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 276 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. 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.
In the past 5 years ALTR always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of -0.66%, ALTR is doing good in the industry, outperforming 67.52% of the companies in the same industry.
Looking at the Return On Equity, with a value of -1.27%, ALTR is in the better half of the industry, outperforming 69.71% of the companies in the same industry.
ALTR has a better Return On Invested Capital (0.01%) than 67.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.66% | ||
| ROE | -1.27% | ||
| ROIC | 0.01% |
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
Looking at the Operating Margin, with a value of 0.03%, ALTR is in the better half of the industry, outperforming 67.52% of the companies in the same industry.
In the last couple of years the Operating Margin of ALTR has declined.
With an excellent Gross Margin value of 80.13%, ALTR belongs to the best of the industry, outperforming 82.12% of the companies in the same industry.
ALTR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.03% | ||
| PM (TTM) | N/A | ||
| GM | 80.13% |
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.
Compared to 1 year ago, ALTR has more shares outstanding
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 7.03 indicates that ALTR is not in any danger for bankruptcy at the moment.
ALTR has a Altman-Z score of 7.03. This is in the better half of the industry: ALTR outperforms 78.47% of its industry peers.
The Debt to FCF ratio of ALTR is 2.62, which is a good value as it means it would take ALTR, 2.62 years of fcf income to pay off all of its debts.
ALTR has a Debt to FCF ratio of 2.62. This is in the better half of the industry: ALTR outperforms 67.88% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that ALTR is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.32, ALTR perfoms like the industry average, outperforming 44.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.62 | ||
| Altman-Z | 7.03 |
ROIC/WACC0
WACC9.72%
2.3 Liquidity
ALTR has a Current Ratio of 2.16. This indicates that ALTR is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of ALTR (2.16) is better than 63.14% of its industry peers.
A Quick Ratio of 2.16 indicates that ALTR has no problem at all paying its short term obligations.
ALTR has a better Quick ratio (2.16) than 63.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 2.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.59% over the past year.
The Earnings Per Share has been growing by 33.68% on average over the past years. This is a very strong growth
Looking at the last year, ALTR shows a small growth in Revenue. The Revenue has grown by 7.06% in the last year.
The Revenue has been growing by 9.10% on average over the past years. This is quite good.
EPS 1Y (TTM)27.59%
EPS 3Y52.99%
EPS 5Y33.68%
EPS growth Q2Q48.39%
Revenue 1Y (TTM)7.06%
Revenue growth 3Y9.25%
Revenue growth 5Y9.1%
Revenue growth Q2Q6.92%
3.2 Future
The Earnings Per Share is expected to grow by 13.95% on average over the next years. This is quite good.
ALTR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.64% yearly.
EPS Next Y16.6%
EPS Next 2Y14.4%
EPS Next 3Y13.95%
EPS Next 5YN/A
Revenue Next Year8.69%
Revenue Next 2Y8.78%
Revenue Next 3Y9.56%
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
ALTR is valuated quite expensively with a Price/Earnings ratio of 74.29.
Compared to the rest of the industry, the Price/Earnings ratio of ALTR is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 24.84, ALTR is valued quite expensively.
Based on the Price/Forward Earnings ratio of 63.71, the valuation of ALTR can be described as expensive.
ALTR's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.35, ALTR is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.29 | ||
| Fwd PE | 63.71 |
4.2 Price Multiples
61.68% of the companies in the same industry are more expensive than ALTR, based on the Enterprise Value to EBITDA ratio.
ALTR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.46 | ||
| EV/EBITDA | 172.45 |
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 13.95% in the coming years.
PEG (NY)4.48
PEG (5Y)2.21
EPS Next 2Y14.4%
EPS Next 3Y13.95%
5. Dividend
5.1 Amount
No dividends for ALTR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ALTAIR ENGINEERING INC - A
NASDAQ:ALTR (4/29/2024, 3:30:01 PM)
After market: 82.46 0 (0%)82.46
-1.12 (-1.34%)
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 Cap6.85B
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 74.29 | ||
| Fwd PE | 63.71 | ||
| 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)4.48
PEG (5Y)2.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.66% | ||
| ROE | -1.27% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.03% | ||
| PM (TTM) | N/A | ||
| GM | 80.13% | ||
| 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 | 0.32 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.16 | ||
| Quick Ratio | 2.16 | ||
| 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)
Growth
EPS 1Y (TTM)27.59%
EPS 3Y52.99%
EPS 5Y
EPS growth Q2Q
EPS Next Y16.6%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.06%
Revenue growth 3Y9.25%
Revenue growth 5Y
Revenue growth 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