ALTAIR ENGINEERING INC - A (ALTR) Stock Fundamental Analysis
NASDAQ:ALTR - Nasdaq - US0213691035 - Common Stock - Currency: USD
Taking everything into account, ALTR scores 5 out of 10 in our fundamental rating. ALTR was compared to 284 industry peers in the Software industry. While ALTR has a great health rating, its profitability is only average at the moment. ALTR is valied quite expensively at the moment, while 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.
ALTR had negative earnings in 4 of the past 5 years.
Each year in the past 5 years ALTR had a positive operating cash flow.
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.
ALTR has a Return On Equity of 1.65%. This is in the better half of the industry: ALTR outperforms 64.91% of its industry peers.
The Return On Invested Capital of ALTR (1.46%) is better than 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
ALTR's Profit Margin of 2.13% is fine compared to the rest of the industry. ALTR outperforms 64.91% of its industry peers.
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.
In the last couple of years the Operating Margin of ALTR has grown nicely.
ALTR has a better Gross Margin (81.25%) than 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
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
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
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.
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
ALTR has a Current 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.
Looking at the Current ratio, with a value of 1.61, ALTR is in line with its industry, outperforming 48.42% of the companies in the same industry.
A Quick Ratio of 1.61 indicates that ALTR should not have too much problems paying its short term obligations.
ALTR has a Quick ratio (1.61) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
ALTR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.92%, which is quite good.
ALTR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.77% yearly.
ALTR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.66%.
ALTR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.73% yearly.
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.
ALTR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.00% yearly.
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.
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
With a Price/Earnings ratio of 84.73, ALTR can be considered very expensive at the moment.
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 (26.35), we can say ALTR is valued expensively.
Based on the Price/Forward Earnings ratio of 81.56, the valuation of ALTR can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as ALTR.
ALTR's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.73 | ||
| Fwd PE | 81.56 |
4.2 Price Multiples
ALTR's Enterprise Value to EBITDA ratio is in line with 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.
The decent profitability rating of ALTR 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 |
111.85
+0.16 (+0.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners96.66%
Inst Owner Change-97.04%
Ins Owners2.18%
Ins Owner Change-18.61%
Market Cap9.60B
Analysts51.67
Price Target110.7 (-1.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/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)23.32%
Min EPS beat(2)0.29%
Max EPS beat(2)46.35%
EPS beat(4)4
Avg EPS beat(4)15.85%
Min EPS beat(4)0.29%
Max EPS beat(4)46.35%
EPS beat(8)8
Avg EPS beat(8)44.6%
EPS beat(12)12
Avg EPS beat(12)80.9%
EPS beat(16)16
Avg EPS beat(16)169.86%
Revenue beat(2)1
Avg Revenue beat(2)-1.38%
Min Revenue beat(2)-3.99%
Max Revenue beat(2)1.24%
Revenue beat(4)2
Avg Revenue beat(4)-0.8%
Min Revenue beat(4)-3.99%
Max Revenue beat(4)1.24%
Revenue beat(8)4
Avg Revenue beat(8)0.08%
Revenue beat(12)7
Avg Revenue beat(12)0.83%
Revenue beat(16)11
Avg Revenue beat(16)2.07%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-2.72%
EPS NY rev (1m)-6.27%
EPS NY rev (3m)-5.57%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-0.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.73 | ||
| Fwd PE | 81.56 | ||
| P/S | 14.41 | ||
| P/FCF | 68.54 | ||
| P/OCF | 62.28 | ||
| P/B | 11.19 | ||
| P/tB | 29.82 | ||
| EV/EBITDA | 154.74 |
EPS(TTM)1.32
EY1.18%
EPS(NY)1.37
Fwd EY1.23%
FCF(TTM)1.63
FCFY1.46%
OCF(TTM)1.8
OCFY1.61%
SpS7.76
BVpS9.99
TBVpS3.75
PEG (NY)21.76
PEG (5Y)2.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.98% | ||
| ROE | 1.65% | ||
| ROCE | 1.85% | ||
| ROIC | 1.46% | ||
| ROICexc | 3.53% | ||
| ROICexgc | N/A | ||
| OM | 2.66% | ||
| PM (TTM) | 2.13% | ||
| GM | 81.25% | ||
| FCFM | 21.03% |
ROA(3y)-1.09%
ROA(5y)-1.06%
ROE(3y)-2.41%
ROE(5y)-2.28%
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 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-10.9%
ROICexc growth 5Y14.86%
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%
F-Score7
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 1.62 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 33.41% | ||
| Cap/Sales | 2.12% | ||
| Interest Coverage | 4.08 | ||
| Cash Conversion | 257.46% | ||
| Profit Quality | 987.64% | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 | ||
| Altman-Z | 10.42 |
F-Score7
WACC10.46%
ROIC/WACC0.14
Cap/Depr(3y)28.88%
Cap/Depr(5y)30.63%
Cap/Sales(3y)1.82%
Cap/Sales(5y)1.75%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)18.92%
EPS 3Y24.74%
EPS 5Y32.77%
EPS Q2Q%13.04%
EPS Next Y3.89%
EPS Next 2Y11.57%
EPS Next 3Y10.79%
EPS Next 5YN/A
Revenue 1Y (TTM)8.66%
Revenue growth 3Y7.75%
Revenue growth 5Y7.73%
Sales Q2Q%4.59%
Revenue Next Year9.17%
Revenue Next 2Y8.23%
Revenue Next 3Y9%
Revenue Next 5YN/A
EBIT growth 1Y9207.89%
EBIT growth 3Y0.54%
EBIT growth 5Y16.62%
EBIT Next Year42.89%
EBIT Next 3Y16.18%
EBIT Next 5YN/A
FCF growth 1Y19.54%
FCF growth 3Y37.86%
FCF growth 5Y45.78%
OCF growth 1Y21.03%
OCF growth 3Y35.73%
OCF growth 5Y37.47%