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 is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. ALTR is valued quite expensive, but it does show an excellent growth. These ratings would make ALTR suitable for growth investing!
1. Profitability
1.1 Basic Checks
ALTR had positive earnings in the past year.
In the past year ALTR had a positive cash flow from operations.
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
ALTR has a better Return On Assets (0.69%) than 65.58% of its industry peers.
Looking at the Return On Equity, with a value of 1.25%, ALTR is in the better half of the industry, outperforming 67.75% of the companies in the same industry.
ALTR's Return On Invested Capital of 1.16% is fine compared to the rest of the industry. ALTR outperforms 68.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.69% | ||
| ROE | 1.25% | ||
| ROIC | 1.16% |
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's Profit Margin of 1.54% is fine compared to the rest of the industry. ALTR outperforms 66.67% of its industry peers.
ALTR has a better Operating Margin (2.57%) than 68.48% of its industry peers.
In the last couple of years the Operating Margin of ALTR has declined.
With an excellent Gross Margin value of 80.64%, ALTR belongs to the best of the industry, outperforming 82.25% of the companies in the same industry.
ALTR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.57% | ||
| PM (TTM) | 1.54% | ||
| GM | 80.64% |
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
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.
ALTR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ALTR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 8.55 indicates that ALTR is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.55, ALTR belongs to the top of the industry, outperforming 82.25% of the companies in the same industry.
The Debt to FCF ratio of ALTR is 2.36, which is a good value as it means it would take ALTR, 2.36 years of fcf income to pay off all of its debts.
ALTR has a Debt to FCF ratio of 2.36. This is in the better half of the industry: ALTR outperforms 65.94% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that ALTR is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.30, ALTR is in line with its industry, outperforming 40.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 8.55 |
ROIC/WACC0.12
WACC9.91%
2.3 Liquidity
A Current Ratio of 2.46 indicates that ALTR has no problem at all paying its short term obligations.
ALTR has a Current ratio of 2.46. This is in the better half of the industry: ALTR outperforms 71.74% of its industry peers.
ALTR has a Quick Ratio of 2.46. This indicates that ALTR is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.46, ALTR is in the better half of the industry, outperforming 72.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 2.46 |
3. Growth
3.1 Past
ALTR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.29%, which is quite impressive.
ALTR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.68% yearly.
ALTR shows a small growth in Revenue. In the last year, the Revenue has grown by 7.11%.
The Revenue has been growing by 9.10% on average over the past years. This is quite good.
EPS 1Y (TTM)35.29%
EPS 3Y52.99%
EPS 5Y33.68%
EPS Q2Q%11.11%
Revenue 1Y (TTM)7.11%
Revenue growth 3Y9.25%
Revenue growth 5Y9.1%
Sales Q2Q%4.14%
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 12.15% yearly.
Based on estimates for the next years, ALTR will show a quite strong growth in Revenue. The Revenue will grow by 10.64% on average per year.
EPS Next Y14.04%
EPS Next 2Y13.06%
EPS Next 3Y12.16%
EPS Next 5YN/A
Revenue Next Year6.92%
Revenue Next 2Y8.09%
Revenue Next 3Y9.03%
Revenue Next 5Y10.64%
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
Based on the Price/Earnings ratio of 84.01, the valuation of ALTR can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as ALTR.
The average S&P500 Price/Earnings ratio is at 28.39. ALTR is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 68.09, which means the current valuation is very expensive for ALTR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALTR is on the same level as its industry peers.
ALTR's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 19.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.01 | ||
| Fwd PE | 68.09 |
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 | 61.56 | ||
| EV/EBITDA | 141.64 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as ALTR's earnings are expected to grow with 12.15% in the coming years.
PEG (NY)5.98
PEG (5Y)2.49
EPS Next 2Y13.06%
EPS Next 3Y12.16%
5. Dividend
5.1 Amount
No dividends for ALTR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ALTAIR ENGINEERING INC - A
NASDAQ:ALTR (6/14/2024, 7:00:00 PM)
After market: 96.91 +0.3 (+0.31%)96.61
-0.33 (-0.34%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.02B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.01 | ||
| Fwd PE | 68.09 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)5.98
PEG (5Y)2.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.69% | ||
| ROE | 1.25% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.57% | ||
| PM (TTM) | 1.54% | ||
| GM | 80.64% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.46 | ||
| Quick Ratio | 2.46 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)35.29%
EPS 3Y52.99%
EPS 5Y
EPS Q2Q%
EPS Next Y14.04%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.11%
Revenue growth 3Y9.25%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y