 times negative net income.
- In the past 5 years ALTR always reported a positive cash flow from operatings.
1.2 Ratios
- ALTR has a better Return On Assets (0.98%) than 64.91% of its industry peers.
- The Return On Equity of ALTR (1.65%) is better than 64.91% of its industry peers.
- ALTR has a Return On Invested Capital of 1.46%. This is in the better half 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
- 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.
- 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.
- ALTR's Operating Margin has improved in the last couple of years.
- ALTR has a Gross Margin of 81.25%. This is amongst the best in the industry. ALTR outperforms 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
- ALTR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
- 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.
- ALTR has a Altman-Z score of 10.42. This is amongst the best in the industry. ALTR outperforms 88.42% of its industry peers.
- ALTR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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 of 1.61. This is comparable to the rest of the industry: ALTR outperforms 48.42% of its industry peers.
- A Quick Ratio of 1.61 indicates that ALTR should not have too much problems paying its short term obligations.
- ALTR's Quick ratio of 1.61 is in line compared to the rest of the industry. ALTR outperforms 48.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 18.92% over the past year.
- 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%.
- Measured over the past years, ALTR shows a small growth in Revenue. The Revenue has been growing by 7.73% on average per year.
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
- The Earnings Per Share is expected to grow by 10.79% on average over the next years. This is quite good.
- Based on estimates for the next years, ALTR will show a quite strong growth in Revenue. The Revenue will grow by 9.00% on average per year.
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
- A Price/Earnings ratio of 84.73 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.
- ALTR's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.25.
- Based on the Price/Forward Earnings ratio of 81.56, 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.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. ALTR is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.73 | ||
| Fwd PE | 81.56 |
4.2 Price Multiples
- ALTR's Enterprise Value to EBITDA is on the same level as the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALTR is on the same level as its industry peers.
| 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.