ALTAIR ENGINEERING INC - A (ALTR)
US0213691035 - Common Stock
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 valued quite expensively, but it does show have an excellent growth rating. With these ratings, ALTR could be worth investigating further for growth investing!.
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 always reported negative net income.
ALTR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ALTR (2.38%) is better than 68.35% of its industry peers.
ALTR has a Return On Equity of 3.93%. This is in the better half of the industry: ALTR outperforms 70.14% 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 67.27% 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 71.58% of its industry peers.
ALTR has a better Operating Margin (4.55%) than 70.14% of its industry peers.
ALTR's Operating Margin has declined in the last couple of years.
The Gross Margin of ALTR (81.29%) is better than 84.17% of its industry peers.
ALTR's Gross Margin has improved in the last couple of years.
| 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
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.
ALTR has more shares outstanding than it did 5 years ago.
ALTR has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 10.99 indicates that ALTR is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.99, ALTR belongs to the top of the industry, outperforming 82.73% of the companies in the same industry.
ALTR has a debt to FCF ratio of 1.80. This is a very positive value and a sign of high solvency as it would only need 1.80 years to pay back of all of its debts.
ALTR has a better Debt to FCF ratio (1.80) than 67.99% of its industry peers.
ALTR has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
ALTR's Debt to Equity ratio of 0.27 is on the low side compared to the rest of the industry. ALTR is outperformed by 61.15% of its industry peers.
Although ALTR does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.8 | ||
| Altman-Z | 10.99 |
ROIC/WACC0.17
WACC11.62%
2.3 Liquidity
A Current Ratio of 3.27 indicates that ALTR has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.27, ALTR is doing good in the industry, outperforming 78.06% of the companies in the same industry.
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's Quick ratio of 3.27 is fine compared to the rest of the industry. ALTR outperforms 78.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.27 | ||
| Quick Ratio | 3.27 |
3. Growth
3.1 Past
ALTR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.25%, which is quite impressive.
Measured over the past years, ALTR shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.68% on average per year.
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.
The Revenue is expected to grow by 8.44% on average over the next years. This is quite good.
EPS Next Y19.83%
EPS Next 2Y14.38%
EPS Next 3Y15.23%
EPS Next 5Y12.77%
Revenue Next Year6.66%
Revenue Next 2Y7.73%
Revenue Next 3Y8.28%
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 86.51 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 is valuated expensively when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 75.06, which means the current valuation is very expensive for ALTR.
ALTR's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.83. ALTR is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 86.51 | ||
| Fwd PE | 75.06 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 73.53 | ||
| EV/EBITDA | 126.31 |
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 15.23% in the coming years.
PEG (NY)4.36
PEG (5Y)2.57
EPS Next 2Y14.38%
EPS Next 3Y15.23%
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 (12/20/2024, 8:00:00 PM)
After market: 109.003 0 (0%)109
+1.33 (+1.24%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners71.85%
Inst Owner Change1.57%
Ins Owners6.42%
Ins Owner Change3.46%
Market Cap9.27B
Analysts72.86
Price Target110.7 (1.56%)
Short Float %5.73%
Short Ratio3.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)17.73%
PT rev (3m)17.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.45%
EPS NY rev (1m)0%
EPS NY rev (3m)6.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 86.51 | ||
| Fwd PE | 75.06 | ||
| P/S | 14.39 | ||
| P/FCF | 73.53 | ||
| P/OCF | 67.12 | ||
| P/B | 11.08 | ||
| P/tB | 33.63 | ||
| EV/EBITDA | 126.31 |
EPS(TTM)1.26
EY1.16%
EPS(NY)1.45
Fwd EY1.33%
FCF(TTM)1.48
FCFY1.36%
OCF(TTM)1.62
OCFY1.49%
SpS7.58
BVpS9.84
TBVpS3.24
PEG (NY)4.36
PEG (5Y)2.57
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 | 10.99 |
F-Score7
WACC11.62%
ROIC/WACC0.17
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 Y19.83%
EPS Next 2Y14.38%
EPS Next 3Y15.23%
EPS Next 5Y12.77%
Revenue 1Y (TTM)7.16%
Revenue growth 3Y9.25%
Revenue growth 5Y9.1%
Sales Q2Q%13.02%
Revenue Next Year6.66%
Revenue Next 2Y7.73%
Revenue Next 3Y8.28%
Revenue Next 5Y8.44%
EBIT growth 1Y264.66%
EBIT growth 3Y-72.51%
EBIT growth 5Y-60.29%
EBIT Next Year24.91%
EBIT Next 3Y22.03%
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%