111.85 USD
+0.16 (+0.14%)
112.71 USD
+0.86 (+0.77%)
Overall ALTR gets a fundamental rating of 5 out of 10. We evaluated ALTR against 278 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.
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 reported 4 times negative net income.
- ALTR had a positive operating cash flow in each of the past 5 years.
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.
- 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.
- ALTR's Operating Margin of 2.66% is fine compared to the rest of the industry. ALTR outperforms 67.72% of its industry peers.
- ALTR's Operating Margin has improved in the last couple of years.
- ALTR's Gross Margin of 81.25% is amongst the best of 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
- 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.
- Compared to 5 years ago, ALTR has more shares outstanding
- The debt/assets ratio for ALTR has been reduced compared to a year ago.
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.
- There is no outstanding debt for ALTR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and 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 (1.61) which is comparable to the rest of the industry.
- 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.
- ALTR has a Quick ratio (1.61) which is comparable to the rest of the industry.
| 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.
- ALTR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.77% yearly.
- Looking at the last year, ALTR shows a quite strong growth in Revenue. The Revenue has grown by 8.66% in the last year.
- 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
- ALTR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.79% yearly.
- 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
- 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 84.73.
- The rest of the industry has a similar Price/Earnings ratio as ALTR.
- When comparing the Price/Earnings ratio of ALTR to the average of the S&P500 Index (28.60), we can say ALTR is valued 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.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, ALTR is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.73 | ||
| Fwd PE | 81.56 |
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.
- The rest of the industry has a similar Price/Free Cash Flow ratio as ALTR.
| 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 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%
5. Dividend
5.1 Amount
- ALTR does not give a dividend.
| 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.